MDU Resources Group, Inc. has undergone significant strategic changes and financial developments in the recent fiscal period, particularly with the separation of its construction services business, Knife River, and the upcoming separation of Everus. The Knife River separation was completed on May 31, 2023, resulting in the distribution of approximately 90% of its shares to stockholders, while MDU retained about 10% (5.7 million shares), which were later disposed of in a tax-free exchange in November 2023. The financial results of Knife River are now classified as discontinued operations, except for certain corporate overhead costs.

For the three months ended September 30, 2024, MDU reported operating revenues of $1,050.5 million, a slight increase from $1,000.8 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues decreased to $3,311.9 million from $3,522.0 million year-over-year. The company’s operating income for the third quarter rose to $90.8 million, compared to $84.6 million in 2023, while net income for the same period decreased to $64.6 million from $74.9 million.

The company’s core operations are organized into four segments: electric, natural gas distribution, pipeline, and construction services. The electric segment generated $108.4 million in revenues for the third quarter, slightly up from $108.1 million in 2023. The natural gas distribution segment saw a decline to $133.5 million from $134.9 million, while the pipeline segment increased to $44.2 million from $36.5 million.

MDU's financial position reflects a carrying amount of long-term debt of $2,452.3 million as of September 30, 2024, up from $2,341.1 million a year earlier. The company remains compliant with all covenants and conditions of its debt agreements. Additionally, MDU has filed for various rate increases with regulatory bodies to recover investments in system upgrades and increased operating costs, including a natural gas general rate increase of approximately $9.4 million annually in Montana.

The company has also reported an increase in receivables past due by 90 days or more, rising to $79.9 million as of September 30, 2024, compared to $51.1 million a year prior. Expected credit losses have shown fluctuations, with total expected credit losses at $8.7 million as of September 30, 2024.

Overall, MDU Resources Group is focusing on its regulated energy delivery business while navigating the complexities of its recent separations and regulatory challenges.