MDU Resources (MDU) 3 Aug 232023 Q2 Earnings call transcript

Hello, my name is Lynette, and I will be your conference facilitator. At this time, I’d like to welcome everyone to the MDU Resources Group 2023 Second Quarter Conference Call [Operator Instructions]. The webcast can be accessed at www.mdu.com under the Investor Relations heading, select Events & Presentation and click Q2 2023 earnings conference call. After the conclusion of the webcast, a replay will be available at the same location.

I would now like to turn the conference over to Jason Vollmer, Vice President, Chief Financial Officer and Treasurer of MDU Resources Group. sir. ahead, go Please

And call. to Lynette. XXXX second earnings conference welcome you, our everyone quarter Thank

Kivisto, find earnings www.mdu.com Vice Energy; answer today can of with CEO President our on Relations You following of prepared Nicole our Leading myself and questions our this Group. materials tab. Also Goodin, Web call will MDU Chief for Controller MDU CEO Officer and of Thiede, be our Barth, be site remarks of Services President and discussion Accounting President, Stephanie Johnson, Resources. to Resources; MDU at today’s under Utility Dave and Investor release the President CEO along and and Rob supplemental Construction of us President will with Group; Jeff WBI

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

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

the that recent non-GAAP SEC any may more refer most forward-looking our risks from For refer to to also and statements, vary or about could cause filings. actual to uncertainties information. information please results our certain result We

comments appropriate reconciliation forward-look. results quarter news non-GAAP any a to metric, and the call consolidated information handing earnings for before For reference formal please for Dave the release. the his provide of will first I GAAP financial the to over

on per per GAAP This of GAAP announced earnings $X.XX $X.XX million million share compared a $XX.X share. or we to morning, second earnings quarter of quarter basis or second XXXX $XXX.X

for It's are discontinued important and current Knife the and during year. that operations other was River the results results $XXX.X quarter, Second prior the operations GAAP or spin related being quarter per Knife with million continuing note based our as impacts income share. completed $X.XX in reported to River's off of from

income ongoing from spin are As outline spin off our continuing of more including These the of correlate shares, that River better with adjusted work financial provide our initiatives. business, also construction reflect gain of tax we services such, related to of of the continuing and the results to completion advantage reporting the with any closely off Knife business and items adjustments Corporation, well the other strength the separation to as operations. retained the as approximately on of shares outstanding the our XX% May strategic unrealized XXst operations

For income of businesses from release. please information news results share see on $XX table operations income X outstanding We second of operations second adjustments, on per these or from the in or continuing provided $X.XX $XX.X continuing to million our from Page $X.XX our of XXXX experienced adjusted with per million the share. more quarter adjusted earnings quarter compared

at for compared look earnings a million of we quarter the the $X.X in combined business loss individual the $XX.X utility reported businesses, As million quarter of our second to of XXXX.

and investment experienced Also absence of one maintenance expense to The reported data the an of warmer to and related near operation to of in maintenance business retail higher earnings was utility million in earnings at residential agreement outage center our of weather Montana compared quarter the a in Ellendale, increase the higher the $XX.X million electric and interim stations is volume second The sales increase The payroll XX.X% on generating related planned result North Dakota. Dakota same and $X.X period largely primarily of and increase power service costs. year also electric increase commercial due a relief plans. XXXX. provide rate in lower and volumes. result prior a to North returns benefit the for non-qualified This was largely lower driving to

in decrease plans income million classes sales offset Idaho. benefit during quarter higher compared retail quarter business spring led a Washington gas added Revenues and and reported purchased increased the volumes million of loss, balances. $X.X interest was as which to in normalization offset utility gas rate weather expense, a to seasonal investment decoupling increased Increased to in and during as XX.X% partially quarter, the in second expense of $X.X payroll charges relief customer related on and basic was the maintenance seasonal the costs, of higher cost approved The to primarily associated mechanisms. quarter. from well second with all operation non-qualified benefited Warmer service natural the also a by XXXX. weather by interest higher loss adjustment higher which returns increased partially Our primarily loss from

benefited The time to last in quarterly non-qualified quarter. this related and $X.X by earnings to due increased non-regulated on revenue in earned by from returns from This costs. the offset million and and higher second plans primarily $X.X the operation increase The year. business due partially expense, the North also business compared transportation higher million maintenance storage costs record payroll during related project benefit driven project. projects non-regulated pipeline investment was largely business expansion transportation higher improvement revenues. Bakken commitments to contracted was the from The experienced volume pipeline volume The quarter and increased

Gross earnings $XXX and services expense earnings This revenue and to million of working project higher interest administrative second record business saw renewable million debt general quarter revenue related for needs the interest quarter, costs, increased rates offset XXXX. same increased interest second result record also and largely $XX.X $XX.X markets, higher and utility, product in in and to profit which compared rates. all due in industrial reported by to increased higher part In increased mix of institutional and revenue. workloads and higher revenue million the the prior year. addition, expense lower compared balances. Construction commercial, period higher of the drove quarter payroll industrial EBITDA of million of quarter Commercial and quarter the largely million as second interest in and gross a the selling, from costs record capital institutional $XX.X for $XXX.X second increased profit.

impacted compared financial each investment results our the fluctuations or share $X.XX positive businesses This of financial returns second of on at second non-cash quarter was to mentioned, on As markets. million a change in by earnings per quarter the to when the in due the returns Collectively, quarter. were XXXX. variance $X.X in the positively plans. That I non-qualified approximately investment summarizes highlights higher benefit for basis is the

now for his over Dave formal Dave? the And turn call I'll to remarks.

MDU quarter. for we our everyone quarter second Corporation outstanding for May on separation businesses makes completed during businesses achievement both This employees. proud and of historic company during and us The was our Knife quarter River remaining and Well, with results for of our Knife for across XXst time separation and thank the your for was the Knife company thank our record Jason. monumental as add performance you, of today all spending me you interest And experienced to remaining in dedicated River. from continued the River grateful And hardworking and Resources. extremely our

and business we and by volumes was gas volumes well. the impacted sales had of natural all The increased pipeline continue particularly second Construction utility increased positively quarter contracted and record utility quarter volume earnings by North quarter transportation continued The to gross as benefit electric driven workloads see second during had revenues, expansion higher to retail pipeline the relief quarter. commitments, second on profit. businesses rate our increased EBITDA, perform quarterly services record Our and Bakken project.

record projects to additional strong replace to While services and construction demand quarter second completed and completing secured projects, quarter continues this with record see amount nearly backlog. completed of the work, its ending

but by natural the gas rate with energy sales also and in To quarter, retail increased that part driven new combined by jurisdictions. segment, the relief bringing increased activity warmer certain summarize The start higher, electric the for I'll a due on reported business customer were off large XX.X% quarter. utility delivery due basis a volume which on during to to earnings temperatures regulated Electric customer was businesses. in usage

XX as generating natural expect the located construction X just later operational megawatt We Heskett fire year gas be Unit river this finish facility Mandan. North our on to we in the here here across

and growth upgrades next replacements by between customer the infrastructure, expect and demand. to We X% over annually also system compounded rate years, in meet investments safely primarily continue based to driven X% five to grow

rate We approvals received have with new both all Electric gas party effective Montana and cases settlements rates cases, July on Xst in natural settlement the Idaho well. Electric in filed North Dakota an case as in we and

safe for rate investments to year to the regulatory providing natural with reliable cases electric customer more associated early electric expect in Our and additional to this service gas utility file -- one we and base, three as and our and recovery XXXX. growing seek general yet continues timely

quarter. the during well very performed business pipeline Our

service pipeline gas transportation day. million event record business range on in the the general natural the of January this customers the now Federal expansion here is its a rate are case to the $XX Commission refund from feet with rates previous are delivery $XXX capacity, agreement storage and anticipated We its in projects day million, increasing volumes. guidance in began capacity for the XXXX regulated These take on rate take of will million X incremental the for as quarter $XXX Energy we of a noted million the of be With Jason the subject here per X.X of As on filed would gas storage of FERC a -- to billion with for settlement company in XXXX. regulated strong to X. second revenues recorded transportation higher related to per energy our in range projects These businesses yet and XXX the X.X up service XXXX, total rates. Regulatory of cubic business, and billion In $XXX quarter case had million. rates during our system add from transportation feet to increases WBI in $XXX Energy discussions billion agreement earnings in a effect to to active outlined which Xst to settlement August start three in well. the that effect August million cubic approximately and natural quarterly increasing year construction

to services I'd on move construction like Now to business. our

projects As ability record footprint. XX safely I quarter to of our along complete revenue, second services, our state retain for X,XXX our a positioned evidenced demand well and these mentioned We're with and earnings business with to backlog. workforce and plus employees our by skilled our strong attract efficiently previously, construction across EBITDA remained

margins million. review, to the that to we'll On was our billion our We between to Directors determined construction play objective July be shareholders pursue Board company. million guidance $XXX determined higher our in range to business. revenue are $X.X that of affirming billion slightly value and forward that range compared of of XXXX, an in announced $XXX becoming advantage the strategic this Board we path $X XXXX expect we tax the EBITDA XXth, of and best a optimize separation our a extensive the pure services achieving After in for regulated to while potential

and We separation determining we updated and timeline are on we'll method the the keep to you focused effect best proceed. as

our to from Looking services forward, well. as is well positioned bidding benefit business construction increased opportunities

funding it Infrastructure With our in already Jobs and business for Act, Reduction the from increased Investment XXXX demand see in. the construction work Inflation beyond the will and Act services the excels and

ahead, demand pipeline growth along electric services gas slate by seeing high and our steady services. demand as customer construction are natural for we opportunities Overall, the and encouraged system for robust expansion we the with and ongoing of projects are for our look pipeline utilities, our and we

to we regulated is September the announced Xst common dividend share. dividend peer $X.XXX This quarterly payout change today also stock XXth. delivery energy earnings. of to our new reflects Board XX% relative in payout earnings We target of record companies. announcement, intent with to established payable this of of play align a of dividend per our The dividend regulated delivery the XX% to stockholders ratio October our declared Along a energy regulated company's pure on Directors that the on with

dividend our the year target continue We on of capital of this us our to this feel becoming and our operations reinvesting regulated our shareholders to while proud path of XX progress play new returning are company. the regulated payout growth allow a ratio in to strategic will through pure as history practice we

to customers shareholder appreciate being a you, safe integrity the services now to continue Resources And operator. and and I work. providing over great operating creating MDU that open for further questions, and interest the focus in your to our place essential ask and committed always, superior on we products while with while As with it we commitment safety value, line as and communities to to turn resources. is

Dariusz America. take Bank from from of Instructions] your [Operator We'll question Lozny first

specific off considering able at starting on as what perhaps market far timeline all transaction. methods for discuss and Can update you as transaction? Maybe the be the or the the when CSG to might you just you're

appreciate Certainly, question maybe just is of moment. I'll do value in is well. shareholders. calling focus for and Dariusz your the a as here top Certainly, our mind main certainly step here for our optimize here we for back how

that we could and that to category well, posted certainly, central with very record think backlog we've think record here we think a is done at thinking. is levels in our business, business. second that by other a revenue, that advantage quarter also great here. think It's that tax we River we very as with evidenced it's the of at well. but performing when And level CSG alternatives about recently certainly the as of we're results as spin again I even looking well. a Knife be just our performing Certainly,

also So timeline we're I And would of the thing. this just and as far been along. remind here, the demonstrated the update do go that final would no there be that, going tax of along update just way. with is stop but our the you as certainly means the I'll Certainly market to we've determination ability market of very concerned, to separation. diligent think you I say advantage on we'll but kind also there's we I

from Can updated for electric guidance the contributions you the tailwind pretty the a other range you've of all to Maybe from plan, or new And unpack at got looks guide at perhaps mentioned you've front. up? each quantify maybe how year. all the range execution large guidance at relative the you on to the like utility. obviously the non-qualified -- on the got some it higher or one you factors that Can also those customer contributed rank regulatory constructive the

to the winter noting of you some midpoint had the say X% up volumes appreciate noted to of which year. favorable you that to in weather would the contributory that. of you into guiding things midpoint if that. range, we a there Certainly, summer, you I from are winter basically if we've to new Certainly, all And an first range you prior We will. extended we're I think kind that. if just quantify quickly saw volumes, winter part then there. late right strong electric with help went the from

about volume So at certainly we we low certainly Nicole customer activity then and frankly, her And year, Bakken incremental the but addition regulatory all saw both with is ramping think same then in that. done and party Idaho additive. as that an large expected margin all on have contributed the have The for completion, team the Dakota had North Montana, those settlement which to we time large and Rob year-over-year. it's North volume, to, up expansion, the

progress, So guidance the the for we're very raising hence pleased back with half. the

you're those, to all they say. quantify spot would contributed, I on I So think

One if can. more I

about wanted ask for to specifically. CSG the guidance level Just segment

and pointing the full segment for You half are like second million the the debt to pretty some of year? of looks interest guys the it to year. the modest that of expense at Are $XX issue for expecting half you in it's first year,

holding a financing to on higher expense holding is a guidance interest at think more since make question noting million. guidance to just side it's $XX But end we again, year-over-year. -- for that thinking be we're want sure and I'll as kind on and of answering by ask our I of But your got. I there. a that Correct? reminder, quarter the Jason in X.X of raised first to we're margins remainder We're the the revenue zeroed you've your X.X what on we're question the slightly year, question. from

The an correct. that's Yes, second in the year. implies the of guidance half uptick

that in debt some there's that wondering if just So I segment. an was issuance of implicit at is incremental

in can This you. there, Dariusz. Jason. jump I is Thank

to guidance I focus you're some we've side we're we really that out the our mean, which on the we that's of at revenue range our and most where the there of are from put this, as reconcile focused things, look where think probably perspective putting backs, EBITDA number, we I throughout add at. referencing back really process. of a EBITDA, with is that earnings I Obviously those think, for

As I we see. could range a look we that at there's there of outcomes think

as with quarter, first have little additional have numbers at we've higher seen they've we here as specifically that the here any work been we bit increase the have aren't working business mentioned, seen impact this working the in there. that interest along vast as What That financing an rates way. with expense, we with there a capital is along We higher looking of issuance costs, had been interest amount and have backlogs the higher seen through that in CSG, higher even debt well.

we interest just cost really balances I at level. So is that is really won't see we give specific of of impact, at this at the point there I We of think some today. itself. year. expectation here on into kind would the guidance we don't that the some here But of pointing half to second kind persist get that the see as look that we're what

business, Jeff be the that, into but it's the thinking question more tied how operationally, more maybe interested for particularly a year? in you. half he's Dariusz, back the of of hearing from Would Thiede you about

that be very helpful. Certainly, would

ground on weigh you in could Jeff, given seeing you're there? what the

and our services see second reflected for our and record our complimented backlog also second QX our revenues to demand that's continuing earnings. in strong quarter record We're quarter as record by

in broad and country the building some the of the markets on geographic regions very it's innovative across projects We're other but diversified. is hand the and most largest backlog multiple based Our very that projects, well in radar the of we that course, projects for serve. future. Las several projects headliner on more ahead Vegas underway, And and of are our those are are there type

we renewed, our look labor, going forward. our You negotiated and that's side that a updated our to be been material, T&D have service lot to and success factor fuel equipment MSAs agreements, have of a our contributing at reflected costs, going our and

exciting Expressway. Kansas In sector. XX US streetcar underway a T&D on City our We're got and projects extension project addition, in some we've in

expanding current markets to capitalize So this we're a how able illustrates success. our as and diversification pivot for company and continued on to markets

question from Chris the from Shank. next Ellinghaus Siebert will line Your Williams of come

number, really other there anything Knife from I'm all operations included presume discontinued the The that I River. thinking Is number? segment. in that’s else

I'm there going included through Barth noisy quarter the a think Chris, ask little here, the Stephanie to Officer walk it's to and you Chief others. and a our to that hence help you Accounting earnings when discontinued operations adjusted also know what's We of bit year-over-year. a maybe on

Stephanie? So,

River’s say Chris, XXXX for mind would operations related And we it one separation in here for be some thing months only months so keep to professional second in of incurred contributor Knife quarter cost, compared the the to as the then related I the two to would had the is three year. advisors that in we costs transaction other there large transaction. last

Knife Knife that $XX.X expenses? So River million transaction River loss related doesn't include is the specific any purely operational,

Knife related costs. No, River include that would actually transaction the

So strategic share that's plus initiatives… operational their of

Yes.

year services to for at around So spun majority construction you consolidated the off guidance. given of guidance that season, you heavy why point? us construction the River through and the probably been is gave not Knife that certainly this higher and still has the do decide did But utility vast

our timing, Chris, the good to being think granular River, to in businesses, is the grant providing of you that really investors uncertainty view with year, I for mirror given of as would each business back others do guidance businesses. the it Knife think the as when But also as with dividend ourselves them. I more granular say our think more would I well the each say we started have regulated And which see that to about we rear I we now. of here today within within point play goes knowledge point. pure at our think about you certainly, we that announced businesses aligns about pure with payout and as as a we consistent guide also play future ratio regulated it's some And

Chris's investor view still that, you But as business, and meaningful from eyes think point represents to a question. anything So to -- their add we too. be the [meaningly] should a I the from as we in Jason, forward just guidance what to look from think an listen

have you'll The quarter the will continuing a some River only here, of thing and would That stake well. bit also again, here on of of retained see a add as little we disclosures I lot that organization -- of that. I think year. as Knife We of as noisy a other of And through part some is, had operations. gains Dave kind the be mentioned, on throughout it's unrealized the that's the

So of us. part little will that around though a on Knife spun move it's to bit out, even continue River that's been

lot So operations there's of there. I a a think factors consolidated number, kind together just moving to put of continuing

just we was kind to with specific like to regulated more useful then felt segment the the stick and that and the services stick delivery of energy it separately. or guidance closer So

you the Dave, about dividend. talked

for Can at time? you terms you what the up dividend how how give new -- us payout progress thinking the maybe see and over payout growth XXXX. of going end the you're lower end target to for will You're thoughts of probably about maybe the evolving certainly in some

of on question, just we or targeted that diversified a that today prior expected business always of ratio something model, Chris. But for thinking to consistent spot actually here I long a kind reflect certainly out of talked mean, our peers release actually play a we kind us. about payout more is we Providing in to that we'd new our No, did May, put folks a years. more starting our dividends in expect rich business regulated of history, guiding reinforced we today which XX with pure towards business. future

earnings. over look we to would payout this our is, XX% growth of I question kind basis. how we Certainly, ratio I I percentage on from on a as if think also be proxy, So time? year-over-year expect is hear think you underpins. ratio, a see we XX% And would an will, rate appropriate. then that based do I base that's to, that's that so to And earnings your mean the earnings

the with recovery, growth said the then regulatory based should proper so timely Board a we And these rate two as and have to come basically into play. to be would factors discussion growth. expectation. rate that, it that all that that quarter But get up all and proxy have So it's dividend having would would relationship, of be a expectation our every my my replication based some obviously

driver some One up Dave expecting on sort And are for seeing up going pretty sort or legislation. going of in energy about you be sizable various this more side incremental is to touched forward, the What on going really activity from a forward? sort is clean business? are of of what's showing the of the any that seeing Jeff. you question yet that backlog in you for pick

think for of forward. driver I us going a more

City We backlog, these us about. City car Chris, really due the haven't Street and US in future. the Act of and tailwind of work Expressway. positioned, of Portland Kansas good experience the us charging of Airport. space, Jobs projects we're awards, this vehicles, type well are Investment we're in and with electric we're experience to the earnings. in solar going I And ports a projects going got renewable extension to Chris, QX very of these Inflation the a are funded directly momentum and airports or work continued Infrastructure and build contribute the and upon Reduction is record a seen our team, type Kansas excited EV at two this our opening completion in the and the positioned are backlog projects to of put we our to, provide recent And And systems. some course, Act of through yet the opportunities on projects we're for our capture our We've that position but our project it's area, future for projects well services and and contract Airport, Those provide, work bridges, great and those mentioned highways, going to the course, whether XX radar. stations International water to in which

Citi. Instructions] from from hear We'll [Operator next Ryan Levine

In any assumption there upcoming color terms based you for on the upside around or year business, embedded settlement current outcomes? regulated pipeline outcome around the could to regulatory with FERC or the guidance of an guidance your is any share upcoming assumptions potential

those in the play with other that we're increased put would factor and days, to I All come days at in as and items I see mean, of the those items one the that degree future the that's factor we normal Certainly, we out recovery, the we here. year. as say best that expect weather. mentioned addition guidance that, cooling into we normal throughout factors degree risk what normal full be year reflecting certainly, timely and how for you well. we then look would

policy, reestablished reflecting on or the the upcoming Is dividend transaction? could comment. potential do policy, look the to potential appreciate or I guess any growth. upcoming to is the change grow PSG the should And that there dividend there spin outcome of potential based we a that and at regardless -- to perceived from dividend as floor updated payout any color rate the that, there follow-up around ratios a of

here of peers aligned the a tax regulated future announced pure that more expect value So CSG a to again advantaged part to be point, at May and play we our back type our some going with at we'd about that signaling of And dividend as optimize business. transaction recently. purpose we look

so in kind of often think So the out as that. to Peers do have we're not CSG dividends. that dividend your of about point business equation -- we taking

as future think here think about of to underlying here think we it's state and of earnings, the specific point, target from to on ratio your company, kind as the thought long very payouts we the specific so And to regulated you're and we baseline -- think I of a grow. I being term spot kind on we're we're

terms are potential Morris the And options most at looking on of the Is company table spinning transactions considered. as what's reverse the be color or the then potential Board any alternatives? you're type around that that transactions Trust other getting and being in evaluate attention, may

So that options I better tax those could in basis And share this to felt at. check advantaged market point maybe just and would tax business of we and was tax optimize those given be the more more relatively addition for low market the would this a short business value be that means. separation. a did answer of just a we by in advantage there where we felt the the business, would

I think you more with that my just and reminder shareholder you others, or got today. institutional tax And should some here is. a value. to think, separate if so overemphasize some some high of created what then our here. Certainly, went draw Knife humble other opinion, don't as want specific a spin did there color we that through we the I on to it blown performing a full the a in to tremendous it's got to I not But And is amount spin a that that spin. clearly, experience give we've business thinking River have new to some advantage year can as way find a ago the spin knowledge to means we've we that,

question last then me. And for

territories? the across of FERC team you the time their upcoming all us decision. the service pipeline Can -- as events where of outside is spending terms refresh regulatory to In your

to year. my we've planning on then she's noted am. I that closer I I'll and Nicole touch to the cases three clearly but In in than early comments, activity we're yet that one XXXX, for got this here that Nicole? ask

had case look right as more we electric year. now look would there, to case this the for was on settlement side are Montana in next and file August gas the Washington to the so and through Dakota multiyear that we on that waiting Dakota And year. from then in on and intention our question, then which we're later in electric then one. of South your working to to an rate filed commission all-party I is a we ahead year, of year, file filed North as next remainder be file in outcome and our the early in Gas a So intending And case we're an June, think

from line next hear Russo Brian the We'll Sidoti. of from

Should we base updated growth? which X%, the the or with year XXXX earlier be the to as be X% EPS, would delivery to mentioned energy rate as guidance grow use based consistent your target you to

Jason one. ask on that touch to I'll Vollmer

at that. we the as think looking at look I and dividend are we how

of what regulated you million to was $XXX million. as to new million million increased the $XXX $XX earnings energy So from by $XXX we guidance mentioned, million delivery range our $XXX to

XX%. we're looking of now the excited to XX% ratio it. forward portion that So giving payout about guidance If a we're guidance, the about of we that think on targeted

payout kind ratio I do you about of about XX%, that, year the the guidance. think think on we're XX% the see of kind math right we if think that that, you midpoint for guidance that the have at range of current if that you'd

we So to said feel mentioned range look what base we we’re think even we we than a this higher that. as in as to in X% to on that -- to little about X% it that, to of look X%, like a rate echo David the I a see growth, kind is forward. that at current bit actually you base forecast based think grow earlier, off And of so X% the really

where regulated the range -- actually the to that we're As where the midpoint we to up group XX% ago, year guidance we to a XX% utility year-over-year basis. we in were range compared the look back at on a for now of were right compared

us we go-forward the And we're does of be really it So that on basis, very here grow to base where trajectory about this to good think going. a very set is that we up the today. able off feel establishing well

cetera? ROE there sort of allowed years, inherent businesses? any will time rate have lag seems the it in as be filed or sort where by if sometime utility test like nearly and just And natural of regulatory you'll a -- you'll lag your some of in be And always we earning basically jurisdictions, should based XXXX, et will be on concluded all in cases there there your is

the $X.X CapEx kind on overall with details. we're again, Brian, think at maybe level, in which I'll about excess of ask is five of business depreciation. if next over some we billion along forecasting macro But a years, Nicole her with WBI,

looking leg, lag its same rate some we're of the noted to touched kind others kind the regulatory going Nicole, want to we're so that there periods. take time, but by a or And on that is be there to inherent because earlier, question, of base jurisdictions Jason based in didn't add, it very whole to add tightening at know will some I to of nature, than longer we've rear you there, I think X% but X% there, at be up some and if growing did. leg forward-looking But to I way. that Anything Nicole? anything that that, on test

so Dave. well, think I No, summarized you

growth are So legs. said, inherent to have I we is are achieving punchline at some just he the of we that mean, the to what rate get, expecting and going

general process we've in our So and states do continue appropriate. we'll we got all and monitor file to the rate our of case returns that as

other The use mechanisms. to have the ability though we of comments Dave's tracker certain to be that our add I states, would would in thing

leg a the So in of various on Minnesota, as example, to our electric a certain filings have do mechanisms In where the tracker of annual our opportunities. of pipeline side regulatory tracker. have have we tracker. state state on reduce we can Dakota, North Washington, pipeline of state the an we the In investment we

filings we're can. allowed. the going then we're states And to where other in those to our falling according manage do growth we underneath So are where

rate we guess to in continue growth arena. So the I regulatory have to punchline we the is have will the be with

on And CSG. then just

looks year-to-date kind Can just 'XX T&D in Just mechanical you on nearly of I like a XXXX. the electrical there? your June and distribution side business operating and revenue at this statistics, based on versus it the on when you and even it's backlog transmission year the where from versus up is of ago all is coming see down was the look E&M. quarter growth on flat of of discuss but going the what's

what what would those So I'm say, two, kind are, of I markets? seeing distinctly different in you're curious end dynamics

about that color on add a can some Jeff, you that year-over-year on basis? we as think

Yes, absolutely.

the most work sector, is T&D of through MSAs. Our our

communications. that with mitigation lot to and in a Mountain in, I we're the that before, Southern relationship addition other with electrical Rocky our then of utility forward most customers are updates that mentioned our the we're and for up But MSAs. T&D on reflection our Northwest, of We're trenching in course, equipment. with with doing we've California, emphasis work, Pacific updated got California earnings this As identified going the the to and services, in undergrounding we gas But for earlier, joint mostly, involved And Northern labor, from that with. the space but as Kansas Street and seeing backlog car also have California experience projects we notably material, going in to our City customer, that fuel US of and our projects Midwest. tremendous I and contribute see extension wildfire XX, we're caught a our

in we're and we're calls are but contribution the at factor. in here we're radar side. which that course, the -- expanded a are side, capture significant going timing also be is involved asked fighting some of to are the to in T&D is to And is seeing into report us. hope that work some our incredibly and we're significant that contributory us positioned of market. we within these And it other that that on project seeing Vegas the it there's on be bids this well able area that and E&M for there And that but projects region to Las projects on complete CapEx that of another customer we've we're we're some beyond released, that control Arizona our looking So in of because in future are a be to

out resources be well success. So we're our and there available the best still positioned get continue able to the work to and of is with it still our

months? But the line. do XX to to get just margins you're side and the historical top given then I'm maybe the also evolved backlog mix business business the XX E&M has way the are just two at growing of over three margins quarters about going to T&D, to relative your new rate CSG seems say, curious, type with And that faster over back you think overall the the It lower years. thirds the it's next of the been has pre-inflationary or a

Jeff, to you do take that want one?

Mid-Atlantic, company with couple but future T&D support very is business with of both want we're is that side but services, that I of new in have other through companies the opportunities and one really to backlog in labor, faster factor CapEx and and projects Ohio, of balance. that is of level that the program, the expansion. on seeing company built the We have our City the our our a Limiting our labor, We we people care a and market going facility the significant, that then, grow. undergrounding Meanwhile, to of through build qualified in health brand work are for the the opportunities. growing. T&D Kansas the course, because critical mission we there we difficult than available the one growth help in in believe, electrical expansion the see the of the And

and And that fit values so capture resources where we're could that with most us the going on ones the to align best our be we with customers our successful.

to for any At in questions [Operator would the time, to are no like there over closing back turn Instructions] management queue. this conference additional or I further comments. the

us quarter here for all you thank to And time join taking Lynette. earnings on second you, call. our Thank

MDU of We As well. performance look demand growth about and by our optimistic projects forward the strong certainly service are you our heard future and to our energy we again earlier, as connecting all, we regulated and opportunities businesses and encouraged delivery Lynette. construction above with and through turn as XXXX. to and thank you here your And continued support again And Resources. you, it I'll back that, pass we progress interest of appreciate we

you Group MDU today's for concludes call. thank your all This We you. participation. Thank conference Resources

disconnect. You may now