MDU Resources (MDU) 9 Feb 232022 Q4 Earnings call transcript

Hello. My name is Lisa, and I will be your conference facilitator. At this time, I would like to welcome everyone to the MDU Resources Group Year-end 2022 Earnings Conference Call. [Operator Instructions].

The webcast can be accessed at www.mdu.com. heading, Conference & Call. Relations Year-end and Investor Earnings XXXX the select Presentations Events click Under After replay at will conclusion be the of available the the same webcast, a location. Jason to of Officer Resources Group. conference now Chief MDU turn would President and like over I to Vollmer Vice Financial the Thank you, Mr. may begin conference. you Vollmer, your

everyone, our XXXX Lisa, release earnings you, Thank to conference and welcome, year-end call.

supplemental under You can at call www.mdu.com the on Relations this find our materials earnings our for release Investor and tab. website

President Goodin, prepared President along Also of with me Dave Thiede, Dave Jeff MDU Barth, of to will Leading MDU President Barney, Nicole Accounting Corporation; President Services and CEO CEO today's Resources. and be Controller with of Construction answer discussion of questions Vice Officer remarks of CEO today WBI us River and and following Kivisto, Knife MDU Energy; our are and CEO President, and of Trevor Chief Stephanie our Group; Hastings, Resources. CEO Utility Group;

the forward-looking During our of call, within Exchange and the XXXX. we Section certain Act will statements of Securities XXE meaning make of

on believes Although based beliefs are may assumptions, actual expectations results and company that differ its materially. the reasonable

to from and forward-looking more to about results could statements, filings. vary recent most For cause information please actual that uncertainties SEC risks the refer our any

We to may certain also refer non-GAAP information.

any formal initial I handing Goodin for our start and Dave will by For forward XXXX appropriate comments GAAP financial to this morning. for call earnings and look. at of information XXXX the a measure, reconciliation to our guidance the providing non-GAAP from his please refer over release to look results before consolidated

to earnings $X.XX a or we 'XX. earned our $XXX.X of GAAP $XXX.X announced initiatives, or per On of strategic million to basis adjusted per ongoing we excluding an share. million $X.XX morning, or basis, $X.XX costs our per This $XXX.X earnings in million share share on XXXX related compared XXXX

earnings million reported XXXX. million businesses for $XXX.X of of in compared to utility earnings $XXX.X combined Our XXXX

due million $XX.X North in and reported was relief earnings of The The increase result utility compared interim of a higher revenues. XXXX. revenue million in to electric segment to sales rate $XX.X transmission retail net Dakota higher

X.X% Station at impacted In & on and million weather operation nonqualified year. favorably Station Partially Clark were lower Heskett investment first planned closures. due expense, and interest higher the to addition, the the and volumes the associated Earnings maintenance returns sales higher quarters fourth expense the Lewis plans, increase Station. $X.X outage by were plant costs and of with benefit maintenance retail in lower increased of colder offsetting partially

and in debt retail to to sales higher to jurisdictions. due certain rate reported $XX.X $X segment in earnings and XXXX. $XX.X balances of compared maintenance expense, were weather in were investment higher million offset benefit lower and utility higher XX.X% by gas and nonqualified primarily higher on earnings volumes returns by rates. colder all of XXXX costs, natural improved plans classes higher to operation Results relief million related decrease The interest from Our partially largely interest impacted expense, subcontractor million higher natural gas in customer

allowance benefited and business impacted plans depreciation business benefit offset million project, on earned lower Results lower $XX.X interest to margins construction part XXXX. during XXXX higher funds by expansion project and from revenues in million compared in resulting were from revenues. the for nonregulated pipeline million nonqualified largely Bakken investment The lower The expense. in $XX.X $X.X lower North transportation due used of increased expense, returns higher to by

delivery be our regulated from earnings in of expect million. the energy we XXXX, businesses to million range $XXX For to $XXX

has $XXX.X of billion time over a million XX.X% compared earnings to EBITDA past period. basis earnings business record million year-over-year growth $X.X increased XX.X% growing compounded experienced of revenues on of reported when earnings and that services This $XXX.X XXXX. record annually X over consistent revenues $XXX.X of to Construction $X.XX billion in for the years, million 'XX. and

increased revenues year electrical slightly workloads. and percentages Partially were services the This equipment mostly lower costs. costs mechanical transmission mechanical business higher revenues and and labor inflation, materials lower increase. and XX% the with including largely for and Electrical margin offsetting commercial higher operating driving renewable the related to distribution and to projects saw due

higher XXXX. construction continuing Due compared $XXX XXXX, establishing of in to $X.XX to to establishing range the billion, of margins a range for revenue the are EBITDA for and $X.XX an high million demand services, range million for XXXX $XXX we with billion guidance when to

higher pricing earnings. to across revenues lines of XX% approximately recent impact annual previous inflationary in on $X.XX as positive recently materials revenues revenues XXXX business well billion, all pressures year. to $XXX.X increased year. average material response as to XXXX, in reported the The million construction in and $XXX.X a million prior grew to completed billion due $X.XX acquisitions XX% product primarily compared compared had also impact of Revenues of Our record over the contracting of of earnings

EBITDA half at outpaced year. this due higher to pricing of costs, inflation, decreased the Margins mostly operating in million. increases as X.X% increased business to $XXX.X the first

year. increased addition, investment lower net impact a benefit and nonqualified million negative had returns on interest expense of In also $X.X plans on the

compared to $X.X to materials, strong higher the billion million the forward construction expect for business. to continued demand $XXX XXXX, margins EBITDA range of XXXX, $XXX in we $X.X billion range million for strong with of this in to the when given and Looking revenues and backlog

on company when financial $XX basis to results. companies experienced fluctuations the mentioned $X.XX noncash our year a As In were discussions the significant benefit the returns prior to a attributed markets change in earlier, by in the impacted on basis lower in was total, nonqualified share or The XXXX. the per returns on year-over-year investments. segment investment impact compared plan approximately in million

maintain the to capital balance through a ample seasons. Finally, to and working operations to sheet strong peak access company continues finance our

turn XXXX, strong we Business during that provide and updates continue is to strategic the the on guidance regarding our formal progress we now the Dave? year, our highlights continue and the through initiatives over -- remarks. XXXX. we'll his and into as to make and outlook announced momentum Dave continue We That head we we great progress as the for I'll to summarizes year. call Goodin quarter financial for

time Jason, Resources. you, you, for today continued thank everyone, thank MDU with and and Well, in us spending for your interest

Our annual reported also earnings revenues business in record record construction XXXX. our businesses each annual construction services and reported

inflationary also As weather pressures expected, and we impacts the throughout experienced year. had

strong increases very year the adjustments inflationary finished operational we pressures. pricing and other offset as However,

X We we $X.X continuing efficiently customers combined We and publicly services XX.X% essential progress growth regulated focused this from while are and our up various safely XXXX, at our remain see all-time momentum record excited initiatives backlog by over at businesses. now as billion, standing products construction XXXX on strategic great into and companies. to create making providing our traded to pure-play on our opportunities

regulated sales To start business gas off with and our increased summarize increased businesses. retail Natural volumes unit, I'll electric XX.X%, XXXX. volumes sales in retail by activity X.X%

growing reliable the customer investments before and natural electric in XXXX. and we increases, seek X.X%. has In our providing with continues addition results. filing for base to regulatory pending relief service and the additional This a higher cases volume on The of rate customer X.X%, safe X saw agencies, positive to rate impact business to anticipate regulatory growth base. X rate growth associated recovery There about utility a are along cases approximately rate with gas of

placed volumes service approximately was day. early had in record XXXX. Expansion to expected In are and project XXX now to contracted million, services. by $XX Bakken The largely largely due per steady to transportation XXXX, pipeline largely into the North now the sixth increases volume approximately ongoing from commitment business demand the increase feet from Expansion its for cubic that project revenues revenues system of Bakken year, were million to transportation consecutive for North XX% growth Higher attributable

seeking XXX XXXX, with as January that On filed approvals. pending The of on and rate rate services. more transportation case later a Energy per the natural cubic Federal increases continues regulatory its completed storage in add expansion company business are work the transport feet a number XXXX Commission, gas for capacity XX, of projects to expected are million into and to than incremental they day Regulatory

on move to to construction our like I'd Now businesses.

nearly XXXX business We XX% business' experienced a work highlighting in year, with and strong record lines, this revenue projects. of and in commercial for for projects. demand a Services range increase of the Our perform diverse growth for renewable revenues Group its Construction had to mechanical-related capabilities with in all electrical specifically

for We transmission are by the work. also increasing encouraged distribution and demand utility-related

up sales projects basis. all-time these feel to backlog safely ability with projects record efficiently. of continue across expected ended $X.XX And and billion, to retain from employees X,XXX year. skilled are are with of over several a positioned large Construction we XXXX on the the our into and of our higher markets have all our we underway prior momentum XX% margin across Earnings to attract an year-over-year successfully services a complete well as guidance we footprint, and workforce is year

also construction we driven At pricing. materials our had increased record largely by annual business, product revenues,

business earlier, experienced throughout pressures XXXX. However, inflationary this mentioned as Jason

asphalt the as of pricing costs increases While performance decreased River's oil, Knife company quarter, fuel the improved in interest year pressures response River's the construction inflationary along effectively to because second unfavorable margins on and the Knife fourth took in and cement markets. also during shortening expense. experienced several half The higher the in year with of higher early full year in weather labor, key season effect.

expect increases We to the from price to continue XXXX. benefits see into

backlog at Knife at year-end $XXX.X year, River million. standing from prior increased XX% the

businesses opportunities. here improvement both of forward, the national benefit well XXXX. are increased Engineers of from U.S. Looking it received The grade of our American in Society positioned a to infrastructure is need Civil as C- bidding in from construction

with Investment excel demand Reduction With funding, XXXX additional we completing construction the businesses from looks and in strong the Act, along funding beyond. and the Act as Jobs Inflation state-level and look for our to Infrastructure

business individual our completes unit discussion. This

here tax initiatives substantial are have made traded pleased our The free in our in of also complete in publicly is expected completed expect X strategic second are XXXX, we underway we addition, be ahead, creating construction River to Looking business, pure-play with towards of companies. services quarter. with we to and strategic progress well in Knife the the which second the spin-off the review of we quarter

growing and customer the next X to investments safely years, to base rate demand. annually replacements X% over compounded and meet upgrades primarily between driven expect infrastructure system in We X% our by grow

projects planned including we pipeline are of Overall, regulated capital robust energy by investments well, have set demand the steady We ongoing encouraged at business X business in $X.X and over our our system years. billion pipeline next growth within the services. for as delivery

always, as need customers our we while and with place safety while safe committed to is great shareholder on Resources superior both essential continue being MDU creating to with and work. services focus those a As operating value integrity providing a

MDU Resources, we open ask Operator? to commitment your and appreciate and now I to questions. interest in the line that

Instructions]. [Operator

comes Our first line from Dariusz with of the question America. Lozny Bank of

maybe your starting just XXXX on guidance. So

that nonqualified For the And wide rate And that the drag upper X% you range you've place plus growth it you million earnings, could that in take lower from got the a potentially upper released just in you million offsets plan cited last the could? rate range? are be there at of some that up of the of about X%. the some to from -- you change talk that could to. the to presumably energy year-over-year you $XXX delivery that you range alternatively, you alluded of implies of plus of that $XXX higher fairly year, end if -- that of rates to given factors Can segment, plan, might that or what base capital absence the end range, maybe then new put

and I'll start Sure. add ask Jason question. to Yes, understand maybe yes. to I No, it. I the can

Thanks certainly. bit There is for Thanks, range. Yes, a Dariusz. the little a question. wide of

a kind your most that to you've the take you low there, for point, but with growth, historically there, to think I what the it's we've at the of include I small guided of amount end in as midpoint think kind of of part. So looked would line

ends outlying above that could guess, push range. that of of towards kind items below, us I So the or

higher you were about and the also that that we dis-synergy as interest of think those year built costs as year think costs I of little some have underway, what the our we've of we've some through built into quantified bit a initiatives think some probably than in we we've through year, into typically -- the of part we've when go some as strategic forecast well. numbers seen the built we potential

it built the could what are range push I we've we're there. higher the in there impacts into depending So of costs some than different directionality may the those that on seeing a that. lower bit extent assumptions, To of you our think or come that that end to

mean, year. couple think that So things of have as later far when better we'll certain have we underway clarity there. items get aren't the are year. variables narrow of rate that's just year, and as I and hit you we you some during timing as cases and that could a maybe resolved But as about throughout give the impacts would when obviously, as that the we the view of the impacts in up a continue go more see to those

bit looked Great. about That's customers? impact? you talk into the next at trends bit could Can the weather higher that little results from ask perhaps lower. a you're bit? QX, seeing River maybe very volumes margins, And trend Was I looking bidding Are they seeing some of from year? you maybe delivered helpful. another now discuss little different If Knife little but any a activity how you one, ticked volumetric a potentially kind of there like

tier April saw I of just tier early on early the about into maybe add season. saw for blizzards In in comments more activity May to with I'll the June. then really year Dariusz, it. like really earlier, the well. formal winter some set of talked my but Yes. construction construction northern the we in kind and he'd then really well shortened of kind as Barney, start, that until to if that We on And limited I'll northern Dave look kind

one was Barney, that? add that of Dave of think kind it, really Dave, to do -- anything the you factors. certainly that So would you the to of like was to but that add? Or bulk

of next mean a good most schedule. backlog, it. we covered for record year. got I bid Volumes you our Dave, good look

the pricing, over volumes it's up but the when year. a bit at are of look our down, Our you quite beginning

due for good slowdown volumes, so housing the ready-mix market, for looks in else the us that's strong. volumes. more a We're for it looks So for probably us on low XXXX little everything but to

Dariusz?

to sneak used one guidance. in This in when in Great. higher more language is the respect higher River that and expecting terminology Really slightly Group. could would any X% imply of a If lower And higher your have margins slightly you range some used more adjusted at I language both XXXX slightly you're on here. quantify higher or this around or guys I past, Is around, you're be time there saying, guidance helpful. you've X% Services Or to Knife to the perhaps possibility what the know with any that? Does you just midyear, margins. entails? give that and X%? possibility to

and we've not year-over-year, the something to And going in noting what as said Yes. to services years just Yes. Dariusz. slightly incremental the we short, question, we've think I what It's past. I'm at both means. higher in obviously language comparable understand -- said, to increasing I that's different. or so was define the No. for us said higher noteworthy other at When that materials,

also And And in gives we us kind margins that higher XXXX combine a look then then between X XXXX. as year-over-year. some the the and into being some $X.X I so confidence with of visibility us it that backlog businesses, think billion you gives on over into

with from comes Russo Your of line next Sidoti. Brian question the

guidance noted XXXX energy range. and prior the The Just follow-ups on the some questions. delivery, you

where North rate alluded Montana jurisdictions new those the have be then seems You rate sense secondly, be of cases to And jurisdictions? in a Any are rate when? we going your get of in ongoing, nearly and XXXX? could full see idea Dakota, X cases jurisdictions by which filed one to Trying will effective be to rates you relief, to all when X X Idaho. of year and in a XXXX, what

we because Right. addition X Nicole? then in center she's I'll that in have the that here talk Nicole of on cases front currently ask Right. the to that that to 'XX. those planned and through go and about X really each to are

for Thanks the question. Yes.

the cases Idaho you Montana essentially, gas. to and North Dakota So alluded electric and then

We of currently for do dates are the June. in X and those have hearing ones we have filed. May those So

for depending We dates. currently. would there, in the hope both Montana So place following interim rates in outcomes final on we have North Dakota those do and

a second And heard year-over-year I in alone, on. as had what track Dave in We've of are we for X.X%. was, XXXX jurisdictions, basically filings, rate your X% And historic about that our relates we then rate in think cases on to pursuing with you basis. record growth question it line in a are XXXX pursuing X base comment growth the of

serving growth to base case case of Washington, would look that rate South year electric rate a the business, file good a and at as intend side in customers' then in Dakota we then a and and gas as we on North case our require the So Dakota needs gas next well.

Great. Okay.

regulatory that active go And say -- returns XXXX see that rates you meaningful earned fair higher it your once to on lag? for given a into rate to assumes those once should -- the regulatory it's So is guidance you base? calendar, safe improving effect, new

provided also I would is, expense forecast interest short to the think we point strategic be that modest through earlier year, believe dis-synergies that. with our that Jason and well. what we we've -- comments as go you have I as the do answer might tried we to would increased initiatives I Brian, some is this agree also there

filed. being takeaway focused both here general like but the the given is recovery and rate the frequency is, utility directions, So very on rate should our number kind timely to the I'd parts of be there's in cases believe team of moving management

you million related is then case. the from Great. to project, And separate margin rate revenue Bakken North from Expansion the the that increase quickly revenue pipeline, FERC and/or Okay. expect on $XX of the

is correct. Trevor. this Brian, That's Yes.

Those of to capacity contracted are 'XX our from based about those that XX% 'XX. on increasing on volumes levels pipe

Okay. construction Got switching it. the And to then materials.

in the California Are impact early the then winter the was mid in you during referring winter. where have to unfavorable what vertically the mentioned and of -- pretty weather You of integrated Elliott and big you month in precipitation the footprint? above-average upper Midwest? well storm a the And/or December,

ask the those of of resides that and because Northwest key. experienced kind those Pacific were historic rains actually I'll he too. Both in saw, Dave? we Yes. Barney Dave

to in have spite our that continue and in higher line. to December definitely most And all not Yes, really weather able affected saw of backlog, have experienced We did markets. increase our of November, product of River we -- and we we're just in quarter. in almost the we weather prices in fourth weather the the impact poor also but our for our Knife regions record October

bridges, a activity And Great. XXXX a early lot impact, the needed in be January is roads, I'm then et weather California? the infrastructure with will and Knife and/or River lot cetera. seeing in to California out specifically because of of kind efforts Okay. ports, that of of of that CSG wondering, just And restoration flooding news incremental

with Dave, ahead. start maybe Go let's you.

Yes. it's of record some of spots, winter but some California see inches out a for was this rain, in California. we've here more but of and work which already come emergency there'll get storms. some work got be We still work. to to history month and pretty of lot hard out, in rain XX in bid wet future, the In of the going starting And there's California, definitely the to work any we're be to some definitely these from out the to doing started

that... see you Do Okay.

maybe that response even been question, Jeff, could work but more then to you doing? Brian's storm we've other broadly, respond

on with within Brian. California you, losses in past. country, also storm the state. that for did the we've other of part crews the normal of question, for most in that power States work notably restoration deployed course, Thank work Eastern the were the in United and We the And working Yes. our out of -- the parts some of redeploy helped Thanks of other assignments Dave. for

fire that. and to to really continue and have Tier of or in mostly work is develop. planning which to we We've and permitting California Tier an work, the take see work elevated We're be course, right on crews and come X of this on experience the engineering packages that got give upcoming continuing you busy, equipment, course, threat continues like out extreme way, to people X of undergrounding in districts. the and the update in Our I'd to we

will part to now, We up going in are and resources available in customer a track a and some to of our northern with record we've of work will backlog it of package record the future. any undergrounding and state, pricing our got that it backlog And don't contribute utility today. the great hopefully, in and work, our with our align We currently crews. get the the we're our have

margins Okay. on on Would -- commentary Great. of normalized what and the and both And improvement to characterize be you margins just captured your still the Knife qualitative kind do margin direction beyond on in you those then River CSG. as margins. XXXX there's earlier, Or lastly, sense the margins? above

Yes. Sure. always very we those we margins focus margins a key No, and businesses, on are can those in forward. focused going are enhance obviously how Sure.

in and ready-mix, within in the et the virtually services cetera, upon And all touched lines in et product our asphalt aggregates -- there. as what you're and so Dave guidance, business pricing cetera and both businesses. just increases increasing seeing margin the Barney

we're given obviously, a out projects, that year-over-year backlog, margins Jeff's of being strong there. workforce, ability to seeing increasing function bid also demand think, again, our And I is,

really So it's factors. combination a of

question Williams next comes Your Chris Ellinghaus, line of Siebert from the Shank.

if was I could T&D elaborate from. Jeff year wondering on was what last maybe weakness the just

Jeff? weakness, T&D

Yes.

project that We a the have has last for of couple struggle. been years a

working through and that good side. on that And we're got it recovery for standards, got completing hopeful accurately documentation we've we've GAAP So our captured job. and

as years. did didn't last work prior we we in storm addition, In much have year as

factors those are T&D on side. biggest the X the So

Great. Okay.

if kind Dave 'XX I just Going could I'm hedging you hedging. stand 'XX, for products. maybe where into thinking wondered of about petroleum-related address for

on procurement touch fuel there? you diesel our to for want the and Yes. fleet Dave, our do

asphalt in year by forward winter purchasing inflation. did fuel protect oil to that we've oil we this more and year advance, asphalt been lot last -- contracts than a from Yes, fixed ourselves

a on So inventory buying the on better there's parts supply. it's or on cement supply that. last year other we job products the bigger saw we've doing And and ahead been whether of been even have chain, problems

Okay.

different is format. Lastly, of guidance post EPS Jason, thinking of this new a to normal? is Are you Knife sort revert little this that back separation Or you'll guidance? the River,

talk Thanks, I previously of our long-term again, will the as give be really public of kind guidance still X and to similar I line Chris. goal with our those we really being And will would Yes. would each that's what what say, think the about in to in guidance have future industry. you what state we pure-play in carries of entities, provide industry. businesses see one

get MDU as look, think about guidance the at Resources EPS standpoint, back to range from we'll So you an forward some point.

review of and level, get the of where this of that's off back didn't we'll all future. strategic unknown moving with services of business the guidance and but that the to year parts in it the really good year impacts things. was just like side think give we the all to top feel things, those earnings what is timing exact definitely will With to investors with consolidated based timing the a at, spin the I value businesses regulated of happen

of comes Citi with next the Your Ryan question Bank. Levine from line

in there? of continuing a that a pipeline of Or number potential the those service -- light materials Are deal made for the In the terms front, strategic transact you've there on of both transactions? pause XXXX acquisitions is of more ability side. historically, to and on M&A

development very of CSG with work Ryan, question. spin would Yes, streams activity. at River at with to our Knife associated but active the strategic continue I we're the review time, we good say, conscious teams, the along business same have

the businesses So the while ongoing organizations. those we've would going I a not maybe of over both a Clearly, stop say, bit activity other given at are a part it's taking of on. and M&A backseat of both years, so is those product the little activities, DNA it's of

then Northern And from work recognizing construction the areas, a are in California of undergrounding included And Okay. what's X backlog uplift perspective? backlog? service, a within of seeing the those in T&D you meaningful either outside how

Jeff? Sure.

Yes.

our space We're our the is upgrade in still based lower pricing it T&D utilities. lot backlog negotiations several -- is increase fuel, opportunities. in a seeing of MSAs what of is upon pricing we're with our And And in the labor. Our course. in strong E&M, that, on than the updating we

So sight we of strong of and line a opportunities still work growth. see

transportation same XX Our backlog the And prior. outlook as utility is bit little work the our is months but was then down, itself a strong. about is backlog it

we area that's contribution We revenue and reflected and in earnings the that the expect growth in that in in guidance. have forecast our overall

more there you're transmission towards or where that growth regional Is opportunity? in geared of focus And is seeing terms the distribution? a

lot we also for a in just also in and West, Rocky region, We're seeing see of not market, the the distribution strong, gas and market of and Montana, doing we're have addition communication strong to outs we And change quite the despite a strength a in services underground still and work. in starting gas. customers. still distribution increase to on our communications work the the pressures services of upgrades also bit to the change that the -- Mountain have the is but We challenges in transmission number Midwest, a is

work positioned future. we'll undergrounding see mentioned add I the some earlier, Southern undergrounding to to if can and in we're our work, California backlog are we in that now. we right the So doing look as for And

than there undergrounding of bit in sight And come the that months any of planning for California some forecast as a few have little of Do implications Northern the your what per mileage may the a highlighted near-term MDU? you then work. in line bidding does their change for was terms Does plans? X-year what have that And planning from anticipated be ago? strategy a less

be work with of customer, down West part just will our Coast. diversified but but up we're work undergrounding amount tremendous and with and of that that still There's the a not forward, going market the utility, in that

well positioned forward out safely of able work the a and packages productively expectations. we're and do concern We're that at continue work changes to And those ours. quality work the we'll and to to exceptional to as put and coming So with crews as well doing. be not is updates customers' our that exceeds work other of that the

the driver And comments for a expectations how for for outlook? a as of margin that is more regarding thinking we broadly that earlier, Or driver expectations diesel meaningful of the then the be the any should improved margin made for about segments? XXXX,

not a about Ryan, margins a on Yes. it's year-over-year the would of, our but component Well, we part think basis. it's as say, I only of

it So of, as well. overall have in of but we strategy place that again, it'd put kind into our be part bidding goes

Your comes D.A. with next line Thielman from of the Davidson. Brent question

Just you pushouts? the like I still you maybe like of could chain. Is incredible of do bottlenecks Is hiccups industry any may supply seeing is to abate chain? it procure sort to just it sort some of but need? Because wondering to related there's on there, was or you in Or seeing out what be if tough CSG, what supply about beyond the seems that? feel delays of an demand talk amount that or you contributing

could curious that. comment just if you So on

Sure. Jeff?

materials. delays repositioned customers and the chain, of there, our some supply with where side or parts impacts being improvements but provide course, improvement on We're of We've seeing crews areas. our seen the some utility still of other on canceled or to most

our we and schedules that and gotten the delays add with better, stacking. side, impact issues, to and have can still On has trade but E&M could does it

site, not procuring, could it's we job. on trade which productivity a that are another it could be materials sometimes, labor the on impact the a job And

where better. gotten was it not improving. So is Yes, it's prepandemic. still Overall, it it's

Yes.

market know business Jeff. I the especially business, think into for the the housing And as to the a the but guidance an you're for just your how question expectations any year, I Appreciate of we isn't big about Knife. market -- year? mean this Okay. for that on feel building just that, then for the kind

Dave? Yes.

of X% is about residential. our Brent, Well, backlog

backlog, you Idaho, that staying And in bit works, which next to big work is house and little don't expect, year's our about feel of seen a So but to of If be backlog the have in we or market that we've a XX% pick it's earnings. that. and But a it and at bit is we we markets, sector. XX% I look we in little slowing slowdown down expect in large good housing continue of record strong. when public slow, it's Oregon most of pack our up XXXX. our our a

And that last marks the questions. for call

same accessed a Conference and location. for be webcast, heading. the Earnings available After would replay remarks. are under further www.mdu.com like At at to a closing XXXX Relations the I Call. As this Select at the Events time, to click questions. conclusion over the Presentations webcast reminder, the & Year-end will conference no there the be of can management Investor back turn

time Thank taking us thank earnings XXXX you call. our the for year-end and you. Perfect, to join on

our energy growth optimistic are delivering future opportunities about We regulated and projects.

We also connecting look to with we you through as forward progress XXXX.

operator. call So again, support appreciate you continued and with thank we'll Resources. and back the to interest like turn to your that, the MDU And I'd of

today's for concludes your Thank you participation. this MDU And conference Group Resources call.

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