QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated Filer | ☐ | |||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
Emerging Growth Company |
Index | |||||
Page | |||||
Abbreviation or Acronym | |||||
2022 Annual Report | Company's Annual Report on Form 10-K for the year ended December 31, 2022 | ||||
AFUDC | Allowance for funds used during construction | ||||
ASC | FASB Accounting Standards Codification | ||||
ASU | FASB Accounting Standards Update | ||||
Big Stone Station | 475-MW coal-fired electric generating facility near Big Stone City, South Dakota (22.7 percent ownership) | ||||
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. | ||||
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) | ||||
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 | ||||
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 | ||||
Grasslands Subsystem | A portion of WBI Energy Transmission's natural gas pipeline that runs from western North Dakota to north central Wyoming | ||||
Intermountain | Intermountain Gas Company, an indirect wholly owned subsidiary of MDU Energy Capital | ||||
IPUC | Idaho Public Utilities Commission | ||||
IRA | Inflation Reduction Act of 2022 | ||||
IRS | Internal Revenue Service | ||||
Knife River | Knife River Corporation, a direct wholly owned subsidiary of Centennial | ||||
Knife River Holding Company | A wholly owned subsidiary of the Company that was established in conjunction with the proposed separation of Knife River | ||||
kWh | Kilowatt-hour | ||||
kV | Kilovolt | ||||
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 | ||||
Montana-Dakota | Montana-Dakota Utilities Co., a direct wholly owned subsidiary of MDU Energy Capital |
MTPSC | Montana Public Service Commission | ||||
MW | Megawatt | ||||
NDDEQ | North Dakota Department of Environmental Quality | ||||
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 | ||||
Securities Act | Securities Act of 1933, as amended | ||||
SOFR | Secured Overnight Financing Rate | ||||
UA | United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States of America and Canada | ||||
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 Energy Transmission | WBI Energy Transmission, 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 |
MDU Resources Group, Inc. | ||||||||
Consolidated Statements of Income | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands, except per share amounts) | ||||||||
Operating revenues: | ||||||||
Electric, natural gas distribution and regulated pipeline | $ | $ | ||||||
Non-regulated pipeline, construction materials and contracting, construction services and other | ||||||||
Total operating revenues | ||||||||
Operating expenses: | ||||||||
Operation and maintenance: | ||||||||
Electric, natural gas distribution and regulated pipeline | ||||||||
Non-regulated pipeline, construction materials and contracting, construction services and other | ||||||||
Total operation and maintenance | ||||||||
Purchased natural gas sold | ||||||||
Depreciation, depletion and amortization | ||||||||
Taxes, other than income | ||||||||
Electric fuel and purchased power | ||||||||
Total operating expenses | ||||||||
Operating income | ||||||||
Other income (expense) | ( | |||||||
Interest expense | ||||||||
Income before income taxes | ||||||||
Income taxes | ||||||||
Income from continuing operations | ||||||||
Discontinued operations, net of tax | ||||||||
Net income | $ | $ | ||||||
Earnings per share - basic: | ||||||||
Income from continuing operations | $ | $ | ||||||
Discontinued operations, net of tax | ||||||||
Earnings per share - basic | $ | $ | ||||||
Earnings per share - diluted: | ||||||||
Income from continuing operations | $ | $ | ||||||
Discontinued operations, net of tax | ||||||||
Earnings per share - diluted | $ | $ | ||||||
Weighted average common shares outstanding - basic | ||||||||
Weighted average common shares outstanding - diluted |
MDU Resources Group, Inc. | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(In thousands) | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income: | |||||||||||
Reclassification adjustment for loss on derivative instruments included in net income, net of tax of $ | |||||||||||
Postretirement liability adjustment: | |||||||||||
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax of $ | |||||||||||
Net unrealized gain (loss) on available-for-sale investments: | |||||||||||
Net unrealized gain (loss) on available-for-sale investments arising during the period, net of tax of $ | ( | ||||||||||
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax of $ | |||||||||||
Net unrealized gain (loss) on available-for-sale investments | ( | ||||||||||
Other comprehensive income | |||||||||||
Comprehensive income attributable to common stockholders | $ | $ |
MDU Resources Group, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||
Assets | (In thousands, except shares and per share amounts) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Current regulatory assets | |||||||||||
Prepayments and other current assets | |||||||||||
Total current assets | |||||||||||
Noncurrent assets: | |||||||||||
Property, plant and equipment | |||||||||||
Less accumulated depreciation, depletion and amortization | |||||||||||
Net property, plant and equipment | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Regulatory assets | |||||||||||
Investments | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other | |||||||||||
Total noncurrent assets | |||||||||||
Total assets | $ | $ | $ | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings | $ | $ | $ | ||||||||
Long-term debt due within one year | |||||||||||
Accounts payable | |||||||||||
Taxes payable | |||||||||||
Dividends payable | |||||||||||
Accrued compensation | |||||||||||
Operating lease liabilities due within one year | |||||||||||
Regulatory liabilities due within one year | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Noncurrent liabilities: | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Asset retirement obligations | |||||||||||
Regulatory liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Other | |||||||||||
Total noncurrent liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Common stock Authorized - Shares issued - March 31, 2022 and | |||||||||||
Other paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||
Treasury stock at cost - | ( | ( | ( | ||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ | $ |
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, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | — | — | ( | — | — | ( | ||||||||||||||||||||
At March 31, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
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 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | — | — | ( | — | — | ( | ||||||||||||||||||||
Issuance of common stock | — | — | ( | — | — | — | — | ( | ||||||||||||||||||
At March 31, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
MDU Resources Group, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Operating activities: | ||||||||
Net income | $ | $ | ||||||
Discontinued operations, net of tax | ||||||||
Income from continuing operations | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation, depletion and amortization | ||||||||
Deferred income taxes | ( | |||||||
Provision for credit losses | ||||||||
Amortization of debt issuance costs | ||||||||
Employee stock-based compensation costs | ||||||||
Pension and postretirement benefit plan net periodic benefit credit | ( | ( | ||||||
Unrealized (gains) losses on investments | ( | |||||||
Gains on sales of assets | ( | ( | ||||||
Changes in current assets and liabilities, net of acquisitions: | ||||||||
Receivables | ( | |||||||
Inventories | ( | ( | ||||||
Other current assets | ( | |||||||
Accounts payable | ( | |||||||
Other current liabilities | ||||||||
Pension and postretirement benefit plan contributions | ( | ( | ||||||
Other noncurrent changes | ( | |||||||
Net cash provided by (used in) continuing operations | ( | |||||||
Net cash provided by (used in) discontinued operations | ( | |||||||
Net cash provided by (used in) operating activities | ( | |||||||
Investing activities: | ||||||||
Capital expenditures | ( | ( | ||||||
Acquisitions, net of cash acquired | ( | |||||||
Net proceeds from sale or disposition of property and other | ||||||||
Investments | ( | ( | ||||||
Net cash used in investing activities | ( | ( | ||||||
Financing activities: | ||||||||
Issuance of short-term borrowings | ||||||||
Repayment of short-term borrowings | ( | |||||||
Issuance of long-term debt | ||||||||
Repayment of long-term debt | ( | ( | ||||||
Debt issuance costs | ( | ( | ||||||
Net proceeds from issuance of common stock | ( | |||||||
Dividends paid | ( | ( | ||||||
Repurchase of common stock | ( | ( | ||||||
Tax withholding on stock-based compensation | ( | ( | ||||||
Net cash provided by financing activities | ||||||||
Increase in cash and cash equivalents | ||||||||
Cash and cash equivalents -- beginning of year | ||||||||
Cash and cash equivalents -- end of period | $ | $ |
Standard | Description | Effective date | Impact on financial statements/disclosures | ||||||||
Recently adopted accounting standards | |||||||||||
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 | For more information, see ASU 2022-06 - Reference Rate Reform: Deferral of Sunset Date in recently issued accounting standards not yet adopted. | ||||||||
Recently issued accounting standards not yet adopted | |||||||||||
ASU 2022-06 - Reference Rate Reform: Deferral of Sunset Date | In December 2022, the FASB included a sunset provision within ASC 848 based on expectations of when LIBOR would cease being published. At the time ASU 2020-04 was issued, the UK Financial Conduct Authority had established its intent to cease overnight tenors of LIBOR after December 31, 2021. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of the overnight tenors of LIBOR would be June 30, 2023 which is beyond the current sunset date of ASC 848. The amendments in this Update defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in ASC 848. | December 31, 2024 | 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. |
Electric | Natural gas distribution | Pipeline | Construction materials and contracting | Construction services | Total | |||||||||||||||
(In thousands) | ||||||||||||||||||||
At December 31, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||
Current expected credit loss provision | ||||||||||||||||||||
Less write-offs charged against the allowance | ||||||||||||||||||||
Credit loss recoveries collected | ||||||||||||||||||||
At March 31, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||
Electric | Natural gas distribution | Pipeline | Construction materials and contracting | Construction services | Total | |||||||||||||||
(In thousands) | ||||||||||||||||||||
At December 31, 2021 | $ | $ | $ | $ | $ | $ | ||||||||||||||
Current expected credit loss provision | ( | |||||||||||||||||||
Less write-offs charged against the allowance | ||||||||||||||||||||
Credit loss recoveries collected | ||||||||||||||||||||
At March 31, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||
(In thousands) | |||||||||||
Aggregates held for resale | $ | $ | $ | ||||||||
Asphalt oil | |||||||||||
Materials and supplies | |||||||||||
Merchandise for resale | |||||||||||
Natural gas in storage (current) | |||||||||||
Other | |||||||||||
Total | $ | $ | $ |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands, except per share amounts) | ||||||||
Weighted average common shares outstanding - basic | ||||||||
Effect of dilutive performance share awards and restricted stock units | ||||||||
Weighted average common shares outstanding - diluted | ||||||||
Shares excluded from the calculation of diluted earnings per share | ||||||||
Dividends declared per common share | $ | $ |
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, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||
Net current-period other comprehensive income | ||||||||||||||
At March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
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 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive loss before reclassifications | ( | ( | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||
At March 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Location on Consolidated Statements of Income | ||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(In thousands) | |||||||||||
Reclassification adjustment for loss on derivative instruments included in net income | $ | ( | $ | ( | Interest expense | ||||||
Income taxes | |||||||||||
( | ( | ||||||||||
Amortization of postretirement liability losses included in net periodic benefit credit | ( | ( | Other income | ||||||||
Income taxes | |||||||||||
( | ( | ||||||||||
Reclassification adjustment on available-for-sale investments included in net income | ( | ( | Other income | ||||||||
Income taxes | |||||||||||
( | ( | ||||||||||
Total reclassifications | $ | ( | $ | ( |
Three Months Ended March 31, 2023 | Electric | Natural gas distribution | Pipeline | Construction materials and contracting | Construction services | Other | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Residential utility sales | $ | $ | $ | — | $ | — | $ | — | $ | — | $ | ||||||||||||
Commercial utility sales | — | — | — | — | |||||||||||||||||||
Industrial utility sales | — | — | — | — | |||||||||||||||||||
Other utility sales | — | — | — | — | |||||||||||||||||||
Natural gas transportation | — | — | — | — | |||||||||||||||||||
Natural gas storage | — | — | — | — | — | ||||||||||||||||||
Contracting services | — | — | — | — | — | ||||||||||||||||||
Construction materials | — | — | — | — | — | ||||||||||||||||||
Intrasegment eliminations | — | — | — | ( | — | — | ( | ||||||||||||||||
Electrical & mechanical specialty contracting | — | — | — | — | — | ||||||||||||||||||
Transmission & distribution specialty contracting | — | — | — | — | — | ||||||||||||||||||
Other | |||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Revenues from contracts with customers | |||||||||||||||||||||||
Revenues out of scope | ( | ( | |||||||||||||||||||||
Total external operating revenues | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2022 | Electric | Natural gas distribution | Pipeline | Construction materials and contracting | Construction services | Other | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Residential utility sales | $ | $ | $ | — | $ | — | $ | — | $ | — | $ | ||||||||||||
Commercial utility sales | — | — | — | — | |||||||||||||||||||
Industrial utility sales | — | — | — | — | |||||||||||||||||||
Other utility sales | — | — | — | — | |||||||||||||||||||
Natural gas transportation | — | — | — | — | |||||||||||||||||||
Natural gas storage | — | — | — | — | — | ||||||||||||||||||
Contracting services | — | — | — | — | — | ||||||||||||||||||
Construction materials | — | — | — | — | — | ||||||||||||||||||
Intrasegment eliminations | — | — | — | ( | — | — | ( | ||||||||||||||||
Electrical & mechanical specialty contracting | — | — | — | — | — | ||||||||||||||||||
Transmission & distribution specialty contracting | — | — | — | — | — | ||||||||||||||||||
Other | |||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Revenues from contracts with customers | |||||||||||||||||||||||
Revenues out of scope | ( | ||||||||||||||||||||||
Total external operating revenues | $ | $ | $ | $ | $ | $ | $ |
March 31, 2023 | December 31, 2022 | Change | Location on Consolidated Balance Sheets | |||||||||||
(In thousands) | ||||||||||||||
Contract assets | $ | $ | $ | Receivables, net | ||||||||||
Contract liabilities - current | ( | ( | Accounts payable | |||||||||||
Contract liabilities - noncurrent | ( | ( | ( | Noncurrent liabilities - other | ||||||||||
Net contract assets (liabilities) | $ | $ | ( | $ |
Balance at January 1, 2023 | Goodwill Acquired During the Year | Measurement Period Adjustments | Balance at March 31, 2023 | |||||||||||
(In thousands) | ||||||||||||||
Natural gas distribution | $ | $ | $ | $ | ||||||||||
Construction materials and contracting | ||||||||||||||
Construction services | ||||||||||||||
Total | $ | $ | $ | $ |
Balance at January 1, 2022 | Goodwill Acquired During the Year | Measurement Period Adjustments | Balance at March 31, 2022 | |||||||||||
(In thousands) | ||||||||||||||
Natural gas distribution | $ | $ | $ | $ | ||||||||||
Construction materials and contracting | ( | |||||||||||||
Construction services | ||||||||||||||
Total | $ | $ | $ | ( | $ |
Balance at January 1, 2022 | Goodwill Acquired During the Year | Measurement Period Adjustments | Balance at December 31, 2022 | |||||||||||
(In thousands) | ||||||||||||||
Natural gas distribution | $ | $ | $ | $ | ||||||||||
Construction materials and contracting | ( | |||||||||||||
Construction services | ||||||||||||||
Total | $ | $ | $ | ( | $ |
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||
(In thousands) | |||||||||||
Customer relationships | $ | $ | $ | ||||||||
Less accumulated amortization | |||||||||||
Noncompete agreements | |||||||||||
Less accumulated amortization | |||||||||||
Other | |||||||||||
Less accumulated amortization | |||||||||||
Total | $ | $ | $ |
Remainder of 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Amortization expense | $ | $ | $ | $ | $ | $ |
Estimated Recovery or Refund Period as of March 31, 2023 | * | March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||||||
(In thousands) | |||||||||||||||||
Regulatory assets: | |||||||||||||||||
Current: | |||||||||||||||||
Natural gas costs recoverable through rate adjustments | $ | $ | $ | ||||||||||||||
Conservation programs | |||||||||||||||||
Cost recovery mechanisms | |||||||||||||||||
Other | |||||||||||||||||
Noncurrent: | |||||||||||||||||
Pension and postretirement benefits | |||||||||||||||||
Cost recovery mechanisms | |||||||||||||||||
Plant costs/asset retirement obligations | |||||||||||||||||
Manufactured gas plant site remediation | |||||||||||||||||
Environmental compliance programs | |||||||||||||||||
Plant to be retired | |||||||||||||||||
Taxes recoverable from customers | |||||||||||||||||
Long-term debt refinancing costs | |||||||||||||||||
Other | |||||||||||||||||
Total regulatory assets | $ | $ | $ | ||||||||||||||
Regulatory liabilities: | |||||||||||||||||
Current: | |||||||||||||||||
Electric fuel and purchased power deferral | |||||||||||||||||
Natural gas costs refundable through rate adjustments | |||||||||||||||||
Conservation programs | |||||||||||||||||
Cost recovery mechanisms | |||||||||||||||||
Taxes refundable to customers | |||||||||||||||||
Refundable fuel and electric costs | |||||||||||||||||
Other | |||||||||||||||||
Noncurrent: | |||||||||||||||||
Plant removal and decommissioning costs | |||||||||||||||||
Taxes refundable to customers | |||||||||||||||||
Cost recovery mechanisms | |||||||||||||||||
Accumulated deferred investment tax credit | |||||||||||||||||
Pension and postretirement benefits | |||||||||||||||||
Other | |||||||||||||||||
Total regulatory liabilities | $ | $ | $ | ||||||||||||||
Net regulatory position | $ | $ | ( | $ |
March 31, 2023 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
(In thousands) | ||||||||||||||
Mortgage-backed securities | $ | $ | $ | $ | ||||||||||
U.S. Treasury securities | ||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2022 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
(In thousands) | ||||||||||||||
Mortgage-backed securities | $ | $ | $ | $ | ||||||||||
U.S. Treasury securities | ||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2022 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
(In thousands) | ||||||||||||||
Mortgage-backed securities | $ | $ | $ | $ | ||||||||||
U.S. Treasury securities | ||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements at March 31, 2023, Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at March 31, 2023 | |||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Money market funds | $ | — | $ | $ | — | $ | ||||||||
Insurance contracts* | — | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||
Mortgage-backed securities | — | — | ||||||||||||
U.S. Treasury securities | — | — | ||||||||||||
Total assets measured at fair value | $ | — | $ | $ | — | $ | ||||||||
Fair Value Measurements at March 31, 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 March 31, 2022 | |||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Money market funds | $ | — | $ | $ | — | $ | ||||||||
Insurance contracts* | — | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||
Mortgage-backed securities | — | — | ||||||||||||
U.S. Treasury securities | — | — | ||||||||||||
Total assets measured at fair value | $ | — | $ | $ | — | $ | ||||||||
Fair Value Measurements at December 31, 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 December 31, 2022 | |||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Money market funds | $ | — | $ | $ | — | $ | ||||||||
Insurance contracts* | — | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||
Mortgage-backed securities | — | — | ||||||||||||
U.S. Treasury securities | — | — | ||||||||||||
Total assets measured at fair value | $ | — | $ | $ | — | $ | ||||||||
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||
(In thousands) | |||||||||||
Carrying amount | $ | $ | $ | ||||||||
Fair value | $ | $ | $ |
Weighted Average Interest Rate at March 31, 2023 | March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||||
(In thousands) | ||||||||||||||
Senior Notes due on dates ranging from May 15, 2023 to June 15, 2062 | % | $ | $ | $ | ||||||||||
Commercial paper supported by revolving credit agreements | % | |||||||||||||
Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029 | % | |||||||||||||
Credit agreements due on dates ranging from December 19, 2024 to November 30, 2027 | % | |||||||||||||
Term Loan Agreement due on September 3, 2032 | % | |||||||||||||
Other notes due on dates ranging from January 1, 2024 to January 1, 2061 | % | |||||||||||||
Less unamortized debt issuance costs | ||||||||||||||
Less discount | ||||||||||||||
Total long-term debt | ||||||||||||||
Less current maturities | ||||||||||||||
Net long-term debt | $ | $ | $ |
Remainder of 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-term debt maturities | $ | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Interest, net* | $ | $ | ||||||
Income taxes paid (refunded), net | $ | $ | ( |
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||
(In thousands) | |||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ | $ | ||||||||
Property, plant and equipment additions in accounts payable | $ | $ | $ | ||||||||
Accrual for holdback payment related to a business combination | $ | $ | $ | ||||||||
Stock issued in connection with a business combination | $ | $ | $ |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
External operating revenues: | ||||||||
Regulated operations: | ||||||||
Electric | $ | $ | ||||||
Natural gas distribution | ||||||||
Pipeline | ||||||||
Non-regulated operations: | ||||||||
Pipeline | ||||||||
Construction materials and contracting | ||||||||
Construction services | ||||||||
Other | ||||||||
Total external operating revenues | $ | $ | ||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Intersegment operating revenues: | ||||||||
Regulated operations: | ||||||||
Electric | $ | $ | ||||||
Natural gas distribution | ||||||||
Pipeline | ||||||||
Non-regulated operations: | ||||||||
Pipeline | ||||||||
Construction materials and contracting | ||||||||
Construction services | ||||||||
Other | ||||||||
Total intersegment operating revenues | $ | $ | ||||||
Operating income (loss): | ||||||||
Electric | $ | $ | ||||||
Natural gas distribution | ||||||||
Pipeline | ||||||||
Construction materials and contracting | ( | ( | ||||||
Construction services | ||||||||
Other | ( | ( | ||||||
Total operating income | $ | $ | ||||||
Net income (loss): | ||||||||
Regulated operations: | ||||||||
Electric | $ | $ | ||||||
Natural gas distribution | ||||||||
Pipeline | ||||||||
Non-regulated operations: | ||||||||
Pipeline | ( | ( | ||||||
Construction materials and contracting | ( | ( | ||||||
Construction services | ||||||||
Other | ( | ( | ||||||
( | ( | |||||||
Income from continuing operations | ||||||||
Discontinued operations, net of tax | ||||||||
Net income | $ | $ |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Operating revenues reconciliation: | ||||||||
Total reportable segment operating revenues | $ | $ | ||||||
Other revenue | ||||||||
Elimination of intersegment operating revenues | ( | ( | ||||||
Total consolidated operating revenues | $ | $ |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Components of net periodic benefit credit: | ||||||||
Interest cost | $ | $ | ||||||
Expected return on assets | ( | ( | ||||||
Amortization of net actuarial loss | ||||||||
Net periodic benefit credit | $ | ( | $ | ( |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Components of net periodic benefit credit: | ||||||||
Service cost | $ | $ | ||||||
Interest cost | ||||||||
Expected return on assets | ( | ( | ||||||
Amortization of prior service credit | ( | ( | ||||||
Amortization of net actuarial gain | ( | ( | ||||||
Net periodic benefit credit, including amount capitalized | ( | ( | ||||||
Less amount capitalized | ||||||||
Net periodic benefit credit | $ | ( | $ | ( |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In millions, except per share amounts) | ||||||||
Electric | $ | 16.6 | $ | 11.3 | ||||
Natural gas distribution | 38.9 | 36.3 | ||||||
Pipeline | 8.3 | 7.3 | ||||||
Construction materials and contracting | (41.3) | (40.0) | ||||||
Construction services | 26.1 | 21.3 | ||||||
Other | (10.3) | (4.5) | ||||||
Income from continuing operations | 38.3 | 31.7 | ||||||
Discontinued operations, net of tax | — | — | ||||||
Net income | $ | 38.3 | $ | 31.7 | ||||
Earnings per share - basic: | ||||||||
Income from continuing operations | $ | .19 | $ | .16 | ||||
Discontinued operations, net of tax | — | — | ||||||
Earnings per share - basic | $ | .19 | $ | .16 | ||||
Earnings per share - diluted: | ||||||||
Income from continuing operations | $ | .19 | $ | .16 | ||||
Discontinued operations, net of tax | — | — | ||||||
Earnings per share - diluted | $ | .19 | $ | .16 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 95.7 | $ | 93.7 | 2 | % | |||||
Operating expenses: | |||||||||||
Electric fuel and purchased power | 24.4 | 26.3 | (7) | % | |||||||
Operation and maintenance | 29.9 | 30.8 | (3) | % | |||||||
Depreciation, depletion and amortization | 15.6 | 16.9 | (8) | % | |||||||
Taxes, other than income | 4.7 | 4.6 | 2 | % | |||||||
Total operating expenses | 74.6 | 78.6 | (5) | % | |||||||
Operating income | 21.1 | 15.1 | 40 | % | |||||||
Other income (expense) | 1.2 | (.3) | 500 | % | |||||||
Interest expense | 6.8 | 7.1 | (4) | % | |||||||
Income before income taxes | 15.5 | 7.7 | 101 | % | |||||||
Income tax benefit | (1.1) | (3.6) | (69) | % | |||||||
Net income | $ | 16.6 | $ | 11.3 | 47 | % |
Operating statistics | Three Months Ended | |||||||
March 31, | ||||||||
2023 | 2022 | |||||||
Revenues (millions) | ||||||||
Retail sales: | ||||||||
Residential | $ | 36.2 | $ | 35.2 | ||||
Commercial | 34.8 | 33.6 | ||||||
Industrial | 10.4 | 9.8 | ||||||
Other | 1.7 | 1.6 | ||||||
83.1 | 80.2 | |||||||
Transportation and other | 12.6 | 13.5 | ||||||
$ | 95.7 | $ | 93.7 | |||||
Volumes (million kWh) | ||||||||
Retail sales: | ||||||||
Residential | 357.3 | 357.7 | ||||||
Commercial | 385.5 | 364.1 | ||||||
Industrial | 147.3 | 140.3 | ||||||
Other | 20.2 | 19.5 | ||||||
910.3 | 881.6 | |||||||
Average cost of electric fuel and purchased power per kWh | $ | .025 | $ | .027 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 565.7 | $ | 450.6 | 26 | % | |||||
Operating expenses: | |||||||||||
Purchased natural gas sold | 397.3 | 293.3 | 35 | % | |||||||
Operation and maintenance | 57.2 | 54.1 | 6 | % | |||||||
Depreciation, depletion and amortization | 23.2 | 22.2 | 5 | % | |||||||
Taxes, other than income | 29.5 | 24.7 | 19 | % | |||||||
Total operating expenses | 507.2 | 394.3 | 29 | % | |||||||
Operating income | 58.5 | 56.3 | 4 | % | |||||||
Other income (expense) | 4.9 | (.4) | 1325 | % | |||||||
Interest expense | 14.1 | 9.5 | 48 | % | |||||||
Income before income taxes | 49.3 | 46.4 | 6 | % | |||||||
Income tax expense | 10.4 | 10.1 | 3 | % | |||||||
Net income | $ | 38.9 | $ | 36.3 | 7 | % |
Operating statistics | Three Months Ended | |||||||
March 31, | ||||||||
2023 | 2022 | |||||||
Revenues (millions) | ||||||||
Retail sales: | ||||||||
Residential | $ | 325.3 | $ | 258.6 | ||||
Commercial | 202.9 | 162.7 | ||||||
Industrial | 16.7 | 13.0 | ||||||
544.9 | 434.3 | |||||||
Transportation and other | 20.8 | 16.3 | ||||||
$ | 565.7 | $ | 450.6 | |||||
Volumes (MMdk) | ||||||||
Retail sales: | ||||||||
Residential | 32.3 | 31.0 | ||||||
Commercial | 21.4 | 20.5 | ||||||
Industrial | 1.9 | 1.8 | ||||||
55.6 | 53.3 | |||||||
Transportation sales: | ||||||||
Commercial | .7 | .7 | ||||||
Industrial | 48.8 | 41.0 | ||||||
49.5 | 41.7 | |||||||
Total throughput | 105.1 | 95.0 | ||||||
Average cost of natural gas per dk | $ | 7.15 | $ | 5.50 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 40.8 | $ | 37.1 | 10 | % | |||||
Operating expenses: | |||||||||||
Operation and maintenance | 17.5 | 15.4 | 14 | % | |||||||
Depreciation, depletion and amortization | 6.9 | 6.3 | 10 | % | |||||||
Taxes, other than income | 3.3 | 3.5 | (6) | % | |||||||
Total operating expenses | 27.7 | 25.2 | 10 | % | |||||||
Operating income | 13.1 | 11.9 | 10 | % | |||||||
Other income | .7 | .1 | 600 | % | |||||||
Interest expense | 3.3 | 2.5 | 32 | % | |||||||
Income before income taxes | 10.5 | 9.5 | 11 | % | |||||||
Income tax expense | 2.2 | 2.2 | — | % | |||||||
Net income | $ | 8.3 | $ | 7.3 | 13 | % |
Operating statistics | Three Months Ended | |||||||
March 31, | ||||||||
2023 | 2022 | |||||||
Transportation volumes (MMdk) | 129.7 | 110.5 | ||||||
Customer natural gas storage balance (MMdk): | ||||||||
Beginning of period | 21.2 | 23.0 | ||||||
Net withdrawal | (12.2) | (20.2) | ||||||
End of period | 9.0 | 2.8 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 307.9 | $ | 310.0 | (1) | % | |||||
Cost of sales: | |||||||||||
Operation and maintenance | 265.8 | 271.6 | (2) | % | |||||||
Depreciation, depletion and amortization | 28.4 | 27.3 | 4 | % | |||||||
Taxes, other than income | 9.6 | 10.0 | (4) | % | |||||||
Total cost of sales | 303.8 | 308.9 | (2) | % | |||||||
Gross profit | 4.1 | 1.1 | 273 | % | |||||||
Selling, general and administrative expense: | |||||||||||
Operation and maintenance | 43.6 | 40.7 | 7 | % | |||||||
Depreciation, depletion and amortization | 1.2 | 1.1 | 9 | % | |||||||
Taxes, other than income | 3.9 | 3.9 | — | % | |||||||
Total selling, general and administrative expense | 48.7 | 45.7 | 7 | % | |||||||
Operating loss | (44.6) | (44.6) | — | % | |||||||
Other income (expense) | .9 | (2.0) | 145 | % | |||||||
Interest expense | 9.5 | 5.2 | 83 | % | |||||||
Loss before income taxes | (53.2) | (51.8) | 3 | % | |||||||
Income tax benefit | (11.9) | (11.8) | 1 | % | |||||||
Net loss | $ | (41.3) | $ | (40.0) | 3 | % |
Operating statistics | Revenues | Gross profit | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(In millions) | |||||||||||||||||
Aggregates | $ | 83.5 | $ | 77.6 | $ | 2.3 | $ | .4 | |||||||||
Ready-mix concrete | 96.8 | 108.5 | 8.8 | 9.3 | |||||||||||||
Asphalt | 13.6 | 18.1 | (6.0) | (5.2) | |||||||||||||
Other products* | 38.6 | 37.5 | (6.3) | (11.7) | |||||||||||||
Contracting services | 115.0 | 114.3 | 5.3 | 8.3 | |||||||||||||
Intracompany eliminations | (39.6) | (46.0) | — | — | |||||||||||||
$ | 307.9 | $ | 310.0 | $ | 4.1 | $ | 1.1 |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
Sales (thousands): | ||||||||
Aggregates (tons) | 4,868 | 4,970 | ||||||
Ready-mix concrete (cubic yards) | 561 | 734 | ||||||
Asphalt (tons) | 179 | 316 | ||||||
Average selling price: | ||||||||
Aggregates (per ton) | $ | 17.16 | $ | 15.62 | ||||
Ready-mix concrete (per cubic yard) | $ | 172.64 | $ | 147.89 | ||||
Asphalt (per ton) | $ | 76.07 | $ | 57.21 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 754.3 | $ | 552.6 | 37 | % | |||||
Cost of sales: | |||||||||||
Operation and maintenance | 653.9 | 471.1 | 39 | % | |||||||
Depreciation, depletion and amortization | 4.2 | 4.1 | 2 | % | |||||||
Taxes, other than income | 28.2 | 19.0 | 48 | % | |||||||
Total cost of sales | 686.3 | 494.2 | 39 | % | |||||||
Gross profit | 68.0 | 58.4 | 16 | % | |||||||
Selling, general and administrative expense: | |||||||||||
Operation and maintenance | 29.9 | 26.0 | 15 | % | |||||||
Depreciation, depletion and amortization | 1.3 | 1.1 | 18 | % | |||||||
Taxes, other than income | 1.6 | 1.8 | (11) | % | |||||||
Total selling, general and administrative expense | 32.8 | 28.9 | 13 | % | |||||||
Operating income | 35.2 | 29.5 | 19 | % | |||||||
Other income | 2.8 | .1 | 2700 | % | |||||||
Interest expense | 3.7 | .9 | 311 | % | |||||||
Income before income taxes | 34.3 | 28.7 | 20 | % | |||||||
Income tax expense | 8.2 | 7.4 | 11 | % | |||||||
Net income | $ | 26.1 | $ | 21.3 | 22 | % |
Operating Statistics | Revenues | Gross profit | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(In millions) | |||||||||||||||||
Electrical & mechanical | |||||||||||||||||
Commercial | $ | 346.1 | $ | 188.1 | $ | 30.0 | $ | 20.3 | |||||||||
Industrial | 127.7 | 95.0 | 13.1 | 9.8 | |||||||||||||
Institutional | 55.5 | 40.7 | 1.7 | .6 | |||||||||||||
Renewables | 11.7 | 24.9 | (.5) | 1.0 | |||||||||||||
Service & other | 52.1 | 46.5 | 5.6 | 5.7 | |||||||||||||
593.1 | 395.2 | 49.9 | 37.4 | ||||||||||||||
Transmission & distribution | |||||||||||||||||
Utility | 152.4 | 143.0 | 17.9 | 19.9 | |||||||||||||
Transportation | 12.5 | 17.9 | .2 | 1.1 | |||||||||||||
164.9 | 160.9 | 18.1 | 21.0 | ||||||||||||||
Intrasegment eliminations | (3.7) | (3.5) | — | — | |||||||||||||
$ | 754.3 | $ | 552.6 | $ | 68.0 | $ | 58.4 |
2023 | 2022 | |||||||
(In millions) | ||||||||
Electrical & mechanical | $ | 1,792 | $ | 1,388 | ||||
Transmission & distribution | 306 | 280 | ||||||
$ | 2,098 | $ | 1,668 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Operating revenues | $ | 4.7 | $ | 4.3 | 9 | % | |||||
Operating expenses: | |||||||||||
Operation and maintenance | 12.4 | 4.0 | 210 | % | |||||||
Depreciation, depletion and amortization | 1.1 | 1.1 | — | % | |||||||
Total operating expenses | 13.5 | 5.1 | 165 | % | |||||||
Operating loss | (8.8) | (.8) | 1,000 | % | |||||||
Other income | .6 | .1 | 500 | % | |||||||
Interest expense | .9 | .1 | 800 | % | |||||||
Loss before income taxes | (9.1) | (.8) | 1,038 | % | |||||||
Income tax expense | 1.2 | 3.7 | (68) | % | |||||||
Net loss | $ | (10.3) | $ | (4.5) | 127 | % |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In millions) | ||||||||
Intersegment transactions: | ||||||||
Operating revenues | $ | 31.8 | $ | 31.7 | ||||
Operation and maintenance | 5.5 | 5.8 | ||||||
Purchased natural gas sold | 26.3 | 25.9 | ||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
(In millions) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | (43.6) | $ | 112.4 | ||||
Investing activities | (151.0) | (150.7) | ||||||
Financing activities | 207.3 | 49.0 | ||||||
Increase in cash and cash equivalents | 12.7 | 10.7 | ||||||
Cash and cash equivalents -- beginning of year | 80.5 | 54.2 | ||||||
Cash and cash equivalents -- end of period | $ | 93.2 | $ | 64.9 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Components of net cash provided by (used in) operating activities: | |||||||||||
Income from continuing operations | $ | 38.3 | $ | 31.7 | $ | 6.6 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | 89.0 | 78.9 | 10.1 | ||||||||
Changes in current assets and liabilities, net of acquisitions: | |||||||||||
Receivables | 15.0 | (5.7) | 20.7 | ||||||||
Inventories | (40.9) | (44.1) | 3.2 | ||||||||
Other current assets | (58.3) | 34.5 | (92.8) | ||||||||
Accounts payable | (93.5) | 3.0 | (96.5) | ||||||||
Other current liabilities | 16.7 | 13.1 | 3.6 | ||||||||
Pension and postretirement benefit plan contributions | (.1) | (.1) | — | ||||||||
Other noncurrent changes | (9.8) | 1.1 | (10.9) | ||||||||
Net cash provided by (used in) operating activities | $ | (43.6) | $ | 112.4 | $ | (156.0) |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Components of net cash used in investing activities: | |||||||||||
Capital expenditures | $ | (154.0) | $ | (150.3) | $ | (3.7) | |||||
Acquisitions, net of cash acquired | — | (.5) | .5 | ||||||||
Net proceeds from sale or disposition of property and other | 7.2 | 4.5 | 2.7 | ||||||||
Investments | (4.2) | (4.4) | .2 | ||||||||
Net cash used in investing activities | $ | (151.0) | $ | (150.7) | $ | (.3) |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | Variance | |||||||||
(In millions) | |||||||||||
Components of net cash provided by financing activities: | |||||||||||
Issuance of short-term borrowings | $ | 275.0 | $ | 100.0 | $ | 175.0 | |||||
Repayment of short-term borrowings | (20.0) | — | (20.0) | ||||||||
Issuance of long-term debt | 175.4 | 150.0 | 25.4 | ||||||||
Repayment of long-term debt | (169.9) | (143.6) | (26.3) | ||||||||
Debt issuance costs | (.1) | (.7) | .6 | ||||||||
Net proceeds from issuance of common stock | — | (.1) | .1 | ||||||||
Dividends paid | (45.2) | (44.2) | (1.0) | ||||||||
Repurchase of common stock | (4.8) | (7.4) | 2.6 | ||||||||
Tax withholding on stock-based compensation | (3.1) | (5.0) | 1.9 | ||||||||
Net cash provided by financing activities | $ | 207.3 | $ | 49.0 | $ | 158.3 |
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 | $ | 67.6 | $ | — | 12/19/24 | |||||||||||||||||||||||
Cascade Natural Gas Corporation | Revolving credit agreement | $ | 100.0 | (b) | $ | 10.7 | $ | 2.2 | (c) | 11/30/27 | ||||||||||||||||||||||
Intermountain Gas Company | Revolving credit agreement | $ | 100.0 | (d) | $ | — | $ | — | 10/13/27 | |||||||||||||||||||||||
Centennial Energy Holdings, Inc. | Commercial paper/Revolving credit agreement | (e) | $ | 600.0 | $ | 473.4 | $ | — | 12/19/24 |
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) | ||||||||||
January 1 through January 31, 2023 | — | $ | — | — | — | |||||||||
February 1 through February 28, 2023 | 153,622 | $ | 31.32 | — | — | |||||||||
March 1 through March 31, 2023 | — | $ | — | — | — | |||||||||
Total | 153,622 | $ | 31.32 | — | — |
Exhibits Index | |||||||||||||||||||||||
Incorporated by Reference | |||||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ended | Exhibit | Filing Date | File Number | ||||||||||||||||
3(a) | 8-K | 3.2 | 5/8/19 | 1-03480 | |||||||||||||||||||
3(b) | 8-K | 3.1 | 2/15/19 | 1-03480 | |||||||||||||||||||
31(a) | X | ||||||||||||||||||||||
31(b) | X | ||||||||||||||||||||||
32 | X | ||||||||||||||||||||||
95 | 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) |
MDU RESOURCES GROUP, INC. | |||||||||||
DATE: | May 4, 2023 | 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 |
MSHA Identification Number/Contractor ID | Section 104 S&S Citations (#) | Total Dollar Value of MSHA Assessments Proposed ($) | Legal Actions Pending as of Last Day of Period (#) | Legal Actions Initiated During Period (#) | Legal Actions Resolved During Period (#) | ||||||||||||
04-00081 | — | $ | 286 | — | — | — | |||||||||||
10-02089 | 1 | 772 | — | — | — | ||||||||||||
32-00950 | — | 133 | — | — | — | ||||||||||||
35-02906 | — | 143 | — | — | — | ||||||||||||
35-02968 | 1 | 1,070 | — | — | — | ||||||||||||
35-03131 | — | 143 | — | — | — | ||||||||||||
35-03321 | — | 143 | — | — | — | ||||||||||||
35-03404 | — | 143 | — | — | — | ||||||||||||
35-03478 | — | 143 | — | — | — | ||||||||||||
35-03558 | — | 143 | — | — | — | ||||||||||||
35-03581 | — | 143 | — | — | — | ||||||||||||
35-03595 | — | 143 | — | — | — | ||||||||||||
35-03605 | 1 | 632 | — | — | — | ||||||||||||
35-03639 | — | 286 | — | — | — | ||||||||||||
35-03642 | 1 | 892 | — | — | — | ||||||||||||
39-00008 | 1 | — | — | — | — | ||||||||||||
41-03931 | — | 133 | — | — | — | ||||||||||||
41-05492 | 1 | 438 | — | — | — | ||||||||||||
48-01518 | 1 | 6,220 | — | — | — | ||||||||||||
48-01569 | — | 715 | — | — | — | ||||||||||||
48-01598 | — | 1,208 | — | — | — | ||||||||||||
51-00171 | — | 133 | — | — | — | ||||||||||||
51-00192 | — | 133 | — | — | — | ||||||||||||
51-00195 | — | 143 | — | — | — | ||||||||||||
51-00241 | — | 143 | — | — | — | ||||||||||||
51-00242 | — | 143 | — | — | — | ||||||||||||
7 | $ | 14,624 | — | — | — |
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 | ||||||||||||||
— | — | — | — | — | — | |||||||||||||||
— | — | — | — | — | — | |||||||||||||||
— | — | — | — | — | — |
Consolidated Balance Sheets - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Current assets: | |||
Cash and cash equivalents | $ 93,189 | $ 80,517 | $ 64,904 |
Receivables, net | 1,291,949 | 1,305,642 | 948,024 |
Inventories | 425,834 | 387,525 | 380,316 |
Current regulatory assets | 216,318 | 165,092 | 89,078 |
Prepayments and other current assets | 81,424 | 72,972 | 89,586 |
Total current assets | 2,108,714 | 2,011,748 | 1,571,908 |
Noncurrent assets: | |||
Property, plant and equipment | 9,475,608 | 9,364,038 | 8,958,600 |
Less accumulated depreciation, depletion and amortization | 3,322,894 | 3,272,493 | 3,158,091 |
Net property, plant and equipment | 6,152,714 | 6,091,545 | 5,800,509 |
Goodwill | 763,500 | 763,500 | 763,262 |
Other intangible assets, net | 16,334 | 17,532 | 21,389 |
Regulatory assets | 349,500 | 329,659 | 359,228 |
Investments | 172,467 | 161,913 | 174,555 |
Operating lease right-of-use assets | 118,052 | 119,375 | 119,845 |
Other | 161,306 | 165,509 | 160,019 |
Total noncurrent assets | 7,733,873 | 7,649,033 | 7,398,807 |
Total assets | 9,842,587 | 9,660,781 | 8,970,715 |
Current liabilities: | |||
Short-term borrowings | 501,500 | 246,500 | 99,958 |
Long-term debt due within one year | 78,031 | 78,031 | 147,953 |
Accounts payable | 547,188 | 657,168 | 449,746 |
Taxes payable | 73,914 | 70,810 | 90,572 |
Dividends payable | 45,306 | 45,245 | 44,229 |
Accrued compensation | 65,509 | 88,662 | 64,796 |
Operating lease liabilities due within one year | 34,975 | 34,516 | 34,618 |
Regulatory liabilities due within one year | 44,395 | 26,440 | 31,186 |
Other accrued liabilities | 245,511 | 232,231 | 203,670 |
Total current liabilities | 1,636,329 | 1,479,603 | 1,166,728 |
Noncurrent liabilities: | |||
Long-term debt | 2,769,037 | 2,763,394 | 2,599,810 |
Deferred income taxes | 642,069 | 631,303 | 587,940 |
Asset retirement obligations | 409,547 | 405,885 | 463,080 |
Regulatory liabilities | 454,669 | 448,454 | 433,628 |
Operating lease liabilities | 83,632 | 85,534 | 85,874 |
Other | 271,922 | 259,479 | 272,937 |
Total noncurrent liabilities | 4,630,876 | 4,594,049 | 4,443,269 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock | 204,163 | 204,163 | 203,889 |
Other paid-in capital | 1,461,294 | 1,466,037 | 1,451,464 |
Retained earnings | 1,943,917 | 1,951,138 | 1,749,726 |
Accumulated other comprehensive loss | (30,366) | (30,583) | (40,735) |
Treasury Stock, Common, Value | 3,626 | 3,626 | 3,626 |
Total stockholders' equity | 3,575,382 | 3,587,129 | 3,360,718 |
Total liabilities and stockholders' equity | $ 9,842,587 | $ 9,660,781 | $ 8,970,715 |
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 | 204,162,814 | 204,162,814 | 203,889,661 |
Treasury Stock, Common, Shares | 538,921 | 538,921 | 538,921 |
Basis of presentation |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
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 2022 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. As part of the Company's continuous review of its business, the Company announced strategic initiatives in 2022 that are expected to enhance its value. On August 4, 2022, the Company announced that its board of directors approved a plan to pursue the separation of Knife River, the construction materials and contracting segment, from the Company. The separation will result in two independent, publicly traded companies, MDU Resources Group, Inc. and Knife River Holding Company, and is expected to be completed on May 31, 2023, subject to certain conditions, including the SEC declaring the Registration Statement on Form 10 for Knife River Holding Company to be effective. On May 3, 2023, the Company's board of directors approved the separation and the distribution of approximately 90 percent of the issued and outstanding shares of Knife River Holding Company to the Company's stockholders. Stockholders of the Company will receive one share of Knife River Holding Company common stock for every four shares of the Company's common stock held on May 22, 2023, the record date for the distribution. The Company will retain approximately 10 percent of Knife River Holding Company's common stock immediately following the separation with the intent to dispose of such shares within twelve months after the separation. Prior to completing the separation, the Company may adjust the percentage of Knife River Holding Company common stock to be distributed to the Company's stockholders and retained by the Company in response to market and other factors. The separation of Knife River is planned as a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes. The Company's financial results for the quarter ended March 31, 2023, include Knife River. Upon completion of the separation, the historical results of Knife River will be presented as discontinued operations in the Company's Consolidated Financial Statements. On November 3, 2022, the Company announced its intention to create two pure-play publicly traded companies, one focused on regulated energy delivery and the other on construction materials, and that, to achieve this future structure, the Company's board of directors authorized management to commence a strategic review process of MDU Construction Services. The strategic review is underway and the Company anticipates completing the strategic review during the second quarter of 2023. Discontinued operations include the supporting activities of Fidelity and 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. Management has also evaluated the impact of events occurring after March 31, 2023, up to the date of the issuance of these consolidated interim financial statements on May 4, 2023, that would require recognition or disclosure in the Consolidated Financial Statements.
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New accounting standards |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Seasonality of operations |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
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. |
Receivables and allowance for expected credit losses |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables and allowance for expected credit loss | Receivables and allowance for expected credit losses Receivables consist primarily of trade and contracting services contract 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 8. 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 $53.5 million, $50.7 million and $45.6 million at March 31, 2023 and 2022, and December 31, 2022, 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:
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Inventories and natural gas in storage |
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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. Inventories include production costs incurred as part of the Company's aggregate mining activities. These inventoriable production costs include all mining and processing costs associated with the production of aggregates. Stripping costs incurred during the production phase, which represent costs of removing overburden and waste materials to access mineral deposits, are a component of inventoriable production costs. 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:
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Earnings per share |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Accumulated other comprehensive loss |
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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:
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:
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Revenue from contracts with customers |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
Presented in the previous tables are sales of materials to both third parties and internal customers 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, the internal sales revenues must be eliminated against the construction materials product used in the contracting services 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 construction work 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:
The Company recognized $154.9 million in revenue for the three months ended March 31, 2023, which was previously included in contract liabilities at December 31, 2022. The Company recognized $121.8 million in revenue for the three months ended March 31, 2022, which was previously included in contract liabilities at December 31, 2021. The Company recognized a net increase in revenues of $21.3 million and $23.5 million for the three months ended March 31, 2023 and 2022, 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 contracting services 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 March 31, 2023, the Company's remaining performance obligations were $3.7 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.6 billion within the next 12 months or less; $454.5 million within the next 13 to 24 months; and $592.8 million in 25 months or more.
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Business Combinations |
3 Months Ended |
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Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business combinations The following acquisition was accounted for as a business combination in accordance with ASC 805 - Business Combinations. The results of the business combination have been included in the Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combination are not presented because it was not material to the Company's financial position or results of operations. 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 three months ended March 31, 2023. In December 2022, the construction materials and contracting segment acquired Allied Concrete and Supply Co., a producer of ready-mixed concrete in California. At March 31, 2023, the purchase price allocation was considered preliminary and will be finalized within 12 months of the acquisition date. The total purchase price for acquisitions that occurred in 2022 was $8.9 million, subject to certain adjustments, with cash acquired totaling $2.8 million. The purchase price includes consideration paid of $1.5 million, a $70,000 holdback liability, and 273,153 shares of common stock with a market value of $8.4 million as of the respective acquisition date. Due to the holding period restriction on the common stock, the share consideration was discounted to a fair value of approximately $7.3 million. The amounts allocated to the aggregated assets acquired and liabilities assumed during 2022 were as follows: $1.7 million to current assets; $5.9 million to property, plant and equipment; $200,000 to goodwill; $100,000 to current liabilities; $500,000 to noncurrent liabilities - other and $1.2 million to deferred tax liabilities. Costs incurred for acquisitions are included in operation and maintenance expense on the Consolidated Statements of Income and were immaterial for both the three months ended March 31, 2023 and 2022.
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Leases |
3 Months Ended |
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Mar. 31, 2023 | |
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 $12.2 million and $11.4 million for the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023, the Company had $9.1 million of lease receivables with a majority due within 12 months.
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Goodwill and other intangible assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
Other amortizable intangible assets were as follows:
The previous tables include goodwill and intangible assets associated with the business combinations completed during 2022. For more information related to these business combinations, see Note 9. Amortization expense for amortizable intangible assets for both the three months ended March 31, 2023 and 2022, was $1.2 million. Estimated amortization expense for identifiable intangible assets as of March 31, 2023, was:
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Regulatory assets and liabilities |
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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 for amounts currently being recovered or refunded in rates to customers. ** Recovered as expense is incurred or cash contributions are made. At March 31, 2023 and 2022, and December 31, 2022, approximately $255.6 million, $268.1 million and $242.5 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, accelerated depreciation on plant retirement, the estimated future cost of manufactured gas plant site remediation and the costs associated with environmental compliance. The Company is subject to environmental compliance regulations in certain states which require natural gas distribution companies to reduce overall GHG emissions to certain thresholds as established by each applicable state. Compliance with these standards may be achieved through increased energy efficiency and conservation measures, purchased emission allowances and offsets, purchases of community climate investment credits and purchases of low carbon fuels. Emission allowances are allocated by the respective states to the Company at no cost, of which a portion is required to be sold at auction. The Company expects the compliance costs for these regulations and the revenues from the sale of the allocated emissions allowances will be passed through to customers in rates and has, accordingly, deferred the environmental compliance obligation as a regulatory asset. In the last half of 2021 through 2022, the Company experienced high natural gas costs due to increase in demand outpacing the supply along with the impact of global events. Additionally, in December 2022 and January 2023, natural gas prices significantly increased across the Pacific Northwest from multiple price-pressuring events including wide-spread below-normal temperatures and higher natural gas consumption; reduced natural gas flows due to pipeline constraints, including maintenance in West Texas; and historically low regional natural gas storage levels. This increase in natural gas costs experienced in certain jurisdictions was partially offset by the recovery of prior period natural gas costs being recovered over a period longer than the normal one-year period. For a discussion of the Company's most recent cases by jurisdiction, see Note 19. 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. 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 |
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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 $105.9 million, $105.4 million and $98.0 million, at March 31, 2023 and 2022, and December 31, 2022, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized gain on these investments was $3.8 million for the three months ended March 31, 2023. The net unrealized loss on these investments was $5.8 million for the three months ended March 31, 2022. 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:
The Company's assets measured at fair value on a recurring basis were as follows:
* The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments.
* 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, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.
* The insurance contracts invest approximately 63 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 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. 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 combination that occurred during 2022. 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:
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 |
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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 March 31, 2023. 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 Cascade On January 20, 2023, Cascade entered into a $150.0 million term loan agreement with a SOFR-based interest rate and a maturity date of January 19, 2024. 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. The covenants also include certain restrictions on the sale of certain assets, loans and investments. Intermountain On January 20, 2023, Intermountain entered into a $125.0 million term loan agreement with a SOFR-based interest rate and a maturity date of January 19, 2024. In March 2023, Intermountain paid down $20.0 million of the outstanding balance. 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. The covenants also include certain restrictions on the sale of certain assets, loans and investments. 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. On March 17, 2023, Centennial amended this agreement to extend the maturity date to September 15, 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:
Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at March 31, 2023, were as follows:
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Cash flow information |
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Cash flow information | Cash flow information Cash expenditures for interest and income taxes were as follows:
* AFUDC - borrowed was $2.4 million and $586,000 for the three months ended March 31, 2023 and 2022, respectively. Noncash investing and financing transactions were as follows:
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Business segment data |
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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 services. The construction materials and contracting segment mines, processes and sells construction aggregates (crushed stone and sand and gravel); produces and sells asphalt; and supplies ready-mix concrete. This segment's aggregate reserves provide the foundation for the vertical integration of its contracting services with its construction materials to support its aggregate-based product lines including heavy-civil construction, asphalt paving, concrete construction and site development and grading. Although not common to all locations, the segment also includes the sale of cement, liquid asphalt modification and distribution, various finished concrete products, merchandise 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, 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, as well as costs associated with the announced strategic initiatives. Also included are 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 2022 Annual Report. Information on the Company's segments was as follows:
A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:
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Employee benefit plans |
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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:
Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows:
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 $936,000 and $773,000 for the three months ended March 31, 2023 and 2022, respectively. 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 |
3 Months Ended |
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Mar. 31, 2023 | |
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 2022 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 filed a request with the IPUC for a natural gas general rate increase on December 1, 2022. The request was for an increase of $11.3 million annually or 3.2 percent above current rates, which was revised on March 9, 2023, to $6.8 million annually or 1.9 percent above current rates. The requested increase is primarily to recover investments made since the last rate case in 2016 and the depreciation, operation and maintenance expenses and taxes associated with the increased investments. A settlement in principle has been reached and is expected to be filed with the IPUC no later than May 15, 2023. This matter is pending before the IPUC. MTPSC On November 4, 2022, Montana-Dakota filed an application with the MTPSC for an electric general rate increase of approximately $10.5 million annually or 15.2 percent above current rates, which was revised on March 15, 2023, to $11.5 million annually or 17.0 percent above current rates to reflect the loss of a large industrial customer. The requested increase is primarily to recover investments made since the last rate case, including Heskett Unit 4, increases in operation and maintenance expenses, and increases in property taxes. On January 24, 2023, the MTPSC approved Montana-Dakota's request for an interim increase of approximately $1.7 million or 2.7 percent above current rates, subject to refund, effective February 1, 2023. The MTPSC has 9 months to render a final decision on the rate case. The matter is pending before the MTPSC with a hearing scheduled for June 20, 2023. 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 is 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. 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. The lower interim rate increase is largely due to excluding the recovery of Heskett Unit 4 from interim rates due to not being in service until summer of 2023. On April 26, 2023, the Company filed with the NDPSC an all-party settlement reflecting an annual revenue increase of $15.3 million or 7.4 percent overall. The reduction from the original filing includes a return on equity of 9.75 percent and maintaining depreciation expense at current levels. A hearing was held May 2, 2023. The matter is pending before the NDPSC. WUTC On March 24, 2022, Cascade filed a request for 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 issuances of an IRS private letter ruling to another Washington utility with the same annual rate adjustment tariff, which addressed its normalization violations. 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 proposed a similar remedy through the tariff to recover the excess amounts refunded to customers while this tariff has been in place, and revised 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 requested recovery of the excess refunded to customers of approximately $3.3 million and elimination of the currently deferred, but not yet refunded balance. A multi-party settlement was filed with the WUTC on October 21, 2022. On January 23, 2023, the WUTC denied recovery of the excess refunded to customers, but approved the tariff revision going forward to rectify the inadvertent normalization violation. On February 1, 2023, Cascade filed a motion for clarification with the WUTC on the currently deferred but not yet refunded balance. A clarifying conference was held on February 27, 2023, resulting in approval to reverse the currently deferred but not yet refunded balance of approximately $1.1 million. On February 28, 2023, this matter was finalized by the WUTC with rates effective March 1, 2023. FERC On January 27, 2023, WBI Energy Transmission filed a general rate case with the FERC for increases in its transportation and storage services rates that also includes a Greenhouse Gas Cost Recovery Mechanism for anticipated future costs. New rates, which are pending FERC approval, will be in effect August 1, 2023.
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Contingencies |
3 Months Ended |
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Mar. 31, 2023 | |
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 March 31, 2023 and 2022, and December 31, 2022, the Company accrued contingent liabilities, which have not been discounted, of $25.4 million, $30.0 million and $32.9 million, respectively. At March 31, 2023 and 2022, and December 31, 2022, the Company also recorded corresponding insurance receivables of $3.3 million, $7.1 million and $10.4 million, respectively, and regulatory assets of $20.9 million, $20.8 million and $20.9 million, respectively, related to the accrued liabilities. The accruals are for contingencies resulting from litigation 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 2022 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 March 31, 2023, the fixed maximum amounts guaranteed under these agreements aggregate $350.0 million. Certain of the guarantees also have no fixed maximum amounts specified. At March 31, 2023, the amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate to $28.3 million in 2023; $144.1 million in 2024; $163.3 million in 2025; $1.5 million in 2026; $1.0 million in 2027; $300,000 thereafter; and $11.5 million, which has no scheduled maturity date. There were no amounts outstanding under the previously mentioned guarantees at March 31, 2023. 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 March 31, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated $26.0 million. At March 31, 2023, the amounts of scheduled expiration of the maximum amounts guaranteed under these letters of credit aggregate to $25.6 million in 2023, $400,000 in 2024. There were no amounts outstanding under the previously mentioned letters of credit at March 31, 2023. 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 March 31, 2023. 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 March 31, 2023, approximately $1.6 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 March 31, 2023, 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 $29.1 million.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent event On April 21, 2023, Intermountain repaid an additional $30.0 million of the $125.0 million term loan agreement issued on January 20, 2023. For more information on this debt agreement, see Note 15. On April 25, 2023, Knife River Holding Company issued $425.0 million of 7.75 percent senior notes due May 1, 2031, pursuant to an indenture agreement. The proceeds from the issuance of these notes will be held in escrow until the effective date of the Knife River separation or, if the separation does not occur within the time frame specified, released back to the lenders, along with accrued interest. On May 1, 2023, the Company entered into a $75.0 million term loan agreement with a SOFR-based interest rate and a maturity date of November 1, 2023. The agreement contains customary covenants and provisions, including a covenant of the Company 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. On May 3, 2023, the Company's board of directors approved the separation and the distribution of approximately 90 percent of the issued and outstanding shares of Knife River Holding Company to the Company's stockholders. Stockholders of the Company will receive one share of Knife River Holding Company common stock for every four shares of the Company's common stock held on May 22, 2023, the record date for the distribution. The Company will retain approximately 10 percent of Knife River Holding Company's common stock immediately following the separation with the intent to dispose of such shares within twelve months after the separation. Prior to completing the separation, the Company may adjust the percentage of Knife River Holding Company common stock to be distributed to the Company's stockholders and retained by the Company in response to market and other factors. The separation is expected to be complete May 31, 2023, subject to certain conditions, including the SEC declaring the registration statement on Form 10 for Knife River Holding Company to be effective.
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Basis of presentation (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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 2022 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. |
New accounting standards (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Receivables and allowance for expected credit losses (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Accounts receivable and allowance for doubtful accounts | Receivables consist primarily of trade and contracting services contract 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 8. 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. |
Inventories and natural gas in storage (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Earnings per share (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Revenue from contracts with customers (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Business Combinations (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations Policy | The following acquisition was accounted for as a business combination in accordance with ASC 805 - Business Combinations. The results of the business combination have been included in the Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combination are not presented because it was not material to the Company's financial position or results of operations. |
Environmental allowances and obligations (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Emission Credits or Allowances, Policy | Environmental allowances and obligations The Company's natural gas distribution segment acquires environmental allowances as part of its requirement to comply with environmental regulations in certain states. Allowances are allocated by the respective states to the Company at no cost and additional allowances are required to be purchased as needed based on the requirements in the respective states. The segment records purchased and allocated environmental allowances at weighted average cost under the inventory method of accounting. Environmental allowances are included in noncurrent assets - other on the Consolidated Balance Sheets. Environmental compliance obligations, which are based on GHG emissions, are measured at the carrying value of environmental allowances held plus the estimated value of additional allowances necessary to satisfy the compliance obligation. Environmental compliance obligations are included in noncurrent liabilities - other on the Consolidated Balance Sheets. At March 31, 2023, the Company accrued $21.9 million in compliance obligations. As environmental allowances are surrendered, the segment reduces the associated environmental compliance assets and liabilities from the Consolidated Balance Sheets. The expenses associated with the Company’s environmental allowances and obligations are deferred as regulatory assets. For more information on the Company’s regulatory assets and liabilities, see Note 12.
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Fair value disclosures (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Business segment data (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Contingencies (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
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. |
Receivables and allowance for expected credit losses (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | Details of the Company's expected credit losses were as follows:
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Inventories and natural gas in storage (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories on the Consolidated Balance Sheets were as follows:
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Earnings per share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Accumulated other comprehensive loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated comprehensive loss | The after-tax changes in the components of accumulated other comprehensive loss were as follows:
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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:
|
Revenue from contracts with customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
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Contract balances | The changes in contract assets and liabilities were as follows:
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Goodwill and other intangible assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill were as follows:
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Other amortizable intangible assets | Other amortizable intangible assets were as follows:
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Estimated amortization expense | Estimated amortization expense for identifiable intangible assets as of March 31, 2023, was:
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Regulatory assets and liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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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Regulatory Liabilities | The following table summarizes the individual components of unamortized regulatory assets and liabilities:
*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.
|
Fair value measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Details of available-for-sale securities were as follows:
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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:
* The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments.
* 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, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.
* The insurance contracts invest approximately 63 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 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.
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Fair value of long term debt outstanding | The estimated fair value of the Company's Level 2 long-term debt was as follows:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt outstanding | Long-term debt outstanding was as follows:
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Schedule of debt maturities | Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at March 31, 2023, were as follows:
|
Cash flow information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
* AFUDC - borrowed was $2.4 million and $586,000 for the three months ended March 31, 2023 and 2022, respectively. Noncash investing and financing transactions were as follows:
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Business segment data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information on the Company's businesses | Information on the Company's segments was as follows:
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Reconciliation of Revenue from Segments to Consolidated | A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:
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Employee benefit plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net benefit costs | Components of net periodic benefit credit for the Company's pension benefit plans were as follows:
Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows:
|
Receivables and allowance for expected credit losses (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Credit Loss [Abstract] | |||
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing | $ 53.5 | $ 45.6 | $ 50.7 |
Inventories and natural gas in storage (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Aggregates held for resale | $ 207,564 | $ 199,110 | $ 195,489 |
Asphalt oil | 101,271 | 68,609 | 93,816 |
Materials and supplies | 45,310 | 40,056 | 35,967 |
Merchandise for resale | 42,603 | 40,296 | 33,393 |
Natural gas in storage (current) | 8,662 | 22,533 | 10,801 |
Other | 20,424 | 16,921 | 10,850 |
Total | 425,834 | 387,525 | 380,316 |
Natural gas in storage noncurrent | $ 47,400 | $ 47,500 | $ 47,500 |
Earnings per share (Details) - $ / shares shares in Thousands |
3 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding - basic | 203,624 | 203,351 |
Effect of dilutive performance share awards and restricted stock units | 286 | 40 |
Weighted average common shares outstanding - diluted | 203,910 | 203,391 |
Shares excluded from the calculation of diluted earnings per share | 0 | 0 |
Dividends declared per common share | $ 0.2225 | $ 0.2175 |
Contract balances (Details 2) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 212,687 | $ 185,289 | |
Change in contract assets | 27,398 | ||
Contract liabilities - current | (202,788) | (208,204) | |
Change in contract liabilities - current | 5,416 | ||
Contract liabilities - noncurrent | (442) | (6) | |
Change in contract liabilities - noncurrent | (436) | ||
Net contract assets (liabilities) | 9,457 | $ (22,921) | |
Change in net contract assets (liabilities) | 32,378 | ||
Amounts included in contract liability at the beginning of the period | 154,900 | $ 121,800 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 21,300 | $ 23,500 |
Business Combinations (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||||
Goodwill | $ 763,500,000 | $ 763,500,000 | $ 763,262,000 | $ 765,386,000 |
2022 Acquisition | ||||
Business Acquisition [Line Items] | ||||
Gross Aggregate Consideration | 8,900,000 | |||
Cash Assumed | 2,800,000 | |||
Business Combination, Consideration Transferred | 1,500,000 | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 70,000 | |||
Business Combination, Current Assets | 1,700,000 | |||
Business Combination, Property, Plant, and Equipment | 5,900,000 | |||
Goodwill | 200,000 | |||
Business Combination, Current Liabilities | 100,000 | |||
Business Combination, Noncurrent Liabilities | 500,000 | |||
Business Combination, Deferred Tax Liabilities | $ 1,200,000 | |||
2022 Acquisition | Common stock | ||||
Business Acquisition [Line Items] | ||||
Common Stock Shares Issued | 273,153 | |||
Common Stock Market Value | $ 8,400,000 | |||
Common Stock Discounted Fair Value | $ 7,300,000 |
Business Combinations - Acquisition Costs Incurred (Details 2) - USD ($) |
Mar. 31, 2023 |
Mar. 31, 2022 |
---|---|---|
Operating Expense | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Transaction Costs | $ 0 | $ 0 |
Lessor accounting (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating Lease, Lease Income | $ 12.2 | $ 11.4 |
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | $ 9.1 |
Future amortization expense (Details 3) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2023 | $ 3,393 |
2024 | 4,249 |
2025 | 2,200 |
2026 | 1,782 |
2027 | 1,759 |
Thereafter | $ 2,951 |
Environmental allowances and obligations (Details) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Accounting Policies [Abstract] | |
Environmental Compliance Obligations | $ 21.9 |
Fair value measurements Insurance contracts (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Fair Value Disclosures [Abstract] | |||
Investments used to satisfy nonqualified benefit plans obligations | $ 105.9 | $ 105.4 | $ 98.0 |
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans | $ 3.8 | $ 5.8 |
Available-for-sale securities (Details 2) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Available-for-sale securities [Abstract] | |||
Cost | $ 11,580 | $ 11,536 | $ 11,466 |
Gross Unrealized Gains | 11 | 2 | 3 |
Gross Unrealized Losses | 612 | 708 | 373 |
Fair Value | 10,979 | 10,830 | 11,096 |
Mortgage-backed securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 8,557 | 8,928 | 8,778 |
Gross Unrealized Gains | 3 | 2 | 3 |
Gross Unrealized Losses | 561 | 636 | 310 |
Fair Value | 7,999 | 8,294 | 8,471 |
U.S. Treasury securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 3,023 | 2,608 | 2,688 |
Gross Unrealized Gains | 8 | 0 | 0 |
Gross Unrealized Losses | 51 | 72 | 63 |
Fair Value | $ 2,980 | $ 2,536 | $ 2,625 |
Fair value measurements (Details 4) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | $ 2,847,068 | $ 2,841,425 | $ 2,747,763 |
Carrying amount | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | 2,847,068 | 2,841,425 | 2,747,763 |
Fair value | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 2,535,125 | $ 2,469,625 | $ 2,755,041 |
Short-term Debt (Details 1) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Mar. 17, 2023 |
Jan. 20, 2023 |
Dec. 31, 2022 |
|
Short-Term Debt [Line Items] | |||||
Short-term borrowings | $ 501,500 | $ 99,958 | $ 246,500 | ||
Repayment of short-term borrowings | 20,000 | $ 0 | |||
Term Loan Agreement | Cascade Natural Gas [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term borrowings | $ 150,000 | ||||
Ratio of total debt to total capitalization as specified in debt covenants | 65.00% | ||||
Term Loan Agreement | Intermountain Gas Company | |||||
Short-Term Debt [Line Items] | |||||
Short-term borrowings | $ 125,000 | ||||
Ratio of total debt to total capitalization as specified in debt covenants | 65.00% | ||||
Repayment of short-term borrowings | $ 20,000 | ||||
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% |
Schedule of debt maturities (Details 3) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Long-term debt maturities [Line Items] | |
Remainder of 2023 | $ 78,031 |
2024 | 601,846 |
2025 | 177,802 |
2026 | 140,802 |
2027 | 111,452 |
Thereafter | $ 1,743,872 |
Cash flow information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Supplemental Cash Flow Information [Abstract] | |||
Interest, net* | $ 28,442,000 | $ 15,657,000 | |
Income taxes paid (refunded), net | 8,122,000 | (363,000) | |
AFUDC borrowed | 2,400,000 | 586,000 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 15,095,000 | 10,175,000 | $ 50,921,000 |
Property, plant and equipment additions in accounts payable | 32,171,000 | 25,730,000 | 49,602,000 |
Accrual for holdback payment related to a business combination | 0 | 0 | 70,000 |
Stock issued in connection with a business combination | $ 0 | $ 0 | $ 7,304,000 |
Business segment data operating revenues reconciliation (Details 2) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 1,737,337 | $ 1,416,559 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,764,365 | 1,443,948 |
Corporate, Non-Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,739 | 4,341 |
Intersegment Eliminations [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ (31,767) | $ (31,730) |
IPUC (Details) - Pending Rate Case [Member] - Gas Distribution [Member] - IPUC - Intermountain Gas Company - USD ($) $ in Millions |
Mar. 09, 2023 |
Dec. 01, 2022 |
---|---|---|
Public Utilities, General Disclosures [Line Items] | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 11.3 | |
Public Utilities, Requested Rate Increase (Decrease), Percentage | 3.20% | |
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 6.8 | |
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | 1.90% |
MTPSC (Details 2) - Pending Rate Case [Member] - MTPSC - Montana-Dakota Utilities Co. [Member] - Electric - USD ($) $ in Millions |
Mar. 15, 2023 |
Feb. 01, 2023 |
Nov. 04, 2022 |
---|---|---|---|
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 10.5 | ||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 15.20% | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 11.5 | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | 17.00% | ||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ 1.7 | ||
Public Utilities, Interim Rate Increase (Decrease), Percentage | 2.70% |
NDPSC (Details 3) - Electric - NDPSC [Member] - Montana-Dakota Utilities Co. [Member] - USD ($) $ in Millions |
Apr. 26, 2023 |
Jul. 14, 2022 |
May 16, 2022 |
---|---|---|---|
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ 10.9 | ||
Public Utilities, Interim Rate Increase (Decrease), Percentage | 5.30% | ||
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% | ||
Pending Rate Case [Member] | Subsequent Event [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 15.3 | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | 7.40% | ||
Public Utilities, Requested Return on Equity, Percentage | 9.75% |
WUTC (Details 4) - Gas Distribution [Member] - WUTC [Member] - Cascade Natural Gas [Member] - USD ($) $ in Millions |
Mar. 01, 2023 |
Mar. 24, 2022 |
---|---|---|
Public Utilities, General Disclosures [Line Items] | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 3.3 | |
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 1.1 |
Litigation (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Loss Contingencies [Line Items] | |||
Potential liabilities related to litigation and environmental matters | $ 25.4 | $ 32.9 | $ 30.0 |
Insurance Receivable | 3.3 | 10.4 | 7.1 |
Regulatory Assets | $ 20.9 | $ 20.9 | $ 20.8 |
Guarantees (Details 2) |
Mar. 31, 2023
USD ($)
|
---|---|
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 350,000,000 |
Fixed maximum amounts guaranteed by year 2023 | 28,300,000 |
Fixed maximum amounts guaranteed by year 2024 | 144,100,000 |
Fixed maximum amounts guaranteed by year 2025 | 163,300,000 |
Fixed maximum amounts guaranteed by year 2026 | 1,500,000 |
Fixed maximum amounts guaranteed by year 2027 | 1,000,000 |
Fixed maximum amounts guaranteed, thereafter | 300,000 |
No scheduled maturity date | 11,500,000 |
Amount outstanding under guarantees that is reflected on balance sheet | 0 |
Letters of credit | 26,000,000 |
Letters of credit set to expire - 2023 | 25,600,000 |
Letters of credit set to expire - 2024 | 400,000 |
Outstanding letters of credit | 0 |
Amount of surety bonds outstanding | $ 1,600,000,000 |
Variable interest entities (Details 3) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Fuel contract | |
Variable Interest Entities [Line Items] | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 29.1 |
Subsequent Events (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Apr. 21, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
May 01, 2023 |
Jan. 20, 2023 |
Dec. 31, 2022 |
|
Short-Term Debt [Line Items] | ||||||
Repayment of short-term borrowings | $ 20,000 | $ 0 | ||||
Short-term borrowings | 501,500 | $ 99,958 | $ 246,500 | |||
Term Loan Agreement | Intermountain Gas Company | ||||||
Short-Term Debt [Line Items] | ||||||
Repayment of short-term borrowings | $ 20,000 | |||||
Short-term borrowings | $ 125,000 | |||||
Ratio of total debt to total capitalization as specified in debt covenants | 65.00% | |||||
Term Loan Agreement | Subsequent Event [Member] | Intermountain Gas Company | ||||||
Short-Term Debt [Line Items] | ||||||
Repayment of short-term borrowings | $ 30,000 | |||||
Term Loan Agreement | Subsequent Event [Member] | MDU Resources Group [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Short-term borrowings | $ 75,000 | |||||
Ratio of total debt to total capitalization as specified in debt covenants | 65.00% |
Subsequent Events (Details 2) - USD ($) $ in Thousands |
Apr. 25, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Long-term debt outstanding [Line Items] | ||||
Long-term debt | $ 2,847,068 | $ 2,841,425 | $ 2,747,763 | |
Senior Notes | ||||
Long-term debt outstanding [Line Items] | ||||
Long-term debt | $ 2,258,500 | $ 2,258,500 | $ 2,275,000 | |
Senior Notes | Subsequent Event [Member] | Knife River Holding Company | ||||
Long-term debt outstanding [Line Items] | ||||
Long-term debt | $ 425,000 | |||
Long-Term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.75% |
Subsequent Events (Details 3) - Subsequent Event [Member] |
May 03, 2023 |
---|---|
Subsequent Events [Line Items] | |
Percent of Shares, Retained, in conjunction with spin off | 10.00% |
Knife River Holding Company | |
Subsequent Events [Line Items] | |
Percent of Shares Distributed in conjunction with spin off | 90.00% |
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