MDU Resources Group NYSE: MDU reported second-quarter 2026 earnings of $21.3 million, or $0.10 per share, up from $13.7 million, or $0.07 per share, a year earlier, as new utility rates, customer growth, renewable investments and higher retail sales volumes supported results.
For the first six months of 2026, the company earned $102.1 million, or $0.49 per share, compared with $95.7 million, or $0.47 per share, in the prior-year period.
President and Chief Executive Officer Nicole Kivisto said the company’s quarter reflected continued execution across its regulated utility and pipeline operations. She also highlighted progress on the proposed Bakken East Pipeline Project, data center electric-service agreements and regulatory activity across the company’s service territories.
Pipeline project advances toward regulatory filing
MDU said it has executed precedent agreements with all customers that submitted binding open-season interest for the Bakken East Pipeline Project. The agreements total nearly 1.2 billion cubic feet per day of transportation capacity. A negotiated option could raise contracted volumes to nearly all of the original binding open-season interest, according to Kivisto.
The company continues to design Bakken East for 1.4 billion cubic feet per day of capacity. Project design is being finalized based on confirmed customer volumes and delivery locations, with a final investment decision expected before the company files an application under Section 7(c) with the Federal Energy Regulatory Commission.
The FERC filing is now anticipated in the fourth quarter of 2026, later than a previously contemplated third-quarter schedule as precedent-agreement negotiations took longer than expected. The project’s planned in-service dates remain late 2029 for phase one and late 2030 for phase two.
MDU estimates the project could cost between $2.7 billion and $3.2 billion, an amount that would be incremental to its existing capital program. Chief Financial Officer Jason Vollmer said the company is considering financing, partnership and other commercial alternatives, and believes there is “good appetite” for assets of this type.
Vollmer said the company expects to provide more detail on the capital implications once it reaches a final investment decision. MDU typically updates its capital plan in late November, following its third-quarter board meeting.
While the pipeline is being designed for current demand, Vollmer said it could potentially be expanded later if additional demand emerges. Such an expansion could require additional capital, including for compression.
Data center agreements and electric regulatory activity
MDU entered into an electric service agreement with Applied Digital to serve Polaris Forge 3, an AI factory near Center, North Dakota. At full capacity, the campus would require 430 megawatts of electricity. Approval from the North Dakota Public Service Commission, along with other regulatory filings, remains pending.
The company said it now has more than 1 gigawatt of data center load under signed electric service agreements, including approximately 240 megawatts currently online. Additional load is expected over the next several years as more buildings are constructed.
Kivisto said MDU’s approach to data centers is intended to protect existing customers while allowing communities to benefit from new development. Under the company’s model, data center customers pay costs associated with connecting to and receiving electric service, including infrastructure and energy-related costs. MDU also said the added revenue can support the electric system and reduce some fixed costs for existing retail customers through a broader customer base.
She said the company is continuing to engage with communities and communicate the potential customer and community benefits of serving data center load. The company does not currently include the pending Center-area agreement in its financial guidance or long-term growth outlook.
On June 30, MDU filed a North Dakota electric general rate case seeking an annual revenue increase of about $34.5 million. The filing includes a request for interim rates totaling approximately $26.3 million annually beginning Sept. 1. The company cited electric infrastructure investments, depreciation, reliability and safety investments, and higher operations and maintenance expense.
In Montana, interim electric rates reflecting an annual increase of approximately $10.4 million remain in effect subject to refund. A $10 million settlement agreement has been filed and is awaiting commission approval. In Wyoming, a settlement in the company’s general rate case was approved for an annual increase of $5.8 million, with rates effective April 1.
The North Dakota Public Service Commission also approved the route permit for the Jamestown-to-Ellendale transmission project in June. MDU said the project is expected to improve reliability and resiliency, ease transmission congestion and support access to lower-cost energy in the region.
Segment results and capital plan
The electric utility segment earned $14.7 million in the second quarter, up from $10.4 million a year ago. The increase included higher retail sales revenue and recovery mechanisms tied to renewable investments, including a $3.3 million quarterly earnings contribution from the Badger Wind Farm. Interim Montana rates, new Wyoming rates and higher retail sales volumes across major customer classes also contributed.
MDU’s natural gas distribution segment reported a seasonal loss of $3.9 million, compared with a $7.4 million loss in the second quarter of 2025. New rates in Idaho, Washington, Montana and Wyoming, as well as higher retail volumes and customer growth, improved results. Retail sales volumes rose 6.7% year over year and customer growth was 1.6%, though higher interest expense partially offset those benefits.
The pipeline segment earned $14.4 million, compared with $15.4 million a year earlier. Lower other income and higher depreciation and amortization expense related to a growth project placed into service weighed on the comparison. Those effects were partly offset by demand for short-term transportation contracts, interruptible storage services and contributions from previous growth projects.
MDU’s pipeline business also filed a FERC rate case on May 29 seeking a $31 million annual revenue increase. About 30% of the request relates to proposed new depreciation and amortization rates. FERC accepted and suspended the proposed rates, which are scheduled to become effective Dec. 1, subject to refund and the outcome of settlement discussions or hearing procedures.
The company reaffirmed its 2026 earnings guidance of $0.93 to $1.00 per share and its long-term earnings-per-share growth objective of 6% to 8%. Its 2026-through-2030 capital program totals about $3.1 billion, including approximately $1.1 billion for electric operations, $1.4 billion for natural gas distribution and $643 million for pipeline investments.
About MDU Resources Group (NYSE:MDU)
MDU Resources Group, Inc is a diversified energy and services holding company headquartered in Bismarck, North Dakota. The company operates through two primary segments: Utilities and Construction Services and Pipelines & Midstream. Serving a broad geographic footprint across the upper Midwest and Pacific Northwest, MDU provides essential energy distribution and infrastructure services to residential, commercial and industrial customers.
The Utilities segment delivers electric and natural gas distribution services in Montana, North Dakota, South Dakota, Minnesota, Kansas, Wisconsin, Michigan and Washington.
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