Schedule I-Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule I-Condensed Financial Information of Registrant

Condensed Financial Information of Registrant (Unconsolidated)

Condensed Statements of Income and Comprehensive Income

Years ended December 31,	2018			2017			2016
	(In thousands)
Operating revenues	$	628,331		$	623,693		$	561,266
Operating expenses	540,125			520,069			469,853
Operating income	88,206			103,624			91,413
Other income	1,504			4,876			2,282
Interest expense	32,761			31,997			31,519
Income before income taxes	56,949			76,503			62,176
Income taxes	(4,259		)	13,800			6,355
Equity in earnings of subsidiaries from continuing operations	208,177			222,283			177,275
Net income from continuing operations	269,385			284,986			233,096
Equity in earnings (loss) of subsidiaries from discontinued operations attributable to the Company	2,933			(3,783		)	(168,663		)
Loss on redemption of preferred stocks	—			600			—
Dividends declared on preferred stocks	—			171			685
Earnings on common stock	$	272,318		$	280,432		$	63,748
Comprehensive income	$	279,269		$	279,602		$	65,848

The accompanying notes are an integral part of these condensed financial statements.Condensed Financial Information of Registrant (Unconsolidated)

Condensed Balance Sheets

December 31,	2018			2017
(In thousands, except shares and per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	2,271		$	843
Receivables, net	92,724			83,453
Accounts receivable from subsidiaries	36,015			34,029
Inventories	13,293			13,864
Prepayments and other current assets	14,488			34,400
Total current assets	158,791			166,589
Investments	76,202			76,779
Investment in subsidiaries	1,790,886			1,704,908
Property, plant and equipment	2,846,715			2,631,161
Less accumulated depreciation, depletion and amortization	836,735			797,130
Net property, plant and equipment	2,009,980			1,834,031
Deferred charges and other assets:
Goodwill	4,812			4,812
Other	180,473			175,599
Total deferred charges and other assets	185,285			180,411
Total assets	$	4,221,144		$	3,962,718
Liabilities and Stockholders' Equity
Current liabilities:
Long-term debt due within one year	$	200,711		$	100,011
Accounts payable	50,051			47,000
Accounts payable to subsidiaries	12,438			7,234
Taxes payable	24,704			13,717
Dividends payable	39,695			38,573
Accrued compensation	14,346			20,017
Other accrued liabilities	54,099			36,881
Total current liabilities	396,044			263,433
Long-term debt	586,012			612,493
Deferred credits and other liabilities:
Deferred income taxes	165,122			147,847
Other	507,191			509,902
Total deferred credits and other liabilities	672,313			657,749
Commitments and contingencies
Stockholders' equity:
Common stock
Authorized - 500,000,000 shares, $1.00 par value
Issued - 196,564,907 shares in 2018 and 195,843,297 shares in 2017	196,565			195,843
Other paid-in capital	1,248,576			1,233,412
Retained earnings	1,163,602			1,040,748
Accumulated other comprehensive loss	(38,342		)	(37,334		)
Treasury stock at cost - 538,921 shares	(3,626		)	(3,626		)
Total stockholders' equity	2,566,775			2,429,043
Total liabilities and stockholders' equity	$	4,221,144		$	3,962,718

The accompanying notes are an integral part of these condensed financial statements.Condensed Financial Information of Registrant (Unconsolidated)

Condensed Statements of Cash Flows

Years ended December 31,	2018			2017			2016
	(In thousands)
Net cash provided by operating activities	$	294,379		$	284,075		$	238,125
Investing activities:
Capital expenditures	(242,692		)	(146,370		)	(159,570		)
Net proceeds from sale or disposition of property and other	5,032			(5,665		)	3,784
Investments in and advances to subsidiaries	(40,000		)	(40,000		)	(5,000		)
Advances from subsidiaries	70,000			40,000			15,000
Investments	(528		)	(468		)	(129		)
Net cash used in investing activities	(208,188		)	(152,503		)	(145,915		)
Financing activities:
Issuance of long-term debt	199,422			70,080			106,420
Repayment of long-term debt	(125,961		)	(37,569		)	(50,010		)
Payments of stock issuance costs	(10		)	—			—
Dividends paid	(154,573		)	(150,727		)	(147,156		)
Redemption of preferred stock	—			(15,600		)	—
Repurchase of common stock	(1,920		)	(564		)	—
Tax withholding on stock-based compensation	(1,721		)	(508		)	(226		)
Net cash used in financing activities	(84,763		)	(134,888		)	(90,972		)
Increase (decrease) in cash and cash equivalents	1,428			(3,316		)	1,238
Cash and cash equivalents - beginning of year	843			4,159			2,921
Cash and cash equivalents - end of year	$	2,271		$	843		$	4,159

The accompanying notes are an integral part of these condensed financial statements.Note 1 - Summary of Significant Accounting Policies

Basis of presentation The condensed financial information reported in Schedule I is being presented to comply with Rule 12-04 of Regulation S-X. The information is unconsolidated and is presented for the parent company only, which is comprised of MDU Resources Group, Inc. (the Company) and Montana-Dakota and Great Plains, public utility divisions of the Company as of December 31, 2018, prior to the Holding Company Reorganization. In Schedule I, investments in subsidiaries are presented under the equity method of accounting where the assets and liabilities of the subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded on the Condensed Balance Sheets. The income from subsidiaries is reported as equity in earnings of subsidiaries on the Condensed Statements of Income. The consolidated financial statements of MDU Resources Group, Inc. reflect certain businesses as discontinued operations. These statements should be read in conjunction with the consolidated financial statements and notes thereto of MDU Resources Group, Inc.

Earnings per common share Please refer to the Consolidated Statements of Income of the registrant for earnings per common share. In addition, see Item 8 - Note 1 for information on the computation of earnings per common share.

Note 2 - Debt At December 31, 2018, the Company had long-term debt maturities, excluding unamortized debt issuance costs, of $200.7 million in 2019, $700,000 in 2020, $700,000 in 2021, $700,000 in 2022, $49.2 million in 2023 and $536.7 million scheduled to mature in years after 2023.

For more information on debt, see Item 8 - Note 8.

Note 3 - Dividends The Company depends on earnings and dividends from its subsidiaries to pay dividends on common stock. Cash dividends paid to the Company by subsidiaries were $115.9 million, $116.1 million and $115.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.