MDU Resources 5-Year Capital Plan Ups Regulated Spending
Zacks Investment Research | Nov 22, 2016 09:11PM ET
MDU Resources Group, Inc., (NYSE:MDU) announced its capital investment plans for the next five year period spanning from 2017 to 2021. The company aims to invest nearly $2.2 billion over the said time period, which is higher than its previous 5 year (2012-2016) expenditure of $2.16 billion.
Focus on Regulated Business
A major portion or 73.5% of the planned capital expenditure will be directed to strengthen its existing regulated operations. MDU Resources will invest $659 million in its Natural gas distribution, $582 million in its Electric business and $382 million in its Pipeline and midstream operations.
Thanks to its regular investments in its regulated business, the company expects its electric and natural gas utility to grow its rate base nearly 4% annually over the next five years on a compound basis.
The current growth projection is on a much larger base, as MDU Resources’ rate base has increased 11% compounded annually over the past five-year period. The company targeted to invest $1.84 billion or 84.7% of its planned capex for 2012 to 2016 time period in regulated business.
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