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Released May 03, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy services provider MDU Resources Group Incorporated (NYSE:MDU) (Bismarck, North Dakota) enjoyed strong results in its regulated pipeline business during the first quarter, complemented by higher retail sales volumes for electricity and natural gas. The company is building out many of its busiest pipeline and transmission & distribution (T&D) systems. Industrial Info is tracking about $1.3 billion worth of active and planned projects from MDU, the bulk of which is attributed to natural gas pipeline projects.
Click on the image at right for a graph detailing MDU's active and planned projects, by type.
MDU's first-quarter net income was reported to be $100.9 million, compared with $38.3 million in first-quarter 2023. The company's sharpest growth was in its pipelines business, which saw record-high transportation volumes for the first quarter, as well as strong demand for storage services. Segment earnings of $15.1 million were up 82% when compared with $8.3 million in first-quarter 2023, driven largely by expansion projects that were placed in service in late 2023 and early 2024. These include the Line Section 27 expansion project in northwestern North Dakota, which began operations in March and is expected to be fully completed in the coming weeks.
Line Section 27 carries 175 million standard cubic feet per day of natural gas about 13 miles across North Dakota's Bakken Shale, from a recently completed, $60 million compressor station near Watford City to an existing pipeline system in Demicks Lake. The project is managed by MDU subsidiary Williston Basin Interstate Pipeline Company (WBI). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can learn more from detailed project reports on the Line Section 27 expansion and compressor station.
MDU executives expect capital expenditures to total about $618 million in 2024, up from $536 million in 2023. "We expect this strong momentum to continue into 2024 as we invest in transmission and distribution upgrades across our utility footprint, and additional expansion projects at our natural gas pipeline business," said Nicole Kivisto, chief executive officer of MDU Resources, in a quarterly earnings-related press release.
Later this year, MDU expects to finish construction on its Tioga-to-Emerson Pipeline from North Dakota's Bakken Shale to Emerson, Manitoba, which involves installing about 330 miles of line from an existing compressor station near Tioga, North Dakota, to the state's border with Minnesota. The 195-mile, $490 million section within North Dakota and the 135-mile, $370 million section from North Dakota into Minnesota each will carry up to 600 million standard cubic feet per day, supported by a new, $60 million compressor station near Hallock, Minnesota. Subscribers can read detailed information on the line sections terminating in North Dakota and Minnesota, and the Hallock station.
MDU expects to continue construction in the second quarter on its $190 million Wahpeton Expansion Project, which will add more than 20 million cubic feet of natural gas transportation capacity per day in eastern North Dakota. Managed by WBI, the new line runs about 60 miles south from a compressor station in Mapleton, which is undergoing $6 million in modifications to accommodate the growth, to a new delivery station near Wahpeton, North Dakota, which sits on the border with Minnesota. Another $6 million in modifications at a related compressor station in Bismarck also are underway.
MDU expects the Wahpeton Expansion will be in service toward the end of the year. Subscribers can read detailed reports on the line expansion and modifications to the Mapleton and Bismarck stations.
Among its T&D projects under construction is MDU's Merricourt Transmission Line Rebuild, which involves building more than 35 miles of line from the Merricourt Substation in Ashley, North Dakota, which is undergoing $13.1 million in upgrades. Two new lines--a 15.2 mile, $3.51 million line and a 20-mile, $3.58 million line--will connect to existing substations. Subscribers can read detailed reports on the substation upgrades, 15.2-mile line and 20-mile line.
Kivisto noted MDU plans to spin off its construction services business--which "continues its growth trajectory, with strong backlog and margins"-- into a separate, publicly traded company by the end of 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from MDU.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing MDU's active and planned projects, by type.MDU's first-quarter net income was reported to be $100.9 million, compared with $38.3 million in first-quarter 2023. The company's sharpest growth was in its pipelines business, which saw record-high transportation volumes for the first quarter, as well as strong demand for storage services. Segment earnings of $15.1 million were up 82% when compared with $8.3 million in first-quarter 2023, driven largely by expansion projects that were placed in service in late 2023 and early 2024. These include the Line Section 27 expansion project in northwestern North Dakota, which began operations in March and is expected to be fully completed in the coming weeks.
Line Section 27 carries 175 million standard cubic feet per day of natural gas about 13 miles across North Dakota's Bakken Shale, from a recently completed, $60 million compressor station near Watford City to an existing pipeline system in Demicks Lake. The project is managed by MDU subsidiary Williston Basin Interstate Pipeline Company (WBI). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can learn more from detailed project reports on the Line Section 27 expansion and compressor station.
MDU executives expect capital expenditures to total about $618 million in 2024, up from $536 million in 2023. "We expect this strong momentum to continue into 2024 as we invest in transmission and distribution upgrades across our utility footprint, and additional expansion projects at our natural gas pipeline business," said Nicole Kivisto, chief executive officer of MDU Resources, in a quarterly earnings-related press release.
Later this year, MDU expects to finish construction on its Tioga-to-Emerson Pipeline from North Dakota's Bakken Shale to Emerson, Manitoba, which involves installing about 330 miles of line from an existing compressor station near Tioga, North Dakota, to the state's border with Minnesota. The 195-mile, $490 million section within North Dakota and the 135-mile, $370 million section from North Dakota into Minnesota each will carry up to 600 million standard cubic feet per day, supported by a new, $60 million compressor station near Hallock, Minnesota. Subscribers can read detailed information on the line sections terminating in North Dakota and Minnesota, and the Hallock station.
MDU expects to continue construction in the second quarter on its $190 million Wahpeton Expansion Project, which will add more than 20 million cubic feet of natural gas transportation capacity per day in eastern North Dakota. Managed by WBI, the new line runs about 60 miles south from a compressor station in Mapleton, which is undergoing $6 million in modifications to accommodate the growth, to a new delivery station near Wahpeton, North Dakota, which sits on the border with Minnesota. Another $6 million in modifications at a related compressor station in Bismarck also are underway.
MDU expects the Wahpeton Expansion will be in service toward the end of the year. Subscribers can read detailed reports on the line expansion and modifications to the Mapleton and Bismarck stations.
Among its T&D projects under construction is MDU's Merricourt Transmission Line Rebuild, which involves building more than 35 miles of line from the Merricourt Substation in Ashley, North Dakota, which is undergoing $13.1 million in upgrades. Two new lines--a 15.2 mile, $3.51 million line and a 20-mile, $3.58 million line--will connect to existing substations. Subscribers can read detailed reports on the substation upgrades, 15.2-mile line and 20-mile line.
Kivisto noted MDU plans to spin off its construction services business--which "continues its growth trajectory, with strong backlog and margins"-- into a separate, publicly traded company by the end of 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from MDU.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
