MDU Resources — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net income was $14.0 million for the three months ended September 30, 2026, compared to $18.4 million in the same period in 2025.
• Diluted earnings per share (EPS) were $0.07 for the quarter, down from $0.09 in the prior year period.
• Adjusted net income was $16.6 million for the quarter, compared to $18.4 million in 2025; adjusted diluted EPS was $0.08 versus $0.09 in 2025.
• For the nine months ended September 30, 2026, consolidated net income was $116.1 million compared to $114.1 million in 2025.
• Diluted EPS for the nine-month period was $0.55 in 2026 versus $0.56 in 2025.
• Adjusted net income for the nine months was $119.4 million compared to $114.1 million in 2025; adjusted diluted EPS was $0.57 versus $0.56 in 2025.
• Operating revenues were $347.8 million for the quarter, up from $315.1 million in 2025.
• Operating revenues were $1,329.0 million for the nine months, down from $1,341.1 million in 2025.
• Net cash provided by operating activities was $347.6 million for the nine months ended September 30, 2026, compared to $392.8 million in 2025.
• Net cash used in investing activities was $344.3 million for the nine months ended September 30, 2026, compared to $359.8 million in 2025.
• Total debt was $2,595 million as of September 30, 2026, compared to $2,353 million in 2025.
• Total equity was $2,971 million as of September 30, 2026, compared to $2,723 million in 2025.
• Book value per common share was $13.92 as of September 30, 2026, compared to $13.33 in 2025.

Guidance and Future Outlook:

• The company reaffirmed its 2026 guidance, expecting earnings per share to be in the range of $0.93 to $1.00.
• Long-term earnings-per-share growth objective remains 6% to 8%.
• Expected 2026 results assume normal weather, economic and operating conditions, continued customer growth, successful execution of approved capital investment programs, and constructive regulatory outcomes.
• Construction of the Bakken East Pipeline is expected to occur during the 2028-2030 construction seasons, with facilities placed in service in two phases: the first phase (Bakken to central North Dakota) targeted for late 2029, and the second phase (extending to Mapleton) targeted for late 2030.
• The FERC Section 7(c) application for the Bakken East Pipeline is anticipated to be filed during the fourth quarter of 2026.
• The Line Section 32 Expansion Project targets a late-2028 in-service date, subject to regulatory approvals.

Business Segments and Product Lines:

• Electric Utility: Earned $26.5 million in the third quarter of 2026, an increase of 23.6% from $21.5 million in 2025.
  • New rates contributed $7.1 million in revenue for the quarter.
  • Badger Wind Farm contributed $3.2 million in earnings for the quarter.
  • Total retail electric sales increased 9.3%, with sales to data center customers increasing 18.4%.
• Natural Gas Distribution: Recorded a seasonal net loss of $20.7 million in the third quarter of 2026, compared to a loss of $18.2 million in 2025.
  • New rates contributed $6.5 million in additional revenue.
  • Retail sales volumes increased 7.1%, and customer growth was 1.5% year over year.
  • Results were impacted by a $2.1 million net of tax loss related to the discontinued Knott Landfill renewable natural gas project and higher operation and maintenance expenses.
• Pipeline: Earned $13.1 million in the third quarter of 2026, down from $16.8 million in 2025.
  • Results were impacted by higher operation and maintenance expense, advisory costs associated with Bakken East, and lower interruptible transportation volumes and storage injections.
  • Offsetting factors included increased demand revenue from short-term contracts and growth projects (Minot Expansion and Line Section 22 Expansion).
• Other: Reported a net loss of $4.9 million in the third quarter of 2026, compared to a loss of $1.7 million in 2025, primarily due to higher claims experience at the captive insurer and higher income tax expense.
• Bakken East Pipeline: Board reached a positive final investment decision on September 30, 2026. Estimated capital investment range narrowed to $2.8 billion to $3.1 billion (previously $2.7 billion to $3.2 billion). The 350-mile pipeline will have an initial capacity of 1.4 billion cubic feet of natural gas per day.

Market and Competitive Landscape:

• Growing demand from large-load customers, including data centers, continues to provide opportunities for increased electric sales.
• The company follows a cost causation principle, assigning infrastructure and service costs specifically needed to serve large-load customers through contracts, tariffs, and regulatory approvals.
• The Bakken East Pipeline is designed to strengthen energy infrastructure to support a range of industries and economic activity in North Dakota.

Risks and Challenges:

• Natural gas distribution segment results were negatively affected by the decision to discontinue the Knott Landfill renewable natural gas project, resulting in a $2.1 million net of tax loss.
• Pipeline segment results were impacted by advisory costs associated with the Bakken East Pipeline that did not qualify for capitalization.
• Higher operation and maintenance expenses, including payroll-related costs and material costs, impacted segment earnings.
• Lower returns on nonqualified benefit plan investments contributed to reduced earnings in the electric and pipeline segments.
• Higher interest expense, resulting from higher long-term debt balances, impacted the natural gas distribution segment.
• Forward-looking statements are subject to risks and uncertainties including regulatory approvals, weather, economic conditions, and capital investment execution.

Management Commentary and Tone:

• Nicole A. Kivisto, President and CEO, stated the company continued to execute its CORE strategy with strong electric utility performance and advancement of strategic growth initiatives.
• Management noted that electric utility earnings benefited from new rates, Badger Wind Farm, and higher retail sales volumes.
• Management highlighted the positive final investment decision on Bakken East as a significant milestone positioning the company for long-term growth.
• Emphasis was placed on employees as the foundation for safely serving customers while advancing growth opportunities.

Other Key Points:

• Regulatory Updates (Electric):
  • North Dakota: Interim rates reflecting a $26.3 million annual revenue increase became effective September 1, 2026, subject to refund; a rate case requesting a $34.5 million increase remains pending.
  • Montana: Interim rates reflecting a $10.4 million annual revenue increase have been in effect since April 1, 2026, subject to refund; a settlement agreement for a $10.0 million increase is pending.
  • Wyoming: Final rates reflecting a $5.8 million annual revenue increase became effective April 1, 2026.
• Regulatory Updates (Natural Gas Distribution):
  • Washington: A multiyear rate case requests annual revenue increases of $25.1 million in year one and $18.1 million in year two; case remains pending.
  • Idaho: Final rates reflecting a $13.0 million annual revenue increase are in effect since January 1, 2026.
  • Oregon: A $12.2 million annual revenue increase was approved with final rates effective October 31, 2026.
  • Minnesota: A rate case filed October 30, 2026, requests a $4.5 million annual increase; an interim increase of $3.9 million was also filed for potential implementation January 1, 2027.
• Regulatory Updates (Pipeline):
  • FERC: WBI Energy filed a rate case May 29, 2026, seeking a $31 million annual revenue increase; FERC accepted and suspended proposed rates on June 30, 2026, with rates to become effective December 1, 2026, subject to refund.
• Capital Expenditures: Estimated 2026 capital expenditures total $594 million ($102 million Electric, $327 million Natural Gas Distribution, $165 million Pipeline).
• Conference Call: MDU Resources webcast its third quarter 2026 earnings conference call on November 5, 2026, at 2 p.m. ET.