DOCSLIB.ORG

Mdu Resources Group, Inc. 2006 Annual Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mdu Resources Group, Inc. 2006 Annual Report ENERGY UTILITY RESOURCES CONSTRUCTION MATERIALS Building a Strong America Foundation for the Future MDU RESOURCES GROUP, INC. 2006 ANNUAL REPORT CCover.inddover.indd C 22/28/07/28/07 11:30:04:30:04 PMPM MDU RESOURCES GROUP, INC., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and mining, construction services, and electric and natural gas utilities. Forward-looking statements This Annual Report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. Forward-looking statements should be read with the cautionary statements and important factors included in Part I, Forward-Looking Statements and Item 1A — Risk Factors of the company’s 2006 CONTENTS Form 10-K. Forward-looking statements are all statements Gatefold Behind Cover: other than statements of 12 Energy Our Operations historical fact, including without Natural Gas and Oil Production Pipeline and Energy Services limitation those statements 1 Highlights that are identifi ed by the words 18 Construction Materials 2 Report to Stockholders anticipates, estimates, expects, Construction Materials and Mining intends, plans, predicts and 6 Our Companies similar expressions. 22 Utility Resources 7 Corporate Governance Construction Services Electric and Natural Gas Distribution 8 Corporate Responsibility On the cover 28 Stockholder Return Comparison MDU Resources continues 10 Board of Directors to build upon and develop Glossary 11 Corporate Management its foundation for the future, 29 Form 10-K including its core lines of business: energy operations, Inside Back Cover: utility resources operations Stockholder Information and construction materials operations. CCover.inddover.indd D 22/28/07/28/07 22:48:31:48:31 PMPM ENERGY NATURAL GAS AND OIL PRODUCTION Revenues (millions) $484.0 MAJOR CUSTOMERS PEERS Berry Petroleum Co., Comstock Earnings (millions) $145.7 ■ Energy marketers Resources Inc., Encore Acquisition Co., Production ■ End-use customers Equitable Resources Inc., Questar Corp., Natural gas (Bcf) 62.1 ■ Natural gas utilities St. Mary Land & Exploration Co., Swift Energy Co., Oil (million barrels) 2.0 Whiting Petroleum Corp. Proved reserves COMPETITORS Other natural gas and oil Natural gas (Bcf) 538.1 companies, publicly traded and privately held Oil (million barrels) 27.1 Corporate earnings contribution 46% PIPELINE AND ENERGY SERVICES Revenues (millions) $443.7 MAJOR CUSTOMERS PEERS National Fuel Gas Co., ONEOK Inc. Earnings (millions) $30.0 ■ Natural gas utilities COMPETITORS Other pipeline and gathering ■ Industrial gas users Pipeline (MMdk) companies serving the region, other energy ■ Commercial gas users Transportation 130.9 sources such as coal and wind energy Gathering 87.1 ■ Municipal gas systems Corporate earnings contribution 10% ■ Natural gas marketers CONSTRUCTION MATERIALS CONSTRUCTION MATERIALS AND MINING Revenues (millions) $1,877.0 MAJOR CUSTOMERS PEERS Florida Rock Industries Inc., Earnings (millions) $85.7 ■ Federal, state and local governments Granite Construction Inc., Hanson PLC ADR, Sales (millions) ■ General and commercial contractors Martin Marietta Materials Inc., US Concrete Inc., Aggregates (tons) 45.6 ■ Residential and commercial developers Vulcan Materials Co. ■ Home builders Asphalt (tons) 8.3 COMPETITORS Other construction materials ■ General public Ready-mixed concrete (cubic yards) 4.6 companies such as Cemex, CRH (Oldcastle), Recoverable aggregate reserves (billion tons) 1.2 Eagle Materials Inc., Florida Rock Industries Inc., Corporate earnings contribution 27% Hanson PLC ADR, Holcim Ltd., LaFarge North America Inc., Martin Marietta Materials Inc., Rinker Group Ltd., TXI LLC, Trinity Industries Inc., U.S. Concrete Inc. and Vulcan Materials Co. UTILITY RESOURCES CONSTRUCTION SERVICES Revenues (millions) $987.6 MAJOR CUSTOMERS PEERS Dycom Industries Inc., EMCOR Group Inc., Earnings (millions) $27.8 ■ Electric utilities InfraSource Services Inc., Quanta Services Inc. ■ Natural gas utilities Corporate earnings contribution 9% COMPETITORS Other construction services, ■ Telecommunications companies industrial and commercial electrical contractors ■ Municipalities ■ Industrial and commercial electrical contractors ■ General contractors ELECTRIC AND NATURAL GAS DISTRIBUTION Revenues (millions) MAJOR CUSTOMERS PEERS Alliant Energy Corp., Black Hills Corp., Electric $187.3 ■ Electric customers Northwest Natural Gas Co., NSTAR, OGE Energy Natural gas distribution $352.0 Residential 98,296 Corp., SCANA Corp., Southwest Gas Corp., Earnings (millions) Commercial 18,937 Vectren Corp. Industrial and other 1,985 Electric $14.4 COMPETITORS Energy providers within and ■ Natural gas customers Natural gas distribution $5.7 adjacent to existing service areas, such as electric Residential 225,315 Electric sales (million kWh) utilities, natural gas distribution companies, Commercial 28,729 Retail 2,483.2 propane and fuel oil dealers and rural electric Industrial 138 Sales for resale 484.0 cooperatives Natural gas distribution (MMdk) Sales 34.5 Transportation 14.1 Corporate earnings contribution Electric 5% Natural gas distribution 2% NOTES: • The corporation also had revenues of $66.1 million and earnings of $4.5 million from its independent power production operations. MDU Resources has retained the investment bank Goldman, Sachs & Co. as fi nancial adviser with respect to the potential sale of domestic independent power production assets. The decision to explore the sale was based on the increased market demand for independent power production assets, combined with the company’s desire to effi ciently fund future capital needs. The company expects the transaction to close in the second quarter of 2007. • The corporation also had revenues from other miscellaneous operations totaling $8.1 million and earnings of $1.3 million. Consolidated revenues refl ect intersegment eliminations of $335.1 million. CCover.inddover.indd F 22/28/07/28/07 11:30:05:30:05 PMPM OUR OPERATIONS Alaska Hawaii Brazil Natural Gas and Oil Production Construction Materials and Mining Independent Power Production* Electric Natural Gas Distribution Pipeline and Energy Services Construction Services Offices Construction Services Authorized States of Operations Our Vision Our Guiding Principles With integrity, create superior shareholder value To achieve our mission, we will be guided by commitments to: by expanding upon our expertise to be the CUSTOMERS Provide high-quality, cost-effective products and services. supplier of choice in all of our markets while STOCKHOLDERS Produce a superior total return. being a safe and great place to work. COMMUNITY Recognize our responsibility to be an effective corporate citizen. Our Mission ENVIRONMENT Minimize waste and maximize resources. Provide value-added natural resource products ETHICS Conduct business with integrity and with respect for all. and related services that exceed customer EMPLOYEES Develop individual potential and teamwork to maintain expectations. employees as our ongoing source of competitive advantage. SAFETY Perform all tasks with health and safety fi rst. * MDU Resources is considering the sale of domestic independent power production assets. CCover.inddover.indd G 22/28/07/28/07 11:30:09:30:09 PMPM HIGHLIGHTS Increase/Decrease Years Ended December 31, 2006 2005 Amount Percent (In millions, where applicable) Operating revenues $4,070.7 $3,452.4 $618.3 18 Operating income $ 532.2 $ 449.1 $ 83.1 18 Earnings on common stock: Earnings before discontinued operations $ 317.2 $ 275.2 $ 42.0 15 Discontinued operations, net of tax (2.1) (.8) (1.3) – Earnings on common stock $ 315.1 $ 274.4 $ 40.7 15 Earnings per common share – basic: Earnings before discontinued operations $ 1.76 $ 1.54 $ .22 14 Discontinued operations, net of tax (.01) – (.01) – Earnings per common share – basic $ 1.75 $ 1.54 $ .21 14 Earnings per common share – diluted: Earnings before discontinued operations $ 1.75 $ 1.53 $ .22 14 Discontinued operations, net of tax (.01) – (.01) – Earnings per common share – diluted $ 1.74 $ 1.53 $ .21 14 Dividends per common share $ .5234 $ .4934 $.0300 6 Weighted average common shares outstanding – diluted 181.4 179.5 1.9 1 Total assets $4,903.5 $4,423.6 $479.9 11 Total equity $2,164.9 $1,891.6 $273.3 14 Long-term debt (net of current maturities) $1,170.5 $1,104.8 $ 65.7 6 Capitalization ratios: Common equity 65% 63% Long-term debt (net of current maturities) 35 37 100% 100% Return on average common equity 15.6% 15.7% Price/earnings ratio 14.7x 14.3x Book value per common share $ 11.88 $ 10.43 Market value as a percent of book value 215.8% 209.2% Employees 11,526 10,030 NOTE: Common stock share amounts refl ect the company’s three-for-two common stock split effected in July 2006. ■ Achieved record earnings of $315.1 million. ANNUAL STOCKHOLDER RETURN ■ (Percent) Increased earnings per common Stock price appreciation and increasing share by 14 percent. dividends benefit stockholders. 20 20 ■ 19 Grew revenues by 18 percent. 18 14 ■ Increased dividends for 16th consecutive year. ■ Named to Forbes Platinum 400 list 1 3 5 10 20 for 7th year. Year Years Years Years Years MDU RESOURCES GROUP, INC. 1 001_051_05 1 22/28/07/28/07 11:33:13:33:13 PMPM REPORT TO STOCKHOLDERS Terry D. Hildestad President and Chief Executive Offi cer Harry J. Pearce Chairman
Load more

Recommended publications
  • Analysis of Prehistoric Land Use Patterns in the Tongue River Valley, North of Decker, Montana
    University of Montana ScholarWorks at University of Montana Graduate Student Theses, Dissertations, & Professional Papers Graduate School 1997 Analysis of prehistoric land use patterns in the Tongue River Valley, north of Decker, Montana Glenn A. Walter The University of Montana Follow this and additional works at: https://scholarworks.umt.edu/etd Let us know how access to this document benefits ou.y Recommended Citation Walter, Glenn A., "Analysis of prehistoric land use patterns in the Tongue River Valley, north of Decker, Montana" (1997). Graduate Student Theses, Dissertations, & Professional Papers. 1540. https://scholarworks.umt.edu/etd/1540 This Thesis is brought to you for free and open access by the Graduate School at ScholarWorks at University of Montana. It has been accepted for inclusion in Graduate Student Theses, Dissertations, & Professional Papers by an authorized administrator of ScholarWorks at University of Montana. For more information, please contact [email protected]. Maureen and Mike MANSFIELD LIBRARY The University of IVIONTANA Permission is granted by the author to reproduce this material in its entirety, provided that this material is used for scholarly purposes and is properly cited in published ^vorks and reports. ** Please check "Yes" or "No" and provide signature Yes, I grant permission No, I do not grant permission Author's Signature Date ie Çpl. im Any copying for commercial purposes or financial gain may be undertaken only with the author's explicit consent. AN ANALYSIS OF PREHISTORIC LAND USE PATTERNS IN THE TONGUE RIVER VALLEY. NORTH OF DECKER, MONTANA by Glenn A. Walter B.A. The University of Montana, 1992 presented in partial fulfillment of the requirements for the degree of Master of Arts The University of Montana 1996 Appôved b y Chairperson Dean, Graduate School Date UMI Number: EP36188 All rights reserved INFORMATION TO ALL U SERS The quality of this reproduction is dependent upon the quality of the copy submitted.
    [Show full text]
  • FINDING of NO SIGNIFICANT IMPACT and DECISION RECORD
    FINDING OF NO SIGNIFICANT IMPACT And DECISION RECORD FOR ENVIRONMENTAL ASSESSMENT FOR SPRING CREEK COAL LEASE MODIFICATION MTM-069782 And Amendment to Land Use Lease MTM-74913 EA# MT-DOI-BLM-MT-020-2010-29 Finding of No Significant Impact / Decision Record Miles City Field Office INTRODUCTION: The Bureau of Land Management (BLM) completed an Environmental Assessment MT-DOI- BLM-MT-020-2010-29 for the Spring Coal Lease Modification Application MTM-069782 and the application to amend Land Use Lease (LUL) MTM-74913. The Environmental Assessment (EA) analyzed the environmental impacts of modifying an existing lease, MTM-069782, to include a tract of Federal coal reserves adjacent to the Spring Creek Mine, an operating surface coal mine in the northwest Powder River Basin (PRB). The modification, if approved, would add approximately 498.1 acres that contain about 50.8 million tons of insitu coal. The EA also analyzed the environmental impacts of assigning Spring Creek Coal Company’s (SCCC) LUL MTM-74913 from Spring Creek Coal Company to Spring Creek Coal Limited Liability Company, renewing the land use lease for an additional 20 years and amending the lease to authorize the use of approximately 197.12 additional acres of public land for coal mine layback, construction of a flood control structure, placement of topsoil and overburden stockpiles, and establishment of transportation and utility line corridors in order to fully recover coal reserves from existing Federal Coal Lease MTM-94378 and Montana State Coal Lease C-1088-05, and from the above referenced pending lease by modification (LBM). If the amendment is approved, the LUL would total 222.12 acres.
    [Show full text]
  • Chapter 3 AFFECTED ENVIRONMENT
    Chapter 3 AFFECTED ENVIRONMENT 3.0 INTRODUCTION This Chapter describes the affected environment, including the cultural, historical, social and economic conditions that could be affected by implementation of the alternatives described in Chapter 2. Aspects of the affected environments described in this chapter focus on the relevant major issues presented in Chapter 2. Certain critical environmental components require analysis under BLM policy. These items are presented below in Table 3.0-1. Table 3.0-1 Critical Elements Requiring Mandatory Evaluation No Potentially Mandatory Item Not Present Impact Impacted Threatened and Endangered Species X Floodplains X Wilderness Values X ACECs X Water Resources X Air Quality X Cultural or Historical Values X Prime or Unique Farmlands X Wild & Scenic Rivers X Wetland/Riparian X Native American Religious Concerns X Hazardous Wastes or Solids X Invasive, Nonnative Species X Environmental Justice X 3.1 AIR QUALITY The climate of the project area is classified as mid-latitude semi-arid steppe (Trewartha & Horn, 1980). Steppe climate is characterized by large seasonal variations in temperature (cold winters and warm summers) and by precipitation levels that are low, but still sufficient for grasses. For more information on climate, see the Air Quality Technical Report for the Badger Hills POD environmental assessment. Fidelity E&P 3-1 August 25, 2005 Deer Creek North and Pond Creek POD Environmental Assessment- MT-020-2005-0155 Table 3.1-1: Summary of Existing Air Quality and Climate in the CX Field Region
    [Show full text]
  • 2005 MDU Resources Group, Inc. Annual Report
    MDU Resources Group, Inc. Building a Strong America / A Legacy of Leadership 2005 Annual Report MDU Resources Group, Inc. MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure. MDU Resources includes natural gas and oil production, construction materials and mining, domestic and international independent power production, natural gas pipelines and energy services, electric and natural gas utilities, and construction services. Forward-looking statements This Annual Report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements should be read with the cautionary statements and important factors included in Part I, Item 1A – Risk Factors of the company’s 2005 Form 10-K. Forward-looking statements are all statements other than statements of historical fact, including without limitation those statements that are identified by the words anticipates, estimates, expects, intends, plans, predicts and similar expressions. Building a Strong America / A Legacy of Leadership On the cover Contents Employees are MDU Resources’ legacy Gatefold Behind Cover 16 Independent Power Production of leadership for the future. Representing Seeking more opportunities. 1 Highlights all business lines are, from left, 18 Pipeline and Energy Services Ray O’Donnell, Anna Marie Preston, Report to Stockholders 2 Maximizing vertical integration. Rick Wilmont, Mike Crone, David Barney 6 Corporate Governance and Gary Arneson. 20 Electric and Natural Gas 8 Board of Directors Distribution Supplying reliable energy. 9 Corporate Management 22 Construction Services 10 Community Leadership Meeting complex challenges.
    [Show full text]
  • Improving Access to Onshore Oil & Gas Resources on Federal Lands
    Improving Access to Onshore Oil & Gas Resources on Federal Lands Project Funding: U.S. DOE-NETL Prepared for: Interstate Oil & Gas Compact Commission Prepared by: ALL Consulting March 2007 THIS PAGE INTENTIONALLY LEFT BLANK Project Researchers & Cooperating Agencies IMPROVING ACCESS TO ONSHORE OIL & GAS RESOURCES ON FEDERAL LANDS Improving Access to Onshore Oil & Gas Resources on Federal Lands ACKNOWLEDGEMENTS This project was funded by the National Energy Technology Laboratory (NETL) of the U.S. Department of Energy (DOE) program “Focused Research in Federal Lands Access and Produced Water Management in Oil and Gas Exploration and Production”. The project was developed under the Area of Interest 1: Improving Access to Onshore Oil and Gas Resources on Federal Lands, and Topic 3: Data Management. The Interstate Oil and Gas Compact Commission (IOGCC) and ALL Consulting (ALL) conducted this study as co-researchers in cooperation with the oil and gas agencies of Alaska (Alaska Oil and Gas Conservation Commission), Montana (Montana Board of Oil and Gas Conservation), and Wyoming (Wyoming Oil and Gas Conservation Commission), as well as the Alaska Department of Natural Resources. The effort was overseen by NETL’s, National Petroleum Technology Office in Tulsa, Oklahoma. The National Petroleum Technology Office project manager for this effort was Mr. John Ford. The research team also extends its appreciation to those companies operating in the Powder River, Big Horn, Williston, North Central Montana, Anadarko, Arkoma, Alaska North Slope, Cook Inlet, Permian and Fort Worth Basins, and the staffs of the Department of the Interior, Department of Agriculture, Environmental Protection Agency, and the various state agencies who provided the technical input and assistance that enabled DOE to improve the scope and quality of the analysis.
    [Show full text]
  • PART A. Geology and Mineral Resources by W. J. Mapel and V. E. Swanson
    UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY SUMMARY OF THE GEOLOGY, MINERAL RESOURCES, LANDSCAPE GEOCHEMISTRY, AND ENGINEERING GEOLOGIC CHARACTERISTICS OF THE NORTHERN POWDER RIVER COAL REGION, MONTANA PART A. Geology and mineral resources by W. J. Mapel and V. E. Swanson PART B.--Lands cape geochemistry by J. 0. Connor PART C.--Engineering geologic characteristics by F. W. Osterwald, compiler \ A. F. Chleborad, C. R. Dunrud, R. A. Farrow, T. C. Nichols, Jr., E. E. McGregor, C. H. Miller, J. Odum, H. W. Olsen, F. W. Osterwald, W. Z. Savage, and W. K. Smith OPEN-FILE REPORT 77-292 1977 This report is preliminary and has not been edited or reviewed for conformity with U.S. Geological Survey standards and nomenclature. CONTENTS Page Part A. Geology and mineral resources- . ._-- __... 1 Introduction- ----- - -- -_-__-.__. _- 1 Geographic features---- -- ------- . 1 Sources of information--- - - -.-- ..-._-.___ .... 4 Conversion of metric units- - ------------ ___.-___. -._ 4 Status of coal studies-- -- -. -- _- --. 4 Geologic setting--- ------------- ---- - -------- ---- 5 Rock units- __._--_ .. -_..__ _ 5 Hell Creek Formation--------- --- -- - ---- - -- 9 Fort Union Formation--- -------------- - --- ... 9 Wasatch Formation---- ---- -- -._ _. __-_.__.._.. 13 Terrace gravels -------- ---- -- - -- _._ 14 Valley-fill deposits 14 Structural features------ - -_.._ - ._._ 15 Folds ---- - _--._ __-_. _- -__ . .-_. 15 r au I L.S- _._._ .__-_. -__---..__.__.----._-__._... ID Coal deposits _- _ _ -- ___ - _. .__ 17 Coal in the lower part of the Fort Union Formation------------- 17 Coal in the Tongue River Member of the Fort Union Formation---- 21 Rosebud and associated coal beds- -- - -- -- 21 Knobloch coal bed- - -- _-__.
    [Show full text]
  • State of Montana Department of Natural Resources and Conservation Board of Oil and Gas Conservation Helena, Montana
    STATE OF MONTANA DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION BOARD OF OIL AND GAS CONSERVATION HELENA, MONTANA CONSERVATION AND PREVENTION ) NOTICE OF PUBLIC HEARING OF WASTE OF OIL AND GAS ) The Board of Oil and Gas Conservation will hold its regular business meeting at 2:00 p.m., Wednesday, June 14, 2006, in the conference room of the Billings Petroleum Club on the 22nd floor of the Billings Sheraton in Billings, Montana. The agenda for that meeting is: 1. Call to order 2. Approval of minutes of May 3, 2006 business meeting 3. Opportunity for public comment 4. Bond report 5. Financial report 6. TOI Operating 7. Default docket 8. Staff reports The Board will conduct public hearings pursuant to Chapter 11 of Title 82 of the Montana Code Annotated on the matters described below beginning at 8:00 a.m. Thursday, June 15, 2006 in the conference room of the Billings Petroleum Club on the 22nd floor of the Sheraton Hotel in Billings, Montana. For more information or to request accommodation for a disability, please contact Terri Perrigo at (406) 444-6675 or Tom Richmond at (406) 656-0040 as soon as possible before the scheduled hearing. Docket No. 224-2006 APPLICANT: NANCE PETROLEUM CORPORATION – ROOSEVELT COUNTY, MONTANA Upon the application of Nance Petroleum Corporation to create a 640-acre permanent spacing unit for the Ratcliffe Formation comprised of the S½ of Section 25 and the N½ of Section 36, T28N-R58E, Roosevelt County, Montana, and to designate applicant’s Bainville State 36-1HR well as the authorized well for said spacing unit.
    [Show full text]