#United States #Energy Infrastructure #Capital Investment #MDU Resources #Bismarck, North Dakota

MDU Resources Group Announces $3.4 Billion Capital Investment Plan

MDU Resources Group, Inc., a key player in the energy sector, has recently revealed its ambitious capital investment strategy for the years 2026 through 2030. This plan, amounting to a substantial $3.4 billion, marks a significant increase from the previous investment forecast of $3.1 billion for 2025 to 2029. With this elevated investment, MDU Resources aims to enhance its electric utility, natural gas distribution, and pipeline infrastructure, demonstrating its commitment to delivering safe and environmentally responsible energy solutions.

Commitment to Sustainable Growth

The latest five-year plan reflects an impressive 34% boost over the preceding five years from 2021 to 2025, highlighting MDU Resources' focus on sustainable growth as a dedicated regulated energy delivery business. Nicole Kivisto, the president and CEO of MDU Resources, articulated the company's mission: “Our capital investment plan for 2026 through 2030 reflects our commitment to building the energy infrastructure that communities depend on.” She emphasized the investments are geared towards serving an expanding customer base while updating and fortifying systems for future needs and generating long-term value for shareholders.

Planned Capital Expenditures by Segment

The breakdown of capital expenditures as planned by MDU Resources reveals focused increases across its regulated sectors:


These investments are designed to fund system upgrades, enhance infrastructure for natural gas distribution, and support pipeline expansions to meet burgeoning demand.

Focus Areas and Future Projects

In the electric utility domain, MDU Resources' capital investments will fund essential system upgrades and improvements. Notably, they are set to finalize payments for acquiring a 49% stake in the Badger Wind Farm by 2026. This initiative complements the ongoing Jamestown to Ellendale transmission line (JETx) project, expected to be energized between late 2028 and early 2029.

On the natural gas side, the investments will prioritize replacements, expansions, and modernization efforts aimed at addressing the needs of a growing customer base, particularly in regions experiencing rapid economic and demographic changes.

MDU Resources' pipeline segment will continue to pursue customer-driven projects. Key proposals include the Line Section 32 Expansion Project, which focuses on supporting power generation while the Minot Industrial Expansion Project aims to meet industrial demand in the area.

Financial Strategy and Growth Outlook

To back its ambitious capital expenditure plans, MDU Resources anticipates raising equity between $150 million to $175 million in 2026, followed by $100 million to $125 million in 2027. The company’s strategy emphasizes leveraging both internally generated cash flows and debt financing to fund these growth initiatives. Equity requirements post-2027 will undergo a review as longer-term investment plans evolve.

MDU Resources asserts that this robust capital investment plan positions the organization to achieve an annual rate base growth of 7% to 8% across its regulated operations, while maintaining a consistent long-term earnings per share growth target of 6% to 8%.

Conclusion

The $3.4 billion capital investment plan from MDU Resources Group underscores its unwavering commitment to enhancing energy infrastructure. By focusing on sustainable practices and long-term growth, MDU aims to not only serve its customer base but also create enduring value for shareholders. As the landscape of energy delivery continues to evolve, MDU Resources remains at the forefront, dedicated to building a stronger, more resilient energy future for the communities it serves.