MDU Resources Group announced a 34% increase in its five‑year capital investment plan for 2026‑2030, raising the total to $3.4 billion from $3.1 billion for the 2025‑2029 period. The higher cap‑ex reflects the company’s strategy to modernize and expand its electric, natural‑gas distribution, and pipeline infrastructure across its eight‑state footprint.
The allocation of the new plan is $1.377 billion for electric, $1.354 billion for natural‑gas distribution, and $643 million for pipeline projects. The electric portion supports upgrades to transmission and distribution assets that will accommodate growing data‑center loads, while the natural‑gas segment focuses on expanding capacity to meet regional demand and regulatory requirements. The pipeline allocation funds maintenance and expansion of the company’s 1,200‑mile network, which has been a key driver of recent earnings growth.
Key projects under the plan include the final payment for a 49% stake in the Badger Wind Farm, the energization of the Jamestown‑to‑Ellendale transmission line (JETx) scheduled for late 2028‑early 2029, and the Line Section 32 Expansion Project that will serve new power generation in North Dakota. These initiatives position MDU to capture renewable generation growth, improve grid reliability, and support the state’s clean‑energy targets.
MDU’s recent financial results provide context for the investment. In Q3 2025 the company reported earnings per share of $0.09, beating analyst expectations by $0.02, largely due to strong performance in the pipeline segment and disciplined cost management. Revenue for the quarter was $315.1 million, slightly below forecasts, reflecting a mix shift toward higher‑margin electric services. Management has guided for 6‑8% EPS growth and 7‑8% rate‑base expansion through 2030, indicating confidence that the new cap‑ex will translate into long‑term value.
CEO Nicole Kivisto emphasized that the plan “reflects our commitment to building the energy infrastructure that communities depend on.” She added that the investments will enhance safety, reliability, and capacity, enabling MDU to meet the rising demand from data‑center customers while maintaining a diversified generation mix that includes wind, coal, and natural‑gas peakers.
The company will fund the plan through a combination of equity issuances—$150‑$175 million in 2026 and $100‑$125 million in 2027—alongside internally generated cash and debt. This financing strategy balances the need for capital with the goal of preserving a strong balance sheet and maintaining flexibility for future opportunities.
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