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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy services provider MDU Resources Group Incorporated (NYSE:MDU) (Bismarck, North Dakota) plans to make approximately $3.1 billion worth of capital investments from 2025 through 2029--with a focus on regulated energy delivery--including $535 million planned for 2025.
The $3.1 billion in planned five-year spending is up from the $2.8 billion worth of investment expected from 2024 through 2028.
In MDU's full-year 2024 earnings call February 6, Chief Executive Officer Nicole Kivisto said, "We remain committed to investing in future expansion projects to meet increasing customer demand for services, including strong interest from industrial customers and power generation projects, like the recently signed agreement to serve a new electric generation facility being developed in northwest North Dakota." She did not provide any other information besides that MDU was targeting an in-service date of late 2028 to begin serving gas to that facility.
MDU provided an update on its potential Bakken East Pipeline project, a 375-mile pipeline from western North Dakota to the eastern part of the state that has been years in the making. The roughly $1 billion project is being developed by MDU subsidiary WBI Energy, and WBI recently gauged interest from potential shippers in a non-binding open season that closed January 31.
In the earnings call, Kivisto said the company is "pleased with the interest," with next steps including shifting to binding commitments before deciding on the project. "The project would be incremental to our five-year forecast," she said, while WBI Energy President Rob Johnson added, "we are finalizing project details to determine size and length." Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here to read related project information.
But there's a factor that could potentially help the project move along at a quicker speed: Doug Burgum (R), a former governor of North Dakota, is the Trump administration's Interior Secretary. Current Republican governor Kelly Armstrong applauded Burgum's confirmation in a statement, saying "Doug understands that safe, responsible development of our nation's abundant natural resources is key to curbing inflation, growing the economy and paying down our national debt for future generations. He will be an incredible asset to the Trump administration and, as chair of the National Energy Council, will help usher in a new era of U.S. energy dominance that benefits all Americans with reliable, affordable power."
Also last week, MDU announced a strategic investment as part of its new five-year capital spending plan, reaching an agreement to purchase a 49% ownership interest in the Badger Wind Farm under construction near Wishek, North Dakota for an estimated $294 million. The acquisition will give MDU subsidiary Montana-Dakota Utilities access to 122.5 megawatts (MW) of the project's total generation capacity of 250 MW. The purchase is contingent upon approval from the North Dakota Public Service Commission (NDPSC). Construction is expected to wrap up around the end of 2026. Subscribers to the GMI Power Project Database can click here to read the project report.
"This investment enhances our diversified portfolio of assets, allowing MDU to meet customer demand with a mix of generation assets that includes coal as well as wind backed by natural gas peakers to effectively serve our customers' needs," Kivisto said in a February 14 press release.
MDU estimates the wind farm acquisition will have the following effect on the company's nameplate generation mix: boosting renewables from 29% to 39% but dropping coal's share from 31% to 26% and gas' share from 40% to 35%.
In the recent earnings call, Kivisto said that MDU has 580 MW of data center load undersigned service agreements, including 180 MW that is currently online--"with the balance starting to come online in 2025 and expected to continue through the next few years."
The company reported its pipeline segment saw record earnings in 2024, with the $68 million up 45% year over year, along with strong demand for storage services. Meanwhile, regulated energy delivery earnings in 2024 totaled $189.7 million, up 13.6% from 2023's figure.
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) 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).
The $3.1 billion in planned five-year spending is up from the $2.8 billion worth of investment expected from 2024 through 2028.
In MDU's full-year 2024 earnings call February 6, Chief Executive Officer Nicole Kivisto said, "We remain committed to investing in future expansion projects to meet increasing customer demand for services, including strong interest from industrial customers and power generation projects, like the recently signed agreement to serve a new electric generation facility being developed in northwest North Dakota." She did not provide any other information besides that MDU was targeting an in-service date of late 2028 to begin serving gas to that facility.
MDU provided an update on its potential Bakken East Pipeline project, a 375-mile pipeline from western North Dakota to the eastern part of the state that has been years in the making. The roughly $1 billion project is being developed by MDU subsidiary WBI Energy, and WBI recently gauged interest from potential shippers in a non-binding open season that closed January 31.
In the earnings call, Kivisto said the company is "pleased with the interest," with next steps including shifting to binding commitments before deciding on the project. "The project would be incremental to our five-year forecast," she said, while WBI Energy President Rob Johnson added, "we are finalizing project details to determine size and length." Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here to read related project information.
But there's a factor that could potentially help the project move along at a quicker speed: Doug Burgum (R), a former governor of North Dakota, is the Trump administration's Interior Secretary. Current Republican governor Kelly Armstrong applauded Burgum's confirmation in a statement, saying "Doug understands that safe, responsible development of our nation's abundant natural resources is key to curbing inflation, growing the economy and paying down our national debt for future generations. He will be an incredible asset to the Trump administration and, as chair of the National Energy Council, will help usher in a new era of U.S. energy dominance that benefits all Americans with reliable, affordable power."
Also last week, MDU announced a strategic investment as part of its new five-year capital spending plan, reaching an agreement to purchase a 49% ownership interest in the Badger Wind Farm under construction near Wishek, North Dakota for an estimated $294 million. The acquisition will give MDU subsidiary Montana-Dakota Utilities access to 122.5 megawatts (MW) of the project's total generation capacity of 250 MW. The purchase is contingent upon approval from the North Dakota Public Service Commission (NDPSC). Construction is expected to wrap up around the end of 2026. Subscribers to the GMI Power Project Database can click here to read the project report.
"This investment enhances our diversified portfolio of assets, allowing MDU to meet customer demand with a mix of generation assets that includes coal as well as wind backed by natural gas peakers to effectively serve our customers' needs," Kivisto said in a February 14 press release.
MDU estimates the wind farm acquisition will have the following effect on the company's nameplate generation mix: boosting renewables from 29% to 39% but dropping coal's share from 31% to 26% and gas' share from 40% to 35%.
In the recent earnings call, Kivisto said that MDU has 580 MW of data center load undersigned service agreements, including 180 MW that is currently online--"with the balance starting to come online in 2025 and expected to continue through the next few years."
The company reported its pipeline segment saw record earnings in 2024, with the $68 million up 45% year over year, along with strong demand for storage services. Meanwhile, regulated energy delivery earnings in 2024 totaled $189.7 million, up 13.6% from 2023's figure.
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) 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).
