Bismarck, ND-based MDU Resources Group on Tuesday outlined a five-year capital spending plan in which it plans to spend more than $2.6 billion, mostly in its electric and natural gas utilities, and in midstream pipelines.
CEO David Goodin said the company intends to invest $1.9 billion between 2019 and 2023 in the utilities and midstream units, which he said would offer "significant growth projects." He also expects to see "organic growth" throughout the organization.
"The five-year plan includes line-of-sight opportunities in all our businesses," he said.
Gas utilities would get more than $800 million over the five-year period, while pipelines are earmarked for $435 million. Utility growth in the rate base is expected to be 5%/year over the five years.
Construction materials and contracting also were budgeted $630 million, and overall investment in that sector at $727 million. MDU is in the process of completing a utility integrated resource plan (IRP), evaluating future generation and power supply options, Goodin said. The IRP is to be finalized and filed with state regulators in mid-2019.
In the midstream, MDU's unit has multiple natural gas pipelines in the planning phase, including the Demicks Lake 14-mile project in McKenzie County, ND, and expansion of Line Section 22 in Billings, MT. Combined the two projects should increase gas transportation capacity by 200 MMcf/d, Goodin said.
"The business is exploring additional organic growth projects that, if executed, would be incremental to the capital investment plan," he said.
In the construction business unit the investment plans cover what Goodin said were "normal equipment and plant replacement and upgrades." The unit expects a lot of public sector work with new state and local infrastructure projects. The MDU unit also expects to continue focus on acquisitions, and those transaction would be incremental to the forecast plan.