MDU Resources Group Inc

MDU Resources subsidiary WBI Energy has reached a positive Final Investment Decision to build its Bakken East Pipeline, an approximately 350-mile line running from the Bakken region in western North Dakota to a location near Fargo in eastern North Dakota with an initial design capacity of 1.4 Bcf per day. The project is estimated to cost between $2.7 and $3.2 billion, and construction is expected to occur over construction seasons in 2028 through 2030, with facilities placed in service in two phases: the first phase from the Bakken to central North Dakota is expected to be complete in late 2029, and the second phase to an existing WBI Energy compressor station near Mapleton, North Dakota, has a target completion date of late 2030. When completed, the project will include additions and modifications at three existing WBI Energy compressor stations and the construction of four new compressor stations. The North Dakota Industrial Commission voted unanimously in August 2025 to support the project with a firm capacity commitment of $50 million per year for 10 years. MDU Resources President and CEO Nicole A. Kivisto called reaching FID a significant milestone in expanding critical natural gas infrastructure, and WBI Energy president Rob Johnson said the company has been working on Bakken East since early 2025; the company is actively evaluating debt and equity financing structures, including potential partnership agreements.

MDU Resources' second quarter earnings call drew analyst questions focused on the Bakken East pipeline and data center growth. CFO Jason Vollmer said the company is considering all financing options for Bakken East and feels confident in market appetite for project financing. CEO Nicole Kivisto confirmed the state is party to executed precedent agreements and said the project design still targets 1.4 Bcf per day, with a negotiated option for additional volumes if customer demand materializes. JPMorgan's Aidan Kelly pressed on whether Bakken East could be expanded beyond 1.4 Bcf per day and the timing of capital plan updates; Vollmer said future expansion is possible if demand increases and that capital plans would be updated post final investment decision. Kivisto also said MDU is proactively engaging communities to ensure the benefits of data center growth are well understood.

MDU Resources Group reported second-quarter 2026 net income of $21.3 million, or $0.10 per share, up from $13.7 million, or $0.07 per share, a year earlier. The company secured precedent agreements for nearly 1.2 billion cubic feet per day of capacity on the proposed Bakken East Pipeline Project, which is estimated to cost between $2.7 billion and $3.2 billion and is expected to be filed with FERC in the fourth quarter of 2026. MDU also has more than 1 gigawatt of data-center load under signed electric-service agreements and reaffirmed its 2026 EPS guidance of $0.93 to $1.00 and its 6% to 8% long-term EPS growth target.

MDU Resources reported quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share by 12.5%. This compares to earnings of $0.07 per share a year ago, with figures adjusted for non-recurring items. Revenues for the quarter ended June 2026 came in at $375.2 million, missing the consensus estimate by 5.73% but up from $351.2 million in the year-ago period. The company has surpassed consensus EPS estimates twice in the last four quarters but has not beaten revenue estimates over that span. MDU Resources shares have added about 2.6% since the start of the year, underperforming the S&P 500's 12.8% gain.

MDU Resources announced that its Montana-Dakota Utilities subsidiary has entered into an electric service agreement with Applied Digital to provide power for the planned Polaris Forge 3 AI factory in North Dakota. The facility would require 430 megawatts of electricity at full capacity and is expected to expand Applied Digital's footprint in the state, where it is developing campuses for high-density artificial intelligence workloads. MDU already serves Applied Digital at the Polaris Forge 1 AI Factory, also in North Dakota.