BISMARCK, ND – MDU Resources Group, Inc. (NYSE: MDU), a provider of energy delivery and construction services, announced the appointment of Michael S. Della Rocca and Marian M. Durkin to its board of directors. The appointment comes as the company prepares to fully concentrate on its regulated energy delivery operations through the anticipated spin-off of its construction services subsidiary, Everus Construction Group, later this year.
Della Rocca brings a wealth of experience from 35-years in the engineering and construction industry, including significant roles as chief executive for the Americas at AECOM and partnerships at McKinsey & Company. He now operates his own company, Della Rocca Enterprises LLC. Durkin’s background includes serving as senior vice president, general counsel, secretary, and chief compliance officer at Avista (NYSE: ) Corporation, with previous legal roles at United Airlines and the law firm Briggs and Morgan.
Both new board members are set to contribute their expertise to MDU Resources’ strategic focus. Della Rocca will participate in the Audit and Environment and Sustainability committees, while Durkin will participate in the Compensation and Nominating and Governance committees.
His educational credentials are notable, with Della Rocca holding degrees in civil engineering and transportation engineering from Rensselaer Polytechnic Institute, as well as an MBA from St. He is also a licensed professional engineer. Durkin earned his Juris Doctor and Master of Laws from Mitchell Hamlin School of Law, along with a degree in political science from Manhattanville College, and is admitted to the bar in several states.
MDU Resources’ strategic shift into a purely regulated energy delivery business will be completed with the spin-off of Everus Construction Group. The move is part of the company’s long-term plans and commitment to its core operations. The announcement also coincides with the company’s 100th anniversary celebration.
The information provided in this announcement is based on the press release statement and includes forward-looking statements about the spinoff plan and timing. These statements are made in good faith and are believed to have a reasonable basis, but actual results may differ from those projected.
In other recent news, MDU Resources Group Inc. have reported some significant developments. The company announced a 4% increase in its common stock dividend to 13 cents per share, reflecting its commitment to rewarding shareholders and transitioning into a regulated energy delivery business. This dividend increase is in line with MDU Resources’ long-term payout ratio target of 60% to 70% of regulated energy delivery revenue.
In financial news, MDU Resources reported second quarter earnings of $60.4 million, with record earnings from its pipeline segment and Construction Services business, Everus, of $17.3 million and $39 million, respectively. However, the utility business saw earnings drop from $13.1 million to $10.5 million, mainly due to lower volumes and increased operational maintenance costs.
MDU Resources also announced plans to spin-off Everus tax-free later this year, as part of its focus on its regulated energy delivery business. The company forecasts a compound annual growth rate of 7% on a utility rate basis and plans for $2.7 billion in adjusted capital investment. The decision to retain the equity stake in Everus post-spin-off has not been made, with further details to be released in the Form 10 with the pro forma financial statements at the end of the year.
InvestingPro Insights
When MDU Resources Group, Inc. (NYSE: MDU) embarked on a strategic transformation to focus exclusively on regulated energy delivery operations, the company’s financial metrics and market performance provide valuable context for investors. According to InvestingPro data, MDU Resources has a market capitalization of $4.95 billion, representing a significant presence in the industry. The company’s P/E ratio stands at 12.19, which investors can consider when evaluating a company’s value in relation to earnings.
A notable InvestingPro tip is MDU’s impressive track record of maintaining dividend payments for 54 consecutive years, demonstrating the company’s commitment to generating value for shareholders. This consistency is important because investors often look for stable dividend-paying stocks in the utilities sector. In addition, analysts predict the company will remain profitable this year, which is also supported by MDU Resources’ profitability over the past twelve months.
Investors interested in the company’s operational performance will note a gross profit margin of 19.4% for the last twelve months in Q2 2024, indicating the efficiency of MDU Resources’ operations relative to profits.
While the company is expected to concentrate on regulated energy delivery operations, it is important to note that net income is expected to decline this year, InvestingPro Tip which may affect investor sentiment. However, the strategic appointments of Michael S. Della Rocca and Marian M. Durkin to our board of directors can provide the expertise needed to effectively navigate this transition.
For those looking for a more in-depth analysis, InvestingPro offers additional tips on MDU Resources Group, providing a more complete view of the company’s financial health and future prospects.
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