MDU Resources (MDU) - 2024 Q4 - Annual Results

Financial Performance - Net income for 2024 was $281.1 million, a decrease of 32.2% from$ 414.7 million in 2023[2] - The company reported a net income of $55.2 million for Q4 2024, down from$ 170.7 million in Q4 2023, with income from continuing operations at $70.5 million compared to$ 136.2 million in the previous year[26] - Adjusted income from continuing operations for Q4 2024 was $70.5 million, an increase from$ 64.0 million in Q4 2023, while adjusted earnings per share rose to $0.34 from$ 0.31[26] - The natural gas distribution business reported a net income of $46.9 million for the full year, down from$ 48.5 million in 2023, primarily due to higher operation and maintenance expenses[32] - The Other segment's net income for the full year was $91.4 million, down 63% from$ 247.7 million in 2023, largely due to the absence of a prior year gain related to the tax-free exchange of retained shares in Knife River[39] Revenue and Earnings Growth - Regulated energy delivery earnings increased by 13.6% year-over-year, totaling $189.7 million[3] - The electric utility segment's earnings increased by 4.5% year-over-year, totaling$ 74.8 million[8] - The pipeline segment achieved record earnings of $68.0 million, up 45.0% year-over-year[8] - Operating revenues for the pipeline business increased by 19% to$ 211.8 million in 2024, compared to $177.6 million in 2023[34] - The pipeline business reported a 37% increase in operating income for the full year, reaching$ 94.5 million, up from $69.2 million in 2023[34] Capital Investment and Future Expectations - MDU Resources plans a capital investment of$ 533 million for 2025[11] - For 2025, the company expects earnings per share to be in the range of $0.88 to$ 0.98[11] - The company anticipates a long-term compound annual growth of 7% to 8% on utility rate base and 1% to 2% on customer growth annually[11] Operational Metrics - Record annual pipeline transportation volumes rose by 8.1% year-over-year[3] - The utility rate base grew by 6.8% year-over-year[3] - Transportation volumes for the pipeline business increased to 613.2 MMdk for the full year, compared to 567.2 MMdk in 2023[34] - The company experienced a 4% increase in retail sales volumes in the natural gas distribution segment, primarily driven by residential and commercial customers[31] Cost and Expense Management - Operating revenues for the electric business decreased by 7% to $99.0 million in Q4 2024, while total operating expenses fell by 8% to$ 78.3 million[27] - Costs attributable to strategic initiatives for 2024 amounted to $4.4 million, net of tax, compared to$ 1.1 million in Q4 2023[26] - The average cost of electric fuel and purchased power per kWh decreased to $0.021 in Q4 2024 from$ 0.027 in Q4 2023[27] - The average cost of natural gas per dk increased to $6.04 in Q4 2024 from$ 5.65 in Q4 2023[29] Asset and Equity Position - Total assets as of December 31, 2024, were $7,039 million, with total equity of$ 2,691 million and total debt of $2,293 million[42] - The book value per common share was$ 13.19, while the market price per common share was $18.02, reflecting a market value of 136.6% of book value[42] Corporate Actions - MDU Resources completed the spinoff of Everus Construction Group on October 31, 2024, reporting related results as discontinued operations[9] - The company completed the separations of Knife River and Everus into independent publicly-traded companies, impacting historical results shown in discontinued operations[36]