MDU Resources reports US$14M quarterly profit and keeps earnings outlook
Electric utility earnings rose, while MDU narrowed Bakken East's estimated capital investment to US$2.8B to US$3.1B.
Ines Halvorsen
For the quarter ended Sept. 30, net income fell to US$14.0 million from US$18.4 million at MDU Resources Group, Inc. NYSEMDU, which reaffirmed its 2026 earnings guidance on Thursday. The regulated energy delivery company retained its full-year earnings range of US$0.93 to US$1.00 per share in its Nov. 5 release.
Diluted earnings fell to US$0.07 per share from US$0.09 in the third quarter of 2025. Adjusted earnings were US$0.08 per share, excluding discontinued renewable gas development costs and Bakken East Pipeline advisory costs.
MDU shares traded at US$19.78, down 0.2 per cent, on the NYSE at 9:38 a.m. EST on Thursday, according to NYSEMDU.
The board made a positive final investment decision on Bakken East on Sept. 30. In its Nov. 5 update, MDU narrowed estimated capital investment to US$2.8 billion to US$3.1 billion, while continuing to evaluate financing structures.
The electric utility earned US$26.5 million in the third quarter, compared with US$21.5 million a year earlier. New rates added US$7.1 million in quarterly revenue, while Badger Wind Farm contributed US$3.2 million in earnings.
Retail electric sales volumes rose 9.3 per cent from the third quarter of 2025. Sales to data-centre customers increased 18.4 per cent over the same period.
"Electric utility earnings increased, benefiting from new rates, Badger Wind Farm and higher retail sales volumes," MDU president and chief executive Nicole A. Kivisto said in the release.
Natural gas distribution recorded a seasonal third-quarter loss of US$20.7 million, compared with US$18.2 million a year earlier. The segment's results included a US$2.1 million after-tax loss from discontinuing development of the Knott Landfill renewable natural gas project.
For the nine months ended Sept. 30, net income rose to US$116.1 million from US$114.1 million a year earlier.
Bakken East Still Needs Financing And Regulatory Approval
The Nov. 5 release says Bakken East remains subject to regulatory approval. MDU is considering financial or strategic investors while expecting its WBI Energy business to retain majority ownership and operational control.
The pipeline is designed for initial capacity of 1.4 billion cubic feet per day, with service scheduled in phases in late 2029 and late 2030. Construction is expected during the 2028 through 2030 construction seasons.
MDU's utility investment recovery also depends on rate proceedings. According to the Nov. 5 release, North Dakota interim electric rates reflecting US$26.3 million in additional annual revenue took effect Sept. 1, subject to refund.
A regional gas utility peer, Southwest Gas Holdings, Inc. NYSESWX, reported Nov. 4 that it invested nearly US$806 million in infrastructure modernization and expansion during the first nine months of 2026. That figure is on an accrual basis, rather than a cash-spending measure.
Read more: Southwest Gas Holdings reports US$12.8M continuing-operations profit
MDU's Nov. 5 presentation identifies Dec. 1, 2026, as the effective date for new Federal Energy Regulatory Commission pipeline rates, subject to refund. Bakken East's first phase, running from the Bakken to central North Dakota, remains scheduled for completion in late 2029.
