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BISMARCK, N.D., Nov. 21, 2024 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) announced today that it plans to make capital investments totaling $3.1 billion from 2025 through 2029, a 15% increase from 2024-2028.
"Our planned $3.1 billion capital investment from 2025 through 2029 reflects our commitment to providing safe and reliable service to our electric, natural gas and pipeline customers," said Nicole Kivisto, MDU Resources president and CEO. "By increasing our investments in electric and natural gas, we aim to support our growing customer base and modernize our infrastructure. At the same time, we will continue to optimize our pipeline operations and complete key projects driven by increasing customer demand. These strategic investments ensure we provide safe, reliable service while adapting to evolving market conditions."
Capital Expenditures | ||||||
| Forecast | Actual + 2024 | Forecast | |||
| 2024 | 2025 | 2026 | 2027 | 2020-2024 | 2025-2029 |
| (in millions) | |||||
Electric | $114 | $154 | $494 | $205 | $589 | $1,178 |
Natural Gas Distribution | 303 | 310 | 258 | 293 | 1,170 | 1,410 |
Pipeline | 128 | 69 | 59 | 95 | 607 | 473 |
Total* | $545 | $533 | $811 | $593 | $2,366 | $3,061 |
| | | | | | |
*Excludes "Other" category |
MDU Resources plans to increase investments in its electric and natural gas distribution segments by 47% over the next five years compared to 2020-2024. These investments will focus on constructing electric transmission lines, substations, and natural gas delivery infrastructure to support a customer base expected to grow 1%-2% annually. Additionally, the Company will replace and modernize existing electric and natural gas utility infrastructure to ensure continued safe and reliable service.
The combined rate base for the electric and natural gas distribution segments is expected to grow 7%-8% on a compounded annual basis over the next five years, increasing from the previously projected 7% growth rate.
MDU Resources' planned capital investments over the next five years at the pipeline business will continue to support customer growth and the completion of a number of in-progress projects.
MDU Resources continually reviews its capital program and communicates modifications as needed. With the increase in the Company's capital program, the need for equity issuance to support growth is now anticipated in 2026, earlier than the previously projected 2027. The company remains committed to a long-term EPS growth target of 6%-8% with the enhanced capital investment plan. Actual expenditures may differ from estimates because of changes in load growth, regulatory decisions or other factors.