10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ______________

Commission file number 1-03480

MDU RESOURCES GROUP INC

(Exact name of registrant as specified in its charter)

Delaware	30-1133956
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1200 West Century Avenue

P.O. Box 5650

Bismarck, North Dakota 58506-5650

(Address of principal executive offices)

(Zip Code)

(701) 530-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	MDU	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of July 29, 2022: 203,350,740 shares.

1

Index
	Page
Definitions	3
Introduction	5
Part I -- Financial Information
Item 1. Financial Statements	6
Consolidated Statements of Income -- Three and Six Months Ended June 30, 2022 and 2021	6
Consolidated Statements of Comprehensive Income -- Three and Six Months Ended June 30, 2022 and 2021	7
Consolidated Balance Sheets -- June 30, 2022 and 2021, and December 31, 2021	8
Consolidated Statements of Equity -- Six Months Ended June 30, 2022 and 2021	9
Consolidated Statements of Cash Flows -- Six Months Ended June 30, 2022 and 2021	10
Notes to Consolidated Financial Statements	11
1. Basis of presentation	11
2. New accounting standards	11
3. Seasonality of operations	12
4. Receivables and allowance for expected credit losses	12
5. Inventories and natural gas in storage	13
6. Earnings per share	13
7. Equity	13
8. Accumulated other comprehensive loss	14
9. Revenue from contracts with customers	15
10. Business combinations	18
11. Leases	18
12. Goodwill and other intangible assets	19
13. Regulatory assets and liabilities	20
14. Fair value measurements	21
15. Debt	23
16. Cash flow information	24
17. Business segment data	25
18. Employee benefit plans	27
19. Regulatory matters	27
20. Contingencies	29
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3. Quantitative and Qualitative Disclosures About Market Risk	54
Item 4. Controls and Procedures	54
Part II -- Other Information
Item 1. Legal Proceedings	55
Item 1A. Risk Factors	55
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 4. Mine Safety Disclosures	56
Item 5. Other Information	56
Item 6. Exhibits	56
Exhibits Index	57
Signatures	58

2

Definitions

The following abbreviations and acronyms used in this Form 10-Q are defined below:

Abbreviation or Acronym
2021 Annual Report	Company's Annual Report on Form 10-K for the year ended December 31, 2021
AFUDC	Allowance for funds used during construction
ASC	FASB Accounting Standards Codification
ASU	FASB Accounting Standards Update
Cascade	Cascade Natural Gas Corporation, an indirect wholly owned subsidiary of MDU Energy Capital
Centennial	Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of the Company
Centennial Capital	Centennial Holdings Capital LLC, a direct wholly owned subsidiary of Centennial
Company	MDU Resources Group, Inc.
COVID-19	Coronavirus disease 2019. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency.
Coyote Creek	Coyote Creek Mining Company, LLC, a subsidiary of The North American Coal Corporation
Coyote Station	427-MW coal-fired electric generating facility near Beulah, North Dakota (25 percent ownership)
Diamond Willow	Diamond Willow Wind Farm located in Montana
dk	Decatherm
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
EPA	United States Environmental Protection Agency
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
Federal Reserve	Federal Reserve System, the central banking system of the United States.
Fidelity	Fidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings (previously referred to as the Company's exploration and production segment)
GAAP	Accounting principles generally accepted in the United States of America
GHG	Greenhouse gas
Great Plains	Great Plains Natural Gas Co., a public utility division of Montana-Dakota
Intermountain	Intermountain Gas Company, an indirect wholly owned subsidiary of MDU Energy Capital
IPUC	Idaho Public Utilities Commission
IRS	Internal Revenue Service
Knife River	Knife River Corporation, a direct wholly owned subsidiary of Centennial
kWh	Kilowatt-hour
LIBOR	London Inter-bank Offered Rate
MDU Construction Services	MDU Construction Services Group, Inc., a direct wholly owned subsidiary of Centennial
MDU Energy Capital	MDU Energy Capital, LLC, a direct wholly owned subsidiary of the Company
MISO	Midcontinent Independent System Operator, Inc., the organization that provides open-access transmission services and monitors the high-voltage transmission system in the Midwest United States and Manitoba, Canada and a southern United States region which includes much of Arkansas, Mississippi, and Louisiana.
MMcf	Million cubic feet
MMdk	Million dk
MNPUC	Minnesota Public Utilities Commission
Montana-Dakota	Montana-Dakota Utilities Co., a direct wholly owned subsidiary of MDU Energy Capital
MW	Megawatt
NDDEQ	North Dakota Department of Environmental Quality

3

NDPSC	North Dakota Public Service Commission
NERC	North American Electric Reliability Corporation
Oil	Includes crude oil and condensate
PHMSA	Pipeline and Hazardous Materials Safety Administration
Regional Haze Rule	The EPA developed the Regional Haze Rule requiring states to develop and implement comprehensive plans to reduce human-caused regional haze in designated areas such as national parks and wilderness areas.
SDPUC	South Dakota Public Utilities Commission
SEC	United States Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
VIE	Variable interest entity
Washington DOE	Washington State Department of Ecology
WBI Energy	WBI Energy, Inc., an indirect wholly owned subsidiary of WBI Holdings
WBI Holdings	WBI Holdings, Inc., a direct wholly owned subsidiary of Centennial
WUTC	Washington Utilities and Transportation Commission

4

Introduction

The Company's mission is to deliver superior value to stakeholders by providing essential infrastructure and services to America. The Company generates, transmits and distributes electricity and provides natural gas distribution, transportation and storage services that are regulated by state public service commissions and/or the FERC. The Company also provides construction services to a variety of industries, including commercial, industrial and utility customers, and provides construction materials through aggregate mining and marketing of related products, such as ready-mix concrete, asphalt and asphalt oil.

Montana-Dakota was incorporated under the state laws of Delaware in 1924. The Company was incorporated under the state laws of Delaware in 2018 upon the completion of an internal holding company reorganization, which resulted in Montana-Dakota becoming a subsidiary of the Company. Its principal executive offices are located at 1200 West Century Avenue, P.O. Box 5650, Bismarck, North Dakota 58506-5650, telephone (701) 530-1000.

On August 4, 2022, the Company announced its Board of Directors unanimously approved a plan to pursue the separation of Knife River from the Company. The separation is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes. The separation is expected to result in two independent, publicly traded and well-capitalized companies: (1) MDU Resources Group, Inc., the existing company and (2) Knife River, a construction materials and contracting company.

The Company is organized into five reportable business segments. These business segments include: electric, natural gas distribution, pipeline, construction materials and contracting, and construction services. The Company's business segments are determined based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these segments is defined based on the reporting and review process used by the Company's chief executive officer.

The Company, through its wholly owned subsidiary, MDU Energy Capital, owns Montana-Dakota, Cascade and Intermountain. The electric segment is comprised of Montana-Dakota while the natural gas distribution segment is comprised of Montana-Dakota, Cascade and Intermountain.

The Company, through its wholly owned subsidiary, Centennial, owns WBI Energy, Knife River, MDU Construction Services and Centennial Capital. WBI Energy is the pipeline segment, Knife River is the construction materials and contracting segment, MDU Construction Services is the construction services segment and Centennial Capital is reflected in the Other category.

For more information on the Company's business segments, see Note 17 of the Notes to Consolidated Financial Statements.

5

Part I -- Financial Information

Item 1. Financial Statements

MDU Resources Group, Inc.
Consolidated Statements of Income
(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per share amounts)
Operating revenues:
Electric, natural gas distribution and regulated pipeline	$	323,457	$	260,568	$	876,913	$	702,951
Non-regulated pipeline, construction materials and contracting, construction services and other	1,397,464		1,163,089		2,260,567		1,948,644
Total operating revenues	1,720,921		1,423,657		3,137,480		2,651,595
Operating expenses:
Operation and maintenance:
Electric, natural gas distribution and regulated pipeline	94,261		89,404		191,928		183,737
Non-regulated pipeline, construction materials and contracting, construction services and other	1,222,540		988,392		2,032,770		1,705,717
Total operation and maintenance	1,316,801		1,077,796		2,224,698		1,889,454
Purchased natural gas sold	115,312		63,213		382,665		239,450
Depreciation, depletion and amortization	84,758		73,661		164,880		147,384
Taxes, other than income	61,551		53,189		129,035		115,724
Electric fuel and purchased power	21,929		18,109		48,290		36,730
Total operating expenses	1,600,351		1,285,968		2,949,568		2,428,742
Operating income	120,570		137,689		187,912		222,853
Other income (expense)	(4,246)		9,027		(6,646)		12,381
Interest expense	28,113		23,381		53,373		46,835
Income before income taxes	88,211		123,335		127,893		188,399
Income taxes	17,579		23,164		25,528		36,112
Income from continuing operations	70,632		100,171		102,365		152,287
Discontinued operations, net of tax	35		19		65		34
Net income	$	70,667	$	100,190	$	102,430	$	152,321
Earnings per share - basic:
Income from continuing operations	$	.35	$	.50	$	.50	$	.76
Discontinued operations, net of tax	—		—		—		—
Earnings per share - basic	$	.35	$	.50	$	.50	$	.76
Earnings per share - diluted:
Income from continuing operations	$	.35	$	.50	$	.50	$	.76
Discontinued operations, net of tax	—		—		—		—
Earnings per share - diluted	$	.35	$	.50	$	.50	$	.76
Weighted average common shares outstanding - basic	203,351		201,345		203,351		201,028
Weighted average common shares outstanding - diluted	203,401		201,693		203,396		201,328

The accompanying notes are an integral part of these consolidated financial statements.

6

MDU Resources Group, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Net income	$	70,667	$	100,190	$	102,430	$	152,321
Other comprehensive income (loss):
Reclassification adjustment for loss on derivative instruments included in net income, net of tax of $36 and $36 for the three months ended and $72 and $73 for the six months ended in 2022 and 2021, respectively	111		112		223		223
Postretirement liability adjustment:
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax of $148 and $160 for the three months ended and $312 and $311 for the six months ended in 2022 and 2021, respectively	461		457		906		923
Reclassification of postretirement liability adjustment from regulatory asset, net of tax of $(1,086) and $— for the three months ended and $(1,086) and $— for the six months ended in 2022 and 2021, respectively	(3,265)		—		(3,265)		—
Postretirement liability adjustment	(2,804)		457		(2,359)		923
Net unrealized loss on available-for-sale investments:
Net unrealized loss on available-for-sale investments arising during the period, net of tax of $(34) and $(13) for the three months ended and $(119) and $(25) for the six months ended in 2022 and 2021, respectively	(128)		(52)		(448)		(96)
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax of $7 and $6 for the three months ended and $15 and $15 for the six months ended in 2022 and 2021, respectively	25		25		57		60
Net unrealized loss on available-for-sale investments	(103)		(27)		(391)		(36)
Other comprehensive income (loss)	(2,796)		542		(2,527)		1,110
Comprehensive income attributable to common stockholders	$	67,871	$	100,732	$	99,903	$	153,431

The accompanying notes are an integral part of these consolidated financial statements.

7

MDU Resources Group, Inc.
Consolidated Balance Sheets
(Unaudited)
	June 30, 2022		June 30, 2021		December 31, 2021
Assets	(In thousands, except shares and per share amounts)
Current assets:
Cash and cash equivalents	$	65,394	$	57,946	$	54,161
Receivables, net	1,184,116		903,831		946,741
Inventories	401,433		316,328		335,609
Current regulatory assets	102,535		109,581		118,691
Prepayments and other current assets	105,753		74,259		95,741
Total current assets	1,859,231		1,461,945		1,550,943
Noncurrent assets:
Property, plant and equipment	9,099,752		8,417,559		8,972,849
Less accumulated depreciation, depletion and amortization	3,210,940		3,129,717		3,216,461
Net property, plant and equipment	5,888,812		5,287,842		5,756,388
Goodwill	763,262		717,863		765,386
Other intangible assets, net	20,040		23,401		22,578
Regulatory assets	347,061		376,913		357,851
Investments	161,247		173,157		175,476
Operating lease right-of-use assets	115,802		112,437		124,138
Other	173,670		144,653		157,675
Total noncurrent assets	7,469,894		6,836,266		7,359,492
Total assets	$	9,329,125	$	8,298,211	$	8,910,435
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings	$	100,000	$	50,000	$	—
Long-term debt due within one year	214,453		1,549		148,053
Accounts payable	579,064		431,878		478,933
Taxes payable	84,970		78,805		80,372
Dividends payable	44,229		42,791		44,229
Accrued compensation	98,159		95,909		81,904
Operating lease liabilities due within one year	33,626		31,787		35,368
Regulatory liabilities due within one year	17,884		23,454		16,303
Other accrued liabilities	208,290		188,187		207,078
Total current liabilities	1,380,675		944,360		1,092,240
Noncurrent liabilities:
Long-term debt	2,713,514		2,335,500		2,593,847
Deferred income taxes	597,733		538,633		591,962
Asset retirement obligations	467,995		450,620		458,061
Regulatory liabilities	433,019		428,467		428,790
Operating lease liabilities	82,891		81,052		89,253
Other	266,488		320,777		273,408
Total noncurrent liabilities	4,561,640		4,155,049		4,435,321
Commitments and contingencies
Stockholders' equity:
Common stock Authorized - 500,000,000 shares, $1.00 par value Shares issued - 203,889,661 at June 30, 2022, 202,822,301 at June 30, 2021 and 203,889,661 at December 31, 2021	203,889		202,822		203,889
Other paid-in capital	1,454,131		1,422,169		1,461,205
Retained earnings	1,775,947		1,624,405		1,762,410
Accumulated other comprehensive loss	(43,531)		(46,968)		(41,004)
Treasury stock at cost - 538,921 shares	(3,626)		(3,626)		(3,626)
Total stockholders' equity	3,386,810		3,198,802		3,382,874
Total liabilities and stockholders' equity	$	9,329,125	$	8,298,211	$	8,910,435

The accompanying notes are an integral part of these consolidated financial statements.

8

MDU Resources Group, Inc.
Consolidated Statements of Equity
(Unaudited)
				Other Paid-in Capital		Retained Earnings		Accumu-lated Other Compre-hensive Loss
	Common Stock									Treasury Stock
	Shares	Amount								Shares	Amount		Total
	(In thousands, except shares)
At December 31, 2021	203,889,661	$	203,889	$	1,461,205	$	1,762,410	$	(41,004)	(538,921)	$	(3,626)	$	3,382,874
Net income	—	—		—		31,763		—		—	—		31,763
Other comprehensive income	—	—		—		—		269		—	—		269
Dividends declared on common stock	—	—		—		(44,447)		—		—	—		(44,447)
Stock-based compensation	—	—		2,689		—		—		—	—		2,689
Repurchase of common stock	—	—		—		—		—		(266,821)	(7,399)		(7,399)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	—	—		(12,303)		—		—		266,821	7,399		(4,904)
Issuance of common stock	—	—		(127)		—		—		—	—		(127)
At March 31, 2022	203,889,661	$	203,889	$	1,451,464	$	1,749,726	$	(40,735)	(538,921)	$	(3,626)	$	3,360,718
Net income	—	—		—		70,667		—		—	—		70,667
Other comprehensive loss	—	—		—		—		(2,796)		—	—		(2,796)
Dividends declared on common stock	—	—		—		(44,446)		—		—	—		(44,446)
Stock-based compensation	—	—		2,689		—		—		—	—		2,689
Issuance of common stock	—	—		(22)		—		—		—	—		(22)
At June 30, 2022	203,889,661	$	203,889	$	1,454,131	$	1,775,947	$	(43,531)	(538,921)	$	(3,626)	$	3,386,810

				Other Paid-in Capital		Retained Earnings		Accumu-lated Other Compre-hensive Loss
	Common Stock									Treasury Stock
	Shares	Amount								Shares	Amount		Total
	(In thousands, except shares)
At December 31, 2020	201,061,198	$	201,061	$	1,371,385	$	1,558,363	$	(48,078)	(538,921)	$	(3,626)	$	3,079,105
Net income	—	—		—		52,131		—		—	—		52,131
Other comprehensive income	—	—		—		—		568		—	—		568
Dividends declared on common stock	—	—		—		(42,943)		—		—	—		(42,943)
Stock-based compensation	—	—		2,574		—		—		—	—		2,574
Repurchase of common stock	—	—		—		—		—		(392,294)	(6,701)		(6,701)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	—	—		(10,828)		—		—		392,294	6,701		(4,127)
Issuance of common stock	672,260	672		19,027		—		—		—	—		19,699
At March 31, 2021	201,733,458	$	201,733	$	1,382,158	$	1,567,551	$	(47,510)	(538,921)	$	(3,626)	$	3,100,306
Net income	—	—		—		100,190		—		—	—		100,190
Other comprehensive income	—	—		—		—		542		—	—		542
Dividends declared on common stock	—	—		—		(43,336)		—		—	—		(43,336)
Stock-based compensation	—	—		6,150		—		—		—	—		6,150
Issuance of common stock	1,088,843	1,089		33,861		—		—		—	—		34,950
At June 30, 2021	202,822,301	$	202,822	$	1,422,169	$	1,624,405	$	(46,968)	(538,921)	$	(3,626)	$	3,198,802

The accompanying notes are an integral part of these consolidated financial statements.

9

MDU Resources Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
	Six Months Ended
	June 30,
	2022		2021
	(In thousands)
Operating activities:
Net income	$	102,430	$	152,321
Discontinued operations, net of tax	65		34
Income from continuing operations	102,365		152,287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	164,880		147,384
Deferred income taxes	1,464		14,498
Provision for credit losses	2,244		(1,158)
Amortization of debt issuance costs	709		633
Employee stock-based compensation costs	5,378		8,724
Pension and postretirement benefit plan net periodic benefit credit	(3,004)		(2,457)
Unrealized (gains) losses on investments	13,210		(3,795)
Gains on sales of assets	(5,434)		(8,021)
Changes in current assets and liabilities, net of acquisitions:
Receivables	(242,252)		(17,358)
Inventories	(63,840)		(25,330)
Other current assets	12,888		(52,768)
Accounts payable	104,451		(3,845)
Other current liabilities	29,178		(22,605)
Pension and postretirement benefit plan contributions	(262)		(225)
Other noncurrent changes	(4,509)		(3,095)
Net cash provided by continuing operations	117,466		182,869
Net cash used in discontinued operations	(16)		(58)
Net cash provided by operating activities	117,450		182,811
Investing activities:
Capital expenditures	(290,145)		(261,937)
Acquisitions, net of cash acquired	(524)		(13,721)
Net proceeds from sale or disposition of property and other	4,324		12,402
Investments	(4,680)		(3,244)
Net cash used in investing activities	(291,025)		(266,500)
Financing activities:
Issuance of short-term borrowings	100,000		50,000
Repayment of short-term borrowings	—		(50,000)
Issuance of long-term debt	334,329		171,774
Repayment of long-term debt	(147,544)		(48,151)
Debt issuance costs	(1,068)		(5)
Net proceeds from issuance of common stock	(149)		54,649
Dividends paid	(88,457)		(85,351)
Repurchase of common stock	(7,399)		(6,701)
Tax withholding on stock-based compensation	(4,904)		(4,127)
Net cash provided by financing activities	184,808		82,088
Increase (decrease) in cash and cash equivalents	11,233		(1,601)
Cash and cash equivalents -- beginning of year	54,161		59,547
Cash and cash equivalents -- end of period	$	65,394	$	57,946

The accompanying notes are an integral part of these consolidated financial statements.

10

MDU Resources Group, Inc.

Notes to Consolidated

Financial Statements

June 30, 2022 and 2021

(Unaudited)

Note 1 - Basis of presentation

The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2021 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses.

On August 4, 2022, the Company announced its Board of Directors unanimously approved a plan to pursue the separation of Knife River from the Company. The separation is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes.

The assets and liabilities of the Company's discontinued operations have been classified as held for sale and are included in prepayments and other current assets, noncurrent assets - other and other accrued liabilities on the Consolidated Balance Sheets. The results and supporting activities are shown in income from discontinued operations on the Consolidated Statements of Income. Unless otherwise indicated, the amounts presented in the accompanying notes to the consolidated financial statements relate to the Company's continuing operations.

In the fourth quarter of 2021, the Company made changes to the presentation of the Consolidated Statements of Cash Flows to provide further clarity on the sources and uses of net cash provided by operating activities and net cash provided by (used in) financing activities. Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not impact total net cash provided by operating activities or net cash provided by financing activities for the six months ended June 30, 2021.

Management has also evaluated the impact of events occurring after June 30, 2022, up to the date of the issuance of these consolidated interim financial statements on August 5, 2022, that would require recognition or disclosure in the Consolidated Financial Statements.

Note 2 - New accounting standards

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its Consolidated Financial Statements and/or disclosures:

Standard	Description	Effective date	Impact on financial statements/disclosures
ASU 2021-10 - Government Assistance	In November 2021, the FASB issued guidance on modifying the disclosure requirements to increase the transparency of government assistance including disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements.	January 1, 2022	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2022.
ASU 2020-04 - Reference Rate Reform	In March 2020, the FASB issued optional guidance to ease the facilitation of the effects of reference rate reform on financial reporting. The guidance applies to certain contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Beginning January 1, 2022, LIBOR or other discontinued reference rates cannot be applied to new contracts. New contracts will incorporate a new reference rate, which includes SOFR. LIBOR or other discontinued reference rates cannot be applied to contract modifications or hedging relationships entered into or evaluated after December 31, 2022. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must identify a replacement rate by June 30, 2023.	Effective as of March 12, 2020 and will continue through December 31, 2022	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR, and a review of other contracts and agreements is on-going. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures.

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Note 3 - Seasonality of operations

Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year.

Note 4 - Receivables and allowance for expected credit losses

Receivables consists primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $37.0 million, $34.2 million and $44.8 million at June 30, 2022 and 2021, and December 31, 2021, respectively.

The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected credit losses and believes it is reasonable.

Details of the Company's expected credit losses were as follows:

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2021	$	269	$	1,506	$	2	$	5,406	$	2,533	$	9,716
Current expected credit loss provision	565		1,369		—		(253)		54		1,735
Less write-offs charged against the allowance	597		932		—		27		71		1,627
Credit loss recoveries collected	124		180		—		—		28		332
At March 31, 2022	$	361	$	2,123	$	2	$	5,126	$	2,544	$	10,156
Current expected credit loss provision	113		92		—		12		292		509
Less write-offs charged against the allowance	234		939		—		108		104		1,385
Credit loss recoveries collected	108		177		—		—		—		285
At June 30, 2022	$	348	$	1,453	$	2	$	5,030	$	2,732	$	9,565

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2020	$	899	$	2,571	$	2	$	6,164	$	5,722	$	15,358
Current expected credit loss provision	538		1,273		—		(1,049)		(1,079)		(317)
Less write-offs charged against the allowance	888		1,107		—		273		401		2,669
Credit loss recoveries collected	129		213		—		—		—		342
At March 31, 2021	$	678	$	2,950	$	2	$	4,842	$	4,242	$	12,714
Current expected credit loss provision	(110)		(103)		—		11		(639)		(841)
Less write-offs charged against the allowance	341		787		—		232		64		1,424
Credit loss recoveries collected	100		199		—		—		—		299
At June 30, 2021	$	327	$	2,259	$	2	$	4,621	$	3,539	$	10,748

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Note 5 - Inventories and natural gas in storage

Natural gas in storage for the Company's regulated operations is generally valued at lower of cost or market using the last-in, first-out method or lower of cost or net realizable value using the average cost or first-in, first-out method. The majority of all other inventories are valued at the lower of cost or net realizable value using the average cost method. The portion of the cost of natural gas in storage expected to be used within 12 months was included in inventories. Inventories on the Consolidated Balance Sheets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Aggregates held for resale	$	200,569	$	183,977	$	184,363
Asphalt oil	92,905		51,500		57,002
Materials and supplies	40,405		27,969		30,629
Merchandise for resale	38,293		26,871		28,501
Natural gas in storage (current)	15,014		10,824		18,867
Other	14,247		15,187		16,247
Total	$	401,433	$	316,328	$	335,609

The remainder of natural gas in storage, which largely represents the cost of gas required to maintain pressure levels for normal operating purposes, was included in noncurrent assets - other and was $47.2 million at June 30, 2022 and $47.5 million at June 30, 2021 and December 31, 2021.

Note 6 - Earnings per share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury. Net income was the same for both the basic and diluted earnings per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per share amounts)
Weighted average common shares outstanding - basic	203,351		201,345		203,351		201,028
Effect of dilutive performance share awards and restricted stock units	50		348		45		300
Weighted average common shares outstanding - diluted	203,401		201,693		203,396		201,328
Shares excluded from the calculation of diluted earnings per share	52		—		175		—
Dividends declared per common share	$	.2175	$	.2125	$	.4350	$	.4250

Note 7 - Equity

The Company currently has a shelf registration statement on file with the SEC, under which the Company may issue and sell any combination of common stock and debt securities. The Company may sell such securities if warranted by market conditions and the Company's capital requirements.

In August 2020, the Company amended the Distribution Agreement dated February 22, 2019, with J.P. Morgan Securities LLC and MUFG Securities Americas Inc., as sales agents. This agreement, as amended, allows the offering, issuance and sale of up to 6.4 million shares of the Company's common stock in connection with an "at-the-market" offering. The common stock may be offered for sale, from time to time, in accordance with the terms and conditions of this agreement. As of June 30, 2022, the Company had capacity to issue up to 3.6 million additional shares of common stock under the "at-the-market" offering program.

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Details of the Company's "at-the-market" offering activity was as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022		2021			2022		2021
	(In millions)
Shares issued	—		1.1			—		1.8
Net proceeds *	$	—	$	34.9	**	$	(.1)	$	54.6	**

*    Net proceeds include issuance costs of $22,000 and $149,000 for the three and six months ended June 30, 2022, respectively, and $443,000 and $743,000 for the three and six months ended June 30, 2021, respectively.

**    Net proceeds were used for capital expenditures.

Note 8 - Accumulated other comprehensive loss

The after-tax changes in the components of accumulated other comprehensive loss were as follows:

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2021	$	(538)	$	(40,461)	$	(5)	$	(41,004)
Other comprehensive loss before reclassifications	—		—		(320)		(320)
Amounts reclassified from accumulated other comprehensive loss	112		445		32		589
Net current-period other comprehensive income (loss)	112		445		(288)		269
At March 31, 2022	$	(426)	$	(40,016)	$	(293)	$	(40,735)
Other comprehensive loss before reclassifications	—		—		(128)		(128)
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	—		(3,265)		—		(3,265)
Amounts reclassified from accumulated other comprehensive loss	111		461		25		597
Net current-period other comprehensive income (loss)	111		(2,804)		(103)		(2,796)
At June 30, 2022	$	(315)	$	(42,820)	$	(396)	$	(43,531)

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2020	$	(984)	$	(47,207)	$	113	$	(48,078)
Other comprehensive loss before reclassifications	—		—		(44)		(44)
Amounts reclassified from accumulated other comprehensive loss	111		466		35		612
Net current-period other comprehensive income (loss)	111		466		(9)		568
At March 31, 2021	$	(873)	$	(46,741)	$	104	$	(47,510)
Other comprehensive loss before reclassifications	—		—		(52)		(52)
Amounts reclassified from accumulated other comprehensive loss	112		457		25		594
Net current-period other comprehensive income (loss)	112		457		(27)		542
At June 30, 2021	$	(761)	$	(46,284)	$	77	$	(46,968)

14

The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows:

	Three Months Ended				Six Months Ended				Location on Consolidated Statements of Income
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	(147)	$	(148)	$	(295)	$	(296)	Interest expense
	36		36		72		73		Income taxes
	(111)		(112)		(223)		(223)
Amortization of postretirement liability losses included in net periodic benefit credit	(609)		(617)		(1,218)		(1,234)		Other income
	148		160		312		311		Income taxes
	(461)		(457)		(906)		(923)
Reclassification adjustment on available-for-sale investments included in net income	(32)		(31)		(72)		(75)		Other income
	7		6		15		15		Income taxes
	(25)		(25)		(57)		(60)
Total reclassifications	$	(597)	$	(594)	$	(1,186)	$	(1,206)

Note 9 - Revenue from contracts with customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

Disaggregation

In the following tables, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 17.

Three Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,363	$	116,749	$	—	$	—	$	—	$	—	$	146,112
Commercial utility sales	34,015		72,354		—		—		—		—		106,369
Industrial utility sales	10,923		9,009		—		—		—		—		19,932
Other utility sales	1,880		—		—		—		—		—		1,880
Natural gas transportation	—		11,456		31,967		—		—		—		43,423
Natural gas storage	—		—		2,896		—		—		—		2,896
Contracting services	—		—		—		330,682		—		—		330,682
Construction materials	—		—		—		550,363		—		—		550,363
Intrasegment eliminations	—		—		—		(169,232)		—		—		(169,232)
Electrical & mechanical specialty contracting	—		—		—		—		507,233		—		507,233
Transmission & distribution specialty contracting	—		—		—		—		166,174		—		166,174
Other	10,216		3,751		2,676		—		109		4,389		21,141
Intersegment eliminations	(124)		(141)		(7,792)		(200)		(1,803)		(4,389)		(14,449)
Revenues from contracts with customers	86,273		213,178		29,747		711,613		671,713		—		1,712,524
Revenues out of scope	(812)		(2,738)		66		—		11,881		—		8,397
Total external operating revenues	$	85,461	$	210,440	$	29,813	$	711,613	$	683,594	$	—	$	1,720,921

15

Three Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,258	$	83,480	$	—	$	—	$	—	$	—	$	112,738
Commercial utility sales	33,834		47,612		—		—		—		—		81,446
Industrial utility sales	10,354		6,180		—		—		—		—		16,534
Other utility sales	1,825		—		—		—		—		—		1,825
Natural gas transportation	—		11,451		27,685		—		—		—		39,136
Natural gas storage	—		—		3,094		—		—		—		3,094
Contracting services	—		—		—		280,834		—		—		280,834
Construction materials	—		—		—		498,762		—		—		498,762
Intrasegment eliminations	—		—		—		(145,780)		—		—		(145,780)
Electrical & mechanical specialty contracting	—		—		—		—		347,702		—		347,702
Transmission & distribution specialty contracting	—		—		—		—		165,123		—		165,123
Other	9,465		2,794		4,810		—		57		3,389		20,515
Intersegment eliminations	(136)		(142)		(7,862)		(142)		(797)		(3,361)		(12,440)
Revenues from contracts with customers	84,600		151,375		27,727		633,674		512,085		28		1,409,489
Revenues out of scope	(950)		2,413		46		—		12,659		—		14,168
Total external operating revenues	$	83,650	$	153,788	$	27,773	$	633,674	$	524,744	$	28	$	1,423,657

Six Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	66,667	$	375,565	$	—	$	—	$	—	$	—	$	442,232
Commercial utility sales	69,615		235,963		—		—		—		—		305,578
Industrial utility sales	21,229		22,033		—		—		—		—		43,262
Other utility sales	3,630		—		—		—		—		—		3,630
Natural gas transportation	—		23,837		63,541		—		—		—		87,378
Natural gas storage	—		—		6,615		—		—		—		6,615
Contracting services	—		—		—		444,949		—		—		444,949
Construction materials	—		—		—		792,095		—		—		792,095
Intrasegment eliminations	—		—		—		(215,266)		—		—		(215,266)
Electrical & mechanical specialty contracting	—		—		—		—		900,041		—		900,041
Transmission & distribution specialty contracting	—		—		—		—		314,640		—		314,640
Other	22,969		6,360		4,386		—		157		8,730		42,602
Intersegment eliminations	(247)		(277)		(33,734)		(330)		(2,861)		(8,730)		(46,179)
Revenues from contracts with customers	183,863		663,481		40,808		1,021,448		1,211,977		—		3,121,577
Revenues out of scope	(4,807)		(2,623)		124		—		23,209		—		15,903
Total external operating revenues	$	179,056	$	660,858	$	40,932	$	1,021,448	$	1,235,186	$	—	$	3,137,480

16

Six Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	62,694	$	286,617	$	—	$	—	$	—	$	—	$	349,311
Commercial utility sales	66,762		167,664		—		—		—		—		234,426
Industrial utility sales	20,383		14,992		—		—		—		—		35,375
Other utility sales	3,391		—		—		—		—		—		3,391
Natural gas transportation	—		23,903		57,102		—		—		—		81,005
Natural gas storage	—		—		7,123		—		—		—		7,123
Contracting services	—		—		—		376,859		—		—		376,859
Construction materials	—		—		—		715,174		—		—		715,174
Intrasegment eliminations	—		—		—		(192,496)		—		—		(192,496)
Electrical & mechanical specialty contracting	—		—		—		—		702,892		—		702,892
Transmission & distribution specialty contracting	—		—		—		—		316,486		—		316,486
Other	19,238		5,803		7,470		—		93		6,730		39,334
Intersegment eliminations	(271)		(284)		(34,092)		(204)		(1,839)		(6,685)		(43,375)
Revenues from contracts with customers	172,197		498,695		37,603		899,333		1,017,632		45		2,625,505
Revenues out of scope	(3,873)		5,299		82		—		24,582		—		26,090
Total external operating revenues	$	168,324	$	503,994	$	37,685	$	899,333	$	1,042,214	$	45	$	2,651,595

Presented in the previous tables are intrasegment revenues within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.

Contract balances

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation.

The changes in contract assets and liabilities were as follows:

	June 30, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	236,951	$	125,742	$	111,209	Receivables, net
Contract liabilities - current	(167,507)		(179,140)		11,633		Accounts payable
Contract liabilities - noncurrent	(19)		(118)		99		Noncurrent liabilities - other
Net contract assets (liabilities)	$	69,425	$	(53,516)	$	122,941

The Company recognized $14.8 million and $136.7 million in revenue for the three and six months ended June 30, 2022, respectively, which was previously included in contract liabilities at December 31, 2021. The Company recognized $21.9 million and $145.3 million in revenue for the three and six months ended June 30, 2021, respectively, which was previously included in contract liabilities at December 31, 2020.

The Company recognized a net increase in revenues of $30.0 million and $42.4 million for the three and six months ended June 30, 2022, respectively, from performance obligations satisfied in prior periods. The company recognized a net increase in revenues of $27.3 million and $54.6 million for the three and six months ended June 30, 2021, respectively, from performance obligations satisfied in prior periods.

17

Remaining performance obligations

The remaining performance obligations, also referred to as backlog, at the construction materials and contracting and construction services segments include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The majority of the Company's construction contracts have an original duration of less than two years.

The remaining performance obligations at the pipeline segment include firm transportation contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient, which does not require additional disclosures for contracts with an original duration of less than 12 months, to certain firm transportation and non-regulated contracts. The Company's firm transportation contracts included in the remaining performance obligations have weighted average remaining durations of less than five years.

At June 30, 2022, the Company's remaining performance obligations were $3.5 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.8 billion within the next 12 months or less; $389.0 million within the next 13 to 24 months; and $368.4 million in 25 months or more.

Note 10 - Business combinations

The following acquisitions were accounted for as business combinations in accordance with ASC 805 - Business Combinations. The results of the acquired businesses have been included in the Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combinations are not presented, as none of these business combinations, individually or in the aggregate, were material to the Company's financial position or results of operations.

The acquisitions are also subject to customary adjustments based on, among other things, the amount of cash, debt and working capital in the business as of the closing date. The amounts included in the Consolidated Balance Sheets for these adjustments are considered provisional until final settlement has occurred.

The Company had no acquisitions in the first half of 2022.

In 2021, the construction materials and contracting segment's acquisitions included:

•Baker Rock Resources and Oregon Mainline Paving, two premier construction materials companies located around the Portland, Oregon metro area, acquired in November 2021. At June 30, 2022, the purchase price allocation was preliminary and will be finalized within 12 months of the acquisition date.

•Mt. Hood Rock, a construction aggregates business in Oregon, acquired in April 2021. As of March 31, 2022, the purchase price allocation was settled with no material adjustments to the provisional accounting.

In 2021, the total purchase price for acquisitions was $236.1 million, subject to certain adjustments, with cash acquired totaling $900,000. The purchase price includes consideration paid of $235.2 million. The amounts allocated to the aggregated assets acquired and liabilities assumed during 2021 were as follows: $17.0 million to current assets; $179.8 million to property, plant and equipment; $50.6 million to goodwill; $2.2 million to other intangible assets; $8.7 million to current liabilities; $2.5 million to noncurrent liabilities - other; and $3.2 million to deferred tax liabilities. During the first quarter of 2022, measurement period adjustments were made to previously reported provisional amounts, which decreased goodwill and increased property, plant and equipment by $2.1 million. The Company issued debt to finance these acquisitions.

Costs incurred for acquisitions are included in operation and maintenance expense on the Consolidated Statements of Income. For the six months ended June 30, 2022, the Company had no acquisition costs. For the six months ended June 30, 2021, acquisition costs were not material.

Note 11 - Leases

The Company's leases primarily include operating leases for equipment, buildings, easements and vehicles. The Company leases certain equipment to third parties through its utility and construction services segments, which are considered short-term operating leases with terms of less than 12 months.

The Company recognized revenue from operating leases of $12.0 million and $23.4 million for the three and six months ended June 30, 2022, respectively. The Company recognized revenue from operating leases of $12.8 million and $24.8 million for the three and six months ended June 30, 2021, respectively. At June 30, 2022, the Company had $8.7 million of lease receivables with a majority due within 12 months.

18

Note 12 - Goodwill and other intangible assets

The changes in the carrying amount of goodwill were as follows:

	Balance at January 1, 2022		Goodwill Acquired During  the Year		Measurement Period Adjustments		Balance at June 30, 2022
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	276,426		—		(2,124)		274,302
Construction services	143,224		—		—		143,224
Total	$	765,386	$	—	$	(2,124)	$	763,262

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at June 30, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		2,900		—		228,903
Construction services	143,224		—		—		143,224
Total	$	714,963	$	2,900	$	—	$	717,863

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at December 31, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		50,640		(217)		276,426
Construction services	143,224		—		—		143,224
Total	$	714,963	$	50,640	$	(217)	$	765,386

Other amortizable intangible assets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Customer relationships	$	28,990	$	29,423	$	29,740
Less accumulated amortization	11,812		8,765		10,650
	17,178		20,658		19,090
Noncompete agreements	4,591		3,991		4,591
Less accumulated amortization	3,206		2,576		2,856
	1,385		1,415		1,735
Other	5,607		11,957		12,601
Less accumulated amortization	4,130		10,629		10,848
	1,477		1,328		1,753
Total	$	20,040	$	23,401	$	22,578

The previous tables include goodwill and intangible assets associated with the business combinations completed during 2021. For more information related to these business combinations, see Note 10.

Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2022, was $1.3 million and $2.5 million, respectively. Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2021, was $1.2 million and $2.7 million, respectively. Estimated amortization expense for identifiable intangible assets as of June 30, 2022, was:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Amortization expense	$	2,285	$	4,591	$	4,305	$	2,291	$	1,781	$	4,787

19

Note 13 - Regulatory assets and liabilities

The following table summarizes the individual components of unamortized regulatory assets and liabilities:

	Estimated Recovery or Refund Period as of June 30, 2022	*	June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Regulatory assets:
Current:
Natural gas costs recoverable through rate adjustments	Up to 1 year		$	83,557	$	85,045	$	86,371
Conservation programs	Up to 1 year		7,883		7,580		8,225
Decoupling	Up to 1 year		4,615		6,750		9,131
Cost recovery mechanisms	Up to 1 year		3,459		5,692		4,536
Other	Up to 1 year		3,021		4,514		10,428
			102,535		109,581		118,691
Noncurrent:
Pension and postretirement benefits	**		137,582		155,906		142,681
Cost recovery mechanisms	Up to 10 years		64,096		44,415		44,870
Plant costs/asset retirement obligations	Over plant lives		63,334		72,853		63,116
Plant to be retired	-		27,628		46,061		50,070
Manufactured gas plant site remediation	-		26,031		26,155		26,053
Taxes recoverable from customers	Over plant lives		12,365		10,929		12,339
Long-term debt refinancing costs	Up to 38 years		3,482		4,110		3,794
Natural gas costs recoverable through rate adjustments	Up to 2 years		1,839		8,389		5,186
Other	Up to 17 years		10,704		8,095		9,742
			347,061		376,913		357,851
Total regulatory assets			$	449,596	$	486,494	$	476,542
Regulatory liabilities:
Current:
Electric fuel and purchased power deferral	Up to 1 year		$	4,161	$	5,431	$	—
Taxes refundable to customers	Up to 1 year		3,728		3,434		3,841
Cost recovery mechanisms	Up to 1 year		3,172		1,388		214
Natural gas costs refundable through rate adjustments	Up to 1 year		738		8,935		6,700
Other	Up to 1 year		6,085		4,266		5,548
			17,884		23,454		16,303
Noncurrent:
Taxes refundable to customers	Over plant lives		209,022		222,098		215,421
Plant removal and decommissioning costs	Over plant lives		172,755		171,381		168,152
Pension and postretirement benefits	**		19,686		16,940		20,434
Accumulated deferred investment tax credit	Up to 20 years		14,009		11,915		12,696
Cost recovery mechanisms	Up to 20 years		10,898		2,499		7,727
Other	Up to 16 years		6,649		3,634		4,360
			433,019		428,467		428,790
Total regulatory liabilities			$	450,903	$	451,921	$	445,093
Net regulatory position			$	(1,307)	$	34,573	$	31,449

*Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers.

**    Recovered as expense is incurred or cash contributions are made.

At June 30, 2022 and 2021, and December 31, 2021, approximately $262.9 million, $317.0 million and $296.6 million, respectively, of regulatory assets were not earning a rate of return; however, these regulatory assets are expected to be recovered from customers in future rates. These assets are largely comprised of the unfunded portion of pension and postretirement benefits, asset retirement obligations, accelerated depreciation on plant retirement and the estimated future cost of manufactured gas plant site remediation.

In the last half of 2021 and the first half of 2022, the Company has experienced higher natural gas costs due to the increase in demand outpacing the supply along with the impact of global events. This increase in natural gas costs experienced in certain jurisdictions has been offset by the recovery of prior period natural gas costs being recovered over a period longer than the normal one-year period, as further discussed below.

20

In February 2021, a prolonged period of unseasonably cold temperatures in the central United States significantly increased the demand for electric and natural gas services and contributed to increased market prices. Overall, Montana-Dakota and Great Plains incurred approximately $44.0 million in increased natural gas costs in order to maintain services for its customers. These extraordinary gas costs were recorded as regulatory assets as they are expected to be recovered from customers. Montana-Dakota and Great Plains have received approval for the recovery of purchased gas adjustments related to the cold-weather event in all jurisdictions impacted, including out-of-cycle purchased gas adjustment requests in most jurisdictions. For a discussion of the Company's most recent cases by jurisdiction, see Note 19.

In 2019, the Company experienced increased natural gas costs in Washington from the rupture of the Enbridge pipeline in Canada in late 2018. As a result, the Company requested, and the WUTC approved, recovery through 2022 of the balance of natural gas costs recoverable related to this period of time, which was over three years rather than its normal one-year recovery period.

In February 2019, the Company announced the retirement of three aging coal-fired electric generating units. The Company accelerated the depreciation related to these facilities in property, plant and equipment and recorded the difference between the accelerated depreciation, in accordance with GAAP, and the depreciation approved for rate-making purposes as regulatory assets. Requests were filed with the NDPSC and SDPUC, and subsequently approved, to offset the savings associated with the cessation of operations of these units with the amortization of the deferred regulatory assets. The Company ceased operations of Lewis & Clark Station in March 2021 and Units 1 and 2 at Heskett Station in February 2022. The Company subsequently reclassified the costs being recovered for these facilities from plant retirement to cost recovery mechanisms in the previous table and began amortizing the associated plant retirement and closure costs in the jurisdictions where requests were filed, as previously discussed. The Company expects to recover the regulatory assets related to the plant retirements in future rates.

If, for any reason, the Company's regulated businesses cease to meet the criteria for application of regulatory accounting for all or part of their operations, the regulatory assets and liabilities relating to those portions ceasing to meet such criteria would be written off and included in the statement of income or accumulated other comprehensive loss in the period in which the discontinuance of regulatory accounting occurs.

Note 14 - Fair value measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value ASC establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach.

The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. The Company anticipates using these investments, which consist of insurance contracts, to satisfy its obligations under its unfunded, nonqualified defined benefit and defined contribution plans for executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $97.4 million, $105.7 million and $109.6 million, at June 30, 2022 and 2021, and December 31, 2021, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized loss on these investments was $8.4 million and $14.1 million for the three and six months ended June 30, 2022, respectively. The net unrealized gain on these investments was $3.8 million and $3.9 million for the three and six months ended June 30, 2021. The change in fair value, which is considered part of the cost of the plan, is classified in other income on the Consolidated Statements of Income.

The Company did not elect the fair value option, which records gains and losses in income, for its available-for-sale securities, which include mortgage-backed securities and U.S. Treasury securities. These available-for-sale securities are recorded at fair value and are classified as investments on the Consolidated Balance Sheets. Unrealized gains or losses are recorded in accumulated other comprehensive loss. Details of available-for-sale securities were as follows:

June 30, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,128	$	—	$	419	$	7,709
U.S. Treasury securities	3,125		—		83		3,042
Total	$	11,253	$	—	$	502	$	10,751

21

June 30, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,278	$	127	$	9	$	8,396
U.S. Treasury securities	2,893		—		21		2,872
Total	$	11,171	$	127	$	30	$	11,268

December 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,702	$	51	$	47	$	8,706
U.S. Treasury securities	2,407		—		11		2,396
Total	$	11,109	$	51	$	58	$	11,102

The Company's assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements at June 30, 2022, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2022
	(In thousands)
Assets:
Money market funds	$	—	$	8,333	$	—	$	8,333
Insurance contracts*	—		97,431		—		97,431
Available-for-sale securities:
Mortgage-backed securities	—		7,709		—		7,709
U.S. Treasury securities	—		3,042		—		3,042
Total assets measured at fair value	$	—	$	116,515	$	—	$	116,515

*    The insurance contracts invest approximately 64 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 7 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

	Fair Value Measurements at June 30, 2021, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	12,234	$	—	$	12,234
Insurance contracts*	—		105,684		—		105,684
Available-for-sale securities:
Mortgage-backed securities	—		8,396		—		8,396
U.S. Treasury securities	—		2,872		—		2,872
Total assets measured at fair value	$	—	$	129,186	$	—	$	129,186

*    The insurance contracts invest approximately 53 percent in fixed-income investments, 20 percent in common stock of large-cap companies, 10 percent in common stock of mid-cap companies, 9 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

22

	Fair Value Measurements at December 31, 2021, Using
	Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance at December 31, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	10,190	$	—	$	10,190
Insurance contracts*	—		109,603		—		109,603
Available-for-sale securities:
Mortgage-backed securities	—		8,706		—		8,706
U.S. Treasury securities	—		2,396		—		2,396
Total assets measured at fair value	$	—	$	130,895	$	—	$	130,895

*    The insurance contracts invest approximately 61 percent in fixed-income investments, 17 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in common stock of small-cap companies, 5 percent in target date investments and 2 percent in cash equivalents.

The Company's money market funds are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets, or using other known sources including pricing from outside sources. The estimated fair value of the Company's mortgage-backed securities and U.S. Treasury securities are based on comparable market transactions, other observable inputs or other sources, including pricing from outside sources. The estimated fair value of the Company's insurance contracts are based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value.

The Company applies the provisions of the fair value measurement standard to its nonrecurring, non-financial measurements, including long-lived asset impairments. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. The Company reviews the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable.

The Company performed fair value assessments of the assets acquired and liabilities assumed in the business combinations that occurred during 2021. The fair value of these assets and liabilities were determined based on Level 2 and Level 3 inputs.

The Company's long-term debt is not measured at fair value on the Consolidated Balance Sheets and the fair value is being provided for disclosure purposes only. The fair value was categorized as Level 2 in the fair value hierarchy and was based on discounted future cash flows using current market interest rates. The estimated fair value of the Company's Level 2 long-term debt was as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Carrying amount	$	2,927,967	$	2,337,049	$	2,741,900
Fair value	$	2,753,684	$	2,616,232	$	2,984,866

The carrying amounts of the Company's remaining financial instruments included in current assets and current liabilities approximate their fair values.

Note 15 - Debt

Certain debt instruments of the Company's subsidiaries contain restrictive and financial covenants and cross-default provisions. In order to borrow under the debt agreements, the subsidiary companies must be in compliance with the applicable covenants and certain other conditions, all of which the subsidiaries, as applicable, were in compliance with at June 30, 2022. In the event the subsidiaries do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued.

Montana-Dakota's and Centennial's respective commercial paper programs are supported by revolving credit agreements. While the amount of commercial paper outstanding does not reduce available capacity under the respective revolving credit agreements, Montana-Dakota and Centennial do not issue commercial paper in an aggregate amount exceeding the available capacity under the credit agreements. The commercial paper borrowings may vary during the period, largely the result of fluctuations in working capital requirements due to the seasonality of certain operations of the Company's subsidiaries.

23

Short-term debt

Centennial On March 18, 2022, Centennial entered into a $100.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of March 17, 2023. The agreement contains customary covenants and provisions, including a covenant of Centennial not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent. The covenants also include certain restrictions on the sale of certain assets, loans and investments.

Long-term debt

Long-term Debt Outstanding Long-term debt outstanding was as follows:

	Weighted Average Interest Rate at June 30, 2022		June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Senior Notes due on dates ranging from October 22, 2022 to June 15, 2062	4.29	%	$	2,365,000	$	1,950,000	$	2,125,000
Commercial paper supported by revolving credit agreements	1.96	%	495,400		297,400		450,300
Credit agreements due on June 7, 2024	4.75	%	29,860		48,550		127,500
Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029	7.32	%	35,000		35,000		35,000
Term Loan Agreement due on September 3, 2032	2.00	%	7,700		8,400		7,700
Other notes due on dates ranging from January 1, 2024 to January 1, 2061	.95	%	2,411		3,232		2,564
Less unamortized debt issuance costs			6,809		5,505		6,090
Less discount			595		28		74
Total long-term debt			2,927,967		2,337,049		2,741,900
Less current maturities			214,453		1,549		148,053
Net long-term debt			$	2,713,514	$	2,335,500	$	2,593,847

Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at June 30, 2022, were as follows:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Long-term debt maturities	$	147,953	$	77,923	$	586,064	$	177,802	$	140,802	$	1,804,827

Note 16 - Cash flow information

Cash expenditures for interest and income taxes were as follows:

	Six Months Ended
	June 30,
	2022		2021
	(In thousands)
Interest, net*	$	50,294	$	45,870
Income taxes paid, net	$	16,520	$	46,734

*    AFUDC - borrowed was $1.3 million and $816,000 for the six months ended June 30, 2022 and 2021, respectively.

Noncash investing and financing transactions were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	18,907	$	17,224	$	55,987
Property, plant and equipment additions in accounts payable	$	46,295	$	31,886	$	57,605
Debt assumed in connection with a business combination	$	—	$	—	$	10

24

Note 17 - Business segment data

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The Company's operations are located within the United States.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides non-regulated cathodic protection and other energy-related services.

The construction materials and contracting segment mines, processes and sells construction aggregates (crushed stone, sand and gravel); produces and sells asphalt mix; and supplies ready-mix concrete. This segment focuses on vertical integration of its contracting services with its construction materials to support the aggregate-based product lines including aggregate placement, asphalt and concrete paving, and site development and grading. Although not common to all locations, other products include the sale of cement, asphalt oil for various commercial and roadway applications, various finished concrete products and other building materials and related contracting services. This segment operates in the central, southern and western United States, including Alaska and Hawaii.

The construction services segment provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to utilities and manufacturing, transportation, commercial, industrial, institutional, renewable and governmental customers. Its electrical and mechanical contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its transmission and distribution contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as manufacturing and distribution of transmission line construction equipment and tools.

The Other category includes the activities of Centennial Capital, which, through its subsidiary InterSource Insurance Company, insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the self-insured layers of the insured Company's general liability, automobile liability, pollution liability and other coverages. Centennial Capital also owns certain real and personal property. In addition, the Other category includes certain assets, liabilities and tax adjustments of the holding company primarily associated with corporate functions and certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the refining business and Fidelity and do not meet the criteria for income (loss) from discontinued operations.

Discontinued operations include the supporting activities of Fidelity other than certain general and administrative costs and interest expense as described above.

The information below follows the same accounting policies as described in Note 2 of the Notes to Consolidated Financial Statements in the 2021 Annual Report. Information on the Company's segments was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	85,461	$	83,650	$	179,056	$	168,324
Natural gas distribution	210,440		153,788		660,858		503,994
Pipeline	27,556		23,130		36,999		30,633
	323,457		260,568		876,913		702,951
Non-regulated operations:
Pipeline	2,257		4,643		3,933		7,052
Construction materials and contracting	711,613		633,674		1,021,448		899,333
Construction services	683,594		524,744		1,235,186		1,042,214
Other	—		28		—		45
	1,397,464		1,163,089		2,260,567		1,948,644
Total external operating revenues	$	1,720,921	$	1,423,657	$	3,137,480	$	2,651,595

25

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Intersegment operating revenues:
Regulated operations:
Electric	$	124	$	136	$	247	$	271
Natural gas distribution	141		142		277		284
Pipeline	7,404		7,695		33,338		33,685
	7,669		7,973		33,862		34,240
Non-regulated operations:
Pipeline	388		167		396		407
Construction materials and contracting	200		142		330		204
Construction services	1,803		797		2,861		1,839
Other	4,389		3,361		8,730		6,685
	6,780		4,467		12,317		9,135
Intersegment eliminations	(14,449)		(12,440)		(46,179)		(43,375)
Total intersegment operating revenues	$	—	$	—	$	—	$	—
Operating income (loss):
Electric	$	8,325	$	12,806	$	23,369	$	26,672
Natural gas distribution	(638)		3,601		55,617		57,173
Pipeline	12,602		11,076		24,484		23,612
Construction materials and contracting	54,354		72,452		9,749		37,563
Construction services	46,141		37,774		75,639		78,051
Other	(214)		(20)		(946)		(218)
Total operating income	$	120,570	$	137,689	$	187,912	$	222,853
Net income (loss):
Regulated operations:
Electric	$	4,601	$	10,304	$	15,880	$	21,054
Natural gas distribution	(7,498)		(707)		28,817		35,471
Pipeline	7,191		8,089		15,147		17,283
	4,294		17,686		59,844		73,808
Non-regulated operations:
Pipeline	(60)		1,106		(679)		810
Construction materials and contracting	32,584		51,396		(7,427)		20,584
Construction services	34,454		28,885		55,778		58,709
Other	(640)		1,098		(5,151)		(1,624)
	66,338		82,485		42,521		78,479
Income from continuing operations	70,632		100,171		102,365		152,287
Discontinued operations, net of tax	35		19		65		34
Net income	$	70,667	$	100,190	$	102,430	$	152,321

26

Note 18 - Employee benefit plans

Pension and other postretirement plans

The Company has noncontributory qualified defined benefit pension plans and other postretirement benefit plans for certain eligible employees.

Components of net periodic benefit credit for the Company's pension benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Interest cost	$	2,631	$	2,455	$	5,262	$	4,910
Expected return on assets	(4,864)		(4,894)		(9,728)		(9,788)
Amortization of net actuarial loss	1,671		2,004		3,342		4,008
Net periodic benefit credit	$	(562)	$	(435)	$	(1,124)	$	(870)

Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Service cost	$	354	$	400	$	708	$	800
Interest cost	474		466		948		932
Expected return on assets	(1,322)		(1,275)		(2,644)		(2,550)
Amortization of prior service credit	(350)		(349)		(700)		(698)
Amortization of net actuarial (gain) loss	(54)		6		(108)		12
Net periodic benefit credit, including amount capitalized	(898)		(752)		(1,796)		(1,504)
Less amount capitalized	53		44		84		83
Net periodic benefit credit	$	(951)	$	(796)	$	(1,880)	$	(1,587)

The components of net periodic benefit credit, other than the service cost component, are included in other income on the Consolidated Statements of Income. The service cost component is included in operation and maintenance expense on the Consolidated Statements of Income.

Nonqualified defined benefit plans

In addition to the qualified defined benefit pension plans reflected in the table at the beginning of this note, the Company also has unfunded, nonqualified defined benefit plans for executive officers and certain key management employees. The Company's net periodic benefit cost for these plans was $773,000 and $769,000 for the three months ended June 30, 2022 and 2021, respectively, and $1.5 million for both the six months ended June 30, 2022 and 2021. The components of net periodic benefit cost for these plans are included in other income on the Consolidated Statements of Income.

Note 19 - Regulatory matters

The Company regularly reviews the need for electric and natural gas rate changes in each of the jurisdictions in which service is provided. The Company files for rate adjustments to seek recovery of operating costs and capital investments, as well as reasonable returns as allowed by regulators. Certain regulatory proceedings and cases may also contain recurring mechanisms that can have an annual true-up. Examples of these recurring mechanisms include: infrastructure riders, transmission trackers, renewable resource cost adjustment riders, as well as weather normalization and decoupling mechanisms. The following paragraphs summarize the Company's significant open regulatory proceedings and cases by jurisdiction including updates to those reported in the 2021 Annual Report and should be read in conjunction with previous filings. The Company is unable to predict the ultimate outcome of these matters, the timing of final decisions of the various regulators and courts, or the effect on the Company's results of operations, financial position or cash flows.

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IPUC

Intermountain defers the difference between the actual cost of gas spent to serve customers and the amount approved to be recovered from customers and annually prepares a true-up pursuant to the purchased gas adjustment tariff. On May 31, 2022, Intermountain filed an application with the IPUC for an out-of-cycle cost of gas adjustment requesting an increase in rates of approximately $67.0 million annually or approximately 25.2 percent above current rates. The primary reason for the requested increase was to mitigate the under collection balance due to the significant increase in the commodity price for natural gas. On July 29, 2022, the request was approved with rates effective August 1, 2022. The new rates will be in effect until October 1, 2022, when rates based on Intermountain's annual purchased gas adjustment tariff filing will take effect, which is expected to be filed in August 2022.

MNPUC

Great Plains defers the difference between the actual cost of gas spent to serve customers and that recovered from customers on a monthly basis. Annually, Great Plains prepares a true-up pursuant to the purchased gas adjustment tariff. On August 30, 2021, the MNPUC issued an order to allow Great Plains recovery of an out-of-cycle cost of gas adjustment of $8.8 million over a period of 27 months. The order was effective September 1, 2021, and is subject to a prudence review by the MNPUC. The requested increase was for the February 2021 extreme cold weather, primarily in the central United States, and market conditions surrounding the natural gas commodity market. The MNPUC prudence review is pending with an order to be issued on or before August 29, 2022.

On June 1, 2022, Great Plains filed an application with the MNPUC for a decrease in its depreciation and amortization rates of approximately $1.2 million annually or a decrease from a combined rate of 4.5 percent to 2.8 percent. Great Plains has requested the rates be retroactive to January 1, 2022. This matter is pending before the MNPUC.

NDPSC

On May 16, 2022, Montana-Dakota filed an application with the NDPSC for an electric general rate increase of approximately $25.4 million annually or 12.3 percent above current rates. The requested increase was primarily to recover investments in production, transmission and distribution facilities and the associated depreciation, operation and maintenance expenses and taxes associated with the increased investment. The NDPSC has 7 months to render a final decision on the rate case. On July 14, 2022, the NDPSC approved an interim rate increase of approximately $10.9 million annually or 5.3 percent above current rates, subject to refund, for service rendered on and after July 15, 2022.

On July 15, 2022, Montana-Dakota filed an application with the NDPSC to request an update to its transmission cost adjustment rider requesting to recover revenues of $12.9 million, which includes a true-up of the prior period adjustment, resulting in a decrease of $1.6 million from current rates. The request is to recover transmission-related expenses and the revenue requirement for transmission facilities not currently recovered through electric service rates. The request proposes the rates be effective for service rendered on and after November 1, 2022. This matter is pending before the NDPSC.

SDPUC

Montana-Dakota has a transmission cost recovery rider that allows annual updates to rates for actual costs associated with transmission-related projects and services. On March 1, 2022, Montana-Dakota filed an annual update to its transmission cost recovery rider to recover a revenue requirement of approximately $2.5 million annually, which reflects a true-up of the prior period adjustment, resulting in an increase in current rates of approximately $1.5 million. On May 12, 2022, the SDPUC approved the rates as requested with an effective date of June 1, 2022.

WUTC

On September 30, 2021, Cascade filed an application with the WUTC for a natural gas rate increase of approximately $13.7 million annually or approximately 5.1 percent above current rates. The requested increase was primarily to recover investments made in infrastructure upgrades, as well as to recover 2021 wage increases. On March 22, 2022, Cascade filed a multi-party settlement and stipulation on behalf of Cascade and the staff of the WUTC that would result in a revenue requirement increase of approximately $10.7 million annually or approximately 4.0 percent above current rates. The WUTC has until September 1, 2022, to render a final decision on the rate case. This matter is pending before the WUTC.

On March 24, 2022, Cascade filed a request for a tariff revision with the WUTC to rectify an inadvertent IRS normalization violation resulting from its tariff established in 2018 that passes back to customers the reversal of plant-related excess deferred income taxes through an annual rate adjustment. This request was made in response to the issuance of an IRS private letter ruling to another Washington utility with the same annual rate adjustment tariff, which addressed its normalization violation. The private letter ruling concluded the tariff to refund excess deferred income taxes without corresponding adjustments for other components of rate base or changes in depreciation or income tax expense, is an impermissible methodology under the IRS normalization and consistency rules. Cascade's request proposes a similar remedy through the tariff to recover the excess amounts refunded to customers while this tariff has been in place, and revises the method going forward to reflect excess deferred income taxes in rates in the same manner as other components of rate base from its most recent general rate case. Cascade has requested recovery of the excess refunded to customers of approximately $3.3 million and elimination of the currently deferred, but not yet refunded balance. This matter is pending before the WUTC, with an evidentiary hearing scheduled for November 17, 2022.

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On June 1, 2022, Cascade filed its annual pipeline cost recovery mechanism requesting an increase in annual revenue of approximately $2.6 million or approximately 0.9 percent, which will be adjusted as necessary prior to the effective date. The filing includes a proposed effective date of November 1, 2022. This matter is pending before the WUTC.

Note 20 - Contingencies

The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories.

At June 30, 2022 and 2021, and December 31, 2021, the Company accrued liabilities, which have not been discounted, of $28.2 million, $30.8 million and $37.0 million, respectively. At June 30, 2022 and 2021, and December 31, 2021, the Company also recorded corresponding insurance receivables of $5.9 million, $6.9 million and $14.1 million, respectively, and regulatory assets of $20.9 million, $21.2 million and $21.2 million, respectively, related to the accrued liabilities. The accruals are for contingencies resulting from litigation, production taxes, royalty claims and environmental matters. This includes amounts that have been accrued for matters discussed in Environmental matters within this note. The Company will continue to monitor each matter and adjust accruals as might be warranted based on new information and further developments. Management believes that the outcomes with respect to probable and reasonably possible losses in excess of the amounts accrued, net of insurance recoveries, while uncertain, either cannot be estimated or will not have a material effect upon the Company's financial position, results of operations or cash flows. Unless otherwise required by GAAP, legal costs are expensed as they are incurred.

Environmental matters

The Company is a party to claims for the cleanup of environmental contamination at certain manufactured gas plant sites, as well as a superfund site. There were no material changes to the Company's environmental matters that were previously reported in the 2021 Annual Report.

Guarantees

Certain subsidiaries of the Company have outstanding guarantees to third parties that guarantee the performance of other subsidiaries of the Company. These guarantees are related to construction contracts, insurance deductibles and loss limits, and certain other guarantees. At June 30, 2022, the fixed maximum amounts guaranteed under these agreements aggregate $276.0 million. Certain of the guarantees also have no fixed maximum amounts specified. At June 30, 2022, the amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate to $21.8 million in 2022; $82.0 million in 2023; $160.6 million in 2024; $900,000 in 2025; $900,000 in 2026; $800,000 thereafter; and $9.0 million, which has no scheduled maturity date. There were no amounts outstanding under the previously mentioned guarantees at June 30, 2022. In the event of default under these guarantee obligations, the subsidiary issuing the guarantee for that particular obligation would be required to make payments under its guarantee.

Certain subsidiaries have outstanding letters of credit to third parties related to insurance policies and other agreements, some of which are guaranteed by other subsidiaries of the Company. At June 30, 2022, the fixed maximum amounts guaranteed under these letters of credit aggregated $28.2 million. At June 30, 2022, the amounts of scheduled expiration of the maximum amounts guaranteed under these letters of credit aggregate to $27.6 million in 2022 and $600,000 in 2023. There were no amounts outstanding under the previously mentioned letters of credit at June 30, 2022. In the event of default under these letter of credit obligations, the subsidiary guaranteeing the letter of credit would be obligated for reimbursement of payments made under the letter of credit.

In addition, Centennial, Knife River and MDU Construction Services have issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. In the event a subsidiary of the Company defaults under these obligations, Centennial, Knife River or MDU Construction Services would be required to make payments under these guarantees. Any amounts outstanding by subsidiaries of the Company were reflected on the Consolidated Balance Sheet at June 30, 2022.

In the normal course of business, Centennial has surety bonds related to construction contracts and reclamation obligations of its subsidiaries. In the event a subsidiary of Centennial does not fulfill a bonded obligation, Centennial would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds is expected to expire within the next 12 months; however, Centennial will likely continue to enter into surety bonds for its subsidiaries in the future. At

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June 30, 2022, approximately $1.2 billion of surety bonds were outstanding, which were not reflected on the Consolidated Balance Sheet.

Variable interest entities

The Company evaluates its arrangements and contracts with other entities to determine if they are VIEs and if so, if the Company is the primary beneficiary.

Fuel Contract Coyote Station entered into a coal supply agreement with Coyote Creek that provides for the purchase of coal necessary to supply the coal requirements of the Coyote Station for the period May 2016 through December 2040. Coal purchased under the coal supply agreement is reflected in inventories on the Consolidated Balance Sheets and is recovered from customers as a component of electric fuel and purchased power.

The coal supply agreement creates a variable interest in Coyote Creek due to the transfer of all operating and economic risk to the Coyote Station owners, as the agreement is structured so that the price of the coal will cover all costs of operations, as well as future reclamation costs. The Coyote Station owners are also providing a guarantee of the value of the assets of Coyote Creek as they would be required to buy the assets at book value should they terminate the contract prior to the end of the contract term and are providing a guarantee of the value of the equity of Coyote Creek in that they are required to buy the entity at the end of the contract term at equity value. Although the Company has determined that Coyote Creek is a VIE, the Company has concluded that it is not the primary beneficiary of Coyote Creek because the authority to direct the activities of the entity is shared by the four unrelated owners of the Coyote Station, with no primary beneficiary existing. As a result, Coyote Creek is not required to be consolidated in the Company's financial statements.

At June 30, 2022, the Company's exposure to loss as a result of the Company's involvement with the VIE, based on the Company's ownership percentage, was $30.5 million.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company is Building a Strong America® by providing essential infrastructure and services. The Company and its employees work hard to keep the economy of America moving with the products and services provided, which include powering, heating and connecting homes, factories, offices and stores; and building roads, highways, data infrastructure and airports. The Company is authorized to conduct business in nearly every state in the United States and during peak construction season has employed over 16,000 employees. The Company's organic investments are strong drivers of high-quality earnings and continue to be an important part of the Company's growth. Management believes the Company is well positioned in the industries and markets in which it operates.

On August 4, 2022, the Company announced its Board of Directors unanimously approved a plan to pursue a separation of Knife River from the Company. The separation is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes. The transaction is expected to result in two independent, publicly traded and well-capitalized companies.

Completion of the separation will be subject to, among other things, the effectiveness of a registration statement on Form 10 with the SEC, final approval from the Company’s Board of Directors, receipt of a tax opinion and, if determined advisable, a private letter ruling from the IRS, and other customary conditions. The Company may, at any time and for any reason until the proposed transaction is complete, abandon the separation or modify or change its terms. The separation is expected to be complete in 2023, but there can be no assurance regarding the ultimate timing of the separation or that the separation will ultimately occur. See Part II, Item 1A. Risk Factors for a description of some of the risks and uncertainties associated with the proposed transaction.

The Company is facing inflationary pressures, including rising commodity prices; rising interest rates; and materials shortages due to foreign conflicts and lasting impacts of the COVID-19 pandemic. Inflation rates in the Unites States have increased significantly, relative to historical precedent, and may continue to rise. Suppliers may continue to raise prices that the Company may not be able to pass on to its customers. The ability to raise selling prices to cover higher costs due to inflation are subject to customer demand, industry competition and the availability of materials, among other things. Rising interest rates have resulted in and will likely continue to result in higher borrowing costs on new debt, resulting in impacts to the Company's asset valuations and negatively impacting the purchasing power of its customers.

The construction materials and contracting and construction services businesses have experienced some impacts to earnings related to these pressures, while the electric and natural gas distribution businesses have experienced increased costs related to purchased natural gas and capital expenditures. The Company has implemented measures to proactively order supplies and work with additional suppliers to minimize the impacts of both supply chain delays and pricing increases; however, the Company has experienced some delays on delivery of certain materials and cost pressures. The construction companies have increased product and bid pricing when possible to incorporate the rising costs experienced. The construction services business has also worked with vendors to secure pricing at the time of bid to mitigate the risk of price increases on materials. The electric and natural gas distribution businesses expect to request recovery of increased costs due to inflation in future rate cases. The Company continues to monitor the impact that inflation, rising interest rates, rising commodity prices and supply chain disruptions may have on its businesses and customers. For more information on possible impacts to the Company's businesses, see the Outlook for each segment below and Part I, Item 1A. Risk Factors in the 2021 Annual Report.

Forward-Looking Statements

The following sections contain forward-looking statements within the meaning of Section 21E of the Exchange Act. 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, and include statements concerning plans, trends, objectives, goals, strategies, future events or performance, and underlying assumptions (many of which are based, in turn, upon further assumptions) and other statements that are other than statements of historical facts. From time to time, the Company may publish or otherwise make available forward-looking statements of this nature, including statements contained within Business Segment Financial and Operating Data.

Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Nonetheless, the Company's expectations, beliefs or projections may not be achieved or accomplished and changes in such assumptions and factors could cause actual future results to differ materially.

Any forward-looking statement contained in this document speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law. New factors emerge from time to time, and it is not possible for management to predict all the factors, nor can it assess the effect of each factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements, whether written or oral and whether made by or on behalf of the Company, are expressly qualified by the risk factors and cautionary statements reported in

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Part II, Item 1A. Risk Factors in this quarterly report, Part I, Item 1A. Risk Factors in the 2021 Annual Report and subsequent filings with the SEC.

Consolidated Earnings Overview

The following table summarizes the contribution to the consolidated income by each of the Company's business segments.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In millions, except per share amounts)
Electric	$	4.6	$	10.3	$	15.9	$	21.0
Natural gas distribution	(7.5)		(.7)		28.8		35.5
Pipeline	7.1		9.2		14.5		18.1
Construction materials and contracting	32.6		51.4		(7.4)		20.6
Construction services	34.5		28.9		55.8		58.7
Other	(.6)		1.1		(5.2)		(1.6)
Income from continuing operations	70.7		100.2		102.4		152.3
Discontinued operations, net of tax	—		—		—		—
Net income	$	70.7	$	100.2	$	102.4	$	152.3
Earnings per share - basic:
Income from continuing operations	$	.35	$	.50	$	.50	$	.76
Discontinued operations, net of tax	—		—		—		—
Earnings per share - basic	$	.35	$	.50	$	.50	$	.76
Earnings per share - diluted:
Income from continuing operations	$	.35	$	.50	$	.50	$	.76
Discontinued operations, net of tax	—		—		—		—
Earnings per share - diluted	$	.35	$	.50	$	.50	$	.76

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 The Company's consolidated earnings decreased $29.5 million.

The construction materials and contracting business experienced increased contracting workloads and higher average pricing, while results were negatively impacted by inflationary pressures, including higher diesel fuel, materials, labor and production costs. The natural gas distribution business experienced an increased seasonal loss driven by higher operating expenses, primarily due to increases in subcontractor costs, software expenses and vehicle fuel costs, as well as higher depreciation expense. The electric business experienced decreased commercial and residential retail sales volumes because of cooler weather and the pipeline business experienced lower non-regulated project margins and higher interest expense, partially offset by the net benefit of the North Bakken Expansion project. The Company's earnings were further impacted by $12.1 million in lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14. Partially offsetting these decreases were higher overall workloads for electrical and mechanical services at the construction services business, primarily in the data center, hospitality and commercial facilities sectors.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 The Company's consolidated earnings decreased $49.9 million.

The Company experienced decreased earnings across all of the Company's businesses. While the construction materials and contracting business experienced higher average pricing and increased contracting workloads, results were negatively impacted by inflationary pressures, including higher diesel fuel, repair and maintenance, materials, labor and production costs. The natural gas distribution business experienced higher operating expenses, including subcontractor costs and depreciation expense, partially offset by increased sales volumes and approved rate recovery in certain jurisdictions. Increased operating costs related to a planned maintenance outage at Coyote Station along with lower per unit average rates decreased earnings at the electric business. The pipeline business experienced lower non-regulated project margins and higher interest expense, partially offset by the net benefit of the North Bakken Expansion project. The decrease in earnings at the construction services business was largely driven by increased selling, general and administrative expenses and lower industrial, institutional and utility margins, partially offset by higher commercial, renewable and service margins. The Company's earnings were further impacted by $18.3 million in lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

A discussion of key financial data from the Company's business segments follows.

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Business Segment Financial and Operating Data

The following sections include key financial and operating data for each of the Company's business segments. Also included are highlights on key growth strategies, projections and certain assumptions for the Company and its subsidiaries and other matters of the Company's business segments.

For information pertinent to various commitments and contingencies, see the Notes to Consolidated Financial Statements. For a summary of the Company's business segments, see Note 17 of the Notes to Consolidated Financial Statements.

Electric and Natural Gas Distribution

Strategy and challenges The electric and natural gas distribution segments provide electric and natural gas distribution services to customers, as discussed in Note 17. Both segments strive to be top performing utility companies measured by integrity, employee safety and satisfaction, customer service and stockholder return. The segments provide safe, reliable, competitively priced and environmentally responsible energy service to customers while focusing on growth and expansion opportunities within and beyond its existing territories. The Company is focused on cultivating organic growth while managing operating costs and monitoring opportunities for these segments to retain, grow and expand their customer base through extensions of existing operations, including building and upgrading electric generation, transmission and distribution, and natural gas systems, and through selected acquisitions of companies and properties with similar operating and growth objectives at prices that will provide stable cash flows and an opportunity to earn a competitive return on investment. The continued efforts to create operational improvements and efficiencies across both segments promotes the Company's business integration strategy. The primary factors that impact the results of these segments are the ability to earn authorized rates of return, cost of natural gas, cost of electric fuel and purchased power, weather, climate change initiatives, competitive factors in the energy industry, population growth and economic conditions in the segments' service areas.

The electric and natural gas distribution segments are subject to extensive regulation in the jurisdictions where they conduct operations with respect to costs, timely recovery of investments and permitted returns on investment. The Company is focused on modernizing utility infrastructure to meet the varied energy needs of both its customers and communities while ensuring the delivery of safe, reliable, affordable and environmentally responsible energy. The segments continue to invest in facility upgrades to be in compliance with existing and known future regulations. To assist in the reduction of regulatory lag in obtaining revenue increases to align with increased investments, tracking mechanisms have been implemented in certain jurisdictions. The Company also seeks rate adjustments for operating costs and capital investments, as well as reasonable returns on investments, not covered by tracking mechanisms. For more information on the Company's tracking mechanisms and recent cases, see Note 19 and the 2021 Annual Report.

These segments are also subject to extensive regulation related to certain operational and environmental compliance, cybersecurity, permit terms and system integrity. Both segments are faced with the ongoing need to actively evaluate cybersecurity processes and procedures related to its transmission and distribution systems for opportunities to further strengthen its cybersecurity protections. Implementation of enhancements and additional requirements is ongoing.

To date, many states have enacted and others are considering, mandatory clean energy standards requiring utilities to meet certain thresholds of renewable and/or carbon-free energy supply. The current presidential administration has made climate change a focus, as further discussed in the Outlook section. Over the long-term, the Company expects overall electric demand to be positively impacted by increased electrification trends, including electric vehicle adoption, as a means to address economy-wide carbon emission concerns and changing customer conservation patterns. MISO and NERC have recently announced concerns with reliability of the electric grid due to capacity shortages, which has resulted from rapid expansion of renewables and rapid reduction of baseload resources such as coal, while load growth has increased faster than expected. These changes could result in increased costs to produce electricity and procure natural gas. The impact of these changes on the Company is unknown. The Company will continue to monitor the progress of these changes and assess the potential impacts they may have on its stakeholders, business processes, results of operations, cash flows and disclosures.

Revenues are impacted by both customer growth and usage, the latter of which is primarily impacted by weather, as well as impacts associated with commercial and industrial slow-downs, including economic recessions, and energy efficiencies. Very cold winters increase demand for natural gas and to a lesser extent, electricity, while warmer than normal summers increase demand for electricity, especially among residential and commercial customers. Average consumption among both electric and natural gas customers has tended to decline as more efficient appliances and furnaces are installed, and as the Company has implemented conservation programs. Natural gas weather normalization and decoupling mechanisms in certain jurisdictions have been implemented to largely mitigate the effect that would otherwise be caused by variations in volumes sold to these customers due to weather and changing consumption patterns on the Company's distribution margins.

The electric and natural gas distribution segments continue to face increased pricing and lead times on delivery of certain raw materials and equipment used in electric transmission and distribution system and natural gas pipeline projects. Long lead times are attributable to increased demand for steel products from pipeline companies as they continue pipeline system safety and integrity replacement projects driven by PHMSA regulations, as well as delays in the manufacturing and shipping of electrical equipment as a result of the COVID-19 pandemic and subsequent supply chain issues. In addition, the segments are currently experiencing increased fuel costs as well as other general inflationary pressures. The Company continues to monitor these risks and

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has practices in place to minimize the impacts of long lead times and materials pricing such as working with manufacturers to proactively order impacted materials, as well as working with additional suppliers. While not material, these segments have experienced delays and inflationary pressures, including increased costs related to purchased natural gas and capital expenditures. The Company expects these delays and inflationary pressures to continue throughout at least the remainder of 2022.

The ability to grow through acquisitions is subject to significant competition and acquisition premiums. In addition, the ability of the segments to grow their service territory and customer base is affected by regulatory constraints, the economic environment of the markets served and competition from other energy providers and fuels. As the industry continues to expand the use of renewable energy sources, the need for additional transmission is growing. On July 25, 2022, as part of its long range transmission plan, MISO announced approval of 18 transmission projects totaling $10.3 billion of investments in MISO's midwest subregion, of which Montana-Dakota is a part. The Company intends to pursue the available opportunities associated with MISO's plan. The construction of new electric generating facilities, transmission lines and other service facilities is subject to increasing costs and lead times, extensive permitting procedures, and federal and state legislative and regulatory initiatives, which may necessitate increases in electric energy prices.

Earnings overview - The following information summarizes the performance of the electric segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	85.5	$	83.8	2	%	$	179.3	$	168.6	6	%
Operating expenses:
Electric fuel and purchased power	21.9		18.1		21	%	48.3		36.7		32	%
Operation and maintenance	31.5		31.3		1	%	62.3		62.6		—	%
Depreciation, depletion and amortization	19.4		16.9		15	%	36.3		33.0		10	%
Taxes, other than income	4.4		4.7		(6)	%	9.1		9.6		(5)	%
Total operating expenses	77.2		71.0		9	%	156.0		141.9		10	%
Operating income	8.3		12.8		(35)	%	23.3		26.7		(13)	%
Other income (expense)	(1.0)		1.6		(163)	%	(1.2)		2.2		(155)	%
Interest expense	7.0		6.6		6	%	14.0		13.2		6	%
Income before income taxes	.3		7.8		(96)	%	8.1		15.7		(48)	%
Income tax benefit	(4.3)		(2.5)		72	%	(7.8)		(5.3)		47	%
Net income	$	4.6	$	10.3	(55)	%	$	15.9	$	21.0	(25)	%

Operating statistics	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenues (millions)
Retail sales:
Residential	$	28.8	$	28.7	$	64.0	$	60.6
Commercial	33.3		33.1		66.9		64.5
Industrial	10.7		10.1		20.5		19.7
Other	1.8		1.8		3.4		3.3
	74.6		73.7		154.8		148.1
Transportation and other	10.9		10.1		24.5		20.5
	$	85.5	$	83.8	$	179.3	$	168.6
Volumes (million kWh)
Retail Sales:
Residential	244.1		254.1		601.8		589.0
Commercial	329.3		347.1		693.4		708.9
Industrial	147.7		144.1		288.0		288.6
Other	20.6		22.1		40.1		41.3
	741.7		767.4		1,623.3		1,627.8
Average cost of electric fuel and purchased power per kWh	$	.028	$	.022	$	.028	$	.021

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Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 Electric earnings decreased $5.7 million as a result of:

•Revenue increased $1.7 million.

◦Largely due to:

•Higher electric fuel and purchased power costs of $3.8 million recovered in customer rates that were offset in expense, as described below.

•Higher net transmission revenues of $900,000.

◦Partially offset by:

•Lower renewable tracker revenues, largely due to higher production tax credits of $1.5 million.

•Lower retail sales volumes of 3.4 percent, primarily commercial and residential retail sales as a result of cooler weather.

•Lower per unit average rates of $400,000.

•Electric fuel and purchased power increased $3.8 million.

◦Primarily the result of higher MISO costs of $5.7 million as a result of increased energy costs.

◦Partially offset by decreased fuel costs associated with the Heskett Station and Lewis & Clark Station plant closures.

•Operation and maintenance was comparable to the same period in the prior year. Increased contract service costs associated with a planned outage at Coyote Station were mostly offset by decreased payroll-related costs, largely due to plant closures, as previously discussed, and lower stock-based compensation expense.

•Depreciation, depletion and amortization increased $2.5 million, primarily due to increased amortization of plant retirement and closure costs recovered in operating revenues, as discussed in Note 13.

•Taxes, other than income were comparable to the same period in the prior year.

•Other income (expense) decreased $2.6 million, directly resulting from lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense increased $400,000, as a result of higher long-term debt balances from debt issued in 2021.

•Income tax benefit increased $1.8 million.

◦Largely due to:

•Lower income before income taxes.

•Higher production tax credits driven by higher wind production.

◦Partially offset by lower permanent tax adjustments.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 Electric earnings decreased $5.1 million as a result of:

•Revenue increased $10.7 million.

◦Largely due to:

•Higher fuel and purchased power costs of $11.6 million recovered in customer rates that were offset in expense, as described below.

•Higher transmission revenues, primarily from higher net transmission of $1.7 million and higher transmission interconnect upgrades of $400,000.

◦Partially offset by:

•Lower renewable tracker revenues associated with higher production tax credits.

•Lower per unit average rates of $1.4 million.

•Electric fuel and purchased power increased $11.6 million.

◦Primarily the result of higher MISO costs of $14.9 million as a result of increased energy costs.

◦Partially offset by decreased fuel costs associated with the Heskett Station and Lewis & Clark Station plant closures.

•Operation and maintenance was comparable to the same period in the prior year. Increased contract service costs associated with a planned outage at Coyote Station were mostly offset by decreased payroll-related costs, largely due to plant closures, as previously discussed.

•Depreciation, depletion and amortization increased $3.3 million, primarily due to:

◦Increased amortization of plant retirement and closure costs of $2.8 million recovered in operating revenues, as discussed in Note 13.

◦Increased property, plant and equipment balances placed in service, largely related to growth and replacement projects.

•Taxes, other than income decreased $500,000 due to lower coal conversion taxes in certain jurisdictions.

•Other income (expense) decreased $3.4 million.

◦Largely lower returns on the Company's nonqualified benefit plan investments of $3.8 million, as discussed in Note 14.

◦Partially offset by higher AFUDC largely due to higher rates.

35

•Interest expense increased $800,000, largely resulting from higher long-term debt balances from debt issued in 2021.

•Income tax benefit increased $2.5 million.

◦Largely due to:

•Higher production tax credits of $1.9 million driven by higher wind production.

•Lower income before income taxes.

◦Partially offset by lower permanent tax adjustments and excess deferred tax amortization of $400,000.

Earnings overview - The following information summarizes the performance of the natural gas distribution segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	210.6	$	153.9	37	%	$	661.1	$	504.3	31	%
Operating expenses:
Purchased natural gas sold	122.7		70.9		73	%	415.9		273.1		52	%
Operation and maintenance	50.8		46.0		10	%	105.0		97.2		8	%
Depreciation, depletion and amortization	22.4		20.3		10	%	44.7		42.7		5	%
Taxes, other than income	15.3		13.1		17	%	39.9		34.1		17	%
Total operating expenses	211.2		150.3		41	%	605.5		447.1		35	%
Operating income (loss)	(.6)		3.6		(117)	%	55.6		57.2		(3)	%
Other income (expense)	(.7)		2.4		(129)	%	(1.1)		4.0		(128)	%
Interest expense	9.7		9.1		7	%	19.2		18.2		5	%
Income (loss) before income taxes	(11.0)		(3.1)		255	%	35.3		43.0		(18)	%
Income tax (benefit) expense	(3.5)		(2.4)		46	%	6.5		7.5		(13)	%
Net income (loss)	$	(7.5)	$	(.7)	960	%	$	28.8	$	35.5	(19)	%

Operating statistics	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenues (millions)
Retail sales:
Residential	$	115.1	$	84.8	$	373.6	$	288.7
Commercial	71.1		48.3		233.8		168.9
Industrial	9.0		6.2		22.0		15.1
	195.2		139.3		629.4		472.7
Transportation and other	15.4		14.6		31.7		31.6
	$	210.6	$	153.9	$	661.1	$	504.3
Volumes (MMdk)
Retail sales:
Residential	11.8		9.0		42.8		37.8
Commercial	8.2		6.5		28.7		25.1
Industrial	1.2		1.1		3.0		2.6
	21.2		16.6		74.5		65.5
Transportation sales:
Commercial	.4		.4		1.1		1.1
Industrial	34.9		38.9		75.9		82.8
	35.3		39.3		77.0		83.9
Total throughput	56.5		55.9		151.5		149.4
Average cost of natural gas per dk	$	5.80	$	4.26	$	5.58	$	4.17

36

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 Natural gas distribution's seasonal loss increased $6.8 million as a result of:

•Operating revenues increased $56.7 million, largely resulting from:

◦Higher purchased natural gas sold of $51.8 million recovered in customer rates that was offset in expense, as described below.

◦Higher retail sales volumes of approximately 27.2 percent across all customer classes due to colder weather, partially offset by weather normalization and decoupling mechanisms in certain jurisdictions.

◦Higher revenue-based taxes recovered in rates of $2.1 million that were offset in expense, as described below.

◦Higher rate recovery under pipeline replacement mechanisms in certain jurisdictions.

•Purchased natural gas sold increased $51.8 million, primarily due to:

◦Higher natural gas costs as a result of higher market prices of $32.5 million, including the higher recovery of purchased gas adjustments related to the February 2021 cold weather event and the 2018 Enbridge pipeline rupture.

◦Higher volumes of natural gas purchased of $19.3 million.

•Operation and maintenance increased $4.8 million due to:

◦Increased contract services of $1.7 million, primarily higher subcontractor costs.

◦Higher software costs of $600,000.

◦Higher vehicle fuel costs.

◦Payroll-related costs were comparable with lower stock-based compensation expense offset by higher straight-time payroll.

•Depreciation, depletion and amortization increased $2.1 million, primarily resulting from:

◦Increased property, plant and equipment balances from growth and replacement projects placed in service.

◦The absence of decreased depreciation rates in certain jurisdictions in 2021.

•Taxes, other than income increased $2.2 million resulting from higher revenue-based taxes being recovered in rates.

•Other income (expense) decreased $3.1 million, largely the result of lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense increased $600,000, primarily due to higher long-term debt balances from debt issued in 2022 and 2021 and higher interest rates.

•Income tax benefit increased $1.1 million as a result of an increased seasonal loss.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 Natural gas distribution's earnings decreased $6.7 million as a result of:

•Operating revenues increased $156.8 million, largely resulting from:

◦Higher purchased natural gas sold of $142.8 million recovered in customer rates that was offset in expense, as described below.

◦Higher revenue-based taxes recovered in rates of $5.8 million that were offset in expense, as described below.

◦Higher retail sales volumes of approximately 13.6 percent across all customer classes, partially offset by weather normalization and decoupling mechanisms in certain jurisdictions.

◦Higher pipeline replacement mechanisms of $1.2 million, as well as approved rate relief of $1.0 million.

•Purchased natural gas sold increased $142.8 million, primarily due to:

◦Higher natural gas costs as a result of higher market prices of $105.6 million, including the higher recovery of purchased gas adjustments related to the February 2021 cold weather event and the 2018 Enbridge pipeline rupture.

◦Higher volumes of natural gas purchased of $37.2 million.

•Operation and maintenance increased $7.8 million, due to:

◦Increased contract services of $2.8 million, primarily higher subcontractor costs.

◦Higher software costs of $1.5 million.

◦Higher payroll-related costs, largely higher straight-time payroll, offset in part by lower stock-based compensation expense.

•Depreciation, depletion and amortization increased $2.0 million from increased property, plant and equipment balances from growth and replacement projects placed in service.

•Taxes, other than income increased $5.8 million resulting from higher revenue-based taxes being recovered in rates.

•Other income (expense) decreased $5.1 million, primarily the result of lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense increased $1.0 million, primarily due to higher long-term debt balances from debt issued in 2022 and 2021 and higher interest rates.

•Income tax expense decreased $1.0 million, largely the result of lower income before income taxes.

37

Outlook The Company expects these segments will grow rate base by approximately 5 percent annually over the next five years on a compound basis. Operations are spread across eight states where the Company expects customer growth to be higher than the national average. The Company expects customer growth to continue to average 1 percent to 2 percent per year and as of June 30, 2022, these segments experienced retail customer growth of approximately 1.6 percent. This customer growth, along with system upgrades and replacements needed to supply safe and reliable service, will require investments in new and replacement electric and natural gas systems.

These segments are exposed to energy price volatility and may be impacted by changes in oil and natural gas exploration and production activity. Rate schedules in the jurisdictions in which the Company's natural gas distribution segment operates contain clauses that permit the Company to file for rate adjustments for changes in the cost of purchased natural gas. Although changes in the price of natural gas are passed through to customers and have minimal impact on the Company's earnings, the natural gas distribution segment's customers benefit from lower natural gas prices through the Company's utilization of storage and fixed price contracts. During the last half of 2021 and the first half of 2022, the Company experienced increased natural gas prices and expects this trend to continue through the next winter heating season due to the increase in demand outpacing the supply along with the impact of global events. As a result, the Company has filed an out-of-cycle cost of gas adjustment in Idaho to assist in the timely recovery of these costs. See Note 19 for additional details. The Company will continue to monitor natural gas prices, as well as oil and natural gas production levels.

In February 2019, the Company announced the retirement of three aging coal-fired electric generating units, resulting from the Company's analysis showing that the plants are no longer expected to be cost competitive for customers. The Company ceased operations of Unit 1 at Lewis & Clark Station in Sidney, Montana, in March 2021 and Units 1 and 2 at Heskett Station near Mandan, North Dakota, in February 2022. In addition, in May 2022 the Company began construction of Heskett Unit 4, an 88-MW simple-cycle natural gas-fired combustion turbine peaking unit at the existing Heskett Station near Mandan, North Dakota, with an expected in service date in the first half of 2023.

The Company is one of four owners of Coyote Station and cannot make a unilateral decision on the plant's future; therefore, the Company could be negatively impacted by decisions of the other owners. In September 2021, Otter Tail Power Company filed its 2022 Integrated Resource Plan in Minnesota and North Dakota, which included its intent to start the process of withdrawal from its 35 percent ownership interest in Coyote Station with an anticipated exit from the plant by December 31, 2028. The joint owners continue to collaborate in analyzing data and weighing decisions that impact the plant and its employees as well as each company's customers and communities served. State implementation of pollution control plans to improve visibility at Class I areas, such as national parks, under the EPA's Regional Haze Rule could require the owners of Coyote Station to incur significant new costs. If the owners decide to incur such costs, the costs could, dependent on determination by state regulatory commissions on approval to recover such costs from customers, negatively impact the Company's results of operations, financial position and cash flows. The NDDEQ submitted a draft state implementation plan to the EPA and federal land managers of the National Park Service, the United States Fish and Wildlife Service and the United States Forest Service for consultation, and the federal land managers have submitted comments back to the NDDEQ for review. The NDDEQ determined it is not reasonable to require controls during this planning period. The emissions modeling was delayed and has subsequently delayed the NDDEQ state implementation plan process. The NDDEQ state implementation plan was open for public comment from April 20, 2022 through June 1, 2022, and, as currently drafted, does not require additional controls for any units in North Dakota, including Coyote Station. Therefore, the NDDEQ's state implementation plan, which was due to the EPA by July 2021, is anticipated to be submitted to the EPA in August 2022.

Legislation and rulemaking The Company continues to monitor legislation and rulemaking related to clean energy standards that may impact its segments. Below are some of the specific legislative actions the Company is monitoring.

•The current presidential administration is considering changes to the federal Clean Air Act, some of which were amended by the previous presidential administration. The content and impacts of the changes under consideration are uncertain and the Company continues to monitor for potential actions by the EPA.

•In Oregon, the Climate Protection Program Rule was approved in December 2021, which requires natural gas companies to reduce GHG emissions 50 percent below the baseline by 2035 and 90 percent below the baseline by 2050, which may be achieved through surrendering emissions allowances, investing in additional customer conservation and energy efficiency programs, purchasing community climate investment credits, and purchasing low carbon fuels such as renewable natural gas. The Company expects the compliance costs for these regulations to be recovered through customer rates. The Company, along with the other two local distribution companies in Oregon, filed a lawsuit on March 18, 2022, challenging the Climate Protection Program Rule. The lawsuit was filed on behalf of customers as the Company does not believe the rule accomplishes environmental stewardship in the most effective and affordable way possible.

•In Washington, the Climate Commitment Act signed into law in May 2021 requires natural gas distribution companies to reduce overall GHG emissions 45 percent below 1990 levels by 2030, 70 percent below 1990 levels by 2040 and 95 percent below 1990 levels by 2050, which may be achieved through increased energy efficiency and conservation measures, purchased emission allowances and offsets, and purchases of low carbon fuels. As directed by the Climate Commitment Act, the Washington DOE has begun the Climate Commitment Program rule-making process and is expected to publish a final rule in the fall of 2022. The Company has begun reviewing compliance options and expects the compliance costs for these regulations will be recovered through customer rates.

38

•On April 22, 2022, the Washington State Building Code Council approved revisions to the state's commercial energy code that will significantly limit the use of natural gas for space and water heating in new and retrofitted commercial and multifamily buildings and proposed the review of similar restrictions in the future for residential buildings. The Company is currently assessing the impact of these revisions.

Pipeline

Strategy and challenges The pipeline segment provides natural gas transportation, underground storage and energy-related services, as discussed in Note 17. The segment focuses on utilizing its extensive expertise in the design, construction and operation of energy infrastructure and related services to increase market share and profitability through optimization of existing operations, organic growth and investments in energy-related assets within or in close proximity to its current operating areas. The segment focuses on the continual safety and reliability of its systems, which entails building, operating and maintaining safe natural gas pipelines and facilities. The segment continues to evaluate growth opportunities including the expansion of natural gas facilities; incremental pipeline projects; and expansion of energy-related services leveraging on its core competencies. In support of this strategy, the North Bakken Expansion project in western North Dakota was placed in service in February of 2022. The project has capacity to transport 250 MMcf of natural gas per day and can be increased to 625 MMcf per day with additional compression. In addition, the Line Section 7 Expansion project was placed in service in August of 2022 and increased system capacity by 6.7 MMcf per day.

The segment is exposed to energy price volatility which is impacted by the fluctuations in pricing, production and basis differentials of the energy market's commodities. Legislative and regulatory initiatives on increased pipeline safety regulations and environmental matters such as the reduction of methane emissions could also impact the price and demand for natural gas.

The pipeline segment is subject to extensive regulation related to certain operational and environmental compliance, cybersecurity, permit terms and system integrity. The Company continues to actively evaluate cybersecurity processes and procedures, including changes in the industry's cybersecurity regulations, for opportunities to further strengthen its cybersecurity protections. Implementation of enhancements and additional requirements is ongoing. The segment reviews and secures existing permits and easements, as well as new permits and easements as necessary, to meet current demand and future growth opportunities on an ongoing basis. Groups opposing natural gas pipelines could also cause negative impacts on the segment with increased costs, potential delays to project completion or cancellation of prospective projects.

The segment regularly experiences extended lead times on raw materials that are critical to the segment's construction and maintenance work. In addition, the segment is currently experiencing increased fuel and raw material costs, as well as other inflationary pressures. Long lead times on materials could delay maintenance work and construction projects potentially causing lost revenues and/or increased costs. The Company is actively managing the national supply chain challenges and inflationary costs, including longer than normal lead times for certain items, and working with its manufacturers and suppliers to help mitigate these risks including procuring materials further in advance to minimize delays and impacts. The Company expects supply chain challenges and inflationary pressures to continue throughout at least the remainder of 2022.

The segment focuses on the recruitment and retention of a skilled workforce to remain competitive and provide services to its customers. The industry in which it operates relies on a skilled workforce to construct energy infrastructure and operate existing infrastructure in a safe manner. A shortage of skilled personnel can create a competitive labor market which could increase costs incurred by the segment. Competition from other pipeline companies can also have a negative impact on the segment.

Earnings overview - The following information summarizes the performance of the pipeline segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	37.6	$	35.6	6	%	$	74.7	$	71.8	4	%
Operating expenses:
Operation and maintenance	14.8		16.1		(8)	%	30.2		31.3		(4)	%
Depreciation, depletion and amortization	6.8		5.2		31	%	13.1		10.3		27	%
Taxes, other than income	3.4		3.2		6	%	6.9		6.6		5	%
Total operating expenses	25.0		24.5		2	%	50.2		48.2		4	%
Operating income	12.6		11.1		14	%	24.5		23.6		4	%
Other income (expense)	(.7)		1.9		(137)	%	(.6)		2.8		(121)	%
Interest expense	2.7		1.9		42	%	5.2		3.9		33	%
Income before income taxes	9.2		11.1		(17)	%	18.7		22.5		(17)	%
Income tax expense	2.1		1.9		11	%	4.2		4.4		(5)	%
Net income	$	7.1	$	9.2	(22)	%	$	14.5	$	18.1	(20)	%

39

Operating statistics	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021
Transportation volumes (MMdk)	115.7	118.7	226.2	229.5
Customer natural gas storage balance (MMdk):
Beginning of period	2.8	5.2	23.0	25.5
Net injection (withdrawal)	12.0	10.8	(8.2)	(9.5)
End of period	14.8	16.0	14.8	16.0

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 Pipeline earnings decreased $2.1 million as a result of:

•Revenues increased $2.0 million.

◦Driven by increased transportation volume revenues of $4.1 million, largely due to the North Bakken Expansion project placed in service in February 2022.

◦Partially offset by lower non-regulated project revenues.

•Operation and maintenance decreased $1.3 million resulting primarily from lower non-regulated project costs associated with lower non-regulated project revenues, as previously discussed. Lower payroll-related costs, largely due to lower incentive accruals, were mostly offset by higher materials and legal costs.

•Depreciation, depletion and amortization increased $1.6 million due to increased property, plant and equipment balances, largely related to the North Bakken Expansion project.

•Taxes, other than income were comparable to the same period in the prior year.

•Other income (expense) decreased $2.6 million, driven by:

◦Lower returns on the Company's nonqualified benefit plan investments of $1.3 million, as discussed in Note 14.

◦Lower AFUDC as a result of the completion of the North Bakken Expansion project placed in service in February 2022.

•Interest expense increased $800,000, primarily due to higher debt balances to fund capital expenditures.

•Income tax expense was comparable to the same period in the prior year.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 Pipeline earnings decreased $3.6 million as a result of:

•Revenues increased $2.9 million.

◦Driven by increased transportation volume revenues of $7.0 million, largely due to the North Bakken Expansion project placed in service in February 2022.

◦Partially offset by:

•Lower non-regulated project revenues of $3.0 million.

•Lower storage-related revenues of $700,000.

•Lower transmission rate, due to an expired negotiated contract converted to tariff rate.

•Operation and maintenance decreased $1.1 million, driven by:

◦Lower non-regulated project costs of $1.9 million associated with lower non-regulated project revenues, as previously discussed.

◦Higher materials, legal and contract services costs were partially offset by lower payroll-related costs, largely due to lower incentive accruals.

•Depreciation, depletion and amortization increased $2.8 million due to increased property, plant and equipment balances, largely related to the North Bakken Expansion project.

•Taxes, other than income were comparable to the same period in the prior year.

•Other income (expense) decreased $3.4 million, resulting from:

◦Largely due to lower returns on the Company's nonqualified benefit plan investments of $1.8 million, as discussed in Note 14.

◦Lower AFUDC as a result of the completion of the North Bakken Expansion project placed in service in February 2022.

•Interest expense increased $1.3 million, primarily due to interest associated with higher debt balances to fund capital expenditures.

•Income tax expense was comparable to the same period in the prior year.

40

Outlook On February 18, 2022, the FERC issued two policy statements regarding the certification of new interstate natural gas facilities. The two policy statements were subsequently converted to draft policy statements by the FERC on March 24, 2022. The first draft policy statement, the Updated Certificate Policy Statement, describes how the FERC will determine whether a new interstate natural gas transportation project is required by public convenience and necessity. It includes increased focus on a project's purpose and need and the environmental impacts; as well as impacts on landowners and environmental justice communities. The FERC also clarified the updated policy statement will not apply to projects that have been filed with the FERC prior to the policy statement being finalized. The second draft policy statement, the Interim GHG Policy Statement, explains how the FERC will assess the impacts of natural gas infrastructure projects on climate change in its reviews under the National Environmental Policy Act and Natural Gas Act. The FERC invited public comment on the draft policy statements which were due April 25, 2022. The Company continues to monitor and assess these initiatives and the potential impacts they may have on its business processes, current and future projects, results of operations and disclosures.

The Company has continued to experience the effect of associated natural gas production in the Bakken, which has provided opportunities for organic growth projects and increased demand. The completion of organic growth projects has contributed to higher volumes of natural gas the Company transports through its system. Increased oil prices have allowed producers to bring wells back online and support new drilling. As a result, associated natural gas production in the Bakken has returned to near pre-pandemic levels and is expected to continue to grow due to new oil wells and increasing gas to oil ratios.

The low levels of natural gas in storage nationally, along with global events, has put upward pressure on natural gas prices and increased volatility. While the Company believes there will continue to be varying pressures on natural gas production levels and prices, the long-term outlook for natural gas prices continues to provide growth opportunity for industrial supply related projects and seasonal pricing differentials provide opportunities for storage services.

The Company continues to focus on growth and improving existing operations through organic projects in all areas in which it operates, which includes additional organic growth projects with local distribution companies and industrial customers in various stages of development.

In July 2021, the Company announced plans for a natural gas pipeline expansion project in eastern North Dakota. The Wahpeton Expansion project consists of 60 miles of pipe and ancillary facilities and is designed to increase capacity by 20 MMcf per day, which is supported by long-term customer agreements with Montana-Dakota and its utility customers. Construction is expected to begin in early 2024, depending on regulatory approvals, with an anticipated completion date later in 2024. On May 27, 2022, the Company filed with FERC its application for this project.

The Company has also entered into long-term customer agreements for the construction of four additional growth projects. The first of these projects, Line Section 7 Expansion project, was placed in service in August 2022 and increased system capacity by 6.7 MMcf per day. The remaining projects are still dependent on regulatory approvals and anticipated to be completed in 2023. Estimated capital expenditures for these projects is approximately $108 million and is included in the pipeline segment's estimated capital expenditures for 2022 and 2023. The projects will add total incremental system capacity of over 300 MMcf per day.

Construction Materials and Contracting

Strategy and challenges The construction materials and contracting segment provides an integrated set of aggregate-based construction services, as discussed in Note 17. The segment focuses on high-growth strategic markets located near major transportation corridors and desirable mid-sized metropolitan areas; strengthening the long-term, strategic aggregate reserve position through available purchase and/or lease opportunities; enhancing profitability through cost containment, margin discipline and vertical integration of the segment's operations; development and recruitment of talented employees; and continued growth through organic and strategic acquisition opportunities.

A key element of the Company's long-term strategy for this business is to further expand its market presence in the higher-margin materials business (rock, sand, gravel, asphalt oil, asphalt concrete, ready-mix concrete and related products), complementing and expanding on the segment's expertise. The Company's continued acquisition activity supports this strategy.

As one of the country's largest sand and gravel producers, the segment continues to strategically manage its aggregate reserves, as well as take further advantage of being vertically integrated. The segment's vertical integration allows it to manage operations from aggregate mining to final lay-down of concrete and asphalt, with control of and access to permitted aggregate reserves being significant. The Company's aggregate reserves are naturally declining and, as a result, the Company seeks acquisition opportunities to replace the reserves.

The construction materials and contracting segment faces challenges that are not under the direct control of the business. The segment operates in geographically diverse and highly competitive markets. Competition can put negative pressure on the segment's operating margins. The segment is also subject to volatility, including recent inflationary pressures, in the cost of raw materials such as diesel fuel, gasoline, asphalt oil, cement and steel, with diesel fuel and asphalt oil costs having the most significant impact on the segment's recent results. Such volatility and inflationary pressures may continue to have an impact on the segment's margins, including fixed-price construction contracts that are particularly vulnerable to the volatility of energy and

41

material prices. The Company has increased product pricing where necessary to mitigate the effects of recent inflationary costs, however, there is a lag between announced price increases and the time when they will be fully recognized. The Company will continue to evaluate future price increases to stay ahead of inflationary pressures as they are expected to continue throughout at least the remainder of 2022. In addition, while the Company has not yet experienced significant cement supply shortages, it has started to receive notices from cement suppliers for the ready-mix concrete product line about potential supply allocations, which could impact sales volumes in future periods. Other variables that can impact the segment's margins include adverse weather conditions, the timing of project starts or completions and declines or delays in new and existing projects due to the cyclical nature of the construction industry and governmental infrastructure spending. Accordingly, operating results in any particular period may not be indicative of the results that can be expected for any other period.

The segment also faces challenges in the recruitment and retention of employees. Trends in the labor market include an aging workforce and availability issues. Most of the markets the segment operates in have experienced labor shortages, largely truck drivers, causing increased labor-related costs and delays or inefficiencies on projects. The Company continues to monitor the labor markets and expects labor costs to continue to increase based on the increased demand for services and, to a lesser extent, the recent escalated inflationary environment in the United States. The increase in labor shortages also impacts the segment's ability to recruit and train a skilled workforce to meet the needs of increasing demand and seasonal work. In order to help attract new workers to the construction industry and enhance the skills of its current employees, the Company has completed a training facility in Oregon. The training facility offers hands-on training for heavy equipment operators and truck drivers, as well as leadership and safety training.

Earnings overview - The following information summarizes the performance of the construction materials and contracting segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	711.8	$	633.8	12	%	$	1,021.8	$	899.5	14	%
Cost of sales:
Operation and maintenance	588.1		497.0		18	%	875.1		740.2		18	%
Depreciation, depletion and amortization	28.5		24.3		17	%	55.7		46.7		19	%
Taxes, other than income	15.0		13.9		8	%	26.0		23.6		10	%
Total cost of sales	631.6		535.2		18	%	956.8		810.5		18	%
Gross margin	80.2		98.6		(19)	%	65.0		89.0		(27)	%
Selling, general and administrative expense:
Operation and maintenance	23.5		24.2		(3)	%	48.8		46.0		6	%
Depreciation, depletion and amortization	1.3		1.0		30	%	2.4		2.1		14	%
Taxes, other than income	1.0		1.0		—	%	4.0		3.4		18	%
Total selling, general and administrative expense	25.8		26.2		(2)	%	55.2		51.5		7	%
Operating income	54.4		72.4		(25)	%	9.8		37.5		(74)	%
Other income (expense)	(2.9)		1.2		(342)	%	(4.8)		1.1		(536)	%
Interest expense	7.4		4.8		54	%	12.7		9.5		34	%
Income (loss) before income taxes	44.1		68.8		(36)	%	(7.7)		29.1		(126)	%
Income tax expense (benefit)	11.5		17.4		(34)	%	(.3)		8.5		(104)	%
Net income (loss)	$	32.6	$	51.4	(37)	%	$	(7.4)	$	20.6	(136)	%

Operating statistics	Revenues								Gross margin
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
	2022		2021		2022		2021		2022		2021		2022		2021
	(In millions)
Aggregates	$	136.4	$	125.1	$	214.0	$	195.5	$	18.7	$	17.5	$	15.9	$	14.8
Asphalt	121.5		101.5		139.7		115.7		10.5		13.5		4.4		8.7
Ready-mix concrete	168.1		163.2		276.6		263.9		19.1		19.8		24.3		25.6
Other products*	124.3		109.0		161.8		140.0		12.2		24.1		(1.6)		12.4
Contracting services	330.7		280.8		445.0		376.9		19.7		23.7		22.0		27.5
Intracompany eliminations	(169.2)		(145.8)		(215.3)		(192.5)		—		—		—		—
	$	711.8	$	633.8	$	1,021.8	$	899.5	$	80.2	$	98.6	$	65.0	$	89.0

*Other products includes cement, asphalt oil, merchandise, fabric, spreading and other products that individually are not considered to be a major line of business for the segment.

42

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Sales (thousands):
Aggregates (tons)	9,521		9,533		14,491		14,341
Asphalt (tons)	2,101		2,091		2,417		2,385
Ready-mix concrete (cubic yards)	1,140		1,201		1,873		1,933
Average selling price:
Aggregates (per ton)	$	14.33	$	13.12	$	14.77	$	13.64
Asphalt (per ton)	$	57.85	$	48.53	$	57.77	$	48.52
Ready-mix concrete (per cubic yard)	$	147.53	$	135.87	$	147.67	$	136.51

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 Construction materials and contracting's earnings decreased $18.8 million as a result of:

•Revenues increased $78.0 million.

◦Primarily the result of:

•Increased contracting revenues of $49.9 million due to more available work, strong demand in some regions and revenue from recent acquisitions.

•Higher average selling prices across all product lines, as well as additional asphalt volumes from recent acquisitions in Oregon, which were partially offset by lower asphalt sales volumes largely resulting from unfavorable weather conditions in certain regions.

◦Partially offset by:

•An increase in intrasegment eliminations for materials sales.

•Lower ready-mix concrete sales volumes due to the absence of large projects and unfavorable weather conditions in certain regions.

•Decreased aggregates sales volumes due to unfavorable weather conditions, offset in part by increased revenues of $9.3 million from recent acquisitions.

•Gross margin decreased $18.4 million, primarily due to higher operating costs across the business as a result of inflationary pressures, including diesel fuel costs of $13.1 million and higher materials, labor and production costs. In addition, contracting services margins decreased from the impacts of unfavorable weather conditions and the mix of work performed.

•Selling, general and administrative expense was comparable to the same period in the prior year.

•Other income (expense) decreased $4.1 million, primarily due to lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense increased $2.6 million, largely the result of higher debt balances to fund recent acquisitions and higher working capital needs.

•Income tax expense decreased $5.9 million, largely due to the lower income before income taxes.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 Construction materials and contracting's earnings decreased $28.0 million as a result of:

•Revenues increased $122.3 million.

◦Primarily the result of:

•Higher average selling prices across all product lines, as well as:

◦Increased aggregates sales volumes, largely from recent acquisitions, partially offset by unfavorable weather conditions.

◦Additional asphalt revenues from recent acquisitions were offset in part by lower sales volumes in Iowa, North Dakota and South Dakota due to unfavorable weather conditions causing a late start to the season.

•Increased contracting revenues of $68.1 million across all regions, particularly in Idaho and Oregon due to strong demand and revenues from recent acquisitions.

◦These increases were partially offset by:

•An increase in intrasegment eliminations for materials sales.

•Lower ready-mix concrete sales volumes due to the absence of certain large projects, decreased demand and unfavorable weather conditions in certain regions.

•Gross margin decreased $24.0 million, primarily due to higher operating costs across the business as a result of inflationary pressures, including diesel fuel costs of $18.0 million and higher repair and maintenance, materials, labor and production costs. In addition, contracting services margins decreased from the impacts of unfavorable weather conditions and the mix of work.

43

•Selling, general and administrative expense increased $3.7 million.

◦Largely due to:

•Increased employee-related costs of $1.0 million.

•Higher professional fees of $900,000.

•Less recovery of bad debt expense of $800,000.

•Increased technology expenses.

•Other income (expense) decreased $5.9 million, primarily due to lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense increased $3.2 million, largely the result of higher debt balances to fund recent acquisitions and higher working capital needs.

•Income tax expense (benefit) decreased $8.8 million, largely due to the lower income before income taxes.

Outlook The American Rescue Plan Act enacted in the first quarter of 2021 provides $1.9 trillion in COVID-19 relief funding for states, schools and local governments. States are beginning to move forward with allocating these funds based on federal criteria and state needs, and in some cases, funding of infrastructure projects could positively impact the segment. Additionally, the bipartisan infrastructure proposal, known as the Infrastructure Investment and Jobs Act, was enacted in the fourth quarter of 2021. This initiative is providing long-term opportunities by designating $119 billion for the repair and rebuilding of roads and bridges across the Company's footprint. The Company continues to monitor the implementation of these legislative items.

The segment's vertically integrated aggregates-based business model provides the Company with the ability to capture margin throughout the sales delivery process. The aggregate products are sold internally and externally for use in other products such as ready-mix concrete, asphaltic concrete and public and private construction markets. The contracting services and construction materials are sold in connection with street, highway and other public infrastructure projects, as well as private commercial, industrial and residential development projects. The public infrastructure projects have traditionally been more stable markets as public funding is more secure during periods of economic decline. The public projects are, however, dependent on federal and state funding such as appropriations to the Federal Highway Administration. Spending on private development is highly dependent on both local and national economic cycles, providing additional sales during times of strong economic cycles and potential for reductions during times of inflation or supply shortages.

During 2021, the Company made strategic purchases and completed acquisitions that support the Company's long-term strategy to expand its market presence. The Company continues to evaluate additional acquisition opportunities. For more information on the Company's business combinations, see Note 10.

The construction materials and contracting segment's backlog remained strong at June 30, 2022, at $1.13 billion, as compared to backlog of $912.1 million at June 30, 2021. A significant portion of the Company's backlog relates to publicly funded projects, largely street and highway construction projects. Period over period increases or decreases in backlog cannot be used as an indicator of future revenues or net income. The Company expects to complete an estimated $1.05 billion of backlog at June 30, 2022, during the next 12 months. While the Company believes the current backlog of work remains firm, prolonged delays in the receipt of critical supplies and materials or continued increases to pricing could result in customers seeking to delay or terminate existing or pending agreements. Factors noted in Part I, Item 1A. Risk Factors in the 2021 Annual Report can cause revenues to be realized in periods and at levels that are different from originally projected.

Construction Services

Strategy and challenges The construction services segment provides electrical and mechanical and transmission and distribution specialty contracting services, as discussed in Note 17. The construction services segment focuses on safely executing projects; providing a superior return on investment by building new and strengthening existing customer relationships; ensuring quality service; effectively controlling costs; retaining, developing and recruiting talented employees; growing through organic and strategic acquisition opportunities; and focusing efforts on projects that will permit higher margins while properly managing risk. The growth experienced by the segment in recent years is due in part to its ability to support national customers in most of the regions in which it operates.

The construction services segment faces challenges, which are not under direct control of the business, in the highly competitive markets in which it operates, including those described in Part I, Item 1A. Risk Factors in the 2021 Annual Report. These factors, and those noted below, have caused fluctuations in revenues, gross margins and earnings in the past and are expected to cause fluctuations in the future.

•Revenue mix and impact on margins. The mix of revenues based on the types of services the segment provides can impact margins as certain industries and services provide higher margin opportunities. Larger or more complex projects typically result in higher margin opportunities since the segment assumes a higher degree of performance risk and there is greater utilization of the segment's resources for longer construction timelines. However, larger or more complex projects have a higher risk of regulatory and seasonal or cyclical delay. Project schedules fluctuate, which can affect the amount of work performed in a given period. Smaller or less complex projects typically have a greater number of companies competing for them, and competitors at times

44

may be more aggressive when pursuing available work. A greater percentage of smaller scale or less complex work in a given period could negatively impact margins due to the inefficiency of transitioning between a greater numbers of smaller projects versus continuous production on a few larger projects.

•Project variability and performance. Margins for a single project may fluctuate period to period due to changes in the volume or type of work performed, the pricing structure under the project contract or job productivity. Productivity and performance on a project can vary period to period based on a number of factors, including unexpected project difficulties; unexpected project site conditions; project location, including locations with challenging operating conditions or difficult geographic characteristics; whether the work is on an open or encumbered right of way; inclement weather or severe weather events; environmental restrictions or regulatory delays; political or legal challenges related to a project; and the performance of third parties. In addition, the type of contract can impact the margin on a project. Under fixed-price contracts, which are more common with larger or more complex projects, the segment assumes risk related to project estimates versus execution. Revenues under this type of contract can vary, sometimes significantly, from original projects due to additional project complexity; timing uncertainty or extended bidding; extended regulatory or permitting processes; and other factors, which can result in a reduction in profit or losses on a project.

•Subcontractor work and provision of materials. Some work under project contracts is subcontracted out to other companies and margins on subcontractor work is generally lower than work performed by the Company. Increased subcontractor work in a given period may therefore result in lower margins. In addition, inflationary or other pressures may increase the cost of materials under fixed-price contracts and may result in decreased margins on the project. The Company has worked to implement provisions in project contracts to allow for the pass-through of inflationary costs to customers where feasible and will continue to do so to mitigate the impacts.

The segment is currently experiencing increased fuel and material costs as well as impacts from delays in the national supply chain. The inflationary costs and national supply chain challenges experienced by the segment have increased costs but have not had significant impacts to the procurement of project materials. However, the Company expects these inflationary pressures and national supply chain challenges to continue throughout at least the remainder of 2022. The Company is actively monitoring the situation and is working with its manufacturers, suppliers and customers to help mitigate these risks. Accordingly, operating results in any particular period may not be indicative of the results that can be expected for any other period.

The need to ensure available specialized labor resources for projects also drives strategic relationships with customers and project margins. These trends include an aging workforce and labor availability issues, as well as increasing duration and complexity of customer capital programs. Most of the markets the segment operates in have experienced labor shortages which in some cases have caused increased labor-related costs. The Company continues to monitor the labor markets and expects labor costs to continue to increase based on increases included in collective bargaining agreements and, to a lesser extent, the recent escalated inflationary environment in the United States. Due to these and other factors, the Company believes overall customer and competitor demand for labor resources will continue to increase.

Earnings overview - The following information summarizes the performance of the construction services segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	685.4	$	525.6	30	%	$	1,238.0	$	1,044.1	19	%
Cost of sales:
Operation and maintenance	585.1		442.0		32	%	1,056.2		869.2		22	%
Depreciation, depletion and amortization	4.2		3.9		8	%	8.3		7.9		5	%
Taxes, other than income	21.3		16.3		31	%	40.3		35.7		13	%
Total cost of sales	610.6		462.2		32	%	1,104.8		912.8		21	%
Gross margin	74.8		63.4		18	%	133.2		131.3		1	%
Selling, general and administrative expense:
Operation and maintenance	26.5		23.6		12	%	52.6		48.2		9	%
Depreciation, depletion and amortization	1.1		1.0		10	%	2.2		2.3		(4)	%
Taxes, other than income	1.1		1.0		10	%	2.8		2.7		4	%
Total selling, general and administrative expense	28.7		25.6		12	%	57.6		53.2		8	%
Operating income	46.1		37.8		22	%	75.6		78.1		(3)	%
Other income	1.0		1.6		(38)	%	1.1		1.8		(39)	%
Interest expense	1.2		.9		33	%	2.1		1.8		17	%
Income before income taxes	45.9		38.5		19	%	74.6		78.1		(4)	%
Income tax expense	11.4		9.6		19	%	18.8		19.4		(3)	%
Net income	$	34.5	$	28.9	19	%	$	55.8	$	58.7	(5)	%

45

Operating Statistics	Revenues								Gross Margin
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
	2022		2021		2022		2021		2022		2021		2022		2021
	(In millions)
Electrical & mechanical
Commercial	$	242.0	$	147.7	$	430.0	$	313.8	$	25.1	$	18.4	$	45.4	$	35.9
Industrial	112.1		124.0		207.1		250.4		12.3		12.6		22.1		29.8
Institutional	55.3		39.8		96.0		71.9		.6		1.2		1.2		3.4
Renewables	54.5		1.9		79.4		2.5		3.0		.1		4.0		.4
Service & other	45.2		36.8		91.7		68.0		5.4		4.9		11.1		9.9
	509.1		350.2		904.2		706.6		46.4		37.2		83.8		79.4
Transmission & distribution
Utility	154.8		155.7		297.9		297.0		26.5		23.9		46.4		47.7
Transportation	25.5		24.2		43.4		48.2		1.9		2.3		3.0		4.2
	180.3		179.9		341.3		345.2		28.4		26.2		49.4		51.9
Intrasegment eliminations	(4.0)		(4.5)		(7.5)		(7.7)		—		—		—		—
	$	685.4	$	525.6	$	1,238.0	$	1,044.1	$	74.8	$	63.4	$	133.2	$	131.3

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021 Construction services earnings increased $5.6 million as a result of:

•Revenues increased $159.8 million.

◦Largely due to:

•Higher commercial workloads driven largely by a $43.5 million increase in the hospitality sector, primarily from the progress on large projects; a $24.3 million increase in data center work from the number of projects started during the quarter; and an increase in the general commercial sector.

•Higher renewable workloads of $52.6 million due to the timing of and progress on commercial renewable projects.

•Higher institutional workloads, primarily in the healthcare sector of $7.4 million and the education sector. Both sectors benefited from the mix of project work in the quarter.

•Higher service workloads of $8.4 million from service work for the repair and maintenance of electrical systems.

◦Partially offset by:

•Lower industrial workloads substantially from the mix of project work, primarily in the maintenance sector of $16.7 million and the high-tech sector of $11.0 million.

•Lower utility workloads due to project timing for the transmission and distribution sectors of $26.0 million offset in part by higher workloads in the underground, electrical, storm repair and telecommunications sectors from the timing and mix of project work.

•Gross margin increased $11.4 million.

◦Largely due to:

•Higher commercial, renewable and service margins of $10.1 million due substantially to project mix.

•Higher utility margins of $2.6 million resulting from the mix of customer projects and higher storm margins.

◦Partially offset by:

•Higher overall operating costs related to inflationary pressures, including increased fuel and material costs and higher labor costs from decreased productivity on certain projects.

•Lower institutional and industrial margins of $900,000 due to the timing of project completions and project starts.

•Lower transportation margins, primarily for street lighting and traffic signalization projects.

•Selling, general and administrative expense increased $3.1 million.

◦Primarily due to:

•Increased payroll-related costs of $2.1 million, largely related to higher employee incentive accruals.

•Increased reserve for uncollectible accounts.

•Other income decreased $600,000, primarily due to lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense was comparable to the same period in the prior year.

•Income tax expense increased $1.8 million primarily resulting from an increase in income before income taxes.

46

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021 Construction services earnings decreased $2.9 million as a result of:

•Revenues increased $193.9 million.

◦Largely due to:

•Higher commercial workloads driven largely by a $45.5 million increase in the general commercial sector as a result of an overall increase from project mix and progression on contracts; a $30.0 million increase in the hospitality sector, primarily from the addition of a large hospitality project; and an increase in the data center sector significantly resulting from the addition of more projects.

•Higher renewable workloads of $76.9 million due to the timing of commercial renewable projects.

•Higher institutional workloads, primarily in the education sector contributing an additional $12.7 million and the healthcare sector contributing an additional $7.2 million, both as a result of increased activity from project mix and progress on projects.

•Higher service workloads of $23.7 million from service work for the repair and maintenance of electrical systems.

•Higher utility workloads, primarily from an increase in the electrical, underground and distribution sectors of $28.8 million from increased customer released projects, partially offset by lower transmission workloads from customer demand and storm work.

◦Partially offset by:

•Lower industrial workloads of $43.3 million, primarily resulting from the completion of a large high-tech project as well as the timing of other projects, partially offset by an increase in the refinery and general industrial sectors from project mix and timing.

•Lower transportation workloads, primarily in the street lighting sector of $9.0 million due to lower demand and the mix of projects.

•Gross margin increased $1.9 million.

◦Largely due to higher commercial, renewable and service margins of $14.3 million, primarily the result of project mix and progression on projects.

◦Partially offset by:

•Higher overall operating costs related to inflationary pressures, including increased fuel and material costs and higher labor costs from decreased productivity on certain projects.

•Lower industrial and institutional margins of $9.9 million from the absence of higher margin work, as well as the completion of projects and the timing of project completions and project starts.

•Lower utility margins from lower margins on storm repair projects.

•Lower transportation margins of $1.2 million for street lighting and traffic signalization projects due to lower margin work.

•Selling, general and administrative expense increased $4.4 million.

◦Primarily due to:

•Increased reserve for uncollectible accounts of $2.1 million.

•Increased payroll-related costs of $1.5 million, largely related to higher employee incentive accruals.

•Increased office expenses of $900,000.

•Other income decreased $700,000, primarily due to lower returns on the Company's nonqualified benefit plan investments, as discussed in Note 14.

•Interest expense was comparable to the same period in the prior year.

•Income tax expense decreased $600,000 directly resulting from a decrease in income before income taxes.

Outlook The American Rescue Plan act approved by the United States Congress and signed into law by the President of the United States in the first quarter of 2021 provides $1.9 trillion in COVID-19 relief funding for states, schools and local government including broadband infrastructure. States are beginning to move forward with allocating these funds based on federal criteria and state needs, and in some cases, funding of infrastructure projects could positively impact the segment. Additionally, the bipartisan infrastructure proposal, known as the Infrastructure Investment and Jobs Act, was approved by the United States Congress and signed into law by the President of the United States in the fourth quarter of 2021. These include investments for upgrades to electric and grid infrastructure, transportation systems, airports and electric vehicle infrastructure, all industries this segment supports. The Company will continue to monitor the implementation of these legislative items.

The Company continues to have bidding opportunities in the specialty contracting markets in which it operated during 2022 as evidenced by the segment's backlog. Although bidding remains highly competitive in all areas, the Company expects the segment's relationship with existing customers, skilled workforce, quality of service and effective cost management will continue to provide a benefit in securing and executing profitable projects in the future. The Company has also seen rapidly growing needs for services across the electric vehicle charging, wind generation and energy storage markets that complement existing renewable projects performed by the Company.

47

The construction services segment's backlog at June 30, was as follows:

	2022		2021
	(In millions)
Electrical & mechanical	$	1,691	$	1,059
Transmission & distribution	233		261
	$	1,924	$	1,320

The 46 percent increase in backlog at June 30, 2022, as compared to backlog at June 30, 2021, was largely attributable to the new project opportunities that the Company continues to be awarded across its diverse operations, particularly within the commercial, institutional, renewable and industrial markets. These increases were partially offset by decreases in the transportation market due to the timing of project completions. Period over period increases or decreases in backlog cannot be used as an indicator of future revenues or net income. The Company expects to complete an estimated $1.64 billion of backlog at June 30, 2022, during the next 12 months. While the Company believes the current backlog of work remains firm, prolonged delays in the receipt of critical supplies and materials could result in customers seeking to delay or terminate existing or pending agreements. As of June 30, 2022, customers have not provided the Company any indications that they no longer wish to proceed with planned projects that have been included in backlog. Additionally, the Company continues to further evaluate potential acquisition opportunities that would be accretive to earnings of the Company and continue to grow the segment's backlog. Factors noted in Part I, Item 1A. Risk Factors in the 2021 Annual Report can cause revenues to be realized in periods and at levels that are different from originally projected.

The labor contract that the construction services segment was negotiating at December 31, 2021, as reported in Items 1 and 2 - Business Properties - General in the 2021 Annual Report, has been ratified.

Other

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Variance		2022		2021		Variance
	(In millions)
Operating revenues	$	4.4	$	3.4	29	%	$	8.7	$	6.7	30	%
Operating expenses:
Operation and maintenance	3.5		2.3		52	%	7.4		4.5		64	%
Depreciation, depletion and amortization	1.1		1.1		—	%	2.2		2.4		(8)	%
Total operating expenses	4.6		3.4		35	%	9.6		6.9		39	%
Operating loss	(.2)		—		—	%	(.9)		(.2)		350	%
Other income	.1		.3		(67)	%	.1		.4		(75)	%
Interest expense	.2		.1		100	%	.3		.2		50	%
Income (loss) before income taxes	(.3)		.2		(250)	%	(1.1)		—		—	%
Income tax expense (benefit)	.3		(.9)		133	%	4.1		1.6		156	%
Net income (loss)	$	(.6)	$	1.1	(158)	%	$	(5.2)	$	(1.6)	217	%

Three Months Ended June 30, 2022, Compared to Three Months Ended June 30, 2021

Other was negatively impacted by higher income tax adjustments in 2022 related to the consolidated company's annualized estimated tax rate. In addition, higher premiums for the captive insurer were experienced in 2022 compared to 2021, which impacts both operation and maintenance expense and operating revenues. General and administrative costs and interest expense previously allocated to the exploration and production and refining businesses that do not meet the criteria for income (loss) from discontinued operations are also included in Other.

Six Months Ended June 30, 2022, Compared to Six Months Ended June 30, 2021

Other was negatively impacted by higher income tax adjustments in 2022 related to the consolidated company's annualized estimated tax rate and a loss on the disposal of assets recorded in operation and maintenance expense. In addition, higher premiums for the captive insurer were experienced in 2022 compared to 2021, which impacts both operation and maintenance expense and operating revenues. General and administrative costs and interest expense previously allocated to the exploration and production and refining businesses that do not meet the criteria for income (loss) from discontinued operations are also included in Other.

48

Intersegment Transactions

Amounts presented in the preceding tables will not agree with the Consolidated Statements of Income due to the Company's elimination of intersegment transactions. The amounts related to these items were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In millions)
Intersegment transactions:
Operating revenues	$	14.4	$	12.4	$	46.1	$	43.4
Operation and maintenance	7.0		4.7		12.9		9.8
Purchased natural gas sold	7.4		7.7		33.2		33.6

For more information on intersegment eliminations, see Note 17.

Liquidity and Capital Commitments

At June 30, 2022, the Company had cash and cash equivalents of $65.4 million and available borrowing capacity of $432.5 million under the outstanding credit facilities of the Company's subsidiaries. The Company expects to meet its obligations for debt maturing within one year and its other operating and capital requirements from various sources, including internally generated funds; credit facilities and commercial paper of the Company's subsidiaries, as described in Capital resources; and issuance of debt and equity securities if necessary.

49

Cash flows

	Six Months Ended
	June 30,
	2022		2021
	(In millions)
Net cash provided by (used in):
Operating activities	$	117.4	$	182.8
Investing activities	(291.0)		(266.5)
Financing activities	184.8		82.1
Increase (decrease) in cash and cash equivalents	11.2		(1.6)
Cash and cash equivalents -- beginning of year	54.2		59.6
Cash and cash equivalents -- end of period	$	65.4	$	58.0

Operating activities 

	Six Months Ended
	June 30,
	2022		2021		Variance
	(In millions)
Components of net cash provided by operating activities:
Income from continuing operations	$	102.4	$	152.3	$	(49.9)
Adjustments to reconcile net income to net cash provided by operating activities	179.4		155.8		23.6
Receivables	(242.3)		(17.4)		(224.9)
Inventories	(63.8)		(25.3)		(38.5)
Other current assets	12.9		(52.8)		65.7
Accounts payable	104.4		(3.9)		108.3
Other current liabilities	29.2		(22.6)		51.8
Pension and postretirement benefit plan contributions	(.3)		(.2)		(.1)
Other noncurrent changes	(4.5)		(3.0)		(1.5)
Net cash used in discontinued operations	—		(.1)		.1
Net cash provided by operating activities	$	117.4	$	182.8	$	(65.4)

The changes in cash flows from operating activities generally follow the results of operations, as discussed in Business Segment Financial and Operating Data, and are affected by changes in working capital. The decrease in cash flows provided by operating activities in the previous table was largely driven by higher working capital needs at the construction services and construction materials and contracting businesses due to fluctuations in job activity resulting in higher receivables in the period, as well as lower collections of accounts receivable compared to first half of 2021, and increased asphalt oil inventory balances as a result of higher prices, offset in part by increased accounts payable. Decreased net income across all of the Company's businesses also contributed to the decreased cash flows. Partially offsetting the net decrease in cash flows provided by operating activities was the recovery of purchased gas adjustment balances and the absence of higher natural gas purchases in February 2021, as discussed in Note 13, partially offset by the associated deferred taxes at the natural gas distribution business.

Investing activities

	Six Months Ended
	June 30,
	2022		2021		Variance
	(In millions)
Components of net cash used in investing activities:
Capital expenditures	$	(290.1)	$	(261.9)	$	(28.2)
Acquisitions, net of cash acquired	(.5)		(13.7)		13.2
Net proceeds from sale or disposition of property and other	4.3		12.4		(8.1)
Investments	(4.7)		(3.3)		(1.4)
Net cash used in investing activities	$	(291.0)	$	(266.5)	$	(24.5)

The increase in cash used in investing activities in the previous table was primarily due to increased capital expenditures in 2022 at the electric and natural gas distribution businesses related to increased electric production projects, including the construction of Heskett Unit 4 and the repower of Diamond Willow, and higher natural gas distribution projects, including natural gas mains and meters. The construction services business also experienced lower proceeds from asset sales in 2022. Offsetting the increased cash used in investing activities was decreased capital expenditures at the pipeline business as a result of the North Bakken Expansion project being placed in service in February 2022 and lower cash used for acquisition activity at the construction materials and contracting business.

50

Financing activities

	Six Months Ended
	June 30,
	2022		2021		Variance
	(In millions)
Components of net cash provided by financing activities:
Issuance of short-term borrowings	$	100.0	$	50.0	$	50.0
Repayment of short-term borrowings	—		(50.0)		50.0
Issuance of long-term debt	334.3		171.8		162.5
Repayment of long-term debt	(147.5)		(48.1)		(99.4)
Debt issuance costs	(1.1)		—		(1.1)
Net proceeds from issuance of common stock	(.1)		54.6		(54.7)
Dividends paid	(88.4)		(85.3)		(3.1)
Repurchase of common stock	(7.4)		(6.7)		(.7)
Tax withholding on stock-based compensation	(5.0)		(4.2)		(.8)
Net cash provided by financing activities	$	184.8	$	82.1	$	102.7

The increase in cash provided by financing activities in the previous table was largely the result of increased issuance of short-term and long-term debt at the construction services and construction materials and contracting businesses to fund higher working capital needs and at the natural gas distribution and pipeline businesses to fund capital expenditures. The issuances were partially offset by the repayment of commercial paper borrowings that were replaced by short-term debt and private placement borrowings. Also partially offsetting the increase in cash provided by financing activities was the absence of the issuance of common stock under the Company's "at-the-market" offering during 2022, as discussed in Note 7.

Defined benefit pension plans

The Company has noncontributory qualified defined benefit pension plans. Various assumptions are used in calculating the benefit expense (income) and liability (asset) related to these plans, as such costs of providing these benefits bear the risk of changes as they are dependent upon assumptions of future conditions.

For 2022, the Company assumed a long-term rate of return on its qualified defined pension plan assets of 6 percent. Through June 30, 2022, due to the decline in the equity and fixed-income markets, the Company experienced a 21 percent loss on its qualified defined pension plan assets. Differences between actuarial assumptions and actual plan results are deferred and amortized into expense when the accumulated differences exceed 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets. Therefore, this change in asset values will be reflected in future expenses of the plans, beginning in 2023.

There were no other material changes to the Company's qualified noncontributory defined benefit pension plans from those reported in the 2021 Annual Report. For more information, see Note 18 and Part II, Item 7 in the 2021 Annual Report.

Capital expenditures

Capital expenditures for the first six months of 2022 and 2021 were $280.6 million and $283.2 million, respectively. Capital expenditures allocated to the Company's business segments are estimated to be approximately $747.2 million for 2022. Capital expenditures have been updated from what was previously reported in the 2021 Annual Report to accommodate project timeline and scope changes made throughout the first half of 2022.

The Company has included in the estimated capital expenditures for 2022 the Wahpeton Expansion and additional growth projects at the pipeline business and construction of Heskett Unit 4 at the electric business, as previously discussed in Business Segment Financial and Operating Data, as well as system upgrades; routine replacements; service extensions; routine equipment maintenance and replacements; buildings, land and building improvements; pipeline and natural gas storage projects; power generation and transmission opportunities, environmental upgrades; and other growth opportunities.

The Company continues to evaluate potential future acquisitions and other growth opportunities that would be incremental to the outlined capital program; however, they are dependent upon the availability of economic opportunities and, as a result, capital expenditures may vary significantly from the estimate previously discussed. The Company continuously monitors its capital expenditures for project delays and changes in economic viability and adjusts as necessary. It is anticipated that all of the funds required for capital expenditures for 2022 will be funded by various sources, including internally generated funds; credit facilities and commercial paper of the Company's subsidiaries, as described later; and issuance of debt and equity securities if necessary.

51

Capital resources

The Company requires significant cash to support and grow its businesses. The primary sources of cash other than cash generated from operating activities are cash from revolving credit facilities, cash from the issuance of long-term debt and cash from the sale of equity securities.

Debt resources

Certain debt instruments of the Company's subsidiaries contain restrictive and financial covenants and cross-default provisions. In order to borrow under the respective debt instruments, the subsidiary companies must be in compliance with the applicable covenants and certain other conditions, all of which the subsidiaries, as applicable, were in compliance with at June 30, 2022. In the event the subsidiaries do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued. For more information on the covenants, certain other conditions and cross-default provisions, see Part II, Item 8 in the 2021 Annual Report.

The following table summarizes the outstanding revolving credit facilities of the Company's subsidiaries at June 30, 2022:

Company	Facility		Facility Limit			Amount Outstanding		Letters of Credit			Expiration Date
			(In millions)
Montana-Dakota Utilities Co.	Commercial paper/Revolving credit agreement	(a)	$	175.0		$	15.1	$	—		12/19/24
Cascade Natural Gas Corporation	Revolving credit agreement		$	100.0	(b)	$	8.7	$	2.2	(c)	6/7/24
Intermountain Gas Company	Revolving credit agreement		$	85.0	(d)	$	21.2	$	—		6/7/24
Centennial Energy Holdings, Inc.	Commercial paper/Revolving credit agreement	(e)	$	600.0		$	480.3	$	—		12/19/24

(a)The commercial paper program is supported by a revolving credit agreement with various banks (provisions allow for increased borrowings, at the option of Montana-Dakota on stated conditions, up to a maximum of $225.0 million). At June 30, 2022, there were no amounts outstanding under the revolving credit agreement.

(b)Certain provisions allow for increased borrowings, up to a maximum of $125.0 million.

(c)Outstanding letter(s) of credit reduce the amount available under the credit agreement.

(d)Certain provisions allow for increased borrowings, up to a maximum of $110.0 million.

(e)The commercial paper program is supported by a revolving credit agreement with various banks (provisions allow for increased borrowings, at the option of Centennial on stated conditions, up to a maximum of $700.0 million). At June 30, 2022, there were no amounts outstanding under the revolving credit agreement.

The respective commercial paper programs are supported by revolving credit agreements. While the amount of commercial paper outstanding does not reduce available capacity under the respective revolving credit agreements, Montana-Dakota and Centennial do not issue commercial paper in an aggregate amount exceeding the available capacity under the credit agreements. The commercial paper borrowings may vary during the period, largely the result of fluctuations in working capital requirements due to the seasonality of certain operations of the Company's subsidiaries.

Total equity as a percent of total capitalization was 53 percent, 57 percent and 55 percent at June 30, 2022 and 2021, and December 31, 2021, respectively. This ratio is calculated as the Company's total equity, divided by the Company's total capital. Total capital is the Company's total debt, including short-term borrowings and long-term debt due within one year, plus total equity. This ratio is an indicator of how a company is financing its operations, as well as its financial strength.

Cascade On June 15, 2022, Cascade issued $50.0 million of senior notes under a note purchase agreement with maturity dates ranging from June 15, 2032 to June 15, 2052, at a weighted average interest rate of 4.50 percent. The agreement contains customary covenants and provisions, including a covenant of Cascade not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent.

Intermountain On June 15, 2022, Intermountain issued $40.0 million of senior notes under a note purchase agreement with maturity dates ranging from June 15, 2052 to June 15, 2062, at a weighted average interest rate of 4.68 percent. The agreement contains customary covenants and provisions, including a covenant of Intermountain not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent.

Centennial On March 18, 2022, Centennial entered into a $100.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of March 17, 2023. The agreement contains customary covenants and provisions, including a covenant of Centennial not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent. The covenants also include certain restrictions on the sale of certain assets, loans and investments.

52

On March 23, 2022, Centennial issued $150.0 million of senior notes under a note purchase agreement with maturity dates ranging from March 23, 2032 to March 23, 2034, at a weighted average interest rate of 3.71 percent. The agreement contains customary covenants and provisions, including a covenant of Centennial not to permit, at any time, the ratio of total debt to total capitalization to be greater than 60 percent.

Equity Resources

The Company currently has a shelf registration statement on file with the SEC, under which the Company may issue and sell any combination of common stock and debt securities. The Company may sell such securities if warranted by market conditions and the Company's capital requirements.

In August 2020, the Company amended the Distribution Agreement dated February 22, 2019, with J.P. Morgan Securities LLC and MUFG Securities Americas Inc., as sales agents. This agreement, as amended, allows the offering, issuance and sale of up to 6.4 million shares of the Company's common stock in connection with an "at-the-market" offering. The common stock may be offered for sale, from time to time, in accordance with the terms and conditions of this agreement. As of June 30, 2022, the Company had capacity to issue up to 3.6 million additional shares of common stock under the "at-the-market" offering program. Proceeds from the sale of shares of common stock under this agreement have been and are expected to be used for general corporate purposes, which may include, among other things, working capital, capital expenditures, debt repayment and the financing of acquisitions.

Details of the Company's "at-the-market" offering activity was as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022		2021			2022		2021
	(In millions)
Shares issued	—		1.1			—		1.8
Net proceeds *	$	—	$	34.9	**	$	(.1)	$	54.6	**

*    Net proceeds include issuance costs of $22,000 and $149,000 for the three and six months ended June 30, 2022, respectively, and $443,000 and $743,000 for the three and six months ended June 30, 2021, respectively.

**    Net proceeds were used for capital expenditures.

Material cash requirements

For more information on the Company's contractual obligations on long-term debt, operating leases and purchase commitments, see Part II, Item 7 in the 2021 Annual Report. There were no material changes in the Company's contractual obligations related to asset retirement obligations, uncertain tax positions and minimum funding requirements for its defined benefit plans for 2022 from those reported in the 2021 Annual Report.

At June 30, 2022, the Company's future estimated interest payments increased 12 percent since December 31, 2021, due to higher debt balances and rising interest rates. The Company expects interest rates will continue to increase in the last half of 2022 as indicated by the Federal Reserve. At June 30, 2022, the Company's future purchase commitments increased 14 percent since December 31, 2021, largely due to higher natural gas costs and contract extensions associated with natural gas supply at the natural gas distribution business and increases to the cost of asphalt oil at the construction materials and contracting business. It is anticipated that these items will be funded by various sources, including internally generated funds, as well as credit facilities and commercial paper of the Company's subsidiaries.

Material short-term cash requirements of the Company include repayment of outstanding borrowings and interest payments on those agreements, payments on operating lease agreements, payment of obligations on purchase commitments and asset retirement obligations.

Material long-term cash requirements of the Company include repayment of outstanding borrowings and interest payments on those agreements, payments on operating lease agreements, payment of obligations on purchase commitments and asset retirement obligations.

New Accounting Standards

For information regarding new accounting standards, see Note 2, which is incorporated by reference.

Critical Accounting Estimates

The Company's critical accounting estimates include impairment testing of goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; regulatory assets expected to be recovered in rates charged to customers; revenue recognized using the cost-to-cost measure of progress for contracts; actuarially determined benefit costs; and tax provisions. There

53

were no material changes in the Company's critical accounting estimates from those reported in the 2021 Annual Report. For more information on critical accounting estimates, see Part II, Item 7 in the 2021 Annual Report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to the impact of market fluctuations associated with interest rates and commodity prices. The Company has policies and procedures to assist in controlling these market risks and from time to time has utilized derivatives to manage a portion of its risk.

Interest rate risk

There were no material changes to interest rate risk faced by the Company from those reported in the 2021 Annual Report.

At June 30, 2022, the Company had no outstanding interest rate hedges.

Commodity price risk

There were no material changes to commodity price risk faced by the Company from those reported in the 2021 Annual Report.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. The Company's disclosure controls and other procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. The Company's disclosure controls and other procedures are designed to provide reasonable assurance that information required to be disclosed is accumulated and communicated to management, including the Company's chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure. The Company's management, with the participation of the Company's chief executive officer and chief financial officer, has evaluated the effectiveness of the Company's disclosure controls and other procedures as of the end of the period covered by this report. Based upon that evaluation, the chief executive officer and the chief financial officer have concluded that, as of the end of the period covered by this report, such controls and procedures were effective at a reasonable assurance level.

Changes in internal controls

No change in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended June 30, 2022, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

54

Part II -- Other Information

Item 1. Legal Proceedings

There were no material changes to the Company's legal proceedings in Part 1, Item 3 - Legal Proceedings in the 2021 Annual Report.

Item 1A. Risk Factors

Please refer to the Company's risk factors that are disclosed in Part I, Item 1A. Risk Factors in the 2021 Annual Report that could be materially harmful to the Company's business, prospects, financial condition or financial results if they occur. At June 30, 2022, there were no material changes to the Company's risk factors provided in Part I, Item 1A. Risk Factors in the 2021 Annual Report other than as set forth below.

The proposed separation of Knife River into an independent, publicly traded company is subject to various risks and uncertainties, and may not be completed on the terms or timeline currently contemplated, if at all.

On August 4, 2022, the Company announced its plan to separate Knife River, the construction materials and contracting business, from the Company, resulting in two independent, publicly traded companies. The proposed separation is expected to be effected as a tax-free spinoff to the Company’s stockholders for U.S. federal income tax purposes and is expected to be completed in 2023, subject to the satisfaction of customary conditions, including final approval by the Company’s Board of Directors, receipt of a tax opinion and, if determined advisable, a private letter ruling from the IRS, and the effectiveness of a registration statement on Form 10 to be filed with the SEC.

The execution of the proposed separation will require significant time and attention from the Company’s senior management and employees, which could disrupt the Company’s ongoing business and adversely affect financial results and results of operations. The proposed separation is also complex, and completion of the proposed separation and the timing of its completion will be subject to a number of factors and conditions, including the readiness of the new company to operate as an independent public company and finalization of the capital structure of the new company. Unanticipated developments could delay, prevent or otherwise adversely affect the proposed separation, including, but not limited to, changes in general economic and financial market conditions, material adverse changes in business or industry conditions, unanticipated costs and potential problems or delays in obtaining various regulatory and tax approvals or clearances. In particular, changes in interest or exchange rates and the effects of inflation could delay or adversely affect the proposed separation, including in connection with any debt financing transactions undertaken in connection with the separation or the terms of any indebtedness incurred in connection therewith. There can be no assurances that the Company will be able to complete the proposed separation on the terms or on the timeline that was announced, if at all. In addition, if the separation is completed, the Company may not be able to achieve the full strategic and financial benefits that are expected to result from the separation. There can be no assurance that the combined value of the common stock of the two companies will be equal to or greater than what the value of the Company’s common stock would have been had the proposed separation not occurred.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table includes information with respect to the Company's purchase of equity securities:

ISSUER PURCHASES OF EQUITY SECURITIES
Period	(a) Total Number of Shares (or Units) Purchased (1)	(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2)	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2)
April 1 through April 30, 2022	—	$	—	—	—
May 1 through May 31, 2022	—	$	—	—	—
June 1 through June 30, 2022	—	$	—	—	—
Total	—	$	—	—	—

(1)    Represents shares of common stock purchased on the open market in connection with the vesting of shares granted pursuant to the Long-Term Performance-Based Incentive Plan.

(2)    Not applicable. The Company does not currently have in place any publicly announced plans or programs to purchase equity securities.

55

Item 4. Mine Safety Disclosures

For information regarding mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K, see Exhibit 95 to this Form 10-Q, which is incorporated herein by reference.

Item 5. Other Information

None.

Item 6. Exhibits

See the index to exhibits immediately preceding the signature page to this report.

56

Exhibits Index
			Incorporated by Reference
Exhibit Number	Exhibit Description	Filed Herewith	Form	Period Ended	Exhibit	Filing Date	File Number
3(a)	Amended and Restated Certificate of Incorporation of MDU Resources Group, Inc.		8-K		3.2	5/8/19	1-03480
3(b)	Amended and Restated Bylaws of MDU Resources Group, Inc.		8-K		3.1	2/15/19	1-03480
+10(b)	MDU Resources Group, Inc. Director Compensation Policy, as amended May 11, 2022	X
31(a)	Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31(b)	Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32	Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
95	Mine Safety Disclosures	X
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

+    Management contract, compensatory plan or arrangement.

57

Signatures

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		MDU RESOURCES GROUP, INC.
DATE:	August 5, 2022	BY:	/s/ Jason L. Vollmer
			Jason L. Vollmer
			Vice President and Chief Financial Officer
		BY:	/s/ Stephanie A. Barth
			Stephanie A. Barth
			Vice President, Chief Accounting Officer and Controller

58

EX-31.A

CERTIFICATION

I, David L. Goodin, certify that:

1.I have reviewed this quarterly report on Form 10-Q of MDU Resources Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2022 

/s/ David L. Goodin

David L. Goodin

President and Chief Executive Officer

EX-31.B

CERTIFICATION

I, Jason L. Vollmer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of MDU Resources Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 5, 2022

/s/ Jason L. Vollmer

Jason L. Vollmer

Vice President and Chief Financial Officer

EX-32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

    Each of the undersigned, David L. Goodin, the President and Chief Executive Officer, and Jason L. Vollmer, the Vice President and Chief Financial Officer of MDU Resources Group, Inc. (the "Company"), DOES HEREBY CERTIFY that:

    1.  The Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the "Report"), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

    2.  Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

    IN WITNESS WHERE OF, each of the undersigned has executed this statement this 5th day of August, 2022.

/s/ David L. Goodin

David L. Goodin

President and Chief Executive Officer

/s/ Jason L. Vollmer

Jason L. Vollmer

Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to MDU Resources Group, Inc. and will be retained by MDU Resources Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-95

MDU RESOURCES GROUP, INC.

MINE SAFETY INFORMATION

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) requires issuers to include in periodic reports filed with the SEC certain information relating to citations or orders for violations of standards under the Federal Mine Safety and Health Act of 1977 (Mine Act), as amended by the Mine Improvement and New Emergency Response Act of 2006 (Mine Safety Act). The Dodd-Frank Act requires reporting of the following types of citations or orders:

1.    Citations issued under Section 104 of the Mine Safety Act for violations that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard.

2.    Orders issued under Section 104(b) of the Mine Safety Act. Orders are issued under this section when citations issued under Section 104 have not been totally abated within the time period allowed by the citation or subsequent extensions.

3.    Citations or orders issued under Section 104(d) of the Mine Safety Act. Citations or orders are issued under this section when it has been determined that the violation is caused by an unwarrantable failure of the mine operator to comply with the standards. An unwarrantable failure occurs when the mine operator is deemed to have engaged in aggravated conduct constituting more than ordinary negligence.

4.    Citations issued under Section 110(b)(2) of the Mine Safety Act for flagrant violations. Violations are considered flagrant for repeat or reckless failures to make reasonable efforts to eliminate a known violation of a mandatory health and safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

5.    Imminent danger orders issued under Section 107(a) of the Mine Safety Act. An imminent danger is defined as the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated.

6.    Notice received under Section 104(e) of the Mine Safety Act of a pattern of violations or the potential to have such a pattern of violations that could significantly and substantially contribute to the cause and effect of mine health and safety standards.

During the three months ended June 30, 2022, none of the Company's operating subsidiaries received citations or orders under the following sections of the Mine Safety Act: 104(b), 104(d), 110(b)(2), 107(a) or 104(e). The Company did not have any mining-related fatalities during this period.

1

MSHA Identification Number/Contractor ID	Section 104 S&S Citations (#)	Section 104(b) Orders (#)	Section 107(a) Orders (#)	Section 104(d) Citations and Orders (#)	Total Dollar Value of MSHA Assessments Proposed ($)		Total Number of Mining Related Fatalities (#)	Legal Actions Pending as of Last Day of Period (#)	Legal Actions Initiated During Period (#)	Legal Actions Resolved During Period (#)
04-00081	—	—	—	—	$	133	—	—	—	—
04-01698	—	—	—	—	133		—	—	—	—
04-05140	—	—	—	—	266		—	—	—	—
21-03645	1	—	—	—	155		—	—	—	—
24-00462	—	—	—	—	2,396		—	—	—	—
24-02414	—	—	—	—	133		—	—	—	—
35-00426	—	—	—	—	133		—	—	—	—
35-00512	—	—	—	—	266		—	—	—	—
35-02382	—	—	—	—	133		—	—	—	—
35-02968	—	—	—	—	266		—	1	1	2
35-03022	—	—	—	—	266		—	1	—	—
35-03131	—	—	—	—	133		—	—	—	—
35-03581	—	—	—	—	—		—	1	1	—
35-00634	1	—	—	—	1,086		—	—	—	—
35-03605	—	—	—	—	421		—	—	—	—
39-00008	—	—	—	—	644		—	—	—	—
39-01478	—	—	—	—	133		—	—	—	—
41-05492	—	—	—	—	266		—	—	—	—
48-01383	—	—	—	—	2,108		—	—	—	4
51-00036	—	—	—	—	949		—	—	—	—
	2	—	—	—	$	10,020	—	3	2	6

Legal actions pending before the Federal Mine Safety and Health Review Commission (the Commission) may involve, among other questions, challenges by operators to citations, orders and penalties they have received from the Federal Mine Safety and Health Administration (MSHA) or complaints of discrimination by miners under section 105 of the Mine Act. The following is a brief description of the types of legal actions that may be brought before the Commission.

•Contests of Citations and Orders - A contest proceeding may be filed with the Commission by operators, miners or miners' representatives to challenge the issuance of a citation or order issued by MSHA.

•Contests of Proposed Penalties (Petitions for Assessment of Penalties) - A contest of a proposed penalty is an administrative proceeding before the Commission challenging a civil penalty that MSHA has proposed for the alleged violation contained in a citation or order.

•Complaints for Compensation - A complaint for compensation may be filed with the Commission by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due miners idled by the orders.

•Complaints of Discharge, Discrimination or Interference - A discrimination proceeding is a case that involves a miner's allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint.

•Applications for Temporary Relief - Applications for temporary relief from any modification or termination of any order or from any order issued under section 104 of the Mine Act.

•Appeals of Judges' Decisions or Orders to the Commission - A filing with the Commission for discretionary review of a judge's decision or order by a person who has been adversely affected or aggrieved by such decision or order.

2

The following table reflects the types of legal actions pending before the Commission as of June 30, 2022:

MSHA Identification Number	Contests of Citations and Orders	Contests of Proposed Penalties	Complaints for Compensation	Complaints of Discharge, Discrimination or Interference	Applications for Temporary Relief	Appeals of Judges' Decisions or Orders to the Commission
35-02968	1	—	—	—	—	—
35-03022	1	—	—	—	—	—
35-03581	1	—	—	—	—	—
	3	—	—	—	—	—

3

EX-10.B

MDU RESOURCES GROUP, INC.

DIRECTOR COMPENSATION POLICY

Each director of MDU Resources Group, Inc. (the “Company”) who is not a full-time employee of the Company (a “Director”) shall receive compensation made up of annual cash retainers and shares of the Company’s common stock (“Common Stock”), as set forth in this policy.

Director Compensation

	Annual Cash Retainers
Base Retainer	$110,000*
Additional Retainers:
Non-Executive Chair of the Board	$125,000*
Chair of Audit Committee	20,000*
Chair of Compensation Committee	15,000*
Chair of Environmental and Sustainability Committee	15,000*
Chair of Nominating and Governance Committee	15,000*
*Effective June 1, 2022.

Such cash retainers shall be paid in monthly installments.

The MDU Resources Group, Inc. Deferred Compensation Plan for Directors (as amended and restated effective May 15, 2008) (the “Plan”) permits a Director to defer all or any portion of the annual cash retainers. The amount deferred is recorded in each participant's deferred compensation account and credited with income in the manner prescribed in the Plan. For further details, reference is made to the Plan, a copy of which is attached.

Common Stock

Each person, other than the Non-Executive Chair of the Board, who is a Director of the Company at any time during the calendar year shall receive a $150,000 stock payment, and any person who is the Non-Executive Chair of the Board shall receive a $175,000 stock payment, on or about the Wednesday following the Board of Directors’ regularly-scheduled November meeting, pursuant to the Non-Employee Director Long-Term Incentive Compensation Plan. The stock payment shall be made under the Non-Employee Director Long-Term Incentive Compensation Plan. The stock payment shall be made by providing the Director or Non-Executive Chair with the number of whole shares of Common Stock determined (i) if the shares are original issue or treasury stock, by dividing the amount of the applicable stock payment by the closing price of the Common Stock on the New York Stock Exchange on the grant date and (ii) if the shares are purchased on the open market, by dividing the amount of the applicable stock payment by the weighted average price paid to purchase shares for the Director or Non-Executive Chair for that stock payment, excluding any related brokerage commissions or other service fees. Any fractional shares shall be paid in cash. The stock payment shall be prorated for any Director or Non-Executive Chair who does not serve the entire calendar year by multiplying the applicable stock payment by a fraction, the numerator of which is the number of actual or expected

months (with a partial month counted as a full month) of service on the Board during the calendar year and the denominator of which is twelve.

By written election a Director may reduce his or her annual cash retainers and have that amount applied to the purchase of additional shares of Common Stock under the Non-Employee Director Long- Term Incentive Compensation Plan. The annual election shall specify the percentage of the annual cash retainers to be applied toward the purchase of additional shares and must be received by the Company by the last business day of the year prior to the year in which the election is to be effective. No election may be changed or revoked for the current year but may be changed for a subsequent year. The additional stock payments will be made on the last business day of March, June, September, and December. The stock payment shall be made by providing the Director with the number of whole shares of Common Stock determined (i) if the shares are original issue or treasury stock, by dividing the amount of the applicable stock payment by the closing price of the Common Stock on the New York Stock Exchange on the grant date or (ii) if the shares are purchased on the open market, by dividing the amount of the applicable stock payment by the weighted average price paid to purchase shares for the Director for that stock payment, excluding any related brokerage commissions or other service fees. No fractional shares shall be purchased and cash in lieu of any fractional shares shall be paid to the Director.

Travel Expense Reimbursement

All Directors will be reimbursed for reasonable travel expenses incurred while serving as a Director, including spouse’s expenses, in connection with attendance at meetings of the Company’s Board of Directors and its committees. If the travel expense is related to the reimbursement of airfare, such reimbursement will not exceed full-coach rate. Spousal travel expenses paid by the Company are treated as taxable income to the Director. See the paragraph below entitled "Code Section 409A" for further rules relating to travel expense reimbursements.

Directors' Liability

Article Seven of the Company's Amended and Restated Certificate of Incorporation provides that no Director of the Company shall be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as a Director, except for liability: (i) for any breach of the Director’s duty of loyalty to the Company or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section-174 of the Delaware General Corporation Law (relating to unlawful declaration of dividends and unlawful purchase of the Company's stock), or (iv) for any transaction from which the Director derived an improper personal benefit.

Section 7.07 of the Company’s Bylaws requires the Company to indemnify a Director, to the fullest extent permitted by applicable law, against expenses, attorneys fees, judgments, fines and amounts paid in settlement of any suit, action or proceeding, whether civil or criminal, arising from the fact that the Director was a Director of the Company.

Additional protection is provided through individual indemnification agreements with each Director.

The Company has and does maintain Directors' and Officers' liability insurance coverage with a $130 million limit.

2

Insurance Coverages

The Company maintains the following insurance for protection of its Directors as they carry out the business of the Company, which shall be provided while serving as a Director: (i) general liability and automobile liability insurance, (ii) fiduciary and crime insurance, (iii) aircraft liability insurance, and (iv) business travel accident insurance.

All outside Directors are protected by a non-contributory group life insurance policy with coverage of $100,000. The coverage begins the day the Director is elected to the Board of Directors and terminates when the Director ceases to be an outside Director. A Summary Plan Description (SPD) can be provided to the Director. The beneficiary of the insurance will be the beneficiary recorded on a beneficiary designation provided by the Company. The group life insurance policy is considered taxable compensation under current tax laws. Consequently, the Company will provide each Director annually on Form 1099 the amount of taxable income related to this coverage.

Hedging Stock Ownership

Directors are not permitted to hedge their ownership of Company common stock. Hedging strategies include but are not limited to zero-cost collars, equity swaps, straddles, prepaid variable forward contracts, security futures contracts, exchange funds, forward sale contracts and other financial transactions that allow the Director to benefit from devaluation of the Company's stock. Hedging strategies may allow Directors to own stock technically but without the full benefits and risks of such ownership. Therefore, Directors are prohibited from engaging in any such transactions.

Policy Regarding Margin Accounts and Pledging of Company Stock

Effective December 21, 2012, Directors and related persons are prohibited from holding Company common stock in a margin account or pledging Company securities as collateral for a loan, with certain exceptions. Company common stock may be held in a margin brokerage account only if the stock is explicitly excluded from any margin, pledge or security provisions of the customer agreement. Company common stock may be held in a cash account, which is a brokerage account that does not allow any extension of credit on securities. “Related person” means a Director’s spouse, minor child and any person (other than a tenant or domestic employee) sharing the household of a Director, as well as any entities over which a Director exercises control.

Code Section 409A

To the extent any reimbursements or in-kind benefits provided to a Director pursuant to this policy constitute “deferred compensation” under Internal Revenue Code Section 409A, any such reimbursement or in-kind benefit shall be paid in a manner consistent with Treasury Regulation Section 1.409A-3(i)(1)(iv), including the requirements that the amount of reimbursable expenses or in-kind benefits provided during a year may not affect the expenses eligible for reimbursement or in-kind benefits provided in any other year and that any reimbursement be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.

3

XML

Cover page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 28, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-03480
Entity Registrant Name	MDU RESOURCES GROUP INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	30-1133956
Entity Address, Address Line One	1200 West Century Avenue
Entity Address, Address Line Two	P.O. Box 5650
Entity Address, City or Town	Bismarck
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58506-5650
City Area Code	701
Local Phone Number	530-1000
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	MDU
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity common stock, shares outstanding		203,350,740
Entity Central Index Key	0000067716
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating revenues:
Operating revenues:	$ 1,720,921	$ 1,423,657	$ 3,137,480	$ 2,651,595
Operating expenses:
Operation and maintenance:	1,316,801	1,077,796	2,224,698	1,889,454
Purchased natural gas sold	115,312	63,213	382,665	239,450
Depreciation, depletion and amortization	84,758	73,661	164,880	147,384
Taxes, other than income	61,551	53,189	129,035	115,724
Electric fuel and purchased power	21,929	18,109	48,290	36,730
Total operating expenses	1,600,351	1,285,968	2,949,568	2,428,742
Operating income	120,570	137,689	187,912	222,853
Other income (expense)	(4,246)	9,027	(6,646)	12,381
Interest expense	28,113	23,381	53,373	46,835
Income before income taxes	88,211	123,335	127,893	188,399
Income taxes	17,579	23,164	25,528	36,112
Income from continuing operations	70,632	100,171	102,365	152,287
Discontinued operations, net of tax	35	19	65	34
Net income	$ 70,667	$ 100,190	$ 102,430	$ 152,321
Earnings per share - basic:
Income from continuing operations	$ 0.35	$ 0.50	$ 0.50	$ 0.76
Discontinued operations, net of tax	0	0	0	0
Earnings per share - basic	0.35	0.50	0.50	0.76
Earnings per share - diluted:
Income from continuing operations	0.35	0.50	0.50	0.76
Discontinued operations, net of tax	0	0	0	0
Earnings per share - diluted	$ 0.35	$ 0.50	$ 0.50	$ 0.76
Weighted average common shares outstanding - basic	203,351	201,345	203,351	201,028
Weighted average common shares outstanding - diluted	203,401	201,693	203,396	201,328
Regulated operation
Operating revenues:
Operating revenues:	$ 323,457	$ 260,568	$ 876,913	$ 702,951
Operating expenses:
Operation and maintenance:	94,261	89,404	191,928	183,737
Income from continuing operations	4,294	17,686	59,844	73,808
Nonregulated operation
Operating revenues:
Operating revenues:	1,397,464	1,163,089	2,260,567	1,948,644
Operating expenses:
Operation and maintenance:	1,222,540	988,392	2,032,770	1,705,717
Income from continuing operations	$ 66,338	$ 82,485	$ 42,521	$ 78,479

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net income	$ 70,667	$ 100,190	$ 102,430	$ 152,321
Other comprehensive income (loss):
Reclassification adjustment for loss on derivative instruments included in net income, tax	36	36	72	73
Reclassification adjustment for loss on derivative instruments included in net income, net of tax	111	112	223	223
Postretirement liability adjustment:
Amortization of postretirement liability losses included in net periodic benefit credit, tax	148	160	312	311
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax	461	457	906	923
Reclassification of postretirement liability adjustment from regulatory asset, tax	(1,086)	0	(1,086)	0
Reclassification of postretirement liability adjustment from regulatory asset, net of tax	(3,265)	0	(3,265)	0
Postretirement liability adjustment	(2,804)	457	(2,359)	923
Net unrealized loss on available-for-sale investments:
Net unrealized loss on available-for-sale investments arising during the period, tax	(34)	(13)	(119)	(25)
Net unrealized loss on available-for-sale investments arising during the period, net of tax	(128)	(52)	(448)	(96)
Reclassification adjustment for loss on available-for-sale investments included in net income, tax	7	6	15	15
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax	25	25	57	60
Net unrealized loss on available-for-sale investments	(103)	(27)	(391)	(36)
Other comprehensive income (loss)	(2,796)	542	(2,527)	1,110
Comprehensive income attributable to common stockholders	$ 67,871	$ 100,732	$ 99,903	$ 153,431

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 65,394	$ 54,161	$ 57,946
Receivables, net	1,184,116	946,741	903,831
Inventories	401,433	335,609	316,328
Current regulatory assets	102,535	118,691	109,581
Prepayments and other current assets	105,753	95,741	74,259
Total current assets	1,859,231	1,550,943	1,461,945
Noncurrent assets:
Property, plant and equipment	9,099,752	8,972,849	8,417,559
Less accumulated depreciation, depletion and amortization	3,210,940	3,216,461	3,129,717
Net property, plant and equipment	5,888,812	5,756,388	5,287,842
Goodwill	763,262	765,386	717,863
Other intangible assets, net	20,040	22,578	23,401
Regulatory assets	347,061	357,851	376,913
Investments	161,247	175,476	173,157
Operating lease right-of-use assets	115,802	124,138	112,437
Other	173,670	157,675	144,653
Total noncurrent assets	7,469,894	7,359,492	6,836,266
Total assets	9,329,125	8,910,435	8,298,211
Current liabilities:
Short-term borrowings	100,000	0	50,000
Long-term debt due within one year	214,453	148,053	1,549
Accounts payable	579,064	478,933	431,878
Taxes payable	84,970	80,372	78,805
Dividends payable	44,229	44,229	42,791
Accrued compensation	98,159	81,904	95,909
Operating lease liabilities due within one year	33,626	35,368	31,787
Regulatory liabilities due within one year	17,884	16,303	23,454
Other accrued liabilities	208,290	207,078	188,187
Total current liabilities	1,380,675	1,092,240	944,360
Noncurrent liabilities:
Long-term debt	2,713,514	2,593,847	2,335,500
Deferred income taxes	597,733	591,962	538,633
Asset retirement obligations	467,995	458,061	450,620
Regulatory liabilities	433,019	428,790	428,467
Operating lease liabilities	82,891	89,253	81,052
Other	266,488	273,408	320,777
Total noncurrent liabilities	4,561,640	4,435,321	4,155,049
Commitments and contingencies
Stockholders' equity:
Common stock	203,889	203,889	202,822
Other paid-in capital	1,454,131	1,461,205	1,422,169
Retained earnings	1,775,947	1,762,410	1,624,405
Accumulated other comprehensive loss	(43,531)	(41,004)	(46,968)
Treasury stock at cost - 538,921 shares	(3,626)	(3,626)	(3,626)
Total stockholders' equity	3,386,810	3,382,874	3,198,802
Total liabilities and stockholders' equity	$ 9,329,125	$ 8,910,435	$ 8,298,211
Common Stock, Shares Authorized	500,000,000	500,000,000	500,000,000
Common Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00	$ 1.00
Common Stock, Shares, Issued	203,889,661	203,889,661	202,822,301
Treasury Stock, Common, Shares	538,921	538,921	538,921

XML

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common stock	Other paid-in capital	Retained earnings	Accumulated other comprehensive loss	Treasury stock
Common stock balance (in shares) at Dec. 31, 2020		201,061,198
Treasury stock (in shares) at Dec. 31, 2020						(538,921)
Balance at Dec. 31, 2020	$ 3,079,105	$ 201,061	$ 1,371,385	$ 1,558,363	$ (48,078)	$ (3,626)
Net income	52,131			52,131
Other comprehensive income	568				568
Dividends declared on common stock	(42,943)			(42,943)
Stock-based compensation	2,574		2,574
Repurchase of common stock						(392,294)
Repurchase of common stock	(6,701)					$ (6,701)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings			(10,828)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings						392,294
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings						$ 6,701
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	(4,127)
Issuance of common stock (shares)		672,260
Issuance of common stock	19,699	$ 672	19,027
Common stock balance (in shares) at Mar. 31, 2021		201,733,458
Treasury stock (in shares) at Mar. 31, 2021						(538,921)
Balance at Mar. 31, 2021	3,100,306	$ 201,733	1,382,158	1,567,551	(47,510)	$ (3,626)
Common stock balance (in shares) at Dec. 31, 2020		201,061,198
Treasury stock (in shares) at Dec. 31, 2020						(538,921)
Balance at Dec. 31, 2020	3,079,105	$ 201,061	1,371,385	1,558,363	(48,078)	$ (3,626)
Net income	152,321
Other comprehensive income	1,110
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	$ (4,127)
Common stock balance (in shares) at Jun. 30, 2021	202,822,301	202,822,301
Treasury stock (in shares) at Jun. 30, 2021						(538,921)
Balance at Jun. 30, 2021	$ 3,198,802	$ 202,822	1,422,169	1,624,405	(46,968)	$ (3,626)
Common stock balance (in shares) at Mar. 31, 2021		201,733,458
Treasury stock (in shares) at Mar. 31, 2021						(538,921)
Balance at Mar. 31, 2021	3,100,306	$ 201,733	1,382,158	1,567,551	(47,510)	$ (3,626)
Net income	100,190			100,190
Other comprehensive income	542				542
Dividends declared on common stock	(43,336)			(43,336)
Stock-based compensation	6,150		6,150
Issuance of common stock (shares)		1,088,843
Issuance of common stock	$ 34,950	$ 1,089	33,861
Common stock balance (in shares) at Jun. 30, 2021	202,822,301	202,822,301
Treasury stock (in shares) at Jun. 30, 2021						(538,921)
Balance at Jun. 30, 2021	$ 3,198,802	$ 202,822	1,422,169	1,624,405	(46,968)	$ (3,626)
Common stock balance (in shares) at Dec. 31, 2021	203,889,661	203,889,661
Treasury stock (in shares) at Dec. 31, 2021						(538,921)
Balance at Dec. 31, 2021	$ 3,382,874	$ 203,889	1,461,205	1,762,410	(41,004)	$ (3,626)
Net income	31,763			31,763
Other comprehensive income	269				269
Dividends declared on common stock	(44,447)			(44,447)
Stock-based compensation	2,689		2,689
Repurchase of common stock						(266,821)
Repurchase of common stock	(7,399)					$ (7,399)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings			(12,303)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings						266,821
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings						$ 7,399
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	(4,904)
Issuance of common stock	(127)		(127)
Common stock balance (in shares) at Mar. 31, 2022		203,889,661
Treasury stock (in shares) at Mar. 31, 2022						(538,921)
Balance at Mar. 31, 2022	$ 3,360,718	$ 203,889	1,451,464	1,749,726	(40,735)	$ (3,626)
Common stock balance (in shares) at Dec. 31, 2021	203,889,661	203,889,661
Treasury stock (in shares) at Dec. 31, 2021						(538,921)
Balance at Dec. 31, 2021	$ 3,382,874	$ 203,889	1,461,205	1,762,410	(41,004)	$ (3,626)
Net income	102,430
Other comprehensive income	(2,527)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	$ (4,904)
Common stock balance (in shares) at Jun. 30, 2022	203,889,661	203,889,661
Treasury stock (in shares) at Jun. 30, 2022						(538,921)
Balance at Jun. 30, 2022	$ 3,386,810	$ 203,889	1,454,131	1,775,947	(43,531)	$ (3,626)
Common stock balance (in shares) at Mar. 31, 2022		203,889,661
Treasury stock (in shares) at Mar. 31, 2022						(538,921)
Balance at Mar. 31, 2022	3,360,718	$ 203,889	1,451,464	1,749,726	(40,735)	$ (3,626)
Net income	70,667			70,667
Other comprehensive income	(2,796)				(2,796)
Dividends declared on common stock	(44,446)			(44,446)
Stock-based compensation	2,689		2,689
Issuance of common stock	$ (22)		(22)
Common stock balance (in shares) at Jun. 30, 2022	203,889,661	203,889,661
Treasury stock (in shares) at Jun. 30, 2022						(538,921)
Balance at Jun. 30, 2022	$ 3,386,810	$ 203,889	$ 1,454,131	$ 1,775,947	$ (43,531)	$ (3,626)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 102,430	$ 152,321
Discontinued operations, net of tax	65	34
Income from continuing operations	102,365	152,287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	164,880	147,384
Deferred income taxes	1,464	14,498
Provision for credit losses	2,244	(1,158)
Amortization of debt issuance costs	709	633
Employee stock-based compensation costs	5,378	8,724
Pension and postretirement benefit plan net periodic benefit credit	(3,004)	(2,457)
Unrealized (gains) losses on investments	13,210	(3,795)
Gains on sales of assets	(5,434)	(8,021)
Changes in current assets and liabilities, net of acquisitions:
Receivables	(242,252)	(17,358)
Inventories	(63,840)	(25,330)
Other current assets	12,888	(52,768)
Accounts payable	104,451	(3,845)
Other current liabilities	29,178	(22,605)
Pension and postretirement benefit plan contributions	(262)	(225)
Other noncurrent changes	(4,509)	(3,095)
Net cash provided by continuing operations	117,466	182,869
Net cash used in discontinued operations	(16)	(58)
Net cash provided by operating activities	117,450	182,811
Investing activities:
Capital expenditures	(290,145)	(261,937)
Acquisitions, net of cash acquired	(524)	(13,721)
Net proceeds from sale or disposition of property and other	4,324	12,402
Investments	(4,680)	(3,244)
Net cash used in investing activities	(291,025)	(266,500)
Financing activities:
Issuance of short-term borrowings	100,000	50,000
Repayment of short-term borrowings	0	(50,000)
Issuance of long-term debt	334,329	171,774
Repayment of long-term debt	(147,544)	(48,151)
Debt issuance costs	(1,068)	(5)
Net proceeds from issuance of common stock	(149)	54,649
Dividends paid	(88,457)	(85,351)
Repurchase of common stock	(7,399)	(6,701)
Tax withholding on stock-based compensation	(4,904)	(4,127)
Net cash provided by financing activities	184,808	82,088
Increase (decrease) in cash and cash equivalents	11,233	(1,601)
Cash and cash equivalents -- beginning of year	54,161	59,547
Cash and cash equivalents -- end of period	$ 65,394	$ 57,946

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Basis of presentation

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

Basis of presentation

The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2021 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses.

On August 4, 2022, the Company announced its Board of Directors unanimously approved a plan to pursue the separation of Knife River from the Company. The separation is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes.

The assets and liabilities of the Company's discontinued operations have been classified as held for sale and are included in prepayments and other current assets, noncurrent assets - other and other accrued liabilities on the Consolidated Balance Sheets. The results and supporting activities are shown in income from discontinued operations on the Consolidated Statements of Income. Unless otherwise indicated, the amounts presented in the accompanying notes to the consolidated financial statements relate to the Company's continuing operations.

In the fourth quarter of 2021, the Company made changes to the presentation of the Consolidated Statements of Cash Flows to provide further clarity on the sources and uses of net cash provided by operating activities and net cash provided by (used in) financing activities. Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not impact total net cash provided by operating activities or net cash provided by financing activities for the six months ended June 30, 2021.

Management has also evaluated the impact of events occurring after June 30, 2022, up to the date of the issuance of these consolidated interim financial statements on August 5, 2022, that would require recognition or disclosure in the Consolidated Financial Statements.

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New accounting standards

6 Months Ended

Jun. 30, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

New accounting standards

New accounting standards

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its Consolidated Financial Statements and/or disclosures:

Standard	Description	Effective date	Impact on financial statements/disclosures
ASU 2021-10 - Government Assistance	In November 2021, the FASB issued guidance on modifying the disclosure requirements to increase the transparency of government assistance including disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements.	January 1, 2022	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2022.
ASU 2020-04 - Reference Rate Reform	In March 2020, the FASB issued optional guidance to ease the facilitation of the effects of reference rate reform on financial reporting. The guidance applies to certain contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Beginning January 1, 2022, LIBOR or other discontinued reference rates cannot be applied to new contracts. New contracts will incorporate a new reference rate, which includes SOFR. LIBOR or other discontinued reference rates cannot be applied to contract modifications or hedging relationships entered into or evaluated after December 31, 2022. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must identify a replacement rate by June 30, 2023.	Effective as of March 12, 2020 and will continue through December 31, 2022	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR, and a review of other contracts and agreements is on-going. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures.

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Seasonality of operations	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Seasonality of operations	Seasonality of operations Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year.

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Receivables and allowance for expected credit losses

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Receivables and allowance for expected credit loss

Receivables and allowance for expected credit losses

Receivables consists primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $37.0 million, $34.2 million and $44.8 million at June 30, 2022 and 2021, and December 31, 2021, respectively.

The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected credit losses and believes it is reasonable.

Details of the Company's expected credit losses were as follows:

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2021	$	269	$	1,506	$	2	$	5,406	$	2,533	$	9,716
Current expected credit loss provision	565		1,369		—		(253)		54		1,735
Less write-offs charged against the allowance	597		932		—		27		71		1,627
Credit loss recoveries collected	124		180		—		—		28		332
At March 31, 2022	$	361	$	2,123	$	2	$	5,126	$	2,544	$	10,156
Current expected credit loss provision	113		92		—		12		292		509
Less write-offs charged against the allowance	234		939		—		108		104		1,385
Credit loss recoveries collected	108		177		—		—		—		285
At June 30, 2022	$	348	$	1,453	$	2	$	5,030	$	2,732	$	9,565

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2020	$	899	$	2,571	$	2	$	6,164	$	5,722	$	15,358
Current expected credit loss provision	538		1,273		—		(1,049)		(1,079)		(317)
Less write-offs charged against the allowance	888		1,107		—		273		401		2,669
Credit loss recoveries collected	129		213		—		—		—		342
At March 31, 2021	$	678	$	2,950	$	2	$	4,842	$	4,242	$	12,714
Current expected credit loss provision	(110)		(103)		—		11		(639)		(841)
Less write-offs charged against the allowance	341		787		—		232		64		1,424
Credit loss recoveries collected	100		199		—		—		—		299
At June 30, 2021	$	327	$	2,259	$	2	$	4,621	$	3,539	$	10,748

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Inventories and natural gas in storage

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories and natural gas in storage

Inventories and natural gas in storage

Natural gas in storage for the Company's regulated operations is generally valued at lower of cost or market using the last-in, first-out method or lower of cost or net realizable value using the average cost or first-in, first-out method. The majority of all other inventories are valued at the lower of cost or net realizable value using the average cost method. The portion of the cost of natural gas in storage expected to be used within 12 months was included in inventories. Inventories on the Consolidated Balance Sheets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Aggregates held for resale	$	200,569	$	183,977	$	184,363
Asphalt oil	92,905		51,500		57,002
Materials and supplies	40,405		27,969		30,629
Merchandise for resale	38,293		26,871		28,501
Natural gas in storage (current)	15,014		10,824		18,867
Other	14,247		15,187		16,247
Total	$	401,433	$	316,328	$	335,609

The remainder of natural gas in storage, which largely represents the cost of gas required to maintain pressure levels for normal operating purposes, was included in noncurrent assets - other and was $47.2 million at June 30, 2022 and $47.5 million at June 30, 2021 and December 31, 2021.

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Earnings per share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury. Net income was the same for both the basic and diluted earnings per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per share amounts)
Weighted average common shares outstanding - basic	203,351		201,345		203,351		201,028
Effect of dilutive performance share awards and restricted stock units	50		348		45		300
Weighted average common shares outstanding - diluted	203,401		201,693		203,396		201,328
Shares excluded from the calculation of diluted earnings per share	52		—		175		—
Dividends declared per common share	$	.2175	$	.2125	$	.4350	$	.4250

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Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity

Equity

The Company currently has a shelf registration statement on file with the SEC, under which the Company may issue and sell any combination of common stock and debt securities. The Company may sell such securities if warranted by market conditions and the Company's capital requirements.

In August 2020, the Company amended the Distribution Agreement dated February 22, 2019, with J.P. Morgan Securities LLC and MUFG Securities Americas Inc., as sales agents. This agreement, as amended, allows the offering, issuance and sale of up to 6.4 million shares of the Company's common stock in connection with an "at-the-market" offering. The common stock may be offered for sale, from time to time, in accordance with the terms and conditions of this agreement. As of June 30, 2022, the Company had capacity to issue up to 3.6 million additional shares of common stock under the "at-the-market" offering program.

Details of the Company's "at-the-market" offering activity was as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022		2021			2022		2021
	(In millions)
Shares issued	—		1.1			—		1.8
Net proceeds *	$	—	$	34.9	**	$	(.1)	$	54.6	**

*    Net proceeds include issuance costs of $22,000 and $149,000 for the three and six months ended June 30, 2022, respectively, and $443,000 and $743,000 for the three and six months ended June 30, 2021, respectively.

**    Net proceeds were used for capital expenditures.

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Accumulated other comprehensive loss

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated other comprehensive loss

Accumulated other comprehensive loss

The after-tax changes in the components of accumulated other comprehensive loss were as follows:

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2021	$	(538)	$	(40,461)	$	(5)	$	(41,004)
Other comprehensive loss before reclassifications	—		—		(320)		(320)
Amounts reclassified from accumulated other comprehensive loss	112		445		32		589
Net current-period other comprehensive income (loss)	112		445		(288)		269
At March 31, 2022	$	(426)	$	(40,016)	$	(293)	$	(40,735)
Other comprehensive loss before reclassifications	—		—		(128)		(128)
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	—		(3,265)		—		(3,265)
Amounts reclassified from accumulated other comprehensive loss	111		461		25		597
Net current-period other comprehensive income (loss)	111		(2,804)		(103)		(2,796)
At June 30, 2022	$	(315)	$	(42,820)	$	(396)	$	(43,531)

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2020	$	(984)	$	(47,207)	$	113	$	(48,078)
Other comprehensive loss before reclassifications	—		—		(44)		(44)
Amounts reclassified from accumulated other comprehensive loss	111		466		35		612
Net current-period other comprehensive income (loss)	111		466		(9)		568
At March 31, 2021	$	(873)	$	(46,741)	$	104	$	(47,510)
Other comprehensive loss before reclassifications	—		—		(52)		(52)
Amounts reclassified from accumulated other comprehensive loss	112		457		25		594
Net current-period other comprehensive income (loss)	112		457		(27)		542
At June 30, 2021	$	(761)	$	(46,284)	$	77	$	(46,968)

The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows:

	Three Months Ended				Six Months Ended				Location on Consolidated Statements of Income
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	(147)	$	(148)	$	(295)	$	(296)	Interest expense
	36		36		72		73		Income taxes
	(111)		(112)		(223)		(223)
Amortization of postretirement liability losses included in net periodic benefit credit	(609)		(617)		(1,218)		(1,234)		Other income
	148		160		312		311		Income taxes
	(461)		(457)		(906)		(923)
Reclassification adjustment on available-for-sale investments included in net income	(32)		(31)		(72)		(75)		Other income
	7		6		15		15		Income taxes
	(25)		(25)		(57)		(60)
Total reclassifications	$	(597)	$	(594)	$	(1,186)	$	(1,206)

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Revenue from contracts with customers

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

Revenue from contracts with customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

Disaggregation

In the following tables, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 17.

Three Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,363	$	116,749	$	—	$	—	$	—	$	—	$	146,112
Commercial utility sales	34,015		72,354		—		—		—		—		106,369
Industrial utility sales	10,923		9,009		—		—		—		—		19,932
Other utility sales	1,880		—		—		—		—		—		1,880
Natural gas transportation	—		11,456		31,967		—		—		—		43,423
Natural gas storage	—		—		2,896		—		—		—		2,896
Contracting services	—		—		—		330,682		—		—		330,682
Construction materials	—		—		—		550,363		—		—		550,363
Intrasegment eliminations	—		—		—		(169,232)		—		—		(169,232)
Electrical & mechanical specialty contracting	—		—		—		—		507,233		—		507,233
Transmission & distribution specialty contracting	—		—		—		—		166,174		—		166,174
Other	10,216		3,751		2,676		—		109		4,389		21,141
Intersegment eliminations	(124)		(141)		(7,792)		(200)		(1,803)		(4,389)		(14,449)
Revenues from contracts with customers	86,273		213,178		29,747		711,613		671,713		—		1,712,524
Revenues out of scope	(812)		(2,738)		66		—		11,881		—		8,397
Total external operating revenues	$	85,461	$	210,440	$	29,813	$	711,613	$	683,594	$	—	$	1,720,921

Three Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,258	$	83,480	$	—	$	—	$	—	$	—	$	112,738
Commercial utility sales	33,834		47,612		—		—		—		—		81,446
Industrial utility sales	10,354		6,180		—		—		—		—		16,534
Other utility sales	1,825		—		—		—		—		—		1,825
Natural gas transportation	—		11,451		27,685		—		—		—		39,136
Natural gas storage	—		—		3,094		—		—		—		3,094
Contracting services	—		—		—		280,834		—		—		280,834
Construction materials	—		—		—		498,762		—		—		498,762
Intrasegment eliminations	—		—		—		(145,780)		—		—		(145,780)
Electrical & mechanical specialty contracting	—		—		—		—		347,702		—		347,702
Transmission & distribution specialty contracting	—		—		—		—		165,123		—		165,123
Other	9,465		2,794		4,810		—		57		3,389		20,515
Intersegment eliminations	(136)		(142)		(7,862)		(142)		(797)		(3,361)		(12,440)
Revenues from contracts with customers	84,600		151,375		27,727		633,674		512,085		28		1,409,489
Revenues out of scope	(950)		2,413		46		—		12,659		—		14,168
Total external operating revenues	$	83,650	$	153,788	$	27,773	$	633,674	$	524,744	$	28	$	1,423,657

Six Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	66,667	$	375,565	$	—	$	—	$	—	$	—	$	442,232
Commercial utility sales	69,615		235,963		—		—		—		—		305,578
Industrial utility sales	21,229		22,033		—		—		—		—		43,262
Other utility sales	3,630		—		—		—		—		—		3,630
Natural gas transportation	—		23,837		63,541		—		—		—		87,378
Natural gas storage	—		—		6,615		—		—		—		6,615
Contracting services	—		—		—		444,949		—		—		444,949
Construction materials	—		—		—		792,095		—		—		792,095
Intrasegment eliminations	—		—		—		(215,266)		—		—		(215,266)
Electrical & mechanical specialty contracting	—		—		—		—		900,041		—		900,041
Transmission & distribution specialty contracting	—		—		—		—		314,640		—		314,640
Other	22,969		6,360		4,386		—		157		8,730		42,602
Intersegment eliminations	(247)		(277)		(33,734)		(330)		(2,861)		(8,730)		(46,179)
Revenues from contracts with customers	183,863		663,481		40,808		1,021,448		1,211,977		—		3,121,577
Revenues out of scope	(4,807)		(2,623)		124		—		23,209		—		15,903
Total external operating revenues	$	179,056	$	660,858	$	40,932	$	1,021,448	$	1,235,186	$	—	$	3,137,480

Six Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	62,694	$	286,617	$	—	$	—	$	—	$	—	$	349,311
Commercial utility sales	66,762		167,664		—		—		—		—		234,426
Industrial utility sales	20,383		14,992		—		—		—		—		35,375
Other utility sales	3,391		—		—		—		—		—		3,391
Natural gas transportation	—		23,903		57,102		—		—		—		81,005
Natural gas storage	—		—		7,123		—		—		—		7,123
Contracting services	—		—		—		376,859		—		—		376,859
Construction materials	—		—		—		715,174		—		—		715,174
Intrasegment eliminations	—		—		—		(192,496)		—		—		(192,496)
Electrical & mechanical specialty contracting	—		—		—		—		702,892		—		702,892
Transmission & distribution specialty contracting	—		—		—		—		316,486		—		316,486
Other	19,238		5,803		7,470		—		93		6,730		39,334
Intersegment eliminations	(271)		(284)		(34,092)		(204)		(1,839)		(6,685)		(43,375)
Revenues from contracts with customers	172,197		498,695		37,603		899,333		1,017,632		45		2,625,505
Revenues out of scope	(3,873)		5,299		82		—		24,582		—		26,090
Total external operating revenues	$	168,324	$	503,994	$	37,685	$	899,333	$	1,042,214	$	45	$	2,651,595

Presented in the previous tables are intrasegment revenues within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.

Contract balances

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation.

The changes in contract assets and liabilities were as follows:

	June 30, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	236,951	$	125,742	$	111,209	Receivables, net
Contract liabilities - current	(167,507)		(179,140)		11,633		Accounts payable
Contract liabilities - noncurrent	(19)		(118)		99		Noncurrent liabilities - other
Net contract assets (liabilities)	$	69,425	$	(53,516)	$	122,941

The Company recognized $14.8 million and $136.7 million in revenue for the three and six months ended June 30, 2022, respectively, which was previously included in contract liabilities at December 31, 2021. The Company recognized $21.9 million and $145.3 million in revenue for the three and six months ended June 30, 2021, respectively, which was previously included in contract liabilities at December 31, 2020.

The Company recognized a net increase in revenues of $30.0 million and $42.4 million for the three and six months ended June 30, 2022, respectively, from performance obligations satisfied in prior periods. The company recognized a net increase in revenues of $27.3 million and $54.6 million for the three and six months ended June 30, 2021, respectively, from performance obligations satisfied in prior periods.

Remaining performance obligations

The remaining performance obligations, also referred to as backlog, at the construction materials and contracting and construction services segments include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The majority of the Company's construction contracts have an original duration of less than two years.

The remaining performance obligations at the pipeline segment include firm transportation contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient, which does not require additional disclosures for contracts with an original duration of less than 12 months, to certain firm transportation and non-regulated contracts. The Company's firm transportation contracts included in the remaining performance obligations have weighted average remaining durations of less than five years.

At June 30, 2022, the Company's remaining performance obligations were $3.5 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.8 billion within the next 12 months or less; $389.0 million within the next 13 to 24 months; and $368.4 million in 25 months or more.

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Business Combinations

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Business Combinations

Business combinations

The following acquisitions were accounted for as business combinations in accordance with ASC 805 - Business Combinations. The results of the acquired businesses have been included in the Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combinations are not presented, as none of these business combinations, individually or in the aggregate, were material to the Company's financial position or results of operations.

The acquisitions are also subject to customary adjustments based on, among other things, the amount of cash, debt and working capital in the business as of the closing date. The amounts included in the Consolidated Balance Sheets for these adjustments are considered provisional until final settlement has occurred.

The Company had no acquisitions in the first half of 2022.

In 2021, the construction materials and contracting segment's acquisitions included:

•Baker Rock Resources and Oregon Mainline Paving, two premier construction materials companies located around the Portland, Oregon metro area, acquired in November 2021. At June 30, 2022, the purchase price allocation was preliminary and will be finalized within 12 months of the acquisition date.

•Mt. Hood Rock, a construction aggregates business in Oregon, acquired in April 2021. As of March 31, 2022, the purchase price allocation was settled with no material adjustments to the provisional accounting.

In 2021, the total purchase price for acquisitions was $236.1 million, subject to certain adjustments, with cash acquired totaling $900,000. The purchase price includes consideration paid of $235.2 million. The amounts allocated to the aggregated assets acquired and liabilities assumed during 2021 were as follows: $17.0 million to current assets; $179.8 million to property, plant and equipment; $50.6 million to goodwill; $2.2 million to other intangible assets; $8.7 million to current liabilities; $2.5 million to noncurrent liabilities - other; and $3.2 million to deferred tax liabilities. During the first quarter of 2022, measurement period adjustments were made to previously reported provisional amounts, which decreased goodwill and increased property, plant and equipment by $2.1 million. The Company issued debt to finance these acquisitions.

Costs incurred for acquisitions are included in operation and maintenance expense on the Consolidated Statements of Income. For the six months ended June 30, 2022, the Company had no acquisition costs. For the six months ended June 30, 2021, acquisition costs were not material.

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Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lessee, Operating Leases

Leases

The Company's leases primarily include operating leases for equipment, buildings, easements and vehicles. The Company leases certain equipment to third parties through its utility and construction services segments, which are considered short-term operating leases with terms of less than 12 months.

The Company recognized revenue from operating leases of $12.0 million and $23.4 million for the three and six months ended June 30, 2022, respectively. The Company recognized revenue from operating leases of $12.8 million and $24.8 million for the three and six months ended June 30, 2021, respectively. At June 30, 2022, the Company had $8.7 million of lease receivables with a majority due within 12 months.

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Goodwill and other intangible assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

Goodwill and other intangible assets

The changes in the carrying amount of goodwill were as follows:

	Balance at January 1, 2022		Goodwill Acquired During  the Year		Measurement Period Adjustments		Balance at June 30, 2022
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	276,426		—		(2,124)		274,302
Construction services	143,224		—		—		143,224
Total	$	765,386	$	—	$	(2,124)	$	763,262

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at June 30, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		2,900		—		228,903
Construction services	143,224		—		—		143,224
Total	$	714,963	$	2,900	$	—	$	717,863

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at December 31, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		50,640		(217)		276,426
Construction services	143,224		—		—		143,224
Total	$	714,963	$	50,640	$	(217)	$	765,386

Other amortizable intangible assets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Customer relationships	$	28,990	$	29,423	$	29,740
Less accumulated amortization	11,812		8,765		10,650
	17,178		20,658		19,090
Noncompete agreements	4,591		3,991		4,591
Less accumulated amortization	3,206		2,576		2,856
	1,385		1,415		1,735
Other	5,607		11,957		12,601
Less accumulated amortization	4,130		10,629		10,848
	1,477		1,328		1,753
Total	$	20,040	$	23,401	$	22,578

The previous tables include goodwill and intangible assets associated with the business combinations completed during 2021. For more information related to these business combinations, see Note 10.

Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2022, was $1.3 million and $2.5 million, respectively. Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2021, was $1.2 million and $2.7 million, respectively. Estimated amortization expense for identifiable intangible assets as of June 30, 2022, was:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Amortization expense	$	2,285	$	4,591	$	4,305	$	2,291	$	1,781	$	4,787

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Regulatory assets and liabilities

6 Months Ended

Jun. 30, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Regulatory assets and liabilities

The following table summarizes the individual components of unamortized regulatory assets and liabilities:

	Estimated Recovery or Refund Period as of June 30, 2022	*	June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Regulatory assets:
Current:
Natural gas costs recoverable through rate adjustments	Up to 1 year		$	83,557	$	85,045	$	86,371
Conservation programs	Up to 1 year		7,883		7,580		8,225
Decoupling	Up to 1 year		4,615		6,750		9,131
Cost recovery mechanisms	Up to 1 year		3,459		5,692		4,536
Other	Up to 1 year		3,021		4,514		10,428
			102,535		109,581		118,691
Noncurrent:
Pension and postretirement benefits	**		137,582		155,906		142,681
Cost recovery mechanisms	Up to 10 years		64,096		44,415		44,870
Plant costs/asset retirement obligations	Over plant lives		63,334		72,853		63,116
Plant to be retired	-		27,628		46,061		50,070
Manufactured gas plant site remediation	-		26,031		26,155		26,053
Taxes recoverable from customers	Over plant lives		12,365		10,929		12,339
Long-term debt refinancing costs	Up to 38 years		3,482		4,110		3,794
Natural gas costs recoverable through rate adjustments	Up to 2 years		1,839		8,389		5,186
Other	Up to 17 years		10,704		8,095		9,742
			347,061		376,913		357,851
Total regulatory assets			$	449,596	$	486,494	$	476,542
Regulatory liabilities:
Current:
Electric fuel and purchased power deferral	Up to 1 year		$	4,161	$	5,431	$	—
Taxes refundable to customers	Up to 1 year		3,728		3,434		3,841
Cost recovery mechanisms	Up to 1 year		3,172		1,388		214
Natural gas costs refundable through rate adjustments	Up to 1 year		738		8,935		6,700
Other	Up to 1 year		6,085		4,266		5,548
			17,884		23,454		16,303
Noncurrent:
Taxes refundable to customers	Over plant lives		209,022		222,098		215,421
Plant removal and decommissioning costs	Over plant lives		172,755		171,381		168,152
Pension and postretirement benefits	**		19,686		16,940		20,434
Accumulated deferred investment tax credit	Up to 20 years		14,009		11,915		12,696
Cost recovery mechanisms	Up to 20 years		10,898		2,499		7,727
Other	Up to 16 years		6,649		3,634		4,360
			433,019		428,467		428,790
Total regulatory liabilities			$	450,903	$	451,921	$	445,093
Net regulatory position			$	(1,307)	$	34,573	$	31,449

*Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers.

**    Recovered as expense is incurred or cash contributions are made.

At June 30, 2022 and 2021, and December 31, 2021, approximately $262.9 million, $317.0 million and $296.6 million, respectively, of regulatory assets were not earning a rate of return; however, these regulatory assets are expected to be recovered from customers in future rates. These assets are largely comprised of the unfunded portion of pension and postretirement benefits, asset retirement obligations, accelerated depreciation on plant retirement and the estimated future cost of manufactured gas plant site remediation.

In the last half of 2021 and the first half of 2022, the Company has experienced higher natural gas costs due to the increase in demand outpacing the supply along with the impact of global events. This increase in natural gas costs experienced in certain jurisdictions has been offset by the recovery of prior period natural gas costs being recovered over a period longer than the normal one-year period, as further discussed below.

In February 2021, a prolonged period of unseasonably cold temperatures in the central United States significantly increased the demand for electric and natural gas services and contributed to increased market prices. Overall, Montana-Dakota and Great Plains incurred approximately $44.0 million in increased natural gas costs in order to maintain services for its customers. These extraordinary gas costs were recorded as regulatory assets as they are expected to be recovered from customers. Montana-Dakota and Great Plains have received approval for the recovery of purchased gas adjustments related to the cold-weather event in all jurisdictions impacted, including out-of-cycle purchased gas adjustment requests in most jurisdictions. For a discussion of the Company's most recent cases by jurisdiction, see Note 19.

In 2019, the Company experienced increased natural gas costs in Washington from the rupture of the Enbridge pipeline in Canada in late 2018. As a result, the Company requested, and the WUTC approved, recovery through 2022 of the balance of natural gas costs recoverable related to this period of time, which was over three years rather than its normal one-year recovery period.

In February 2019, the Company announced the retirement of three aging coal-fired electric generating units. The Company accelerated the depreciation related to these facilities in property, plant and equipment and recorded the difference between the accelerated depreciation, in accordance with GAAP, and the depreciation approved for rate-making purposes as regulatory assets. Requests were filed with the NDPSC and SDPUC, and subsequently approved, to offset the savings associated with the cessation of operations of these units with the amortization of the deferred regulatory assets. The Company ceased operations of Lewis & Clark Station in March 2021 and Units 1 and 2 at Heskett Station in February 2022. The Company subsequently reclassified the costs being recovered for these facilities from plant retirement to cost recovery mechanisms in the previous table and began amortizing the associated plant retirement and closure costs in the jurisdictions where requests were filed, as previously discussed. The Company expects to recover the regulatory assets related to the plant retirements in future rates.

If, for any reason, the Company's regulated businesses cease to meet the criteria for application of regulatory accounting for all or part of their operations, the regulatory assets and liabilities relating to those portions ceasing to meet such criteria would be written off and included in the statement of income or accumulated other comprehensive loss in the period in which the discontinuance of regulatory accounting occurs.

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Fair value measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value ASC establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach.

The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. The Company anticipates using these investments, which consist of insurance contracts, to satisfy its obligations under its unfunded, nonqualified defined benefit and defined contribution plans for executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $97.4 million, $105.7 million and $109.6 million, at June 30, 2022 and 2021, and December 31, 2021, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized loss on these investments was $8.4 million and $14.1 million for the three and six months ended June 30, 2022, respectively. The net unrealized gain on these investments was $3.8 million and $3.9 million for the three and six months ended June 30, 2021. The change in fair value, which is considered part of the cost of the plan, is classified in other income on the Consolidated Statements of Income.

The Company did not elect the fair value option, which records gains and losses in income, for its available-for-sale securities, which include mortgage-backed securities and U.S. Treasury securities. These available-for-sale securities are recorded at fair value and are classified as investments on the Consolidated Balance Sheets. Unrealized gains or losses are recorded in accumulated other comprehensive loss. Details of available-for-sale securities were as follows:

June 30, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,128	$	—	$	419	$	7,709
U.S. Treasury securities	3,125		—		83		3,042
Total	$	11,253	$	—	$	502	$	10,751

June 30, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,278	$	127	$	9	$	8,396
U.S. Treasury securities	2,893		—		21		2,872
Total	$	11,171	$	127	$	30	$	11,268

December 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,702	$	51	$	47	$	8,706
U.S. Treasury securities	2,407		—		11		2,396
Total	$	11,109	$	51	$	58	$	11,102

The Company's assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements at June 30, 2022, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2022
	(In thousands)
Assets:
Money market funds	$	—	$	8,333	$	—	$	8,333
Insurance contracts*	—		97,431		—		97,431
Available-for-sale securities:
Mortgage-backed securities	—		7,709		—		7,709
U.S. Treasury securities	—		3,042		—		3,042
Total assets measured at fair value	$	—	$	116,515	$	—	$	116,515

*    The insurance contracts invest approximately 64 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 7 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

	Fair Value Measurements at June 30, 2021, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	12,234	$	—	$	12,234
Insurance contracts*	—		105,684		—		105,684
Available-for-sale securities:
Mortgage-backed securities	—		8,396		—		8,396
U.S. Treasury securities	—		2,872		—		2,872
Total assets measured at fair value	$	—	$	129,186	$	—	$	129,186

*    The insurance contracts invest approximately 53 percent in fixed-income investments, 20 percent in common stock of large-cap companies, 10 percent in common stock of mid-cap companies, 9 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

	Fair Value Measurements at December 31, 2021, Using
	Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance at December 31, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	10,190	$	—	$	10,190
Insurance contracts*	—		109,603		—		109,603
Available-for-sale securities:
Mortgage-backed securities	—		8,706		—		8,706
U.S. Treasury securities	—		2,396		—		2,396
Total assets measured at fair value	$	—	$	130,895	$	—	$	130,895

*    The insurance contracts invest approximately 61 percent in fixed-income investments, 17 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in common stock of small-cap companies, 5 percent in target date investments and 2 percent in cash equivalents.

The Company's money market funds are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets, or using other known sources including pricing from outside sources. The estimated fair value of the Company's mortgage-backed securities and U.S. Treasury securities are based on comparable market transactions, other observable inputs or other sources, including pricing from outside sources. The estimated fair value of the Company's insurance contracts are based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value.

The Company applies the provisions of the fair value measurement standard to its nonrecurring, non-financial measurements, including long-lived asset impairments. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. The Company reviews the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable.

The Company performed fair value assessments of the assets acquired and liabilities assumed in the business combinations that occurred during 2021. The fair value of these assets and liabilities were determined based on Level 2 and Level 3 inputs.

The Company's long-term debt is not measured at fair value on the Consolidated Balance Sheets and the fair value is being provided for disclosure purposes only. The fair value was categorized as Level 2 in the fair value hierarchy and was based on discounted future cash flows using current market interest rates. The estimated fair value of the Company's Level 2 long-term debt was as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Carrying amount	$	2,927,967	$	2,337,049	$	2,741,900
Fair value	$	2,753,684	$	2,616,232	$	2,984,866

The carrying amounts of the Company's remaining financial instruments included in current assets and current liabilities approximate their fair values.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

Certain debt instruments of the Company's subsidiaries contain restrictive and financial covenants and cross-default provisions. In order to borrow under the debt agreements, the subsidiary companies must be in compliance with the applicable covenants and certain other conditions, all of which the subsidiaries, as applicable, were in compliance with at June 30, 2022. In the event the subsidiaries do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued.

Montana-Dakota's and Centennial's respective commercial paper programs are supported by revolving credit agreements. While the amount of commercial paper outstanding does not reduce available capacity under the respective revolving credit agreements, Montana-Dakota and Centennial do not issue commercial paper in an aggregate amount exceeding the available capacity under the credit agreements. The commercial paper borrowings may vary during the period, largely the result of fluctuations in working capital requirements due to the seasonality of certain operations of the Company's subsidiaries.

Short-term debt

Centennial On March 18, 2022, Centennial entered into a $100.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of March 17, 2023. The agreement contains customary covenants and provisions, including a covenant of Centennial not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent. The covenants also include certain restrictions on the sale of certain assets, loans and investments.

Long-term debt

Long-term Debt Outstanding Long-term debt outstanding was as follows:

	Weighted Average Interest Rate at June 30, 2022		June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Senior Notes due on dates ranging from October 22, 2022 to June 15, 2062	4.29	%	$	2,365,000	$	1,950,000	$	2,125,000
Commercial paper supported by revolving credit agreements	1.96	%	495,400		297,400		450,300
Credit agreements due on June 7, 2024	4.75	%	29,860		48,550		127,500
Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029	7.32	%	35,000		35,000		35,000
Term Loan Agreement due on September 3, 2032	2.00	%	7,700		8,400		7,700
Other notes due on dates ranging from January 1, 2024 to January 1, 2061	.95	%	2,411		3,232		2,564
Less unamortized debt issuance costs			6,809		5,505		6,090
Less discount			595		28		74
Total long-term debt			2,927,967		2,337,049		2,741,900
Less current maturities			214,453		1,549		148,053
Net long-term debt			$	2,713,514	$	2,335,500	$	2,593,847

Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at June 30, 2022, were as follows:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Long-term debt maturities	$	147,953	$	77,923	$	586,064	$	177,802	$	140,802	$	1,804,827

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Cash flow information

6 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Information [Abstract]

Cash flow information

Cash flow information

Cash expenditures for interest and income taxes were as follows:

	Six Months Ended
	June 30,
	2022		2021
	(In thousands)
Interest, net*	$	50,294	$	45,870
Income taxes paid, net	$	16,520	$	46,734

*    AFUDC - borrowed was $1.3 million and $816,000 for the six months ended June 30, 2022 and 2021, respectively.

Noncash investing and financing transactions were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	18,907	$	17,224	$	55,987
Property, plant and equipment additions in accounts payable	$	46,295	$	31,886	$	57,605
Debt assumed in connection with a business combination	$	—	$	—	$	10

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Business segment data

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business segment data

Business segment data

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The Company's operations are located within the United States.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides non-regulated cathodic protection and other energy-related services.

The construction materials and contracting segment mines, processes and sells construction aggregates (crushed stone, sand and gravel); produces and sells asphalt mix; and supplies ready-mix concrete. This segment focuses on vertical integration of its contracting services with its construction materials to support the aggregate-based product lines including aggregate placement, asphalt and concrete paving, and site development and grading. Although not common to all locations, other products include the sale of cement, asphalt oil for various commercial and roadway applications, various finished concrete products and other building materials and related contracting services. This segment operates in the central, southern and western United States, including Alaska and Hawaii.

The construction services segment provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to utilities and manufacturing, transportation, commercial, industrial, institutional, renewable and governmental customers. Its electrical and mechanical contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its transmission and distribution contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as manufacturing and distribution of transmission line construction equipment and tools.

The Other category includes the activities of Centennial Capital, which, through its subsidiary InterSource Insurance Company, insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the self-insured layers of the insured Company's general liability, automobile liability, pollution liability and other coverages. Centennial Capital also owns certain real and personal property. In addition, the Other category includes certain assets, liabilities and tax adjustments of the holding company primarily associated with corporate functions and certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the refining business and Fidelity and do not meet the criteria for income (loss) from discontinued operations.

Discontinued operations include the supporting activities of Fidelity other than certain general and administrative costs and interest expense as described above.

The information below follows the same accounting policies as described in Note 2 of the Notes to Consolidated Financial Statements in the 2021 Annual Report. Information on the Company's segments was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	85,461	$	83,650	$	179,056	$	168,324
Natural gas distribution	210,440		153,788		660,858		503,994
Pipeline	27,556		23,130		36,999		30,633
	323,457		260,568		876,913		702,951
Non-regulated operations:
Pipeline	2,257		4,643		3,933		7,052
Construction materials and contracting	711,613		633,674		1,021,448		899,333
Construction services	683,594		524,744		1,235,186		1,042,214
Other	—		28		—		45
	1,397,464		1,163,089		2,260,567		1,948,644
Total external operating revenues	$	1,720,921	$	1,423,657	$	3,137,480	$	2,651,595

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Intersegment operating revenues:
Regulated operations:
Electric	$	124	$	136	$	247	$	271
Natural gas distribution	141		142		277		284
Pipeline	7,404		7,695		33,338		33,685
	7,669		7,973		33,862		34,240
Non-regulated operations:
Pipeline	388		167		396		407
Construction materials and contracting	200		142		330		204
Construction services	1,803		797		2,861		1,839
Other	4,389		3,361		8,730		6,685
	6,780		4,467		12,317		9,135
Intersegment eliminations	(14,449)		(12,440)		(46,179)		(43,375)
Total intersegment operating revenues	$	—	$	—	$	—	$	—
Operating income (loss):
Electric	$	8,325	$	12,806	$	23,369	$	26,672
Natural gas distribution	(638)		3,601		55,617		57,173
Pipeline	12,602		11,076		24,484		23,612
Construction materials and contracting	54,354		72,452		9,749		37,563
Construction services	46,141		37,774		75,639		78,051
Other	(214)		(20)		(946)		(218)
Total operating income	$	120,570	$	137,689	$	187,912	$	222,853
Net income (loss):
Regulated operations:
Electric	$	4,601	$	10,304	$	15,880	$	21,054
Natural gas distribution	(7,498)		(707)		28,817		35,471
Pipeline	7,191		8,089		15,147		17,283
	4,294		17,686		59,844		73,808
Non-regulated operations:
Pipeline	(60)		1,106		(679)		810
Construction materials and contracting	32,584		51,396		(7,427)		20,584
Construction services	34,454		28,885		55,778		58,709
Other	(640)		1,098		(5,151)		(1,624)
	66,338		82,485		42,521		78,479
Income from continuing operations	70,632		100,171		102,365		152,287
Discontinued operations, net of tax	35		19		65		34
Net income	$	70,667	$	100,190	$	102,430	$	152,321

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Employee benefit plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Employee benefit plans

Employee benefit plans

Pension and other postretirement plans

The Company has noncontributory qualified defined benefit pension plans and other postretirement benefit plans for certain eligible employees.

Components of net periodic benefit credit for the Company's pension benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Interest cost	$	2,631	$	2,455	$	5,262	$	4,910
Expected return on assets	(4,864)		(4,894)		(9,728)		(9,788)
Amortization of net actuarial loss	1,671		2,004		3,342		4,008
Net periodic benefit credit	$	(562)	$	(435)	$	(1,124)	$	(870)

Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Service cost	$	354	$	400	$	708	$	800
Interest cost	474		466		948		932
Expected return on assets	(1,322)		(1,275)		(2,644)		(2,550)
Amortization of prior service credit	(350)		(349)		(700)		(698)
Amortization of net actuarial (gain) loss	(54)		6		(108)		12
Net periodic benefit credit, including amount capitalized	(898)		(752)		(1,796)		(1,504)
Less amount capitalized	53		44		84		83
Net periodic benefit credit	$	(951)	$	(796)	$	(1,880)	$	(1,587)

The components of net periodic benefit credit, other than the service cost component, are included in other income on the Consolidated Statements of Income. The service cost component is included in operation and maintenance expense on the Consolidated Statements of Income.

Nonqualified defined benefit plans

In addition to the qualified defined benefit pension plans reflected in the table at the beginning of this note, the Company also has unfunded, nonqualified defined benefit plans for executive officers and certain key management employees. The Company's net periodic benefit cost for these plans was $773,000 and $769,000 for the three months ended June 30, 2022 and 2021, respectively, and $1.5 million for both the six months ended June 30, 2022 and 2021. The components of net periodic benefit cost for these plans are included in other income on the Consolidated Statements of Income.

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Regulatory matters

6 Months Ended

Jun. 30, 2022

Regulated Operations [Abstract]

Regulatory Matters

Regulatory matters The Company regularly reviews the need for electric and natural gas rate changes in each of the jurisdictions in which service is provided. The Company files for rate adjustments to seek recovery of operating costs and capital investments, as well as reasonable returns as allowed by regulators. Certain regulatory proceedings and cases may also contain recurring mechanisms that can have an annual true-up. Examples of these recurring mechanisms include: infrastructure riders, transmission trackers, renewable resource cost adjustment riders, as well as weather normalization and decoupling mechanisms. The following paragraphs summarize the Company's significant open regulatory proceedings and cases by jurisdiction including updates to those reported in the 2021 Annual Report and should be read in conjunction with previous filings. The Company is unable to predict the ultimate outcome of these matters, the timing of final decisions of the various regulators and courts, or the effect on the Company's results of operations, financial position or cash flows.

IPUC

Intermountain defers the difference between the actual cost of gas spent to serve customers and the amount approved to be recovered from customers and annually prepares a true-up pursuant to the purchased gas adjustment tariff. On May 31, 2022, Intermountain filed an application with the IPUC for an out-of-cycle cost of gas adjustment requesting an increase in rates of approximately $67.0 million annually or approximately 25.2 percent above current rates. The primary reason for the requested increase was to mitigate the under collection balance due to the significant increase in the commodity price for natural gas. On July 29, 2022, the request was approved with rates effective August 1, 2022. The new rates will be in effect until October 1, 2022, when rates based on Intermountain's annual purchased gas adjustment tariff filing will take effect, which is expected to be filed in August 2022.

MNPUC

Great Plains defers the difference between the actual cost of gas spent to serve customers and that recovered from customers on a monthly basis. Annually, Great Plains prepares a true-up pursuant to the purchased gas adjustment tariff. On August 30, 2021, the MNPUC issued an order to allow Great Plains recovery of an out-of-cycle cost of gas adjustment of $8.8 million over a period of 27 months. The order was effective September 1, 2021, and is subject to a prudence review by the MNPUC. The requested increase was for the February 2021 extreme cold weather, primarily in the central United States, and market conditions surrounding the natural gas commodity market. The MNPUC prudence review is pending with an order to be issued on or before August 29, 2022.

On June 1, 2022, Great Plains filed an application with the MNPUC for a decrease in its depreciation and amortization rates of approximately $1.2 million annually or a decrease from a combined rate of 4.5 percent to 2.8 percent. Great Plains has requested the rates be retroactive to January 1, 2022. This matter is pending before the MNPUC.

NDPSC

On May 16, 2022, Montana-Dakota filed an application with the NDPSC for an electric general rate increase of approximately $25.4 million annually or 12.3 percent above current rates. The requested increase was primarily to recover investments in production, transmission and distribution facilities and the associated depreciation, operation and maintenance expenses and taxes associated with the increased investment. The NDPSC has 7 months to render a final decision on the rate case. On July 14, 2022, the NDPSC approved an interim rate increase of approximately $10.9 million annually or 5.3 percent above current rates, subject to refund, for service rendered on and after July 15, 2022.

On July 15, 2022, Montana-Dakota filed an application with the NDPSC to request an update to its transmission cost adjustment rider requesting to recover revenues of $12.9 million, which includes a true-up of the prior period adjustment, resulting in a decrease of $1.6 million from current rates. The request is to recover transmission-related expenses and the revenue requirement for transmission facilities not currently recovered through electric service rates. The request proposes the rates be effective for service rendered on and after November 1, 2022. This matter is pending before the NDPSC.

SDPUC

Montana-Dakota has a transmission cost recovery rider that allows annual updates to rates for actual costs associated with transmission-related projects and services. On March 1, 2022, Montana-Dakota filed an annual update to its transmission cost recovery rider to recover a revenue requirement of approximately $2.5 million annually, which reflects a true-up of the prior period adjustment, resulting in an increase in current rates of approximately $1.5 million. On May 12, 2022, the SDPUC approved the rates as requested with an effective date of June 1, 2022.

WUTC

On September 30, 2021, Cascade filed an application with the WUTC for a natural gas rate increase of approximately $13.7 million annually or approximately 5.1 percent above current rates. The requested increase was primarily to recover investments made in infrastructure upgrades, as well as to recover 2021 wage increases. On March 22, 2022, Cascade filed a multi-party settlement and stipulation on behalf of Cascade and the staff of the WUTC that would result in a revenue requirement increase of approximately $10.7 million annually or approximately 4.0 percent above current rates. The WUTC has until September 1, 2022, to render a final decision on the rate case. This matter is pending before the WUTC.

On March 24, 2022, Cascade filed a request for a tariff revision with the WUTC to rectify an inadvertent IRS normalization violation resulting from its tariff established in 2018 that passes back to customers the reversal of plant-related excess deferred income taxes through an annual rate adjustment. This request was made in response to the issuance of an IRS private letter ruling to another Washington utility with the same annual rate adjustment tariff, which addressed its normalization violation. The private letter ruling concluded the tariff to refund excess deferred income taxes without corresponding adjustments for other components of rate base or changes in depreciation or income tax expense, is an impermissible methodology under the IRS normalization and consistency rules. Cascade's request proposes a similar remedy through the tariff to recover the excess amounts refunded to customers while this tariff has been in place, and revises the method going forward to reflect excess deferred income taxes in rates in the same manner as other components of rate base from its most recent general rate case. Cascade has requested recovery of the excess refunded to customers of approximately $3.3 million and elimination of the currently deferred, but not yet refunded balance. This matter is pending before the WUTC, with an evidentiary hearing scheduled for November 17, 2022.

On June 1, 2022, Cascade filed its annual pipeline cost recovery mechanism requesting an increase in annual revenue of approximately $2.6 million or approximately 0.9 percent, which will be adjusted as necessary prior to the effective date. The filing includes a proposed effective date of November 1, 2022. This matter is pending before the WUTC.

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Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories.

At June 30, 2022 and 2021, and December 31, 2021, the Company accrued liabilities, which have not been discounted, of $28.2 million, $30.8 million and $37.0 million, respectively. At June 30, 2022 and 2021, and December 31, 2021, the Company also recorded corresponding insurance receivables of $5.9 million, $6.9 million and $14.1 million, respectively, and regulatory assets of $20.9 million, $21.2 million and $21.2 million, respectively, related to the accrued liabilities. The accruals are for contingencies resulting from litigation, production taxes, royalty claims and environmental matters. This includes amounts that have been accrued for matters discussed in Environmental matters within this note. The Company will continue to monitor each matter and adjust accruals as might be warranted based on new information and further developments. Management believes that the outcomes with respect to probable and reasonably possible losses in excess of the amounts accrued, net of insurance recoveries, while uncertain, either cannot be estimated or will not have a material effect upon the Company's financial position, results of operations or cash flows. Unless otherwise required by GAAP, legal costs are expensed as they are incurred.

Environmental matters

The Company is a party to claims for the cleanup of environmental contamination at certain manufactured gas plant sites, as well as a superfund site. There were no material changes to the Company's environmental matters that were previously reported in the 2021 Annual Report.

Guarantees

Certain subsidiaries of the Company have outstanding guarantees to third parties that guarantee the performance of other subsidiaries of the Company. These guarantees are related to construction contracts, insurance deductibles and loss limits, and certain other guarantees. At June 30, 2022, the fixed maximum amounts guaranteed under these agreements aggregate $276.0 million. Certain of the guarantees also have no fixed maximum amounts specified. At June 30, 2022, the amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate to $21.8 million in 2022; $82.0 million in 2023; $160.6 million in 2024; $900,000 in 2025; $900,000 in 2026; $800,000 thereafter; and $9.0 million, which has no scheduled maturity date. There were no amounts outstanding under the previously mentioned guarantees at June 30, 2022. In the event of default under these guarantee obligations, the subsidiary issuing the guarantee for that particular obligation would be required to make payments under its guarantee.

Certain subsidiaries have outstanding letters of credit to third parties related to insurance policies and other agreements, some of which are guaranteed by other subsidiaries of the Company. At June 30, 2022, the fixed maximum amounts guaranteed under these letters of credit aggregated $28.2 million. At June 30, 2022, the amounts of scheduled expiration of the maximum amounts guaranteed under these letters of credit aggregate to $27.6 million in 2022 and $600,000 in 2023. There were no amounts outstanding under the previously mentioned letters of credit at June 30, 2022. In the event of default under these letter of credit obligations, the subsidiary guaranteeing the letter of credit would be obligated for reimbursement of payments made under the letter of credit.

In addition, Centennial, Knife River and MDU Construction Services have issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. In the event a subsidiary of the Company defaults under these obligations, Centennial, Knife River or MDU Construction Services would be required to make payments under these guarantees. Any amounts outstanding by subsidiaries of the Company were reflected on the Consolidated Balance Sheet at June 30, 2022.

In the normal course of business, Centennial has surety bonds related to construction contracts and reclamation obligations of its subsidiaries. In the event a subsidiary of Centennial does not fulfill a bonded obligation, Centennial would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds is expected to expire within the next 12 months; however, Centennial will likely continue to enter into surety bonds for its subsidiaries in the future. At

June 30, 2022, approximately $1.2 billion of surety bonds were outstanding, which were not reflected on the Consolidated Balance Sheet.

Variable interest entities

The Company evaluates its arrangements and contracts with other entities to determine if they are VIEs and if so, if the Company is the primary beneficiary.

Fuel Contract Coyote Station entered into a coal supply agreement with Coyote Creek that provides for the purchase of coal necessary to supply the coal requirements of the Coyote Station for the period May 2016 through December 2040. Coal purchased under the coal supply agreement is reflected in inventories on the Consolidated Balance Sheets and is recovered from customers as a component of electric fuel and purchased power.

The coal supply agreement creates a variable interest in Coyote Creek due to the transfer of all operating and economic risk to the Coyote Station owners, as the agreement is structured so that the price of the coal will cover all costs of operations, as well as future reclamation costs. The Coyote Station owners are also providing a guarantee of the value of the assets of Coyote Creek as they would be required to buy the assets at book value should they terminate the contract prior to the end of the contract term and are providing a guarantee of the value of the equity of Coyote Creek in that they are required to buy the entity at the end of the contract term at equity value. Although the Company has determined that Coyote Creek is a VIE, the Company has concluded that it is not the primary beneficiary of Coyote Creek because the authority to direct the activities of the entity is shared by the four unrelated owners of the Coyote Station, with no primary beneficiary existing. As a result, Coyote Creek is not required to be consolidated in the Company's financial statements.

At June 30, 2022, the Company's exposure to loss as a result of the Company's involvement with the VIE, based on the Company's ownership percentage, was $30.5 million.

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Basis of presentation (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2021 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses.On August 4, 2022, the Company announced its Board of Directors unanimously approved a plan to pursue the separation of Knife River from the Company. The separation is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes.

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New accounting standards (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

New accounting standards

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its Consolidated Financial Statements and/or disclosures:

Standard	Description	Effective date	Impact on financial statements/disclosures
ASU 2021-10 - Government Assistance	In November 2021, the FASB issued guidance on modifying the disclosure requirements to increase the transparency of government assistance including disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements.	January 1, 2022	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2022.
ASU 2020-04 - Reference Rate Reform	In March 2020, the FASB issued optional guidance to ease the facilitation of the effects of reference rate reform on financial reporting. The guidance applies to certain contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Beginning January 1, 2022, LIBOR or other discontinued reference rates cannot be applied to new contracts. New contracts will incorporate a new reference rate, which includes SOFR. LIBOR or other discontinued reference rates cannot be applied to contract modifications or hedging relationships entered into or evaluated after December 31, 2022. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must identify a replacement rate by June 30, 2023.	Effective as of March 12, 2020 and will continue through December 31, 2022	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR, and a review of other contracts and agreements is on-going. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures.

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Receivables and allowance for expected credit losses (Policies)	6 Months Ended
	Jun. 30, 2022
Credit Loss [Abstract]
Accounts receivable and allowance for doubtful accounts	Receivables consists primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less.
Expected credit loss	The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible.

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Inventories and natural gas in storage (Policies)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventories and natural gas in storage	Natural gas in storage for the Company's regulated operations is generally valued at lower of cost or market using the last-in, first-out method or lower of cost or net realizable value using the average cost or first-in, first-out method. The majority of all other inventories are valued at the lower of cost or net realizable value using the average cost method.

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Earnings per share (Policies)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings per share	Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury.

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Revenue from contracts with customers (Policies)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue from contracts with customers	Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

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Business Combinations (Policies)	6 Months Ended
	Jun. 30, 2022
Business Combinations [Abstract]
Business Combinations Policy	The following acquisitions were accounted for as business combinations in accordance with ASC 805 - Business Combinations. The results of the acquired businesses have been included in the Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combinations are not presented, as none of these business combinations, individually or in the aggregate, were material to the Company's financial position or results of operations.

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Fair value disclosures (Policies)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair value measurements	The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income.
Investments	The Company did not elect the fair value option, which records gains and losses in income, for its available-for-sale securities, which include mortgage-backed securities and U.S. Treasury securities. These available-for-sale securities are recorded at fair value and are classified as investments on the Consolidated Balance Sheets.

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Business segment data (Policies)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Business segment data	The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer.

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Contingencies (Policies)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories.
Variable interest entity	The Company evaluates its arrangements and contracts with other entities to determine if they are VIEs and if so, if the Company is the primary beneficiary.

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Receivables and allowance for expected credit losses (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Accounts Receivable, Allowance for Credit Loss [Table Text Block]

Details of the Company's expected credit losses were as follows:

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2021	$	269	$	1,506	$	2	$	5,406	$	2,533	$	9,716
Current expected credit loss provision	565		1,369		—		(253)		54		1,735
Less write-offs charged against the allowance	597		932		—		27		71		1,627
Credit loss recoveries collected	124		180		—		—		28		332
At March 31, 2022	$	361	$	2,123	$	2	$	5,126	$	2,544	$	10,156
Current expected credit loss provision	113		92		—		12		292		509
Less write-offs charged against the allowance	234		939		—		108		104		1,385
Credit loss recoveries collected	108		177		—		—		—		285
At June 30, 2022	$	348	$	1,453	$	2	$	5,030	$	2,732	$	9,565

	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2020	$	899	$	2,571	$	2	$	6,164	$	5,722	$	15,358
Current expected credit loss provision	538		1,273		—		(1,049)		(1,079)		(317)
Less write-offs charged against the allowance	888		1,107		—		273		401		2,669
Credit loss recoveries collected	129		213		—		—		—		342
At March 31, 2021	$	678	$	2,950	$	2	$	4,842	$	4,242	$	12,714
Current expected credit loss provision	(110)		(103)		—		11		(639)		(841)
Less write-offs charged against the allowance	341		787		—		232		64		1,424
Credit loss recoveries collected	100		199		—		—		—		299
At June 30, 2021	$	327	$	2,259	$	2	$	4,621	$	3,539	$	10,748

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Inventories and natural gas in storage (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories on the Consolidated Balance Sheets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Aggregates held for resale	$	200,569	$	183,977	$	184,363
Asphalt oil	92,905		51,500		57,002
Materials and supplies	40,405		27,969		30,629
Merchandise for resale	38,293		26,871		28,501
Natural gas in storage (current)	15,014		10,824		18,867
Other	14,247		15,187		16,247
Total	$	401,433	$	316,328	$	335,609

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Weighted average common shares outstanding

A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per share amounts)
Weighted average common shares outstanding - basic	203,351		201,345		203,351		201,028
Effect of dilutive performance share awards and restricted stock units	50		348		45		300
Weighted average common shares outstanding - diluted	203,401		201,693		203,396		201,328
Shares excluded from the calculation of diluted earnings per share	52		—		175		—
Dividends declared per common share	$	.2175	$	.2125	$	.4350	$	.4250

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Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Stock by Class

Details of the Company's "at-the-market" offering activity was as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022		2021			2022		2021
	(In millions)
Shares issued	—		1.1			—		1.8
Net proceeds *	$	—	$	34.9	**	$	(.1)	$	54.6	**

*    Net proceeds include issuance costs of $22,000 and $149,000 for the three and six months ended June 30, 2022, respectively, and $443,000 and $743,000 for the three and six months ended June 30, 2021, respectively.

**    Net proceeds were used for capital expenditures.

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Accumulated other comprehensive loss (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated comprehensive loss

The after-tax changes in the components of accumulated other comprehensive loss were as follows:

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2021	$	(538)	$	(40,461)	$	(5)	$	(41,004)
Other comprehensive loss before reclassifications	—		—		(320)		(320)
Amounts reclassified from accumulated other comprehensive loss	112		445		32		589
Net current-period other comprehensive income (loss)	112		445		(288)		269
At March 31, 2022	$	(426)	$	(40,016)	$	(293)	$	(40,735)
Other comprehensive loss before reclassifications	—		—		(128)		(128)
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	—		(3,265)		—		(3,265)
Amounts reclassified from accumulated other comprehensive loss	111		461		25		597
Net current-period other comprehensive income (loss)	111		(2,804)		(103)		(2,796)
At June 30, 2022	$	(315)	$	(42,820)	$	(396)	$	(43,531)

	Net Unrealized Gain (Loss) on Derivative  Instruments  Qualifying as Hedges		Postretirement  Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated  Other Comprehensive  Loss
	(In thousands)
At December 31, 2020	$	(984)	$	(47,207)	$	113	$	(48,078)
Other comprehensive loss before reclassifications	—		—		(44)		(44)
Amounts reclassified from accumulated other comprehensive loss	111		466		35		612
Net current-period other comprehensive income (loss)	111		466		(9)		568
At March 31, 2021	$	(873)	$	(46,741)	$	104	$	(47,510)
Other comprehensive loss before reclassifications	—		—		(52)		(52)
Amounts reclassified from accumulated other comprehensive loss	112		457		25		594
Net current-period other comprehensive income (loss)	112		457		(27)		542
At June 30, 2021	$	(761)	$	(46,284)	$	77	$	(46,968)

Reclassification out of accumulated other comprehensive loss

The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows:

	Three Months Ended				Six Months Ended				Location on Consolidated Statements of Income
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	(147)	$	(148)	$	(295)	$	(296)	Interest expense
	36		36		72		73		Income taxes
	(111)		(112)		(223)		(223)
Amortization of postretirement liability losses included in net periodic benefit credit	(609)		(617)		(1,218)		(1,234)		Other income
	148		160		312		311		Income taxes
	(461)		(457)		(906)		(923)
Reclassification adjustment on available-for-sale investments included in net income	(32)		(31)		(72)		(75)		Other income
	7		6		15		15		Income taxes
	(25)		(25)		(57)		(60)
Total reclassifications	$	(597)	$	(594)	$	(1,186)	$	(1,206)

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Revenue from contracts with customers (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

In the following tables, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 17.

Three Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,363	$	116,749	$	—	$	—	$	—	$	—	$	146,112
Commercial utility sales	34,015		72,354		—		—		—		—		106,369
Industrial utility sales	10,923		9,009		—		—		—		—		19,932
Other utility sales	1,880		—		—		—		—		—		1,880
Natural gas transportation	—		11,456		31,967		—		—		—		43,423
Natural gas storage	—		—		2,896		—		—		—		2,896
Contracting services	—		—		—		330,682		—		—		330,682
Construction materials	—		—		—		550,363		—		—		550,363
Intrasegment eliminations	—		—		—		(169,232)		—		—		(169,232)
Electrical & mechanical specialty contracting	—		—		—		—		507,233		—		507,233
Transmission & distribution specialty contracting	—		—		—		—		166,174		—		166,174
Other	10,216		3,751		2,676		—		109		4,389		21,141
Intersegment eliminations	(124)		(141)		(7,792)		(200)		(1,803)		(4,389)		(14,449)
Revenues from contracts with customers	86,273		213,178		29,747		711,613		671,713		—		1,712,524
Revenues out of scope	(812)		(2,738)		66		—		11,881		—		8,397
Total external operating revenues	$	85,461	$	210,440	$	29,813	$	711,613	$	683,594	$	—	$	1,720,921

Three Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	29,258	$	83,480	$	—	$	—	$	—	$	—	$	112,738
Commercial utility sales	33,834		47,612		—		—		—		—		81,446
Industrial utility sales	10,354		6,180		—		—		—		—		16,534
Other utility sales	1,825		—		—		—		—		—		1,825
Natural gas transportation	—		11,451		27,685		—		—		—		39,136
Natural gas storage	—		—		3,094		—		—		—		3,094
Contracting services	—		—		—		280,834		—		—		280,834
Construction materials	—		—		—		498,762		—		—		498,762
Intrasegment eliminations	—		—		—		(145,780)		—		—		(145,780)
Electrical & mechanical specialty contracting	—		—		—		—		347,702		—		347,702
Transmission & distribution specialty contracting	—		—		—		—		165,123		—		165,123
Other	9,465		2,794		4,810		—		57		3,389		20,515
Intersegment eliminations	(136)		(142)		(7,862)		(142)		(797)		(3,361)		(12,440)
Revenues from contracts with customers	84,600		151,375		27,727		633,674		512,085		28		1,409,489
Revenues out of scope	(950)		2,413		46		—		12,659		—		14,168
Total external operating revenues	$	83,650	$	153,788	$	27,773	$	633,674	$	524,744	$	28	$	1,423,657

Six Months Ended June 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	66,667	$	375,565	$	—	$	—	$	—	$	—	$	442,232
Commercial utility sales	69,615		235,963		—		—		—		—		305,578
Industrial utility sales	21,229		22,033		—		—		—		—		43,262
Other utility sales	3,630		—		—		—		—		—		3,630
Natural gas transportation	—		23,837		63,541		—		—		—		87,378
Natural gas storage	—		—		6,615		—		—		—		6,615
Contracting services	—		—		—		444,949		—		—		444,949
Construction materials	—		—		—		792,095		—		—		792,095
Intrasegment eliminations	—		—		—		(215,266)		—		—		(215,266)
Electrical & mechanical specialty contracting	—		—		—		—		900,041		—		900,041
Transmission & distribution specialty contracting	—		—		—		—		314,640		—		314,640
Other	22,969		6,360		4,386		—		157		8,730		42,602
Intersegment eliminations	(247)		(277)		(33,734)		(330)		(2,861)		(8,730)		(46,179)
Revenues from contracts with customers	183,863		663,481		40,808		1,021,448		1,211,977		—		3,121,577
Revenues out of scope	(4,807)		(2,623)		124		—		23,209		—		15,903
Total external operating revenues	$	179,056	$	660,858	$	40,932	$	1,021,448	$	1,235,186	$	—	$	3,137,480

Six Months Ended June 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	62,694	$	286,617	$	—	$	—	$	—	$	—	$	349,311
Commercial utility sales	66,762		167,664		—		—		—		—		234,426
Industrial utility sales	20,383		14,992		—		—		—		—		35,375
Other utility sales	3,391		—		—		—		—		—		3,391
Natural gas transportation	—		23,903		57,102		—		—		—		81,005
Natural gas storage	—		—		7,123		—		—		—		7,123
Contracting services	—		—		—		376,859		—		—		376,859
Construction materials	—		—		—		715,174		—		—		715,174
Intrasegment eliminations	—		—		—		(192,496)		—		—		(192,496)
Electrical & mechanical specialty contracting	—		—		—		—		702,892		—		702,892
Transmission & distribution specialty contracting	—		—		—		—		316,486		—		316,486
Other	19,238		5,803		7,470		—		93		6,730		39,334
Intersegment eliminations	(271)		(284)		(34,092)		(204)		(1,839)		(6,685)		(43,375)
Revenues from contracts with customers	172,197		498,695		37,603		899,333		1,017,632		45		2,625,505
Revenues out of scope	(3,873)		5,299		82		—		24,582		—		26,090
Total external operating revenues	$	168,324	$	503,994	$	37,685	$	899,333	$	1,042,214	$	45	$	2,651,595

Contract balances

The changes in contract assets and liabilities were as follows:

	June 30, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	236,951	$	125,742	$	111,209	Receivables, net
Contract liabilities - current	(167,507)		(179,140)		11,633		Accounts payable
Contract liabilities - noncurrent	(19)		(118)		99		Noncurrent liabilities - other
Net contract assets (liabilities)	$	69,425	$	(53,516)	$	122,941

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Goodwill and other intangible assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill were as follows:

	Balance at January 1, 2022		Goodwill Acquired During  the Year		Measurement Period Adjustments		Balance at June 30, 2022
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	276,426		—		(2,124)		274,302
Construction services	143,224		—		—		143,224
Total	$	765,386	$	—	$	(2,124)	$	763,262

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at June 30, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		2,900		—		228,903
Construction services	143,224		—		—		143,224
Total	$	714,963	$	2,900	$	—	$	717,863

	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at December 31, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		50,640		(217)		276,426
Construction services	143,224		—		—		143,224
Total	$	714,963	$	50,640	$	(217)	$	765,386

Other amortizable intangible assets

Other amortizable intangible assets were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Customer relationships	$	28,990	$	29,423	$	29,740
Less accumulated amortization	11,812		8,765		10,650
	17,178		20,658		19,090
Noncompete agreements	4,591		3,991		4,591
Less accumulated amortization	3,206		2,576		2,856
	1,385		1,415		1,735
Other	5,607		11,957		12,601
Less accumulated amortization	4,130		10,629		10,848
	1,477		1,328		1,753
Total	$	20,040	$	23,401	$	22,578

Estimated amortization expense

Estimated amortization expense for identifiable intangible assets as of June 30, 2022, was:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Amortization expense	$	2,285	$	4,591	$	4,305	$	2,291	$	1,781	$	4,787

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Regulatory assets and liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets

The following table summarizes the individual components of unamortized regulatory assets and liabilities:

	Estimated Recovery or Refund Period as of June 30, 2022	*	June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Regulatory assets:
Current:
Natural gas costs recoverable through rate adjustments	Up to 1 year		$	83,557	$	85,045	$	86,371
Conservation programs	Up to 1 year		7,883		7,580		8,225
Decoupling	Up to 1 year		4,615		6,750		9,131
Cost recovery mechanisms	Up to 1 year		3,459		5,692		4,536
Other	Up to 1 year		3,021		4,514		10,428
			102,535		109,581		118,691
Noncurrent:
Pension and postretirement benefits	**		137,582		155,906		142,681
Cost recovery mechanisms	Up to 10 years		64,096		44,415		44,870
Plant costs/asset retirement obligations	Over plant lives		63,334		72,853		63,116
Plant to be retired	-		27,628		46,061		50,070
Manufactured gas plant site remediation	-		26,031		26,155		26,053
Taxes recoverable from customers	Over plant lives		12,365		10,929		12,339
Long-term debt refinancing costs	Up to 38 years		3,482		4,110		3,794
Natural gas costs recoverable through rate adjustments	Up to 2 years		1,839		8,389		5,186
Other	Up to 17 years		10,704		8,095		9,742
			347,061		376,913		357,851
Total regulatory assets			$	449,596	$	486,494	$	476,542
Regulatory liabilities:
Current:
Electric fuel and purchased power deferral	Up to 1 year		$	4,161	$	5,431	$	—
Taxes refundable to customers	Up to 1 year		3,728		3,434		3,841
Cost recovery mechanisms	Up to 1 year		3,172		1,388		214
Natural gas costs refundable through rate adjustments	Up to 1 year		738		8,935		6,700
Other	Up to 1 year		6,085		4,266		5,548
			17,884		23,454		16,303
Noncurrent:
Taxes refundable to customers	Over plant lives		209,022		222,098		215,421
Plant removal and decommissioning costs	Over plant lives		172,755		171,381		168,152
Pension and postretirement benefits	**		19,686		16,940		20,434
Accumulated deferred investment tax credit	Up to 20 years		14,009		11,915		12,696
Cost recovery mechanisms	Up to 20 years		10,898		2,499		7,727
Other	Up to 16 years		6,649		3,634		4,360
			433,019		428,467		428,790
Total regulatory liabilities			$	450,903	$	451,921	$	445,093
Net regulatory position			$	(1,307)	$	34,573	$	31,449

*Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers.

**    Recovered as expense is incurred or cash contributions are made.

Regulatory Liabilities

The following table summarizes the individual components of unamortized regulatory assets and liabilities:

	Estimated Recovery or Refund Period as of June 30, 2022	*	June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Regulatory assets:
Current:
Natural gas costs recoverable through rate adjustments	Up to 1 year		$	83,557	$	85,045	$	86,371
Conservation programs	Up to 1 year		7,883		7,580		8,225
Decoupling	Up to 1 year		4,615		6,750		9,131
Cost recovery mechanisms	Up to 1 year		3,459		5,692		4,536
Other	Up to 1 year		3,021		4,514		10,428
			102,535		109,581		118,691
Noncurrent:
Pension and postretirement benefits	**		137,582		155,906		142,681
Cost recovery mechanisms	Up to 10 years		64,096		44,415		44,870
Plant costs/asset retirement obligations	Over plant lives		63,334		72,853		63,116
Plant to be retired	-		27,628		46,061		50,070
Manufactured gas plant site remediation	-		26,031		26,155		26,053
Taxes recoverable from customers	Over plant lives		12,365		10,929		12,339
Long-term debt refinancing costs	Up to 38 years		3,482		4,110		3,794
Natural gas costs recoverable through rate adjustments	Up to 2 years		1,839		8,389		5,186
Other	Up to 17 years		10,704		8,095		9,742
			347,061		376,913		357,851
Total regulatory assets			$	449,596	$	486,494	$	476,542
Regulatory liabilities:
Current:
Electric fuel and purchased power deferral	Up to 1 year		$	4,161	$	5,431	$	—
Taxes refundable to customers	Up to 1 year		3,728		3,434		3,841
Cost recovery mechanisms	Up to 1 year		3,172		1,388		214
Natural gas costs refundable through rate adjustments	Up to 1 year		738		8,935		6,700
Other	Up to 1 year		6,085		4,266		5,548
			17,884		23,454		16,303
Noncurrent:
Taxes refundable to customers	Over plant lives		209,022		222,098		215,421
Plant removal and decommissioning costs	Over plant lives		172,755		171,381		168,152
Pension and postretirement benefits	**		19,686		16,940		20,434
Accumulated deferred investment tax credit	Up to 20 years		14,009		11,915		12,696
Cost recovery mechanisms	Up to 20 years		10,898		2,499		7,727
Other	Up to 16 years		6,649		3,634		4,360
			433,019		428,467		428,790
Total regulatory liabilities			$	450,903	$	451,921	$	445,093
Net regulatory position			$	(1,307)	$	34,573	$	31,449

*Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers.

**    Recovered as expense is incurred or cash contributions are made.

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Available-for-sale securities

Details of available-for-sale securities were as follows:

June 30, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,128	$	—	$	419	$	7,709
U.S. Treasury securities	3,125		—		83		3,042
Total	$	11,253	$	—	$	502	$	10,751

June 30, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,278	$	127	$	9	$	8,396
U.S. Treasury securities	2,893		—		21		2,872
Total	$	11,171	$	127	$	30	$	11,268

December 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,702	$	51	$	47	$	8,706
U.S. Treasury securities	2,407		—		11		2,396
Total	$	11,109	$	51	$	58	$	11,102

Assets and liabilities measured at fair value on a recurring basis

The Company's assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements at June 30, 2022, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2022
	(In thousands)
Assets:
Money market funds	$	—	$	8,333	$	—	$	8,333
Insurance contracts*	—		97,431		—		97,431
Available-for-sale securities:
Mortgage-backed securities	—		7,709		—		7,709
U.S. Treasury securities	—		3,042		—		3,042
Total assets measured at fair value	$	—	$	116,515	$	—	$	116,515

*    The insurance contracts invest approximately 64 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 7 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

	Fair Value Measurements at June 30, 2021, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	12,234	$	—	$	12,234
Insurance contracts*	—		105,684		—		105,684
Available-for-sale securities:
Mortgage-backed securities	—		8,396		—		8,396
U.S. Treasury securities	—		2,872		—		2,872
Total assets measured at fair value	$	—	$	129,186	$	—	$	129,186

*    The insurance contracts invest approximately 53 percent in fixed-income investments, 20 percent in common stock of large-cap companies, 10 percent in common stock of mid-cap companies, 9 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

	Fair Value Measurements at December 31, 2021, Using
	Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance at December 31, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	10,190	$	—	$	10,190
Insurance contracts*	—		109,603		—		109,603
Available-for-sale securities:
Mortgage-backed securities	—		8,706		—		8,706
U.S. Treasury securities	—		2,396		—		2,396
Total assets measured at fair value	$	—	$	130,895	$	—	$	130,895

*    The insurance contracts invest approximately 61 percent in fixed-income investments, 17 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in common stock of small-cap companies, 5 percent in target date investments and 2 percent in cash equivalents.

Fair value of long term debt outstanding

The estimated fair value of the Company's Level 2 long-term debt was as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Carrying amount	$	2,927,967	$	2,337,049	$	2,741,900
Fair value	$	2,753,684	$	2,616,232	$	2,984,866

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-term debt outstanding

Long-term debt outstanding was as follows:

	Weighted Average Interest Rate at June 30, 2022		June 30, 2022		June 30, 2021		December 31, 2021
			(In thousands)
Senior Notes due on dates ranging from October 22, 2022 to June 15, 2062	4.29	%	$	2,365,000	$	1,950,000	$	2,125,000
Commercial paper supported by revolving credit agreements	1.96	%	495,400		297,400		450,300
Credit agreements due on June 7, 2024	4.75	%	29,860		48,550		127,500
Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029	7.32	%	35,000		35,000		35,000
Term Loan Agreement due on September 3, 2032	2.00	%	7,700		8,400		7,700
Other notes due on dates ranging from January 1, 2024 to January 1, 2061	.95	%	2,411		3,232		2,564
Less unamortized debt issuance costs			6,809		5,505		6,090
Less discount			595		28		74
Total long-term debt			2,927,967		2,337,049		2,741,900
Less current maturities			214,453		1,549		148,053
Net long-term debt			$	2,713,514	$	2,335,500	$	2,593,847

Schedule of debt maturities

Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at June 30, 2022, were as follows:

	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Long-term debt maturities	$	147,953	$	77,923	$	586,064	$	177,802	$	140,802	$	1,804,827

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Cash flow information (Tables)

6 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Information [Abstract]

Cash expenditures for interest and income taxes and noncash investing and financing transactions

Cash expenditures for interest and income taxes were as follows:

	Six Months Ended
	June 30,
	2022		2021
	(In thousands)
Interest, net*	$	50,294	$	45,870
Income taxes paid, net	$	16,520	$	46,734

*    AFUDC - borrowed was $1.3 million and $816,000 for the six months ended June 30, 2022 and 2021, respectively.

Noncash investing and financing transactions were as follows:

	June 30, 2022		June 30, 2021		December 31, 2021
	(In thousands)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	18,907	$	17,224	$	55,987
Property, plant and equipment additions in accounts payable	$	46,295	$	31,886	$	57,605
Debt assumed in connection with a business combination	$	—	$	—	$	10

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Business segment data (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Information on the Company's businesses

Information on the Company's segments was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	85,461	$	83,650	$	179,056	$	168,324
Natural gas distribution	210,440		153,788		660,858		503,994
Pipeline	27,556		23,130		36,999		30,633
	323,457		260,568		876,913		702,951
Non-regulated operations:
Pipeline	2,257		4,643		3,933		7,052
Construction materials and contracting	711,613		633,674		1,021,448		899,333
Construction services	683,594		524,744		1,235,186		1,042,214
Other	—		28		—		45
	1,397,464		1,163,089		2,260,567		1,948,644
Total external operating revenues	$	1,720,921	$	1,423,657	$	3,137,480	$	2,651,595

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Intersegment operating revenues:
Regulated operations:
Electric	$	124	$	136	$	247	$	271
Natural gas distribution	141		142		277		284
Pipeline	7,404		7,695		33,338		33,685
	7,669		7,973		33,862		34,240
Non-regulated operations:
Pipeline	388		167		396		407
Construction materials and contracting	200		142		330		204
Construction services	1,803		797		2,861		1,839
Other	4,389		3,361		8,730		6,685
	6,780		4,467		12,317		9,135
Intersegment eliminations	(14,449)		(12,440)		(46,179)		(43,375)
Total intersegment operating revenues	$	—	$	—	$	—	$	—
Operating income (loss):
Electric	$	8,325	$	12,806	$	23,369	$	26,672
Natural gas distribution	(638)		3,601		55,617		57,173
Pipeline	12,602		11,076		24,484		23,612
Construction materials and contracting	54,354		72,452		9,749		37,563
Construction services	46,141		37,774		75,639		78,051
Other	(214)		(20)		(946)		(218)
Total operating income	$	120,570	$	137,689	$	187,912	$	222,853
Net income (loss):
Regulated operations:
Electric	$	4,601	$	10,304	$	15,880	$	21,054
Natural gas distribution	(7,498)		(707)		28,817		35,471
Pipeline	7,191		8,089		15,147		17,283
	4,294		17,686		59,844		73,808
Non-regulated operations:
Pipeline	(60)		1,106		(679)		810
Construction materials and contracting	32,584		51,396		(7,427)		20,584
Construction services	34,454		28,885		55,778		58,709
Other	(640)		1,098		(5,151)		(1,624)
	66,338		82,485		42,521		78,479
Income from continuing operations	70,632		100,171		102,365		152,287
Discontinued operations, net of tax	35		19		65		34
Net income	$	70,667	$	100,190	$	102,430	$	152,321

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Employee benefit plans (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Schedule of net benefit costs

Components of net periodic benefit credit for the Company's pension benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Interest cost	$	2,631	$	2,455	$	5,262	$	4,910
Expected return on assets	(4,864)		(4,894)		(9,728)		(9,788)
Amortization of net actuarial loss	1,671		2,004		3,342		4,008
Net periodic benefit credit	$	(562)	$	(435)	$	(1,124)	$	(870)

Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Components of net periodic benefit credit:
Service cost	$	354	$	400	$	708	$	800
Interest cost	474		466		948		932
Expected return on assets	(1,322)		(1,275)		(2,644)		(2,550)
Amortization of prior service credit	(350)		(349)		(700)		(698)
Amortization of net actuarial (gain) loss	(54)		6		(108)		12
Net periodic benefit credit, including amount capitalized	(898)		(752)		(1,796)		(1,504)
Less amount capitalized	53		44		84		83
Net periodic benefit credit	$	(951)	$	(796)	$	(1,880)	$	(1,587)

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Receivables and allowance for expected credit losses (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Credit Loss [Abstract]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	$ 37.0	$ 44.8	$ 34.2

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Receivables and allowance for expected credit losses (Details 2) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Provision for credit losses					$ 2,244	$ (1,158)
Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	$ 10,156	$ 9,716	$ 12,714	$ 15,358	9,716	15,358
Provision for credit losses	509	1,735	(841)	(317)
Less write-offs charged against the allowance	1,385	1,627	1,424	2,669
Credit loss recoveries collected	285	332	299	342
Balance	9,565	10,156	10,748	12,714	9,565	10,748
Electric | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	361	269	678	899	269	899
Provision for credit losses	113	565	(110)	538
Less write-offs charged against the allowance	234	597	341	888
Credit loss recoveries collected	108	124	100	129
Balance	348	361	327	678	348	327
Natural gas distribution | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	2,123	1,506	2,950	2,571	1,506	2,571
Provision for credit losses	92	1,369	(103)	1,273
Less write-offs charged against the allowance	939	932	787	1,107
Credit loss recoveries collected	177	180	199	213
Balance	1,453	2,123	2,259	2,950	1,453	2,259
Pipeline | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	2	2	2	2	2	2
Provision for credit losses	0	0	0	0
Less write-offs charged against the allowance	0	0	0	0
Credit loss recoveries collected	0	0	0	0
Balance	2	2	2	2	2	2
Construction materials and contracting | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	5,126	5,406	4,842	6,164	5,406	6,164
Provision for credit losses	12	(253)	11	(1,049)
Less write-offs charged against the allowance	108	27	232	273
Credit loss recoveries collected	0	0	0	0
Balance	5,030	5,126	4,621	4,842	5,030	4,621
Construction services | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	2,544	2,533	4,242	5,722	2,533	5,722
Provision for credit losses	292	54	(639)	(1,079)
Less write-offs charged against the allowance	104	71	64	401
Credit loss recoveries collected	0	28	0	0
Balance	$ 2,732	$ 2,544	$ 3,539	$ 4,242	$ 2,732	$ 3,539

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Inventories and natural gas in storage (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Inventory Disclosure [Abstract]
Aggregates held for resale	$ 200,569	$ 184,363	$ 183,977
Asphalt oil	92,905	57,002	51,500
Materials and supplies	40,405	30,629	27,969
Merchandise for resale	38,293	28,501	26,871
Natural gas in storage (current)	15,014	18,867	10,824
Other	14,247	16,247	15,187
Total	401,433	335,609	316,328
Natural gas in storage noncurrent	$ 47,200	$ 47,500	$ 47,500

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Earnings per share (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Weighted average common shares outstanding - basic	203,351	201,345	203,351	201,028
Effect of dilutive performance share awards and restricted stock units	50	348	45	300
Weighted average common shares outstanding - diluted	203,401	201,693	203,396	201,328
Shares excluded from the calculation of diluted earnings per share	52	0	175	0
Dividends declared per common share	$ 0.2175	$ 0.2125	$ 0.4350	$ 0.4250

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Equity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Common stock shares authorized under equity program	500,000,000	500,000,000	500,000,000	500,000,000	500,000,000
Net proceeds *			$ (149,000)	$ 54,649,000
At-the-market offering
Class of Stock [Line Items]
Common stock shares authorized under equity program	6,400,000		6,400,000
Common stock shares reserved for future issuance	3,600,000		3,600,000
Shares issued	0	1,100,000	0	1,800,000
Net proceeds *	$ 0	$ 34,900,000	$ (100,000)	$ 54,600,000
Issuance costs	$ 22,000	$ 443,000	$ 149,000	$ 743,000

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Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated other comprehensive loss [Roll Forward]
Balance	$ 3,360,718	$ 3,382,874	$ 3,100,306	$ 3,079,105	$ 3,382,874	$ 3,079,105
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	(3,265)		0		(3,265)	0
Other comprehensive income (loss)	(2,796)	269	542	568	(2,527)	1,110
Balance	3,386,810	3,360,718	3,198,802	3,100,306	3,386,810	3,198,802
Net unrealized gain (loss) on derivative instruments qualifying as hedges
Accumulated other comprehensive loss [Roll Forward]
Balance	(426)	(538)	(873)	(984)	(538)	(984)
Other comprehensive loss before reclassifications	0	0	0	0
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	0
Amounts reclassified from accumulated other comprehensive loss	111	112	112	111
Other comprehensive income (loss)	111	112	112	111
Balance	(315)	(426)	(761)	(873)	(315)	(761)
Postretirement liability adjustment
Accumulated other comprehensive loss [Roll Forward]
Balance	(40,016)	(40,461)	(46,741)	(47,207)	(40,461)	(47,207)
Other comprehensive loss before reclassifications	0	0	0	0
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	(3,265)
Amounts reclassified from accumulated other comprehensive loss	461	445	457	466
Other comprehensive income (loss)	(2,804)	445	457	466
Balance	(42,820)	(40,016)	(46,284)	(46,741)	(42,820)	(46,284)
Net unrealized gain (loss) on available-for-sale investments
Accumulated other comprehensive loss [Roll Forward]
Balance	(293)	(5)	104	113	(5)	113
Other comprehensive loss before reclassifications	(128)	(320)	(52)	(44)
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	0
Amounts reclassified from accumulated other comprehensive loss	25	32	25	35
Other comprehensive income (loss)	(103)	(288)	(27)	(9)
Balance	(396)	(293)	77	104	(396)	77
Total accumulated other comprehensive loss
Accumulated other comprehensive loss [Roll Forward]
Balance	(40,735)	(41,004)	(47,510)	(48,078)	(41,004)	(48,078)
Other comprehensive loss before reclassifications	(128)	(320)	(52)	(44)
Amounts reclassified to accumulated other comprehensive loss from a regulatory asset	(3,265)
Amounts reclassified from accumulated other comprehensive loss	597	589	594	612
Other comprehensive income (loss)	(2,796)	269	542	568
Balance	$ (43,531)	$ (40,735)	$ (46,968)	$ (47,510)	$ (43,531)	$ (46,968)

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Reclassification out of accumulated other comprehensive loss (Details 2) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Interest expense	$ (28,113)		$ (23,381)		$ (53,373)	$ (46,835)
Income taxes	(17,579)		(23,164)		(25,528)	(36,112)
Other income	(4,246)		9,027		(6,646)	12,381
Net income	70,667	$ 31,763	100,190	$ 52,131	102,430	152,321
Reclassification out of accumulated other comprehensive loss
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Net income	(597)		(594)		(1,186)	(1,206)
Reclassification adjustment for loss on derivative instruments included in net income | Reclassification out of accumulated other comprehensive loss | Interest rate contract
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Interest expense	(147)		(148)		(295)	(296)
Income taxes	36		36		72	73
Net income	(111)		(112)		(223)	(223)
Amortization of postretirement liability losses included in net periodic benefit credit | Reclassification out of accumulated other comprehensive loss
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Income taxes	148		160		312	311
Other income	(609)		(617)		(1,218)	(1,234)
Net income	(461)		(457)		(906)	(923)
Reclassification adjustment on available-for-sale investments included in net income | Reclassification out of accumulated other comprehensive loss
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Income taxes	7		6		15	15
Other income	(32)		(31)		(72)	(75)
Net income	$ (25)		$ (25)		$ (57)	$ (60)

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Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Operating revenues:	$ 1,720,921	$ 1,423,657	$ 3,137,480	$ 2,651,595
Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(14,449)	(12,440)	(46,179)	(43,375)
Intrasegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(169,232)	(145,780)	(215,266)	(192,496)
Natural gas transportation
Disaggregation of Revenue [Line Items]
Operating revenues:	43,423	39,136	87,378	81,005
Natural gas storage
Disaggregation of Revenue [Line Items]
Operating revenues:	2,896	3,094	6,615	7,123
Contracting services
Disaggregation of Revenue [Line Items]
Operating revenues:	330,682	280,834	444,949	376,859
Construction materials
Disaggregation of Revenue [Line Items]
Operating revenues:	550,363	498,762	792,095	715,174
Electrical & mechanical specialty contracting
Disaggregation of Revenue [Line Items]
Operating revenues:	507,233	347,702	900,041	702,892
Transmission & distribution specialty contracting
Disaggregation of Revenue [Line Items]
Operating revenues:	166,174	165,123	314,640	316,486
Other
Disaggregation of Revenue [Line Items]
Operating revenues:	21,141	20,515	42,602	39,334
Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	1,712,524	1,409,489	3,121,577	2,625,505
Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	8,397	14,168	15,903	26,090
Residential utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	146,112	112,738	442,232	349,311
Commercial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	106,369	81,446	305,578	234,426
Industrial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	19,932	16,534	43,262	35,375
Other utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	1,880	1,825	3,630	3,391
Electric
Disaggregation of Revenue [Line Items]
Operating revenues:	85,461	83,650	179,056	168,324
Electric | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(124)	(136)	(247)	(271)
Electric | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	10,216	9,465	22,969	19,238
Electric | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	86,273	84,600	183,863	172,197
Electric | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	(812)	(950)	(4,807)	(3,873)
Electric | Residential utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	29,363	29,258	66,667	62,694
Electric | Commercial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	34,015	33,834	69,615	66,762
Electric | Industrial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	10,923	10,354	21,229	20,383
Electric | Other utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	1,880	1,825	3,630	3,391
Natural gas distribution
Disaggregation of Revenue [Line Items]
Operating revenues:	210,440	153,788	660,858	503,994
Natural gas distribution | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(141)	(142)	(277)	(284)
Natural gas distribution | Natural gas transportation
Disaggregation of Revenue [Line Items]
Operating revenues:	11,456	11,451	23,837	23,903
Natural gas distribution | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	3,751	2,794	6,360	5,803
Natural gas distribution | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	213,178	151,375	663,481	498,695
Natural gas distribution | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	(2,738)	2,413	(2,623)	5,299
Natural gas distribution | Residential utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	116,749	83,480	375,565	286,617
Natural gas distribution | Commercial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	72,354	47,612	235,963	167,664
Natural gas distribution | Industrial utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	9,009	6,180	22,033	14,992
Natural gas distribution | Other utility sales
Disaggregation of Revenue [Line Items]
Operating revenues:	0	0	0	0
Pipeline
Disaggregation of Revenue [Line Items]
Operating revenues:	29,813	27,773	40,932	37,685
Pipeline | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(7,792)	(7,862)	(33,734)	(34,092)
Pipeline | Natural gas transportation
Disaggregation of Revenue [Line Items]
Operating revenues:	31,967	27,685	63,541	57,102
Pipeline | Natural gas storage
Disaggregation of Revenue [Line Items]
Operating revenues:	2,896	3,094	6,615	7,123
Pipeline | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	2,676	4,810	4,386	7,470
Pipeline | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	29,747	27,727	40,808	37,603
Pipeline | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	66	46	124	82
Construction materials and contracting
Disaggregation of Revenue [Line Items]
Operating revenues:	711,613	633,674	1,021,448	899,333
Construction materials and contracting | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(200)	(142)	(330)	(204)
Construction materials and contracting | Intrasegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(169,232)	(145,780)	(215,266)	(192,496)
Construction materials and contracting | Contracting services
Disaggregation of Revenue [Line Items]
Operating revenues:	330,682	280,834	444,949	376,859
Construction materials and contracting | Construction materials
Disaggregation of Revenue [Line Items]
Operating revenues:	550,363	498,762	792,095	715,174
Construction materials and contracting | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	0	0	0	0
Construction materials and contracting | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	711,613	633,674	1,021,448	899,333
Construction materials and contracting | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	0	0	0	0
Construction services
Disaggregation of Revenue [Line Items]
Operating revenues:	683,594	524,744	1,235,186	1,042,214
Construction services | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(1,803)	(797)	(2,861)	(1,839)
Construction services | Electrical & mechanical specialty contracting
Disaggregation of Revenue [Line Items]
Operating revenues:	507,233	347,702	900,041	702,892
Construction services | Transmission & distribution specialty contracting
Disaggregation of Revenue [Line Items]
Operating revenues:	166,174	165,123	314,640	316,486
Construction services | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	109	57	157	93
Construction services | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	671,713	512,085	1,211,977	1,017,632
Construction services | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	11,881	12,659	23,209	24,582
Other
Disaggregation of Revenue [Line Items]
Operating revenues:	0	28	0	45
Other | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Operating revenues:	(4,389)	(3,361)	(8,730)	(6,685)
Other | Other
Disaggregation of Revenue [Line Items]
Operating revenues:	4,389	3,389	8,730	6,730
Other | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Operating revenues:	0	28	0	45
Other | Revenues out of scope
Disaggregation of Revenue [Line Items]
Operating revenues:	$ 0	$ 0	$ 0	$ 0

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Contract balances (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 236,951		$ 236,951		$ 125,742
Change in contract assets			111,209
Contract liabilities - current	(167,507)		(167,507)		(179,140)
Change in contract liabilities - current			11,633
Contract liabilities - noncurrent	(19)		(19)		(118)
Change in contract liabilities - noncurrent			99
Net contract assets (liabilities)	69,425		69,425		$ (53,516)
Change in net contract assets (liabilities)			122,941
Amounts included in contract liability at the beginning of the period	14,800	$ 21,900	136,700	$ 145,300
Contract with Customer, Performance Obligation Satisfied in Previous Period	$ 30,000	$ 27,300	$ 42,400	$ 54,600

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Revenue from contracts with customers Remaining performance obligations (Details 3) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 3,500.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 2,800.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 389.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	13 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 368.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	25 months

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Business Combinations (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 765,386,000	$ 763,262,000	$ 717,863,000	$ 714,963,000
Business Acquisition, Transaction Costs			$ 0	$ 0
2021 Acquisition
Business Acquisition [Line Items]
Gross Aggregate Consideration		236,100,000
Cash Assumed		900,000
Business Combination, Consideration Transferred		235,200,000
Current Assets		17,000,000
Property, Plant, and Equipment		179,800,000
Goodwill		50,600,000
Other Intangibles		2,200,000
Current Liabilities		8,700,000
Noncurrent liabilities - Other		2,500,000
Deferred Tax Liabilities		$ 3,200,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets	$ 2,100,000

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Lessor accounting (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating Lease, Lease Income	$ 12.0	$ 12.8	$ 23.4	$ 24.8
Lessor, Operating Lease, Payments to be Received, Next Twelve Months	$ 8.7		$ 8.7

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Goodwill rollforward (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Goodwill [Roll Forward]
Balance at beginning of period	$ 765,386	$ 714,963	$ 714,963
Goodwill acquired during the year	0	2,900	50,640
Measurement period adjustments	(2,124)	0	(217)
Balance at end of period	763,262	717,863	765,386
Natural gas distribution
Goodwill [Roll Forward]
Balance at beginning of period	345,736	345,736	345,736
Goodwill acquired during the year	0	0	0
Measurement period adjustments	0	0	0
Balance at end of period	345,736	345,736	345,736
Construction materials and contracting
Goodwill [Roll Forward]
Balance at beginning of period	276,426	226,003	226,003
Goodwill acquired during the year	0	2,900	50,640
Measurement period adjustments	(2,124)	0	(217)
Balance at end of period	274,302	228,903	276,426
Construction services
Goodwill [Roll Forward]
Balance at beginning of period	143,224	143,224	143,224
Goodwill acquired during the year	0	0	0
Measurement period adjustments	0	0	0
Balance at end of period	$ 143,224	$ 143,224	$ 143,224

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Other intangible assets (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	$ 20,040	$ 23,401	$ 20,040	$ 23,401	$ 22,578
Amortization of intangible assets	1,300	1,200	2,500	2,700
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	28,990	29,423	28,990	29,423	29,740
Intangible assets, less accumulated amortization	11,812	8,765	11,812	8,765	10,650
Intangible assets, net (excluding goodwill)	17,178	20,658	17,178	20,658	19,090
Noncompete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	4,591	3,991	4,591	3,991	4,591
Intangible assets, less accumulated amortization	3,206	2,576	3,206	2,576	2,856
Intangible assets, net (excluding goodwill)	1,385	1,415	1,385	1,415	1,735
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	5,607	11,957	5,607	11,957	12,601
Intangible assets, less accumulated amortization	4,130	10,629	4,130	10,629	10,848
Intangible assets, net (excluding goodwill)	$ 1,477	$ 1,328	$ 1,477	$ 1,328	$ 1,753

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Future amortization expense (Details 3) $ in Thousands	Jun. 30, 2022 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 2,285
2023	4,591
2024	4,305
2025	2,291
2026	1,781
Thereafter	$ 4,787

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Regulatory assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Feb. 28, 2021
Regulatory Assets
Regulatory Assets, Current	$ 102,535	$ 118,691	$ 109,581
Regulatory Assets, Noncurrent	347,061	357,851	376,913
Total regulatory assets	449,596	476,542	486,494
Regulatory assets not earning a rate of return	262,900	296,600	317,000
Natural gas costs recoverable through rate adjustments
Regulatory Assets
Regulatory Assets, Current	83,557	86,371	85,045
Regulatory Assets, Noncurrent	$ 1,839	5,186	8,389
Total regulatory assets				$ 44,000
Natural gas costs recoverable through rate adjustments | Minimum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Natural gas costs recoverable through rate adjustments | Maximum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 2 years
Conservation programs
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Regulatory Assets, Current	$ 7,883	8,225	7,580
Decoupling
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Regulatory Assets, Current	$ 4,615	9,131	6,750
Cost recovery mechanisms
Regulatory Assets
Regulatory Assets, Current	3,459	4,536	5,692
Regulatory Assets, Noncurrent	$ 64,096	44,870	44,415
Cost recovery mechanisms | Minimum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Cost recovery mechanisms | Maximum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 10 years
Other regulatory assets
Regulatory Assets
Regulatory Assets, Current	$ 3,021	10,428	4,514
Regulatory Assets, Noncurrent	$ 10,704	9,742	8,095
Other regulatory assets | Minimum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Other regulatory assets | Maximum [Member]
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 17 years
Pension and postretirement benefits
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	**
Regulatory Assets, Noncurrent	$ 137,582	142,681	155,906
Plant costs/asset retirement obligations
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Over plant lives
Regulatory Assets, Noncurrent	$ 63,334	63,116	72,853
Plant retirement
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	-
Regulatory Assets, Noncurrent	$ 27,628	50,070	46,061
Manufactured gas plant site remediation
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	-
Regulatory Assets, Noncurrent	$ 26,031	26,053	26,155
Taxes recoverable from customers
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Over plant lives
Regulatory Assets, Noncurrent	$ 12,365	12,339	10,929
Long-term debt refinancing costs
Regulatory Assets
Estimated Recovery or Refund Period as of June 30, 2022	Up to 38 years
Regulatory Assets, Noncurrent	$ 3,482	$ 3,794	$ 4,110

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Regulatory liabilities (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Regulatory Liabilities [Line Items]
Regulatory liabilities due within one year	$ 17,884	$ 16,303	$ 23,454
Regulatory liabilities	433,019	428,790	428,467
Total regulatory liabilities	450,903	445,093	451,921
Net regulatory position	$ (1,307)	31,449	34,573
Electric fuel and purchased power deferral
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Regulatory liabilities due within one year	$ 4,161	0	5,431
Taxes refundable to customers
Regulatory Liabilities [Line Items]
Regulatory liabilities due within one year	3,728	3,841	3,434
Regulatory liabilities	$ 209,022	215,421	222,098
Taxes refundable to customers | Minimum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Taxes refundable to customers | Maximum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Over plant lives
Cost Recovery Mechanisms
Regulatory Liabilities [Line Items]
Regulatory liabilities due within one year	$ 3,172	214	1,388
Regulatory liabilities	$ 10,898	7,727	2,499
Cost Recovery Mechanisms | Minimum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Cost Recovery Mechanisms | Maximum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 20 years
Natural gas costs refundable through rate adjustments
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Regulatory liabilities due within one year	$ 738	6,700	8,935
Other regulatory liabilities
Regulatory Liabilities [Line Items]
Regulatory liabilities due within one year	6,085	5,548	4,266
Regulatory liabilities	$ 6,649	4,360	3,634
Other regulatory liabilities | Minimum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 1 year
Other regulatory liabilities | Maximum [Member]
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 16 years
Plant removal and decommissioning costs
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Over plant lives
Regulatory liabilities	$ 172,755	168,152	171,381
Pension and postretirement benefits
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	**
Regulatory liabilities	$ 19,686	20,434	16,940
Accumulated Deferred ITC
Regulatory Liabilities [Line Items]
Estimated Recovery or Refund Period as of June 30, 2022	Up to 20 years
Regulatory liabilities	$ 14,009	$ 12,696	$ 11,915

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Fair value measurements Insurance contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Investments used to satisfy nonqualified benefit plans obligations	$ 97.4	$ 105.7	$ 97.4	$ 105.7	$ 109.6
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans	$ 8.4	$ 3.8	$ 14.1	$ 3.9

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Available-for-sale securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Available-for-sale securities [Abstract]
Cost	$ 11,253	$ 11,109	$ 11,171
Gross Unrealized Gains	0	51	127
Gross Unrealized Losses	502	58	30
Fair Value	10,751	11,102	11,268
Mortgage-backed securities
Available-for-sale securities [Abstract]
Cost	8,128	8,702	8,278
Gross Unrealized Gains	0	51	127
Gross Unrealized Losses	419	47	9
Fair Value	7,709	8,706	8,396
U.S. Treasury securities
Available-for-sale securities [Abstract]
Cost	3,125	2,407	2,893
Gross Unrealized Gains	0	0	0
Gross Unrealized Losses	83	11	21
Fair Value	$ 3,042	$ 2,396	$ 2,872

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Fair value measurements (Details 3) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Concentration risks, percentage [Abstract]
Percentage in fixed-income and other investments	64.00%	61.00%	53.00%
Percentage investment in common stock of large-cap companies	15.00%	17.00%	20.00%
Percentage investment in common stock of mid-cap companies	7.00%	8.00%	10.00%
Percentage investment in common stock of small-cap companies	6.00%	7.00%	9.00%
Percentage investment in target date investments	6.00%	5.00%	6.00%
Percentage investment in cash and cash equivalents	2.00%	2.00%	2.00%
Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	$ 116,515	$ 130,895	$ 129,186
Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	116,515	130,895	129,186
Money market funds | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	8,333	10,190	12,234
Money market funds | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	8,333	10,190	12,234
Insurance contracts* | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	97,431	109,603	105,684
Insurance contracts* | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	97,431	109,603	105,684
Mortgage-backed securities | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	7,709	8,706	8,396
Mortgage-backed securities | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	7,709	8,706	8,396
U.S. Treasury securities | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	3,042	2,396	2,872
U.S. Treasury securities | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	$ 3,042	$ 2,396	$ 2,872

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Fair value measurements (Details 4) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Fair value, balance sheet grouping [Line Items]
Long-term debt	$ 2,927,967	$ 2,741,900	$ 2,337,049
Carrying amount
Fair value, balance sheet grouping [Line Items]
Long-term debt	2,927,967	2,741,900	2,337,049
Fair value
Fair value, balance sheet grouping [Line Items]
Long-term debt, fair value	$ 2,753,684	$ 2,984,866	$ 2,616,232

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Short-term Debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 18, 2022	Dec. 31, 2021	Jun. 30, 2021
Short-term Debt [Line Items]
Short-term borrowings	$ 100,000		$ 0	$ 50,000
Term Loan Agreement | Centennial Energy Holdings, Inc.
Short-term Debt [Line Items]
Short-term borrowings		$ 100,000
Ratio of total debt to total capitalization as specified in debt covenants		65.00%

XML

Long-term debt outstanding (Details 2) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Long-term debt outstanding [Line Items]
Long-term debt	$ 2,927,967	$ 2,741,900	$ 2,337,049
Long-term debt due within one year	214,453	148,053	1,549
Long-term debt	$ 2,713,514	2,593,847	2,335,500
Senior Notes
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	4.29%
Long-term debt	$ 2,365,000	2,125,000	1,950,000
Commercial Paper
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	1.96%
Long-term debt	$ 495,400	450,300	297,400
Credit Agreements
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	4.75%
Long-term debt	$ 29,860	127,500	48,550
Medium-term Notes
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	7.32%
Long-term debt	$ 35,000	35,000	35,000
Term Loan Agreements
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	2.00%
Long-term debt	$ 7,700	7,700	8,400
Other Notes
Long-term debt outstanding [Line Items]
Weighted Average Interest Rate	0.95%
Long-term debt	$ 2,411	2,564	3,232
Long-term Debt
Long-term debt outstanding [Line Items]
Unamortized Debt Issuance Costs	6,809	6,090	5,505
Discount	$ 595	$ 74	$ 28

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Schedule of debt maturities (Details 3) $ in Thousands	Jun. 30, 2022 USD ($)
Long-term debt maturities [Line Items]
Remainder of 2022	$ 147,953
2023	77,923
2024	586,064
2025	177,802
2026	140,802
Thereafter	$ 1,804,827

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Cash flow information (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Supplemental Cash Flow Information [Abstract]
Interest, net*	$ 50,294,000	$ 45,870,000
Income taxes paid, net	16,520,000	46,734,000
AFUDC borrowed	1,300,000	816,000
Right-of-use assets obtained in exchange for new operating lease liabilities	18,907,000	17,224,000	$ 55,987,000
Property, plant and equipment additions in accounts payable	46,295,000	31,886,000	57,605,000
Debt assumed in connection with a business combination	$ 0	$ 0	$ 10,000

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Business segment data (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Revenues	$ 1,720,921		$ 1,423,657		$ 3,137,480	$ 2,651,595
Operating income	120,570		137,689		187,912	222,853
Income from continuing operations	70,632		100,171		102,365	152,287
Discontinued operations, net of tax	35		19		65	34
Net income	70,667	$ 31,763	100,190	$ 52,131	102,430	152,321
Electric
Segment Reporting Information [Line Items]
Revenues	85,461		83,650		179,056	168,324
Operating income	8,325		12,806		23,369	26,672
Natural gas distribution
Segment Reporting Information [Line Items]
Revenues	210,440		153,788		660,858	503,994
Operating income	(638)		3,601		55,617	57,173
Pipeline
Segment Reporting Information [Line Items]
Revenues	29,813		27,773		40,932	37,685
Operating income	12,602		11,076		24,484	23,612
Construction materials and contracting
Segment Reporting Information [Line Items]
Revenues	711,613		633,674		1,021,448	899,333
Operating income	54,354		72,452		9,749	37,563
Construction services
Segment Reporting Information [Line Items]
Revenues	683,594		524,744		1,235,186	1,042,214
Operating income	46,141		37,774		75,639	78,051
Other
Segment Reporting Information [Line Items]
Revenues	0		28		0	45
Operating income	(214)		(20)		(946)	(218)
Intersegment eliminations
Segment Reporting Information [Line Items]
Revenues	(14,449)		(12,440)		(46,179)	(43,375)
Intersegment eliminations | Electric
Segment Reporting Information [Line Items]
Revenues	(124)		(136)		(247)	(271)
Intersegment eliminations | Natural gas distribution
Segment Reporting Information [Line Items]
Revenues	(141)		(142)		(277)	(284)
Intersegment eliminations | Pipeline
Segment Reporting Information [Line Items]
Revenues	(7,792)		(7,862)		(33,734)	(34,092)
Intersegment eliminations | Construction materials and contracting
Segment Reporting Information [Line Items]
Revenues	(200)		(142)		(330)	(204)
Intersegment eliminations | Construction services
Segment Reporting Information [Line Items]
Revenues	(1,803)		(797)		(2,861)	(1,839)
Intersegment eliminations | Other
Segment Reporting Information [Line Items]
Revenues	(4,389)		(3,361)		(8,730)	(6,685)
Total intersegment operating revenues
Segment Reporting Information [Line Items]
Revenues	0		0		0	0
Regulated operation
Segment Reporting Information [Line Items]
Revenues	323,457		260,568		876,913	702,951
Income from continuing operations	4,294		17,686		59,844	73,808
Regulated operation | Electric
Segment Reporting Information [Line Items]
Revenues	85,461		83,650		179,056	168,324
Income from continuing operations	4,601		10,304		15,880	21,054
Regulated operation | Natural gas distribution
Segment Reporting Information [Line Items]
Revenues	210,440		153,788		660,858	503,994
Income from continuing operations	(7,498)		(707)		28,817	35,471
Regulated operation | Pipeline
Segment Reporting Information [Line Items]
Revenues	27,556		23,130		36,999	30,633
Income from continuing operations	7,191		8,089		15,147	17,283
Regulated operation | Intersegment eliminations
Segment Reporting Information [Line Items]
Revenues	7,669		7,973		33,862	34,240
Regulated operation | Intersegment eliminations | Electric
Segment Reporting Information [Line Items]
Revenues	124		136		247	271
Regulated operation | Intersegment eliminations | Natural gas distribution
Segment Reporting Information [Line Items]
Revenues	141		142		277	284
Regulated operation | Intersegment eliminations | Pipeline
Segment Reporting Information [Line Items]
Revenues	7,404		7,695		33,338	33,685
Nonregulated operation
Segment Reporting Information [Line Items]
Revenues	1,397,464		1,163,089		2,260,567	1,948,644
Income from continuing operations	66,338		82,485		42,521	78,479
Nonregulated operation | Pipeline
Segment Reporting Information [Line Items]
Revenues	2,257		4,643		3,933	7,052
Income from continuing operations	(60)		1,106		(679)	810
Nonregulated operation | Construction materials and contracting
Segment Reporting Information [Line Items]
Revenues	711,613		633,674		1,021,448	899,333
Income from continuing operations	32,584		51,396		(7,427)	20,584
Nonregulated operation | Construction services
Segment Reporting Information [Line Items]
Revenues	683,594		524,744		1,235,186	1,042,214
Income from continuing operations	34,454		28,885		55,778	58,709
Nonregulated operation | Other
Segment Reporting Information [Line Items]
Revenues	0		28		0	45
Income from continuing operations	(640)		1,098		(5,151)	(1,624)
Nonregulated operation | Intersegment eliminations
Segment Reporting Information [Line Items]
Revenues	6,780		4,467		12,317	9,135
Nonregulated operation | Intersegment eliminations | Pipeline
Segment Reporting Information [Line Items]
Revenues	388		167		396	407
Nonregulated operation | Intersegment eliminations | Construction materials and contracting
Segment Reporting Information [Line Items]
Revenues	200		142		330	204
Nonregulated operation | Intersegment eliminations | Construction services
Segment Reporting Information [Line Items]
Revenues	1,803		797		2,861	1,839
Nonregulated operation | Intersegment eliminations | Other
Segment Reporting Information [Line Items]
Revenues	$ 4,389		$ 3,361		$ 8,730	$ 6,685

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Employee benefit plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Qualified plan | Underfunded plan | Pension benefits
Defined benefit plan disclosure, net periodic benefit cost [Line Items]
Interest cost	$ 2,631	$ 2,455	$ 5,262	$ 4,910
Expected return on assets	(4,864)	(4,894)	(9,728)	(9,788)
Amortization of net actuarial (gain) loss	1,671	2,004	3,342	4,008
Net periodic benefit cost (credit)	(562)	(435)	(1,124)	(870)
Qualified plan | Overfunded Plan | Other postretirement benefits
Defined benefit plan disclosure, net periodic benefit cost [Line Items]
Service cost	354	400	708	800
Interest cost	474	466	948	932
Expected return on assets	(1,322)	(1,275)	(2,644)	(2,550)
Amortization of prior service credit	(350)	(349)	(700)	(698)
Amortization of net actuarial (gain) loss	(54)	6	(108)	12
Net periodic benefit credit, including amount capitalized	(898)	(752)	(1,796)	(1,504)
Less amount capitalized	53	44	84	83
Net periodic benefit cost (credit)	(951)	(796)	(1,880)	(1,587)
Nonqualified plan | Unfunded plan | Supplemental employee retirement plans
Defined benefit plan disclosure, net periodic benefit cost [Line Items]
Net periodic benefit cost (credit)	$ 773	$ 769	$ 1,500	$ 1,500

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IPUC (Details) - Natural gas distribution - IPUC - Intermountain Gas Co. - Subsequent Event [Member] $ in Millions	Aug. 01, 2022 USD ($)
Public Utilities, General Disclosures [Line Items]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 67.0
Public Utilities, Approved Rate Increase (Decrease), Percentage	25.20%

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MNPUC (Details 2) - MNPUC [Member] - Gas Distribution [Member] - Great Plains Natural Gas Co. [Member] - Pending Rate Case [Member] - USD ($) $ in Millions	Jun. 01, 2022	Sep. 01, 2021
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 8.8
Depreciation and Amortization Requested Rate Increase (Decrease), Amount	$ (1.2)
Depreciation and Amortization, Rate, Percent	4.50%
Depreciation and Amortization, Requested Rate, Percent	2.80%

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NDPSC (Details 3) - Electric - NDPSC [Member] - Montana-Dakota Utilities Co. [Member] - USD ($) $ in Millions	Jul. 15, 2022	Jul. 14, 2022	May 16, 2022
Pending Rate Case [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount			$ 25.4
Public Utilities, Requested Rate Increase (Decrease), Percentage			12.30%
Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Interim Rate Increase (Decrease), Amount		$ 10.9
Public Utilities, Interim Rate Increase (Decrease), Percentage		5.30%
Subsequent Event [Member] | Pending Rate Case [Member]
Public Utilities, General Disclosures [Line Items]
Total Transmission Cost Adjustment Rider	$ 12.9
Public Utilities, Requested Rate Increase (Decrease), Amount	$ (1.6)

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SDPUC (Details 4) - SDPUC - Electricity [Member] - Montana-Dakota Utilities Co. [Member] $ in Millions	Jun. 01, 2022 USD ($)
Public Utilities, General Disclosures [Line Items]
Total Transmission Cost Adjustment Rider	$ 2.5
Transmission Capital Projects Increase (Decrease)	$ 1.5

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WUTC (Details 5) - Pending Rate Case [Member] - WUTC [Member] - Cascade Natural Gas [Member] - USD ($) $ in Millions	Jun. 01, 2022	Mar. 24, 2022	Mar. 22, 2022	Sep. 30, 2021
Gas Distribution [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 3.3		$ 13.7
Public Utilities, Requested Rate Increase (Decrease), Percentage				5.10%
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount			$ 10.7
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage			4.00%
Pipeline Cost Recovery Mechanism
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount	$ 2.6
Public Utilities, Requested Rate Increase (Decrease), Percentage	0.90%

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Litigation (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Loss Contingencies [Line Items]
Potential liabilities related to litigation and environmental matters	$ 28.2	$ 37.0	$ 30.8
Insurance Receivable	5.9	14.1	6.9
Regulatory Assets	$ 20.9	$ 21.2	$ 21.2

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Guarantees (Details 2)	Jun. 30, 2022 USD ($)
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted	$ 276,000,000
Fixed maximum amounts guaranteed by year 2022	21,800,000
Fixed maximum amounts guaranteed by year 2023	82,000,000
Fixed maximum amounts guaranteed by year 2024	160,600,000
Fixed maximum amounts guaranteed by year 2025	900,000
Fixed maximum amounts guaranteed by year 2026	900,000
Fixed maximum amounts guaranteed, thereafter	800,000
No scheduled maturity date	9,000,000
Amount outstanding under guarantees that is reflected on balance sheet	0
Letters of credit	28,200,000
Letters of credit set to expire - 2022	27,600,000
Letters of credit set to expire - 2023	600,000
Outstanding letters of credit	0
Amount of surety bonds outstanding	$ 1,200,000,000

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Variable interest entities (Details 3) $ in Millions	Jun. 30, 2022 USD ($)
Fuel contract
Variable Interest Entities [Line Items]
Variable interest entity, reporting entity involvement, maximum loss exposure, amount	$ 30.5