BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE: MDU) has announced the appointment of Vernon A. Dosch as a director to its board. The decision, effective from November 15, 2024, introduces Dosch's considerable experience in the electric utility and broadband industries to the company's governance structure.
Dosch's career spans over 45 years, during which he has gained recognition for his leadership and expertise in electric distribution, generation, transmission, and utility-related technology. His prior role at National Information Solutions Cooperative (NISC) saw him steer the company from its inception to becoming a leading technology provider for utility and broadband sectors.
Dennis W. Johnson, chair of the board at MDU Resources, expressed enthusiasm for Dosch's addition to the board, citing his strong track record in strategic planning, financial acumen, and relationship-building. Johnson highlighted Dosch's alignment with the company's values of industry innovation, community service, and leadership in transformation initiatives.
Dosch, in turn, voiced his honor at joining the board and his eagerness to contribute to the company's ongoing success. He emphasized his commitment to enhancing the company's impact in the energy sector and supporting the communities it serves, reflecting MDU Resources' dedication to community involvement.
In addition to his professional achievements, Dosch has actively participated in various community service roles, including with the Bismarck State College Foundation and the Missouri Valley United Way. His educational background includes a bachelor's degree in business administration and accounting, a master's degree in management, and an Honorary Doctorate of Leadership Honoris Causa, all from the University of Mary.
MDU Resources, a member of the S&P SmallCap 600 index, is a regulated energy delivery business with a history dating back to 1924. The company is currently celebrating its 100th anniversary.
This news is based on a press release statement from MDU Resources Group, Inc. The company's forward-looking statements are subject to risks and uncertainties and are detailed in filings with the U.S. Securities and Exchange Commission.
In other recent news, MDU Resources Group reported a decrease in its third-quarter earnings to $64.6 million from the previous year's $74.9 million. However, the company's adjusted income from continuing operations saw an increase, reaching $65.5 million. MDU Resources also revised its full-year earnings guidance for regulated energy delivery upward, and reported record earnings in its pipeline business due to increased transportation volumes and service rates.
In addition, MDU Resources announced plans for a new data center and increased service agreements for existing data centers. The company completed a strategic pipeline acquisition expected to generate $3 million in annual earnings and anticipates 1% to 2% annual customer growth. MDU Resources projects long-term EPS growth at 6% to 8%, with a target dividend payout ratio of 60% to 70%.
Despite a decrease in third-quarter earnings, the utility segment and pipeline business both reported increases in earnings, with the pipeline business seeing a 27% increase year-over-year. MDU Resources maintains a focus on organic growth and strategic acquisitions, particularly in the midstream sector. The company's guidance for 2025 will be provided in February 2025.
InvestingPro Insights
MDU Resources Group's recent appointment of Vernon A. Dosch to its board comes at a time when the company is showing strong financial performance and market positioning. According to InvestingPro data, MDU's market capitalization stands at $3.66 billion, reflecting its significant presence in the energy sector.
The company's P/E ratio of 9.19 suggests that it's trading at a relatively low earnings multiple, which is further supported by an InvestingPro Tip indicating that MDU is "Trading at a low P/E ratio relative to near-term earnings growth." This could be particularly attractive to value investors looking for potentially undervalued opportunities in the utility sector.
MDU's financial health appears robust, with an InvestingPro Tip highlighting that "Liquid assets exceed short term obligations." This strong liquidity position aligns well with the company's long-standing commitment to stability and growth, as evidenced by another InvestingPro Tip noting that MDU "Has maintained dividend payments for 54 consecutive years." The current dividend yield of 2.85% may appeal to income-focused investors.
The company's stock performance has been impressive, with a one-year price total return of 79.62%. This strong momentum is reflected in the InvestingPro Tip stating that MDU is "Trading near 52-week high," which could indicate investor confidence in the company's strategic direction, including the recent board appointment.
For investors interested in a deeper analysis, InvestingPro offers 13 additional tips for MDU Resources Group, providing a comprehensive view of the company's financial health and market position.
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