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MDU RESOURCES GROUP INC

For the period ended Jun 30, 2024. Filed Aug 8, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 8, 2024

MDU$19.25+3.3%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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. Business segment data

Index

Note 15 -Business segment data

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The Company's operations are located within the United States.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides non-regulated energy-related services, including cathodic protection.

The construction services segment provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to utilities, manufacturing, transportation, commercial, industrial, institutional, renewable and governmental customers. Its electrical and mechanical contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its transmission and distribution contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as manufacturing and supplying transmission and distribution line construction equipment and tools.

The Other category includes the activities of Centennial Capital, which, through its subsidiary InterSource Insurance Company, insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the self-insured layers of the insured Company's general liability, automobile liability, pollution liability and other coverages. Centennial Capital also owns certain real and personal property. In addition, the Other category includes certain assets, liabilities and tax adjustments of the holding company primarily associated with corporate functions, as well as costs associated with certain strategic initiatives. Also included are certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to Knife River, Fidelity and the refining business which do not meet the criteria for income (loss) from discontinued operations.

Discontinued operations includes Knife River's operations, associated separation costs and interest on debt facilities repaid in connection with the Knife River separation. Discontinued operations also includes the supporting activities of Fidelity other than certain general and administrative costs and interest expense as described above.

Index

The information below follows the same accounting policies as described in Note 2 of the Notes to Consolidated Financial Statements in the 2023 Annual Report. Information on the Company's segments was as follows:

Three Months Ended · Six Months Ended
June 30,June 30,
2024202320242023
(In thousands)
External operating revenues:
Regulated operations:
Electric$99,157$90,989$206,883$186,686
Natural gas distribution201,431218,995660,901784,590
Pipeline39,95630,50858,77743,147
340,544340,492926,5611,014,423
Non-regulated operations:
Pipeline3,8753,7016,0665,536
Construction services703,124746,9331,328,7261,501,265
Other2—17—
707,001750,6341,334,8091,506,801
Total external operating revenues$1,047,545$1,091,126$2,261,370$2,521,224
Intersegment operating revenues:
Regulated operations:
Electric$64$27$93$55
Natural gas distribution4969105139
Pipeline8,8547,69939,12933,958
8,9677,79539,32734,152
Non-regulated operations:
Pipeline201219236230
Construction services249—336—
Other1,4163,1512,8334,723
1,8663,3703,4054,953
Total intersegment operating revenues$10,833$11,165$42,732$39,105
Operating income (loss):
Electric$18,631$21,561$41,419$42,654
Natural gas distribution1,2042,42859,44260,932
Pipeline23,27213,88645,92226,926
Construction services51,30954,31090,19389,527
Other(4,670)(10,154)(11,283)(19,486)
Total operating income$89,746$82,031$225,693$200,553
Income (loss) from continuing operations:
Regulated operations:
Electric$15,527$16,338$33,396$32,945
Natural gas distribution(5,007)(3,157)35,06335,771
Pipeline16,8408,65132,24417,580
27,36021,832100,70386,296
Non-regulated operations:
Pipeline41928673(172)
Construction services38,97141,16767,18669,976
Other(6,176)84,348(6,490)75,408
33,214125,80160,769145,212
Income from continuing operations60,574147,633161,472231,508
Discontinued operations, net of tax(138)(16,941)(138)(62,464)
Net income$60,436$130,692$161,334$169,044

Index

A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:

Three Months Ended · Six Months Ended
June 30,June 30,
2024202320242023
(In thousands)
Operating revenues reconciliation:
Total reportable segment operating revenues$1,056,960$1,099,140$2,301,252$2,555,606
Other revenue1,4183,1512,8504,723
Elimination of intersegment operating revenues(10,833)(11,165)(42,732)(39,105)
Total consolidated operating revenues$1,047,545$1,091,126$2,261,370$2,521,224
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