Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-03480 | |
Entity Registrant Name | MDU RESOURCES GROUP INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-1133956 | |
Entity Address, Address Line One | 1200 West Century Avenue | |
Entity Address, Address Line Two | P.O. Box 5650 | |
Entity Address, City or Town | Bismarck | |
Entity Address, State or Province | ND | |
Entity Address, Postal Zip Code | 58506-5650 | |
City Area Code | 701 | |
Local Phone Number | 530-1000 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | MDU | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 203,638,373 | |
Entity Central Index Key | 0000067716 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating revenues: | ||||
Operating revenues: | $ 1,000,795 | $ 1,002,487 | $ 3,522,020 | $ 3,119,351 |
Operating expenses: | ||||
Operation and maintenance: | 738,658 | 767,451 | 2,304,796 | 2,077,524 |
Purchased natural gas sold | 55,967 | 61,863 | 542,848 | 444,527 |
Depreciation, depletion and amortization | 53,146 | 51,843 | 158,877 | 158,622 |
Taxes, other than income | 39,454 | 40,248 | 156,587 | 139,305 |
Electric fuel and purchased power | 28,966 | 20,080 | 73,755 | 68,370 |
Total operating expenses | 916,191 | 941,485 | 3,236,863 | 2,888,348 |
Operating income | 84,604 | 61,002 | 285,157 | 231,003 |
Unrealized Gain (Loss) on investment in Knife River | 30,150 | 0 | 170,170 | 0 |
Other income | 8,918 | 5,774 | 29,251 | 2,521 |
Interest expense | 32,129 | 20,196 | 82,541 | 58,275 |
Income before income taxes | 91,543 | 46,580 | 402,037 | 175,249 |
Income taxes | 13,325 | 4,211 | 92,311 | 28,352 |
Income from continuing operations | 78,218 | 42,369 | 309,726 | 146,897 |
Discontinued operations, net of tax | (3,289) | 105,602 | (65,752) | 103,504 |
Net income | $ 74,929 | $ 147,971 | $ 243,974 | $ 250,401 |
Earnings per share - basic: | ||||
Income from continuing operations | $ 0.38 | $ 0.21 | $ 1.52 | $ 0.72 |
Discontinued operations, net of tax | (0.01) | 0.52 | (0.32) | 0.51 |
Earnings per share - basic | 0.37 | 0.73 | 1.20 | 1.23 |
Earnings per share - diluted: | ||||
Income from continuing operations | 0.38 | 0.21 | 1.52 | 0.72 |
Discontinued operations, net of tax | (0.01) | 0.52 | (0.32) | 0.51 |
Earnings per share - diluted | $ 0.37 | $ 0.73 | $ 1.20 | $ 1.23 |
Weighted average common shares outstanding - basic | 203,638 | 203,351 | 203,633 | 203,351 |
Weighted average common shares outstanding - diluted | 203,886 | 203,644 | 203,891 | 203,407 |
Regulated operation | ||||
Operating revenues: | ||||
Operating revenues: | $ 279,534 | $ 263,774 | $ 1,293,959 | $ 1,141,007 |
Operating expenses: | ||||
Operation and maintenance: | 99,295 | 89,662 | 296,818 | 281,909 |
Income from continuing operations | 14,628 | 12,919 | 100,923 | 73,249 |
Nonregulated operation | ||||
Operating revenues: | ||||
Operating revenues: | 721,261 | 738,713 | 2,228,061 | 1,978,344 |
Operating expenses: | ||||
Operation and maintenance: | 639,363 | 677,789 | 2,007,978 | 1,795,615 |
Income from continuing operations | $ 63,590 | $ 29,450 | $ 208,803 | $ 73,648 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 74,929 | $ 147,971 | $ 243,974 | $ 250,401 |
Other comprehensive income (loss): | ||||
Reclassification adjustment for loss on derivative instruments included in net income, tax | 0 | 37 | 17 | 109 |
Reclassification adjustment for loss on derivative instruments included in net income, net of tax | 0 | 111 | 81 | 334 |
Postretirement liability adjustment | ||||
Amortization of postretirement liability losses included in net periodic benefit credit, tax | 98 | 148 | 263 | 460 |
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax | (6) | 461 | 481 | 1,367 |
other comprehensive (income) loss, reclassification adjustment to aoci, postretirement liabiltiy adjustment from regulatory asset, tax | 0 | 0 | 0 | (1,086) |
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | 0 | 0 | 0 | (3,265) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (6) | 461 | 481 | (1,898) |
Net unrealized gain (loss) on available-for-sale investments: | ||||
Net unrealized gain (loss) on available-for-sale investments arising during the period, tax | (17) | (88) | (21) | (207) |
Net unrealized gain (loss) on available-for-sale investments arising during the period, net of tax | (66) | (329) | (80) | (777) |
Reclassification adjustment for loss on available-for-sale investments included in net income, tax | 3 | 12 | 9 | 27 |
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax | 10 | 42 | 36 | 99 |
Net unrealized loss on available-for-sale investments | (56) | (287) | (44) | (678) |
Other comprehensive income | (62) | 285 | 518 | (2,242) |
Comprehensive income attributable to common stockholders | 74,867 | 148,256 | $ 244,492 | $ 248,159 |
Net unrealized gain (loss) on derivative instruments qualifying as hedges | ||||
Net unrealized gain (loss) on available-for-sale investments: | ||||
Other comprehensive income | $ 0 | $ 111 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets: | |||
Cash, cash equivalents and restricted cash | $ 32,493 | $ 70,428 | $ 57,859 |
Receivables, net | 893,019 | 1,064,340 | 850,137 |
Current regulatory assets | 169,248 | 165,092 | 148,160 |
Inventories | 80,235 | 64,248 | 89,814 |
Prepayments and other current assets | 63,805 | 55,123 | 87,901 |
Investment in Knife River | 276,213 | 0 | 0 |
Current assets of discontinued operations | 0 | 592,517 | 790,421 |
Total current assets | 1,515,013 | 2,011,748 | 2,024,292 |
Noncurrent assets: | |||
Property, plant and equipment | 7,211,680 | 6,874,630 | 6,814,651 |
Less accumulated depreciation, depletion and amortization | 2,191,514 | 2,098,298 | 2,096,450 |
Net property, plant and equipment | 5,020,166 | 4,776,332 | 4,718,201 |
Goodwill | 488,960 | 488,960 | 488,960 |
Other intangible assets, net | 2,526 | 4,102 | 4,648 |
Regulatory assets | 428,969 | 329,659 | 344,442 |
Investments | 139,327 | 128,827 | 125,534 |
Operating lease right-of-use assets | 75,729 | 73,502 | 76,155 |
Other | 198,459 | 161,900 | 181,860 |
Noncurrent assets of discontinued operations | 0 | 1,685,751 | 1,643,038 |
Total noncurrent assets | 6,354,136 | 7,649,033 | 7,582,838 |
Total assets | 7,869,149 | 9,660,781 | 9,607,130 |
Current liabilities: | |||
Short-term borrowings | 306,400 | 38,500 | 0 |
Long-term debt due within one year | 61,319 | 47,819 | 86,319 |
Accounts payable | 414,479 | 525,560 | 452,379 |
Taxes payable | 49,500 | 62,308 | 80,691 |
Dividends payable | 25,455 | 45,245 | 44,229 |
Accrued compensation | 94,230 | 59,470 | 72,441 |
Operating lease liabilities due within one year | 23,112 | 21,307 | 21,568 |
Regulatory liabilities due within one year | 45,013 | 26,440 | 18,599 |
Other accrued liabilities | 154,147 | 156,031 | 158,514 |
Current liabilities of discontinued operations | 0 | 496,923 | 533,562 |
Total current liabilities | 1,173,655 | 1,479,603 | 1,468,302 |
Noncurrent liabilities: | |||
Long-term debt | 2,279,828 | 2,317,848 | 2,192,411 |
Deferred income taxes | 526,654 | 455,499 | 442,468 |
Asset retirement obligations | 384,083 | 372,870 | 444,967 |
Regulatory liabilities | 495,112 | 448,454 | 433,212 |
Operating lease liabilities | 52,908 | 52,871 | 55,453 |
Other | 199,475 | 180,603 | 175,788 |
Noncurrent liabilities of discontinued operations | 0 | 765,904 | 902,671 |
Total noncurrent liabilities | 3,938,060 | 4,594,049 | 4,646,970 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock | 203,638 | 204,163 | 203,889 |
Other paid-in capital | 1,462,939 | 1,466,037 | 1,455,241 |
Retained earnings | 1,108,616 | 1,951,138 | 1,879,600 |
Accumulated other comprehensive loss | (17,759) | (30,583) | (43,246) |
Treasury Stock, Common, Value | 0 | 3,626 | 3,626 |
Total stockholders' equity | 2,757,434 | 3,587,129 | 3,491,858 |
Total liabilities and stockholders' equity | $ 7,869,149 | $ 9,660,781 | $ 9,607,130 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Common Stock, Shares, Issued | 203,638,373 | 204,162,814 | 203,889,661 |
Treasury Stock, Common, Shares | 538,921 | 538,921 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common stock | Other paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury Stock, Common |
Common stock balance (in shares) at Dec. 31, 2021 | 203,889,661 | |||||
Balance at Dec. 31, 2021 | $ 3,382,874 | $ 203,889 | $ 1,461,205 | $ 1,762,410 | $ (41,004) | $ (3,626) |
Treasury Stock, Common, Shares at Dec. 31, 2021 | (538,921) | |||||
Net income | 31,763 | 31,763 | ||||
Other comprehensive income | 269 | 269 | ||||
Dividends declared on common stock | (44,447) | (44,447) | ||||
Stock-based compensation | 2,689 | 2,689 | ||||
Repurchase of common stock | (266,821) | |||||
Repurchase of common stock | (7,399) | $ (7,399) | ||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | (12,303) | |||||
Treasury Stock, Shares, Retired | 266,821 | |||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | $ 7,399 | |||||
Tax withholding on stock-based compensation | (4,904) | |||||
Issuance of common stock | (127) | (127) | ||||
Common stock balance (in shares) at Mar. 31, 2022 | 203,889,661 | |||||
Balance at Mar. 31, 2022 | 3,360,718 | $ 203,889 | 1,451,464 | 1,749,726 | (40,735) | $ (3,626) |
Treasury Stock, Common, Shares at Mar. 31, 2022 | (538,921) | |||||
Common stock balance (in shares) at Dec. 31, 2021 | 203,889,661 | |||||
Balance at Dec. 31, 2021 | 3,382,874 | $ 203,889 | 1,461,205 | 1,762,410 | (41,004) | $ (3,626) |
Treasury Stock, Common, Shares at Dec. 31, 2021 | (538,921) | |||||
Net income | 250,401 | |||||
Other comprehensive income | (2,242) | |||||
Tax withholding on stock-based compensation | $ (4,904) | |||||
Common stock balance (in shares) at Sep. 30, 2022 | 203,889,661 | 203,889,661 | ||||
Balance at Sep. 30, 2022 | $ 3,491,858 | $ 203,889 | 1,455,241 | 1,879,600 | (43,246) | $ (3,626) |
Treasury Stock, Common, Shares at Sep. 30, 2022 | 538,921 | (538,921) | ||||
Common stock balance (in shares) at Mar. 31, 2022 | 203,889,661 | |||||
Balance at Mar. 31, 2022 | $ 3,360,718 | $ 203,889 | 1,451,464 | 1,749,726 | (40,735) | $ (3,626) |
Treasury Stock, Common, Shares at Mar. 31, 2022 | (538,921) | |||||
Net income | 70,667 | 70,667 | ||||
Other comprehensive income | (2,796) | (2,796) | ||||
Dividends declared on common stock | (44,446) | (44,446) | ||||
Stock-based compensation | 2,689 | 2,689 | ||||
Issuance of common stock | (22) | (22) | ||||
Common stock balance (in shares) at Jun. 30, 2022 | 203,889,661 | |||||
Balance at Jun. 30, 2022 | 3,386,810 | $ 203,889 | 1,454,131 | 1,775,947 | (43,531) | $ (3,626) |
Treasury Stock, Common, Shares at Jun. 30, 2022 | (538,921) | |||||
Net income | 147,971 | 147,971 | ||||
Other comprehensive income | 285 | 285 | ||||
Dividends declared on common stock | (44,318) | (44,318) | ||||
Stock-based compensation | $ 1,110 | 1,110 | ||||
Common stock balance (in shares) at Sep. 30, 2022 | 203,889,661 | 203,889,661 | ||||
Balance at Sep. 30, 2022 | $ 3,491,858 | $ 203,889 | 1,455,241 | 1,879,600 | (43,246) | $ (3,626) |
Treasury Stock, Common, Shares at Sep. 30, 2022 | 538,921 | (538,921) | ||||
Common stock balance (in shares) at Dec. 31, 2022 | 204,162,814 | 204,162,814 | ||||
Balance at Dec. 31, 2022 | $ 3,587,129 | $ 204,163 | 1,466,037 | 1,951,138 | (30,583) | $ (3,626) |
Treasury Stock, Common, Shares at Dec. 31, 2022 | 538,921 | (538,921) | ||||
Net income | $ 38,353 | 38,353 | ||||
Other comprehensive income | 217 | 217 | ||||
Dividends declared on common stock | (45,574) | (45,574) | ||||
Stock-based compensation | 3,108 | 3,108 | ||||
Repurchase of common stock | (153,622) | |||||
Repurchase of common stock | (4,811) | $ (4,811) | ||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | (7,851) | |||||
Treasury Stock, Shares, Retired | 153,622 | |||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | $ 4,811 | |||||
Tax withholding on stock-based compensation | (3,040) | |||||
Common stock balance (in shares) at Mar. 31, 2023 | 204,162,814 | |||||
Balance at Mar. 31, 2023 | $ 3,575,382 | $ 204,163 | 1,461,294 | 1,943,917 | (30,366) | $ (3,626) |
Treasury Stock, Common, Shares at Mar. 31, 2023 | (538,921) | |||||
Common stock balance (in shares) at Dec. 31, 2022 | 204,162,814 | 204,162,814 | ||||
Balance at Dec. 31, 2022 | $ 3,587,129 | $ 204,163 | 1,466,037 | 1,951,138 | (30,583) | $ (3,626) |
Treasury Stock, Common, Shares at Dec. 31, 2022 | 538,921 | (538,921) | ||||
Net income | $ 243,974 | |||||
Other comprehensive income | $ 518 | |||||
Treasury Stock, Shares, Retired | 538,921 | |||||
Tax withholding on stock-based compensation | $ (3,040) | |||||
Common stock balance (in shares) at Sep. 30, 2023 | 203,638,373 | 203,638,373 | ||||
Balance at Sep. 30, 2023 | $ 2,757,434 | $ 203,638 | 1,462,939 | 1,108,616 | (17,759) | $ 0 |
Treasury Stock, Common, Shares at Sep. 30, 2023 | 0 | |||||
Common stock balance (in shares) at Mar. 31, 2023 | 204,162,814 | |||||
Balance at Mar. 31, 2023 | 3,575,382 | $ 204,163 | 1,461,294 | 1,943,917 | (30,366) | $ (3,626) |
Treasury Stock, Common, Shares at Mar. 31, 2023 | (538,921) | |||||
Net income | 130,692 | 130,692 | ||||
Other comprehensive income | 363 | 363 | ||||
Dividends declared on common stock | (45,158) | (45,158) | ||||
Stock-based compensation | (927) | (927) | ||||
Separation of Knife River, Treasury Stock Retirement | 538,921 | |||||
Separation of Knife River | $ (954,541) | (539) | 969,934 | 12,306 | $ 3,626 | |
Issuance of common stock (shares) | 14,480 | |||||
Stock Issued | $ 14 | |||||
Issuance of common stock | $ 382 | 368 | ||||
Common stock balance (in shares) at Jun. 30, 2023 | 203,638,373 | |||||
Balance at Jun. 30, 2023 | 2,706,193 | $ 203,638 | 1,460,735 | 1,059,517 | (17,697) | $ 0 |
Treasury Stock, Common, Shares at Jun. 30, 2023 | 0 | |||||
Net income | 74,929 | 74,929 | ||||
Other comprehensive income | (62) | (62) | ||||
Dividends declared on common stock | (25,645) | (25,645) | ||||
Stock-based compensation | $ 2,204 | 2,204 | ||||
Treasury Stock, Shares, Retired | 538,921 | |||||
Separation of Knife River | $ (185) | 185 | ||||
Common stock balance (in shares) at Sep. 30, 2023 | 203,638,373 | 203,638,373 | ||||
Balance at Sep. 30, 2023 | $ 2,757,434 | $ 203,638 | $ 1,462,939 | $ 1,108,616 | $ (17,759) | $ 0 |
Treasury Stock, Common, Shares at Sep. 30, 2023 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 243,974 | $ 250,401 |
Discontinued operations, net of tax | (65,752) | 103,504 |
Income from continuing operations | 309,726 | 146,897 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 158,877 | 158,622 |
Deferred income taxes | 63,745 | 13,697 |
Provision for credit losses | 9,769 | 3,554 |
Amortization of debt issuance costs | 991 | 725 |
Employee stock-based compensation costs | 3,943 | 5,689 |
Pension and postretirement benefit plan net periodic benefit credit | (4,086) | (5,494) |
Unrealized Gain (Loss) on investment in Knife River | (170,170) | 0 |
Unrealized (gains) losses on investments | (3,501) | 12,357 |
Gains on sales of assets | (6,761) | (4,925) |
Changes in current assets and liabilities, net of acquisitions: | ||
Receivables | 161,366 | (107,314) |
Inventories | (19,694) | (43,649) |
Other current assets | (68,161) | (32,241) |
Accounts payable | (132,323) | 89,876 |
Other current liabilities | 42,310 | 40,931 |
Pension and postretirement benefit plan contributions | (7,541) | (62) |
Other noncurrent changes | (3,362) | (24,981) |
Net cash provided by continuing operations | 335,128 | 253,682 |
Net cash provided by (used in) discontinued operations | (160,214) | 31,251 |
Net cash provided by operating activities | 174,914 | 284,933 |
Investing activities: | ||
Capital expenditures | (370,585) | (341,162) |
Net proceeds from sale or disposition of property and other | 13,238 | (4,101) |
Investments | (3,339) | (2,185) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (360,686) | (347,448) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (55,012) | (117,900) |
Net cash used in investing activities | (415,698) | (465,348) |
Financing activities: | ||
Issuance of short-term borrowings | 461,400 | 0 |
Repayment of short-term borrowings | (193,500) | 0 |
Issuance of long-term debt | 411,900 | 220,429 |
Repayment of long-term debt | (434,994) | 0 |
Debt issuance costs | (1,844) | (334) |
Net proceeds from issuance of common stock | 0 | (149) |
Dividends paid | (135,861) | (132,687) |
Repurchase of common stock | (4,811) | (7,399) |
Tax withholding on stock-based compensation | (3,040) | (4,904) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 99,250 | 74,956 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 93,509 | 125,918 |
Net Cash Provided by (Used in) Financing Activities, Total | 192,759 | 200,874 |
Increase (decrease) in cash and cash equivalents | (48,025) | 20,459 |
Cash and cash equivalents -- beginning of year | 80,518 | 54,161 |
Cash and cash equivalents -- end of period | $ 32,493 | $ 74,620 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 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. The Company announced strategic initiatives in 2022 as part of the Company's continuous review of its business. On May 31, 2023, the Company completed the separation of Knife River, formerly the construction materials and contracting segment, which resulted in two independent, publicly traded companies, MDU Resources Group, Inc. and Knife River. The Company's board of directors approved the distribution of approximately 90 percent of the issued and outstanding shares of Knife River to the Company's stockholders. Stockholders of the Company received one share of Knife River 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 retained approximately 10 percent or 5.7 million shares of Knife River common stock immediately following the separation with the intent to dispose of such shares within twelve months after the separation. The separation of Knife River was a tax-free spinoff transaction to the Company’s stockholders for U.S. federal income tax purposes. The Company's consolidated financial statements and accompanying notes for the current and prior periods have been restated to present the results of operations and the assets and liabilities of Knife River as discontinued operations, other than certain corporate overhead costs of the Company historically allocated to Knife River, which are reflected in Other. Also included in discontinued operations in the Consolidated Statements of Income are the supporting activities of Fidelity and certain interest expense related to financing activity associated with the Knife River separation. Unless otherwise indicated, the amounts presented in the accompanying notes to the consolidated financial statements relate to the Company's continuing operations. For more information on discontinued operations, see Note 3. On November 2, 2023, the Company announced its intent to pursue a tax-free spinoff of its wholly owned construction services business, MDU Construction Services. The Company's board of directors believes a tax-free spinoff of the construction services business supports the Company's goal of enhancing value for stockholders by becoming a pure-play regulated energy delivery company. |
New accounting standards
New accounting standards | 9 Months Ended |
Sep. 30, 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: 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 have identified a replacement rate by June 30, 2023. Effective as of March 12, 2020 through December 31, 2022 For more information, see ASU 2022-06 - Reference Rate Reform: Deferral of Sunset Date below. 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. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Discontinued operations On May 31, 2023, the Company completed the previously announced separation of Knife River, its former construction materials and contracting segment, into a new publicly traded company. The separation was achieved through the Company's pro-rata distribution of approximately 90 percent of the outstanding shares of Knife River to the Company's common stockholders. To effect the separation, the Company distributed to its stockholders one share of Knife River common stock for every four shares of the Company's common stock held on May 22, 2023, the record date for the distribution, with the Company retaining approximately 10 percent, or 5.7 million shares of Knife River common stock immediately following the separation. The Company intends to dispose of the retained shares within twelve months after the separation. As a result of the separation, the historical assets and liabilities for Knife River have been classified as assets and liabilities of discontinued operations and the historical results of operations are shown in Discontinued operations, net of tax, other than allocated general corporate overhead costs of the Company, which do not meet the criteria for income (loss) from discontinued operations. The Company’s consolidated financial statements and accompanying notes for prior periods have been restated. For the comparative periods, Knife River's operations are only reflected through May 2023, whereas 2022 includes the full three and nine months from Knife River's operations. On April 25, 2023, Knife River issued $425 million of senior notes, pursuant to an indenture, due 2031 to qualified institutional buyers. Knife River also entered into a new credit agreement which provided a revolving credit facility in an initial amount of up to $350 million and a senior secured term loan facility in an amount up to $275 million. The net proceeds from the notes offering, revolving credit facility and the term loan were used to repay $825 million of Knife River's intercompany obligations owed to Centennial. Centennial used the entirety of these proceeds from Knife River to repay a portion of its existing third-party indebtedness. As a result of the separation, the Company retained legal ownership of 538,921 shares of the Company's common stock that were historically owned by a subsidiary of Knife River and recorded in Treasury stock at cost. Following the separation, the 538,921 treasury shares were retired. The Company will provide to Knife River and Knife River will provide to the Company transition services in accordance with the TSA entered into on May 31, 2023. For the three and nine months ended September 30, 2023, the Company received $1.3 million and $1.9 million; and paid $407,000 and $684,000, respectively, for these related activities. The majority of the transition services are expected to be provided for a period of one year, however, no longer than two years after the separation. Separation related costs of $1.0 million and $47.1 million, net of tax, were incurred during the three and nine months ended September 30, 2023, respectively. Separation costs incurred are presented in income (loss) from discontinued operations in the Consolidated Statements of Income. These charges primarily relate to transaction and third-party support costs, one-time business separation fees and related tax charges. The Company had no assets or liabilities related to the discontinued operations of Knife River on its balance sheet as of September 30, 2023. The carrying amounts of the major classes of assets and liabilities of discontinued operations included in the Company’s Consolidated Balance Sheets were as follows: September 30, 2022 December 31, 2022 Assets (In Thousands) Current assets: Cash and cash equivalents $ 16,761 $ 10,090 Receivables, net 447,882 241,302 Inventories 308,829 323,277 Prepayments and other current assets 16,949 17,848 Total current assets of discontinued operations 790,421 592,517 Noncurrent assets: Net property, plant and equipment 1,275,649 1,315,213 Goodwill 274,302 274,540 Other intangible assets, net 14,097 13,430 Investments 32,326 33,086 Operating lease right-of-use assets 43,431 45,872 Other 3,233 3,610 Total noncurrent assets of discontinued operations 1,643,038 1,685,751 Total assets of discontinued operations $ 2,433,459 $ 2,278,268 Liabilities Current liabilities: Short-term borrowings $ 100,000 $ 208,000 Long-term debt due within one year 128,133 30,211 Accounts payable 178,320 131,608 Taxes payable 12,874 8,502 Accrued compensation 27,383 29,192 Operating lease liabilities due within one year 13,000 13,210 Other accrued liabilities 73,852 76,200 Total current liabilities of discontinued operations 533,562 496,923 Noncurrent liabilities: Long-term debt 581,588 445,546 Deferred income taxes 175,529 175,804 Asset retirement obligations 27,964 33,015 Operating lease liabilities 30,431 32,663 Other 87,159 78,876 Total noncurrent liabilities of discontinued operations 902,671 765,904 Total liabilities of discontinued operations $ 1,436,233 $ 1,262,827 The reconciliation of the major classes of income and expense constituting pretax income (loss) from discontinued operations to the after-tax income (loss) from discontinued operations on the Consolidated Statements of Income were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ — $ 974,774 $ 735,259 $ 1,995,500 Operating expenses 1,447 825,874 769,407 1,828,602 Operating income (loss) (1,447) 148,900 (34,148) 166,898 Other income (expense) — (1,005) 2,382 (4,399) Interest expense (66) 11,173 37,545 26,466 Income (loss) from discontinued operations before income taxes (1,381) 136,722 (69,311) 136,033 Income taxes 1,908 31,120 (3,559) 32,529 Discontinued operations, net of tax $ (3,289) $ 105,602 $ (65,752) $ 103,504 |
Seasonality of operations
Seasonality of operations | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Seasonality of operations | Seasonality of operationsSome 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 e
Receivables and allowance for expected credit losses | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Receivables and allowance for expected credit loss | Receivables and allowance for expected credit losses Receivables consist primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $51.1 million, $30.8 million and $34.3 million at September 30, 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: Electric Natural gas Pipeline Construction Total (In thousands) At December 31, 2022 $ 375 $ 1,615 $ 2 $ 2,162 $ 4,154 Current expected credit loss provision 615 2,324 — 826 3,765 Less write-offs charged against the allowance 667 1,225 — 51 1,943 Credit loss recoveries collected 145 229 — 1 375 At March 31, 2023 $ 468 $ 2,943 $ 2 $ 2,938 $ 6,351 Current expected credit loss provision 182 90 — 1,825 2,097 Less write-offs charged against the allowance 316 1,454 — 103 1,873 Credit loss recoveries collected 79 161 — 58 298 At June 30, 2023 $ 413 $ 1,740 $ 2 $ 4,718 $ 6,873 Current expected credit loss provision 513 1,661 — 1,733 3,907 Less write-offs charged against the allowance 572 2,758 — 27 3,357 Credit loss recoveries collected 75 233 — — 308 At September 30, 2023 $ 429 $ 876 $ 2 $ 6,424 $ 7,731 Electric Natural gas Pipeline Construction Total (In thousands) At December 31, 2021 $ 269 $ 1,506 $ 2 $ 2,533 $ 4,310 Current expected credit loss provision 565 1,369 — 54 1,988 Less write-offs charged against the allowance 597 932 — 71 1,600 Credit loss recoveries collected 124 180 — 28 332 At March 31, 2022 $ 361 $ 2,123 $ 2 $ 2,544 $ 5,030 Current expected credit loss provision 113 92 — 292 497 Less write-offs charged against the allowance 234 939 — 104 1,277 Credit loss recoveries collected 108 177 — — 285 At June 30, 2022 $ 348 $ 1,453 $ 2 $ 2,732 $ 4,535 Current expected credit loss provision 300 881 — (111) 1,070 Less write-offs charged against the allowance 399 1,822 — 152 2,373 Credit loss recoveries collected 85 169 — 40 294 At September 30, 2022 $ 334 $ 681 $ 2 $ 2,509 $ 3,526 |
Inventories and natural gas in
Inventories and natural gas in storage | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories and natural gas in storage | Inventories and natural gas in storage Natural gas in storage for the Company's regulated operations is generally valued at lower of cost or market using the last-in, first-out method or lower of cost or net realizable value using the average cost or first-in, first-out method. The majority of all other inventories are valued at the lower of cost or net realizable value using the average cost method. The portion of the cost of natural gas in storage expected to be used within 12 months was included in inventories. Inventories on the Consolidated Balance Sheets were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Merchandise for resale 36,815 26,538 27,910 Natural gas in storage (current) 29,821 48,532 22,533 Materials and supplies $ 7,824 $ 9,917 $ 6,846 Other 5,775 4,827 6,959 Total $ 80,235 $ 89,814 $ 64,248 |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 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. As a result of the separation, the Company retained legal ownership of 538,921 shares of the Company's common stock that were historically owned by a subsidiary of Knife River and recorded in Treasury stock at cost. Following the separation, the 538,921 treasury shares were retired. The 538,921 shares of treasury stock did not have an impact on weighted-average shares outstanding, as they were not outstanding prior to being retired. Net income was the same for both the basic and diluted earnings per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Weighted average common shares outstanding - basic 203,638 203,351 203,633 203,351 Effect of dilutive performance share awards and restricted stock units 248 293 258 56 Weighted average common shares outstanding - diluted 203,886 203,644 203,891 203,407 Earnings per share - basic: Income from continuing operations $ .38 $ .21 $ 1.52 $ .72 Discontinued operations, net of tax (.01) .52 (.32) .51 Earnings per share - basic $ .37 $ .73 $ 1.20 $ 1.23 Earnings per share - diluted: Income from continuing operations $ .38 $ .21 $ 1.52 $ .72 Discontinued operations, net of tax (.01) .52 (.32) .51 Earnings per share - diluted $ .37 $ .73 $ 1.20 $ 1.23 Shares excluded from the calculation of diluted earnings per share — — — 77 Dividends declared per common share $ .1250 $ .2175 $ .5700 $ .6525 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated other comprehensive loss | Accumulated other comprehensive loss The after-tax changes in the components of accumulated other comprehensive loss were as follows: Net Unrealized Postretirement Net Unrealized Total (In thousands) At December 31, 2022 $ (125) $ (29,900) $ (558) $ (30,583) Other comprehensive income before reclassifications — — 70 70 Amounts reclassified from accumulated other comprehensive loss 34 100 13 147 Net current-period other comprehensive income 34 100 83 217 At March 31, 2023 $ (91) $ (29,800) $ (475) $ (30,366) Other comprehensive income before reclassifications — — (84) (84) Amounts reclassified from accumulated other comprehensive loss 47 387 13 447 Net current-period other comprehensive income (loss) 47 387 (71) 363 Amounts reclassified related to the separation of Knife River 44 12,262 — 12,306 At June 30, 2023 $ — $ (17,151) $ (546) $ (17,697) Other comprehensive loss before reclassifications — — (66) (66) Amounts reclassified from accumulated other comprehensive loss — (6) 10 4 Net current-period other comprehensive income (loss) — (6) (56) (62) At September 30, 2023 $ — $ (17,157) $ (602) $ (17,759) Net Unrealized Postretirement Net Unrealized Total (In thousands) At December 31, 2021 $ (538) $ (40,461) $ (5) $ (41,004) Other comprehensive loss before reclassifications — — (320) (320) Amounts reclassified from accumulated other comprehensive loss 112 445 32 589 Net current-period other comprehensive income (loss) 112 445 (288) 269 At March 31, 2022 $ (426) $ (40,016) $ (293) $ (40,735) Other comprehensive loss before reclassifications — — (128) (128) Amounts reclassified to accumulated other comprehensive loss from a regulatory asset — (3,265) — (3,265) Amounts reclassified from accumulated other comprehensive loss 111 461 25 597 Net current-period other comprehensive income (loss) 111 (2,804) (103) (2,796) At June 30, 2022 $ (315) $ (42,820) $ (396) $ (43,531) Other comprehensive loss before reclassifications — — (329) (329) Amounts reclassified from accumulated other comprehensive loss 111 461 42 614 Net current-period other comprehensive income (loss) 111 461 (287) 285 At September 30, 2022 $ (204) $ (42,359) $ (683) $ (43,246) The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows: Three Months Ended Nine Months Ended Location on Consolidated September 30, September 30, 2023 2022 2023 2022 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income $ — $ (148) $ (98) $ (443) Interest expense — 37 17 109 Income taxes — (111) (81) (334) Amortization of postretirement liability losses included in net periodic benefit credit (92) (609) (744) (1,827) Other income 98 148 263 460 Income taxes 6 (461) (481) (1,367) Reclassification adjustment on available-for-sale investments included in net income (13) (54) (45) (126) Other income 3 12 9 27 Income taxes (10) (42) (36) (99) Total reclassifications $ (4) $ (614) $ (598) $ (1,800) |
Revenue from contracts with cus
Revenue from contracts with customers | 9 Months Ended |
Sep. 30, 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. The Company recognizes revenue from the sale of emissions allowances allocated under the environmental programs in certain states. The Company has the right to payment when the allowances are sold at auction. Revenue is recognized on a point in time basis within the quarter that the auction is held. The revenues associated with the sale of these allowances are deferred as a component of the respective jurisdiction’s regulatory asset or liability for environmental compliance. For more information on the Company’s regulatory assets and liabilities, see Note 12. Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection. The Company received notification from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $30.0 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and the Company's belief that it has performed under the terms of the contract. The Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute. 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 18. Three Months Ended September 30, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 34,303 $ 68,733 $ — $ — $ — $ 103,036 Commercial utility sales 49,754 40,360 — — — 90,114 Industrial utility sales 10,747 7,272 — — — 18,019 Other utility sales 1,865 — — — — 1,865 Natural gas transportation — 13,050 35,338 — — 48,388 Natural gas storage — — 4,808 — — 4,808 Electrical & mechanical specialty contracting — — — 514,378 — 514,378 Transmission & distribution specialty contracting — — — 192,056 — 192,056 Other 14,701 3,881 3,916 (89) 1,689 24,098 Intersegment eliminations (27) (69) (3,701) — (1,689) (5,486) Revenues from contracts with customers 111,343 133,227 40,361 706,345 — 991,276 Revenues out of scope (3,254) 1,669 43 11,061 — 9,519 Total external operating revenues $ 108,089 $ 134,896 $ 40,404 $ 717,406 $ — $ 1,000,795 Three Months Ended September 30, 2022 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 36,981 $ 64,074 $ — $ — $ — $ 101,055 Commercial utility sales 38,785 43,734 — — — 82,519 Industrial utility sales 10,838 7,209 — — — 18,047 Other utility sales 2,002 — — — — 2,002 Natural gas transportation — 11,910 32,144 — — 44,054 Natural gas storage — — 3,595 — — 3,595 Electrical & mechanical specialty contracting — — — 543,717 — 543,717 Transmission & distribution specialty contracting — — — 181,550 — 181,550 Other 10,758 3,495 3,814 200 1,472 19,739 Intersegment eliminations (34) (69) (3,581) (2,037) (1,472) (7,193) Revenues from contracts with customers 99,330 130,353 35,972 723,430 — 989,085 Revenues out of scope (47) 1,792 86 11,571 — 13,402 Total external operating revenues $ 99,283 $ 132,145 $ 36,058 $ 735,001 $ — $ 1,002,487 Nine Months Ended September 30, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 102,953 $ 517,351 $ — $ — $ — $ 620,304 Commercial utility sales 124,363 316,483 — — — 440,846 Industrial utility sales 31,880 33,293 — — — 65,173 Other utility sales 5,349 — — — — 5,349 Natural gas transportation — 38,225 104,716 — — 142,941 Natural gas storage — — 12,427 — — 12,427 Electrical & mechanical specialty contracting — — — 1,672,948 — 1,672,948 Transmission & distribution specialty contracting — — — 511,563 — 511,563 Other 38,111 11,874 9,713 121 6,412 66,231 Intersegment eliminations (82) (208) (37,889) — (6,412) (44,591) Revenues from contracts with customers 302,574 917,018 88,967 2,184,632 — 3,493,191 Revenues out of scope (7,799) 2,469 119 34,040 — 28,829 Total external operating revenues $ 294,775 $ 919,487 $ 89,086 $ 2,218,672 $ — $ 3,522,020 Nine Months Ended September 30, 2022 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 103,648 $ 439,639 $ — $ — $ — $ 543,287 Commercial utility sales 108,400 279,697 — — — 388,097 Industrial utility sales 32,067 29,242 — — — 61,309 Other utility sales 5,632 — — — — 5,632 Natural gas transportation — 35,747 95,685 — — 131,432 Natural gas storage — — 10,210 — — 10,210 Electrical & mechanical specialty contracting — — — 1,443,758 — 1,443,758 Transmission & distribution specialty contracting — — — 496,190 — 496,190 Other 33,727 9,854 8,201 357 4,368 56,507 Intersegment eliminations (102) (206) (37,309) (4,391) (4,368) (46,376) Revenues from contracts with customers 283,372 793,973 76,787 1,935,914 — 3,090,046 Revenues out of scope (4,854) (831) 210 34,780 — 29,305 Total external operating revenues $ 278,518 $ 793,142 $ 76,997 $ 1,970,694 $ — $ 3,119,351 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: September 30, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 199,370 $ 154,144 $ 45,226 Receivables, net Contract liabilities - current (183,705) (168,361) (15,344) Accounts payable Contract liabilities - noncurrent (435) (6) (429) Noncurrent liabilities - other Net contract assets (liabilities) $ 15,230 $ (14,223) $ 29,453 The Company recognized $6.3 million and $164.3 million in revenue for the three and nine months ended September 30, 2023, respectively, which was previously included in contract liabilities at December 31, 2022. The Company recognized $8.2 million and $118.7 million in revenue for the three and nine months ended September 30, 2022, respectively, which was previously included in contract liabilities at December 31, 2021. The Company recognized a net increase in revenues of $20.2 million and $41.7 million for the three and nine months ended September 30, 2023, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $9.6 million and $43.7 million for the three and nine months ended September 30, 2022, respectively, from performance obligations satisfied in prior periods. Remaining performance obligations The remaining performance obligations, also referred to as backlog, at the construction services segment includes 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 and storage 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 and firm storage contracts included in the remaining performance obligations have weighted average remaining durations of approximately less than five years and two years, respectively. At September 30, 2023, the Company's remaining performance obligations were $2.5 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.6 billion within the next 12 months or less; $371.0 million within the next 13 to 24 months; and $519.5 million in 25 months or more. |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 $11.2 million and $34.5 million for the three and nine months ended September 30, 2023, respectively. The Company recognized revenue from operating leases of $11.7 million and $35.1 million for the three and nine months ended September 30, 2022, respectively. At September 30, 2023, the Company had $9.1 million of lease receivables with a majority due within 12 months. |
Goodwill and other intangible a
Goodwill and other intangible assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets The carrying amount of goodwill, which is related to the natural gas distribution and construction services segments, remained unchanged at $489.0 million at September 30, 2023 and 2022, and December 31, 2022. No impairments of goodwill have been recorded in these periods. Other amortizable intangible assets were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Customer relationships $ 10,450 $ 10,450 $ 10,450 Less accumulated amortization 7,924 5,834 6,356 2,526 4,616 4,094 Noncompete agreements 292 552 552 Less accumulated amortization 292 520 544 — 32 8 Total $ 2,526 $ 4,648 $ 4,102 Amortization expense for amortizable intangible assets for the three and nine months ended September 30, 2023, was $522,000 and $1.6 million, respectively. Amortization expense for amortizable intangible assets for the three and nine months ended September 30, 2022, was $565,000 and $1.7 million, respectively. Amortization expense for identifiable intangible assets as of September 30, 2023 is estimated to be as follows: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Amortization expense $ 522 $ 1,888 $ 116 $ — $ — $ — |
Regulatory assets and liabiliti
Regulatory assets and liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory assets and liabilities The following table summarizes the individual components of unamortized regulatory assets and liabilities: Estimated Recovery or Refund Period as of September 30, 2023 * September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 107,101 $ 112,079 $ 141,306 Electric fuel and purchased power deferral Up to 1 year 17,775 2,328 2,656 Conservation programs Up to 1 year 14,411 9,363 8,544 Cost recovery mechanisms Up to 1 year 9,461 3,354 4,019 Other Up to 1 year 20,500 21,036 8,567 169,248 148,160 165,092 Noncurrent: Pension and postretirement benefits ** 144,448 137,582 143,349 Cost recovery mechanisms Up to 10 years 68,539 67,094 67,171 Natural gas costs recoverable through rate adjustments Up to 2 years 64,914 462 — Plant costs/asset retirement obligations Over plant lives 43,520 61,941 44,462 Environmental compliance programs - 36,605 — — Manufactured gas plant site remediation - 24,577 25,963 26,624 Plant to be retired - 19,947 24,740 21,525 Taxes recoverable from customers Over plant lives 12,266 12,394 12,330 Long-term debt refinancing costs Up to 37 years 2,747 3,335 3,188 Other Up to 16 years 11,406 10,931 11,010 428,969 344,442 329,659 Total regulatory assets $ 598,217 $ 492,602 $ 494,751 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year 20,445 873 955 Electric fuel and purchased power deferral Up to 1 year — 3,763 4,929 Cost recovery mechanisms Up to 1 year 5,754 2,674 1,977 Conservation programs Up to 1 year 1,976 325 4,126 Taxes refundable to customers Up to 1 year 1,513 4,264 3,937 Refundable fuel and electric costs Up to 1 year 18 1,812 3,253 Other Up to 1 year 15,307 4,888 7,263 45,013 18,599 26,440 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,499 174,481 208,650 Taxes refundable to customers Over plant lives 194,804 205,517 203,222 Environmental compliance programs - 36,126 — — Cost recovery mechanisms Up to 19 years 20,012 12,535 14,025 Accumulated deferred investment tax credit Up to 19 years 14,800 14,665 13,594 Pension and postretirement benefits ** 7,120 19,687 7,376 Other Up to 15 years 1,751 6,327 1,587 495,112 433,212 448,454 Total regulatory liabilities $ 540,125 $ 451,811 $ 474,894 Net regulatory position $ 58,092 $ 40,791 $ 19,857 * 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 September 30, 2023 and 2022, and December 31, 2022, approximately $211.8 million, $264.4 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, the estimated future cost of manufactured gas plant site remediation, accelerated depreciation on plant retirement, certain pipeline integrity costs 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 and proceeds from the sale of allowances as a regulatory liability. 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. For a discussion of the Company's most recent cases by jurisdiction, see Note 21. 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. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 $62.7 million, $75.7 million and $78.0 million, at September 30, 2023 and 2022, and December 31, 2022, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized loss on these investments was $1.4 million for the three months ended and an unrealized gain of $3.5 million for the nine months ended September 30, 2023, respectively. The net unrealized loss on these investments was $1.3 million and $12.4 million for the three and nine months ended September 30, 2022, respectively. 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: September 30, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,386 $ — $ 750 $ 7,636 U.S. Treasury securities 3,307 11 23 3,295 Total $ 11,693 $ 11 $ 773 $ 10,931 September 30, 2022 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,486 $ — $ 783 $ 7,703 U.S. Treasury securities 2,468 — 82 2,386 Total $ 10,954 $ — $ 865 $ 10,089 December 31, 2022 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,928 $ 2 $ 636 $ 8,294 U.S. Treasury securities 2,608 — 72 2,536 Total $ 11,536 $ 2 $ 708 $ 10,830 On May 31, 2023, the Company completed the Knife River separation and retained approximately 10 percent, or 5.7 million shares of Knife River common stock immediately following the separation. The Company did not retain a controlling interest in Knife River and therefore the fair value of its retained shares and subsequent fair value changes are included in assets of and results from continuing operations, respectively. At September 30, 2023, the fair value of the Company’s investment in Knife River common stock of $276.2 million was reflected in Investment in Knife River on the Consolidated Balance Sheets and was remeasured at fair value based on Knife River’s closing stock price on September 30, 2023, with an unrealized gain of $30.2 million and $170.2 million for the three and nine months ended September, 30, 2023, respectively, which is recorded in Unrealized gain on investment in Knife River on the Consolidated Statements of Income. The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at September 30, 2023, Using Quoted Prices in Significant Significant Balance at September 30, 2023 (In thousands) Assets: Investment in Knife River 276,213 $ — $ — $ 276,213 Money market funds — 25,818 — 25,818 Insurance contracts* — 62,736 — 62,736 Available-for-sale securities: Mortgage-backed securities — 7,637 — 7,637 U.S. Treasury securities — 3,295 — 3,295 Total assets measured at fair value $ 276,213 $ 99,486 $ — $ 375,699 * The insurance contracts invest approximately 50 percent in fixed-income investments, 19 percent in common stock of large-cap companies, 10 percent in target date investments, 10 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 3 percent in cash equivalents, 1 percent in international investments, and 1 percent in high-yield investments. Fair Value Measurements at September 30, 2022, Using Quoted Prices in Significant Significant Balance at September 30, 2022 (In thousands) Assets: Money market funds $ — $ 4,878 $ — $ 4,878 Insurance contracts* — 75,723 — 75,723 Available-for-sale securities: Mortgage-backed securities — 7,703 — 7,703 U.S. Treasury securities — 2,386 — 2,386 Total assets measured at fair value $ — $ 90,690 $ — $ 90,690 * The insurance contracts invest approximately 65 percent in fixed-income investments, 14 percent in common stock of large-cap companies, 7 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents. Fair Value Measurements at December 31, 2022, Using Quoted Prices in Significant Significant Balance at December 31, 2022 (In thousands) Assets: Money market funds $ — $ 4,913 $ — $ 4,913 Insurance contracts* — 77,958 — 77,958 Available-for-sale securities: Mortgage-backed securities — 8,294 — 8,294 U.S. Treasury securities — 2,536 — 2,536 Total assets measured at fair value $ — $ 93,701 $ — $ 93,701 * 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'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: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Carrying amount $ 2,341,147 $ 2,278,730 $ 2,365,667 Fair value $ 1,960,926 $ 1,989,362 $ 2,053,396 The carrying amounts of the Company's remaining financial instruments included in current assets and current liabilities approximate their fair values . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Due to the Knife River separation, Centennial repaid all of its outstanding debt in the second quarter of 2023, which was funded by the Knife River repayment and the Company entering into various new debt instruments. Refer to Note 3 for additional information related to the repayment of debt associated with the Knife River separation. Certain debt instruments of the Company and its subsidiaries contain restrictive and financial covenants and cross-default provisions. In order to borrow under the debt agreements, the Company and its subsidiaries must be in compliance with the applicable covenants and certain other conditions, all of which the Company and its subsidiaries, as applicable, were in compliance with at September 30, 2023. In the event the Company or its subsidiaries do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued. Montana-Dakota's commercial paper program is supported by a revolving credit agreement. While the amount of commercial paper outstanding does not reduce available capacity under the respective revolving credit agreement, Montana-Dakota does not issue commercial paper in an aggregate amount exceeding the available capacity under the credit agreement. The commercial paper and revolving credit agreement 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 and its subsidiaries. Short-term debt Cascade On January 20, 2023, Cascade entered into a $150.0 million term loan agreement with a SOFR-based variable 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 variable interest rate and a maturity date of January 19, 2024. In March, April, and May 2023, Intermountain paid down $20.0 million, $30.0 million, and $30.0 million, respectively, 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. On May 31, 2023, Centennial repaid the full balance outstanding under the term loan agreement. O n December 19, 2022, Centennial entered into a $135.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of December 18, 2023. On May 31, 2023, Centennial repaid the full balance outstanding under the term loan agreement. MDU Resources Group, Inc. On May 1, 2023, the Company entered into a $75.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of November 1, 2023. On May 31, 2023, the Company repaid the full balance outstanding under the term loan agreement. On May 31, 2023, the Company entered into a $150.0 million revolving credit agreement with a SOFR-based variable interest rate and a maturity date of May 29, 2024. At September 30, 2023, the amount outstanding was $111.4 million. 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. Long-term debt Centennial On June 9, 2023, Centennial repaid the full balances outstanding on all its long-term senior note debt, which aggregated $455.0 million. MDU Resources Group, Inc . On May 31, 2023, the Company entered into a $200.0 million revolving credit agreement with a SOFR-based variable interest rate and a maturity date of May 31, 2028. Any borrowings under the revolving credit agreement are classified as long-term debt as they are intended to be refinanced on a long-term basis through continued borrowings. The credit 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 31, 2023, the Company entered into a $375.0 million term loan agreement with a SOFR-based variable interest rate and a maturity date of May 31, 2025. The term loan 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. Long-term Debt Outstanding Long-term debt outstanding was as follows: Weighted Average Interest Rate at September 30, 2023 September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Senior Notes due on dates ranging from July 15, 2024 to June 15, 2062 4.33 % $ 1,757,000 $ 1,847,000 $ 1,848,500 Term Loan Agreements due on dates ranging from May 31, 2025 to September 3, 2032 6.52 % 381,300 7,000 7,000 Commercial paper supported by revolving credit agreement 5.80 % 97,700 268,272 349,050 Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029 7.32 % 35,000 35,000 35,000 Credit agreements due on dates ranging from October 13, 2027 to November 30, 2027 8.50 % 38,900 125,580 130,000 Other notes due on dates ranging from January 1, 2024 to November 30, 2038 8.41 % 37,884 1,617 1,614 Less unamortized debt issuance costs 6,637 5,295 5,211 Less discount — 444 286 Total long-term debt 2,341,147 2,278,730 2,365,667 Less current maturities 61,319 86,319 47,819 Net long-term debt $ 2,279,828 $ 2,192,411 $ 2,317,848 Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at September 30, 2023, were as follows: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Long-term debt maturities $ 619 $ 158,400 $ 532,700 $ 140,700 $ 59,600 $ 1,455,765 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income taxes During the three and nine months ended September 30, 2023, Income before income taxes was $91.5 million and $402.0 million respectively, while income tax expense was $13.3 million and $92.3 million, respectively. The effective tax rate was 14.6 percent and 23.0 percent for the three and nine months ended September 30, 2023, respectively. The effective tax rate for the current three and nine month periods differed from the 2023 statutory rate of 24.8 percent primarily due to tax credits and other permanent tax benefits, partially offset by tax expense recorded related to basis differences in the Company's retained Knife River shares. During the three and nine months ended September 30, 2022, Income before income taxes was $46.6 million and $175.2 million respectively, and income tax expense was $4.2 million and $28.4 million, respectively. The effective tax rate was 9.0 percent and 16.2 percent for the three and nine months ended September 30, 2022, respectively. The effective tax rate differed from the 2022 statutory rate of 24.8 percent due to tax credits and other permanent tax benefits. |
Cash flow information
Cash flow information | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Cash flow information | Cash flow information Cash expenditures for interest and income taxes were as follows: Nine Months Ended September 30, 2023 2022 (In thousands) Interest, net* $ 84,352 $ 55,954 Income taxes paid (refunded), net** $ 40,290 $ (5,499) * AFUDC - borrowed was $7.4 million and $2.4 million for the nine months ended September 30, 2023 and 2022, respectively. ** Income taxes paid, including discontinued operations, were $39.4 million and $17.7 million for the nine months ended September 30, 2023 and 2022, respectively. Noncash investing and financing transactions were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,307 $ 30,641 $ 39,158 Property, plant and equipment additions in accounts payable $ 37,598 $ 39,393 $ 35,637 Restricted Cash Restricted cash represents deposits held by the Company’s captive insurance company that is required by state insurance regulations to remain in the captive insurance company as cash. The Company had restricted cash of $24.7 million, $33.8 million and $35.6 million at September 30, 2023 and 2022 and December 31, 2022, respectively. |
Business segment data
Business segment data | 9 Months Ended |
Sep. 30, 2023 | |
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 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 supplying transmission and distribution 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, Fidelity and Knife River which do not meet the criteria for income (loss) from discontinued operations. Discontinued operations includes Knife River's operations, strategic initiative costs and interest on debt facilities repaid in connection with the Knife River separation. For the comparative periods below, Knife River's operations are only reflected through May 2023, whereas 2022 includes the full three and nine months from Knife River's operations. Discontinued operations also includes 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: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) External operating revenues: Regulated operations: Electric $ 108,089 $ 99,283 $ 294,775 $ 278,518 Natural gas distribution 134,896 132,145 919,487 793,142 Pipeline 36,549 32,346 79,697 69,347 279,534 263,774 1,293,959 1,141,007 Non-regulated operations: Pipeline 3,855 3,712 9,389 7,650 Construction services 717,406 735,001 2,218,672 1,970,694 Other — — — — 721,261 738,713 2,228,061 1,978,344 Total external operating revenues $ 1,000,795 $ 1,002,487 $ 3,522,020 $ 3,119,351 Intersegment operating revenues: Regulated operations: Electric $ 27 $ 34 $ 82 $ 102 Natural gas distribution 69 69 208 206 Pipeline 3,666 3,508 37,624 36,845 3,762 3,611 37,914 37,153 Non-regulated operations: Pipeline 35 73 265 464 Construction services — 2,037 — 4,391 Other 1,689 1,472 6,412 4,368 1,724 3,582 6,677 9,223 Total intersegment operating revenues $ 5,486 $ 7,193 $ 44,591 $ 46,376 Operating income (loss): Electric $ 28,718 $ 30,395 $ 71,372 $ 53,764 Natural gas distribution (15,258) (16,688) 45,674 38,929 Pipeline 17,767 14,963 44,693 39,448 Construction services 50,091 34,949 139,619 110,588 Other 3,286 (2,617) (16,201) (11,726) Total operating income $ 84,604 $ 61,002 $ 285,157 $ 231,003 Income (loss) from continuing operations: Regulated operations: Electric $ 20,942 $ 21,596 $ 53,887 $ 37,476 Natural gas distribution (17,764) (18,058) 18,007 10,758 Pipeline 11,450 9,381 29,029 25,015 14,628 12,919 100,923 73,249 Non-regulated operations: Pipeline 508 779 337 (179) Construction services 35,975 29,248 105,951 86,596 Other 27,107 (577) 102,515 (12,769) 63,590 29,450 208,803 73,648 Income from continuing operations 78,218 42,369 309,726 146,897 Discontinued operations, net of tax (3,289) 105,602 (65,752) 103,504 Net income $ 74,929 $ 147,971 $ 243,974 $ 250,401 A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating revenues reconciliation: Total reportable segment operating revenues $ 1,004,592 $ 1,008,208 $ 3,560,199 $ 3,161,359 Other revenue 1,689 1,472 6,412 4,368 Elimination of intersegment operating revenues (5,486) (7,193) (44,591) (46,376) Total consolidated operating revenues $ 1,000,795 $ 1,002,487 $ 3,522,020 $ 3,119,351 |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2023 | |
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. In connection with the previously discussed separation of Knife River on May 31, 2023, Knife River's pension plan, including the associated assets and liabilities, was transferred to Knife River and therefore is no longer reflected as part of the Company. Also in connection with the separation, a remeasurement of the Company's postretirement plan and the Company's unfunded, non-qualified defined benefit plan were performed and the applicable liabilities from the plans relating to transferring employees were transferred to Knife River. Components of net periodic benefit credit for the Company's pension benefit plans were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit credit: Interest cost $ 3,380 $ 2,349 $ 10,140 $ 7,047 Expected return on assets (4,299) (4,370) (12,897) (13,112) Amortization of net actuarial loss 773 1,456 2,319 4,370 Net periodic benefit credit $ (146) $ (565) $ (438) $ (1,695) Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit credit: Service cost $ 131 $ 223 $ 405 $ 669 Interest cost 489 346 1,467 1,038 Expected return on assets (1,334) (1,319) (4,026) (3,957) Amortization of prior service credit (330) (330) (989) (989) Amortization of net actuarial gain (96) (142) (408) (425) Net periodic benefit credit, including amount capitalized (1,140) (1,222) (3,551) (3,664) Less amount capitalized 23 47 76 131 Net periodic benefit credit $ (1,163) $ (1,269) $ (3,627) $ (3,795) 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 $759,000 and $648,000 for the three months ended September 30, 2023 and 2022, respectively, and $2.3 million and $1.9 million for the nine months ended September 30, 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock-based compensationIn connection with the completed separation of Knife River through the spinoff, the provisions of the existing compensation plans required adjustments to the number and terms of outstanding employee time-vested restricted stock units and performance share awards to preserve the intrinsic value of the awards immediately prior to the separation. The outstanding awards will continue to vest over the original vesting period, which is generally three years from the grant date. However, the performance share awards will no longer be subject to performance-based vesting conditions. The number of performance share awards were first adjusted for performance. The combined performance factors were determined based on the performance of the Company as of December 31, 2022. Outstanding awards at the time of the spinoff were converted into awards of the holder’s employer following separation. The Company recorded $204,000 of incremental compensation expense related to the conversion of the restricted stock units, which is being recognized over the remaining service period of one to three years. There was no incremental compensation expense related to the conversion of the performance share awards. |
Regulatory matters
Regulatory matters | 9 Months Ended |
Sep. 30, 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. 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. On June 12, 2023, an all-party settlement agreement was filed reflecting an annual revenue increase of $6.1 million or 9.1 percent overall. The reduction from the original filing includes a return on equity of 9.65 percent and removal of Heskett Unit 4 due to not being in service until the second half of 2023. The MTPSC issued a final order approving the settlement on September 21, 2023, with rates effective October 1, 2023. NDPSC On July 14, 2023, Montana-Dakota filed an application with the NDPSC to request an update to its transmission cost adjustment rider requesting to recover revenues of $2.2 million, which includes a true-up of a prior period adjustment, resulting in a decrease of $10.7 million from current rates. The request is to recover transmission-related expenses and the revenue requirement for transmission facilities not currently recovered through electric service rates. The request also reflects the inclusion of the proposed net benefit of a large customer now taking service under Rate 45, as discussed in Part I, Item 2, which accounted for approximately $7.6 million of the decrease. A revised filing was submitted on August 25, 2023, reducing the request to $1.3 million. The NDPSC approved the transmission cost adjustment on September 27, 2023, with rates effective November 1, 2023. On November 1, 2023, Montana-Dakota filed a request with the NDPSC for a natural gas general rate increase of approximately $11.6 million annually or 7.5 percent above current rates. The requested increase is primarily to recover investments in system upgrades and pipeline replacement projects enhancing the reliability, safety and integrity of the natural gas system, as well as increased costs to operate and maintain that system. The filing also includes a request for interim revenue of $10.1 million, subject to refund, to be effective early January 2024. The NDPSC has up to seven months to issue a final decision on this general rate increase request. This matter is pending before the NDPSC. Montana-Dakota has a renewable resource cost adjustment rate tariff that allows for annual adjustments for recent projected capital costs and related expenses for projects determined to be recoverable under the tariff. On October 31, 2023, Montana-Dakota filed an annual update to its renewable resource cost adjustment requesting to recover a revenue requirement of approximately $21.0 million annually. The update reflects an increase of approximately $5.7 million from the revenues currently included in rates. The request proposes the rates be effective for service rendered on and after February 1, 2024. This matter is pending before the NDPSC. SDPUC On August 15, 2023, Montana-Dakota filed a request with the SDPUC for an electric general rate increase of approximately $3.0 million annually or 17.3 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. The SDPUC has up to six months to issue a decision on this request. This matter is pending before the SDPUC. On August 15, 2023, Montana-Dakota filed a request with the SDPUC for a natural gas general rate increase of approximately $7.4 million annually or 11.2 percent above current rates. The requested increase is primarily to recover investments and the associated depreciation, operation and maintenance expenses and taxes associated with the increased investment. The SDPUC has up to six months to issue a decision on this request. This matter is pending before the SDPUC. WUTC On June 1, 2023, Cascade filed its annual pipeline cost recovery mechanism requesting an increase in annual revenue of approximately $3.1 million or 0.9 percent, which was revised on October 13, 2023, to $2.4 million or 0.7 percent. The filing was effective November 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 included a Greenhouse Gas Cost Recovery Mechanism for anticipated future costs. In August 2023, the Company reached a rate case settlement agreement with its customers and FERC staff and the agreed-upon rates were placed into effect as of August 1, 2023. The settlement agreement did not include a Greenhouse Gas Cost Recovery Mechanism. On October 17, 2023, the Administrative Law Judge certified the Company's rate case settlement agreement to the FERC for final approval. On August 31, 2023, Montana-Dakota filed an update to its transmission formula rate under the MISO tariff for its multi-value project and network upgrade changes for $15.2 million to be effective January 1, 2024. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 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 September 30, 2023 and 2022, and December 31, 2022, the Company accrued contingent liabilities, which have not been discounted, of $21.0 million, $33.5 million and $31.9 million, respectively. At September 30, 2023 and 2022, and December 31, 2022, the Company also recorded corresponding insurance receivables of $98,000, $11.9 million and $10.0 million, respectively, and regulatory assets of $20.1 million, $20.5 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. There were no material changes to the Company's environmental matters that were previously reported in the 2022 Annual Report other than the removal of the Portland Harbor Site, which relates to Knife River and any potential associated liability was included in the distribution of Knife River. 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 September 30, 2023, the fixed maximum amounts guaranteed under these agreements aggregate $330.8 million. Certain of the guarantees also have no fixed maximum amounts specified. At September 30, 2023, the amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate to $9.5 million in 2023; $67.4 million in 2024; $251.1 million in 2025; $1.5 million in 2026; $1.0 million in 2027; and $300,000 thereafter. There were no amounts outstanding under the previously mentioned guarantees at September 30, 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 September 30, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated $11.1 million, with the scheduled expiration of the maximum amounts guaranteed under these letters aggregate $8.9 million in 2023 and $2.2 million in 2024. There were no amounts outstanding under the previously mentioned letters of credit at September 30, 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 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 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 September 30, 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 September 30, 2023, approximately $330.8 million 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 September 30, 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 $28.1 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 74,929 | $ 130,692 | $ 38,353 | $ 147,971 | $ 70,667 | $ 31,763 | $ 243,974 | $ 250,401 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended September 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 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 (Polic
New accounting standards (Policies) | 9 Months Ended |
Sep. 30, 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: 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 have identified a replacement rate by June 30, 2023. Effective as of March 12, 2020 through December 31, 2022 For more information, see ASU 2022-06 - Reference Rate Reform: Deferral of Sunset Date below. 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. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures. |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations, Policy | As a result of the separation, the historical assets and liabilities for Knife River have been classified as assets and liabilities of discontinued operations and the historical results of operations are shown in Discontinued operations, net of tax, other than allocated general corporate overhead costs of the Company, which do not meet the criteria for income (loss) from discontinued operations. The Company’s consolidated financial statements and accompanying notes for prior periods have been restated. For the comparative periods, Knife River's operations are only reflected through May 2023, whereas 2022 includes the full three and nine months from Knife River's operations. |
Receivables and allowance for_2
Receivables and allowance for expected credit losses (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Accounts receivable and allowance for doubtful accounts | Receivables consist primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less. |
Expected credit loss | The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. |
Inventories and natural gas i_2
Inventories and natural gas in storage (Policies) | 9 Months Ended |
Sep. 30, 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)
Earnings per share (Policies) | 9 Months Ended |
Sep. 30, 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 c_2
Revenue from contracts with customers (Policies) | 9 Months Ended |
Sep. 30, 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. The Company recognizes revenue from the sale of emissions allowances allocated under the environmental programs in certain states. The Company has the right to payment when the allowances are sold at auction. Revenue is recognized on a point in time basis within the quarter that the auction is held. The revenues associated with the sale of these allowances are deferred as a component of the respective jurisdiction’s regulatory asset or liability for environmental compliance. For more information on the Company’s regulatory assets and liabilities, see Note 12. |
Environmental allowances and ob
Environmental allowances and obligations (Policies) | 9 Months Ended |
Sep. 30, 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 September 30, 2023, the Company accrued $36.6 million in compliance obligations. The Company recognizes revenue from the sale of emissions allowances allocated under the environmental programs when the allowances are sold at auction. The revenues associated with the sale of these allowances are deferred as a component of the respective jurisdiction’s regulatory asset or liability for environmental compliance. As environmental allowances are surrendered, the segment reduces the associated environmental compliance assets and liabilities from the Consolidated Balance Sheets. The expenses and revenues associated with the Company’s environmental allowances and obligations are deferred as regulatory assets and liabilities. For more information on the Company’s regulatory assets and liabilities, see Note 12. |
Fair value disclosures (Policie
Fair value disclosures (Policies) | 9 Months Ended |
Sep. 30, 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
Business segment data (Policies) | 9 Months Ended |
Sep. 30, 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. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement | In connection with the completed separation of Knife River through the spinoff, the provisions of the existing compensation plans required adjustments to the number and terms of outstanding employee time-vested restricted stock units and performance share awards to preserve the intrinsic value of the awards immediately prior to the separation. The outstanding awards will continue to vest over the original vesting period, which is generally three years from the grant date. However, the performance share awards will no longer be subject to performance-based vesting conditions. The number of performance share awards were first adjusted for performance. |
Contingencies (Policies)
Contingencies (Policies) | 9 Months Ended |
Sep. 30, 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. |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations, including balance sheet and income statement | The carrying amounts of the major classes of assets and liabilities of discontinued operations included in the Company’s Consolidated Balance Sheets were as follows: September 30, 2022 December 31, 2022 Assets (In Thousands) Current assets: Cash and cash equivalents $ 16,761 $ 10,090 Receivables, net 447,882 241,302 Inventories 308,829 323,277 Prepayments and other current assets 16,949 17,848 Total current assets of discontinued operations 790,421 592,517 Noncurrent assets: Net property, plant and equipment 1,275,649 1,315,213 Goodwill 274,302 274,540 Other intangible assets, net 14,097 13,430 Investments 32,326 33,086 Operating lease right-of-use assets 43,431 45,872 Other 3,233 3,610 Total noncurrent assets of discontinued operations 1,643,038 1,685,751 Total assets of discontinued operations $ 2,433,459 $ 2,278,268 Liabilities Current liabilities: Short-term borrowings $ 100,000 $ 208,000 Long-term debt due within one year 128,133 30,211 Accounts payable 178,320 131,608 Taxes payable 12,874 8,502 Accrued compensation 27,383 29,192 Operating lease liabilities due within one year 13,000 13,210 Other accrued liabilities 73,852 76,200 Total current liabilities of discontinued operations 533,562 496,923 Noncurrent liabilities: Long-term debt 581,588 445,546 Deferred income taxes 175,529 175,804 Asset retirement obligations 27,964 33,015 Operating lease liabilities 30,431 32,663 Other 87,159 78,876 Total noncurrent liabilities of discontinued operations 902,671 765,904 Total liabilities of discontinued operations $ 1,436,233 $ 1,262,827 The reconciliation of the major classes of income and expense constituting pretax income (loss) from discontinued operations to the after-tax income (loss) from discontinued operations on the Consolidated Statements of Income were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ — $ 974,774 $ 735,259 $ 1,995,500 Operating expenses 1,447 825,874 769,407 1,828,602 Operating income (loss) (1,447) 148,900 (34,148) 166,898 Other income (expense) — (1,005) 2,382 (4,399) Interest expense (66) 11,173 37,545 26,466 Income (loss) from discontinued operations before income taxes (1,381) 136,722 (69,311) 136,033 Income taxes 1,908 31,120 (3,559) 32,529 Discontinued operations, net of tax $ (3,289) $ 105,602 $ (65,752) $ 103,504 |
Receivables and allowance for_3
Receivables and allowance for expected credit losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Details of the Company's expected credit losses were as follows: Electric Natural gas Pipeline Construction Total (In thousands) At December 31, 2022 $ 375 $ 1,615 $ 2 $ 2,162 $ 4,154 Current expected credit loss provision 615 2,324 — 826 3,765 Less write-offs charged against the allowance 667 1,225 — 51 1,943 Credit loss recoveries collected 145 229 — 1 375 At March 31, 2023 $ 468 $ 2,943 $ 2 $ 2,938 $ 6,351 Current expected credit loss provision 182 90 — 1,825 2,097 Less write-offs charged against the allowance 316 1,454 — 103 1,873 Credit loss recoveries collected 79 161 — 58 298 At June 30, 2023 $ 413 $ 1,740 $ 2 $ 4,718 $ 6,873 Current expected credit loss provision 513 1,661 — 1,733 3,907 Less write-offs charged against the allowance 572 2,758 — 27 3,357 Credit loss recoveries collected 75 233 — — 308 At September 30, 2023 $ 429 $ 876 $ 2 $ 6,424 $ 7,731 Electric Natural gas Pipeline Construction Total (In thousands) At December 31, 2021 $ 269 $ 1,506 $ 2 $ 2,533 $ 4,310 Current expected credit loss provision 565 1,369 — 54 1,988 Less write-offs charged against the allowance 597 932 — 71 1,600 Credit loss recoveries collected 124 180 — 28 332 At March 31, 2022 $ 361 $ 2,123 $ 2 $ 2,544 $ 5,030 Current expected credit loss provision 113 92 — 292 497 Less write-offs charged against the allowance 234 939 — 104 1,277 Credit loss recoveries collected 108 177 — — 285 At June 30, 2022 $ 348 $ 1,453 $ 2 $ 2,732 $ 4,535 Current expected credit loss provision 300 881 — (111) 1,070 Less write-offs charged against the allowance 399 1,822 — 152 2,373 Credit loss recoveries collected 85 169 — 40 294 At September 30, 2022 $ 334 $ 681 $ 2 $ 2,509 $ 3,526 |
Inventories and natural gas i_3
Inventories and natural gas in storage (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories on the Consolidated Balance Sheets were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Merchandise for resale 36,815 26,538 27,910 Natural gas in storage (current) 29,821 48,532 22,533 Materials and supplies $ 7,824 $ 9,917 $ 6,846 Other 5,775 4,827 6,959 Total $ 80,235 $ 89,814 $ 64,248 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 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: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Weighted average common shares outstanding - basic 203,638 203,351 203,633 203,351 Effect of dilutive performance share awards and restricted stock units 248 293 258 56 Weighted average common shares outstanding - diluted 203,886 203,644 203,891 203,407 Earnings per share - basic: Income from continuing operations $ .38 $ .21 $ 1.52 $ .72 Discontinued operations, net of tax (.01) .52 (.32) .51 Earnings per share - basic $ .37 $ .73 $ 1.20 $ 1.23 Earnings per share - diluted: Income from continuing operations $ .38 $ .21 $ 1.52 $ .72 Discontinued operations, net of tax (.01) .52 (.32) .51 Earnings per share - diluted $ .37 $ .73 $ 1.20 $ 1.23 Shares excluded from the calculation of diluted earnings per share — — — 77 Dividends declared per common share $ .1250 $ .2175 $ .5700 $ .6525 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated comprehensive loss | Accumulated other comprehensive loss The after-tax changes in the components of accumulated other comprehensive loss were as follows: Net Unrealized Postretirement Net Unrealized Total (In thousands) At December 31, 2022 $ (125) $ (29,900) $ (558) $ (30,583) Other comprehensive income before reclassifications — — 70 70 Amounts reclassified from accumulated other comprehensive loss 34 100 13 147 Net current-period other comprehensive income 34 100 83 217 At March 31, 2023 $ (91) $ (29,800) $ (475) $ (30,366) Other comprehensive income before reclassifications — — (84) (84) Amounts reclassified from accumulated other comprehensive loss 47 387 13 447 Net current-period other comprehensive income (loss) 47 387 (71) 363 Amounts reclassified related to the separation of Knife River 44 12,262 — 12,306 At June 30, 2023 $ — $ (17,151) $ (546) $ (17,697) Other comprehensive loss before reclassifications — — (66) (66) Amounts reclassified from accumulated other comprehensive loss — (6) 10 4 Net current-period other comprehensive income (loss) — (6) (56) (62) At September 30, 2023 $ — $ (17,157) $ (602) $ (17,759) Net Unrealized Postretirement Net Unrealized Total (In thousands) At December 31, 2021 $ (538) $ (40,461) $ (5) $ (41,004) Other comprehensive loss before reclassifications — — (320) (320) Amounts reclassified from accumulated other comprehensive loss 112 445 32 589 Net current-period other comprehensive income (loss) 112 445 (288) 269 At March 31, 2022 $ (426) $ (40,016) $ (293) $ (40,735) Other comprehensive loss before reclassifications — — (128) (128) Amounts reclassified to accumulated other comprehensive loss from a regulatory asset — (3,265) — (3,265) Amounts reclassified from accumulated other comprehensive loss 111 461 25 597 Net current-period other comprehensive income (loss) 111 (2,804) (103) (2,796) At June 30, 2022 $ (315) $ (42,820) $ (396) $ (43,531) Other comprehensive loss before reclassifications — — (329) (329) Amounts reclassified from accumulated other comprehensive loss 111 461 42 614 Net current-period other comprehensive income (loss) 111 461 (287) 285 At September 30, 2022 $ (204) $ (42,359) $ (683) $ (43,246) The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows: Three Months Ended Nine Months Ended Location on Consolidated September 30, September 30, 2023 2022 2023 2022 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income $ — $ (148) $ (98) $ (443) Interest expense — 37 17 109 Income taxes — (111) (81) (334) Amortization of postretirement liability losses included in net periodic benefit credit (92) (609) (744) (1,827) Other income 98 148 263 460 Income taxes 6 (461) (481) (1,367) Reclassification adjustment on available-for-sale investments included in net income (13) (54) (45) (126) Other income 3 12 9 27 Income taxes (10) (42) (36) (99) Total reclassifications $ (4) $ (614) $ (598) $ (1,800) |
Reclassification out of accumulated other comprehensive loss | The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows: Three Months Ended Nine Months Ended Location on Consolidated September 30, September 30, 2023 2022 2023 2022 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income $ — $ (148) $ (98) $ (443) Interest expense — 37 17 109 Income taxes — (111) (81) (334) Amortization of postretirement liability losses included in net periodic benefit credit (92) (609) (744) (1,827) Other income 98 148 263 460 Income taxes 6 (461) (481) (1,367) Reclassification adjustment on available-for-sale investments included in net income (13) (54) (45) (126) Other income 3 12 9 27 Income taxes (10) (42) (36) (99) Total reclassifications $ (4) $ (614) $ (598) $ (1,800) |
Revenue from contracts with c_3
Revenue from contracts with customers (Tables) | 9 Months Ended |
Sep. 30, 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 18. Three Months Ended September 30, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 34,303 $ 68,733 $ — $ — $ — $ 103,036 Commercial utility sales 49,754 40,360 — — — 90,114 Industrial utility sales 10,747 7,272 — — — 18,019 Other utility sales 1,865 — — — — 1,865 Natural gas transportation — 13,050 35,338 — — 48,388 Natural gas storage — — 4,808 — — 4,808 Electrical & mechanical specialty contracting — — — 514,378 — 514,378 Transmission & distribution specialty contracting — — — 192,056 — 192,056 Other 14,701 3,881 3,916 (89) 1,689 24,098 Intersegment eliminations (27) (69) (3,701) — (1,689) (5,486) Revenues from contracts with customers 111,343 133,227 40,361 706,345 — 991,276 Revenues out of scope (3,254) 1,669 43 11,061 — 9,519 Total external operating revenues $ 108,089 $ 134,896 $ 40,404 $ 717,406 $ — $ 1,000,795 Three Months Ended September 30, 2022 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 36,981 $ 64,074 $ — $ — $ — $ 101,055 Commercial utility sales 38,785 43,734 — — — 82,519 Industrial utility sales 10,838 7,209 — — — 18,047 Other utility sales 2,002 — — — — 2,002 Natural gas transportation — 11,910 32,144 — — 44,054 Natural gas storage — — 3,595 — — 3,595 Electrical & mechanical specialty contracting — — — 543,717 — 543,717 Transmission & distribution specialty contracting — — — 181,550 — 181,550 Other 10,758 3,495 3,814 200 1,472 19,739 Intersegment eliminations (34) (69) (3,581) (2,037) (1,472) (7,193) Revenues from contracts with customers 99,330 130,353 35,972 723,430 — 989,085 Revenues out of scope (47) 1,792 86 11,571 — 13,402 Total external operating revenues $ 99,283 $ 132,145 $ 36,058 $ 735,001 $ — $ 1,002,487 Nine Months Ended September 30, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 102,953 $ 517,351 $ — $ — $ — $ 620,304 Commercial utility sales 124,363 316,483 — — — 440,846 Industrial utility sales 31,880 33,293 — — — 65,173 Other utility sales 5,349 — — — — 5,349 Natural gas transportation — 38,225 104,716 — — 142,941 Natural gas storage — — 12,427 — — 12,427 Electrical & mechanical specialty contracting — — — 1,672,948 — 1,672,948 Transmission & distribution specialty contracting — — — 511,563 — 511,563 Other 38,111 11,874 9,713 121 6,412 66,231 Intersegment eliminations (82) (208) (37,889) — (6,412) (44,591) Revenues from contracts with customers 302,574 917,018 88,967 2,184,632 — 3,493,191 Revenues out of scope (7,799) 2,469 119 34,040 — 28,829 Total external operating revenues $ 294,775 $ 919,487 $ 89,086 $ 2,218,672 $ — $ 3,522,020 Nine Months Ended September 30, 2022 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 103,648 $ 439,639 $ — $ — $ — $ 543,287 Commercial utility sales 108,400 279,697 — — — 388,097 Industrial utility sales 32,067 29,242 — — — 61,309 Other utility sales 5,632 — — — — 5,632 Natural gas transportation — 35,747 95,685 — — 131,432 Natural gas storage — — 10,210 — — 10,210 Electrical & mechanical specialty contracting — — — 1,443,758 — 1,443,758 Transmission & distribution specialty contracting — — — 496,190 — 496,190 Other 33,727 9,854 8,201 357 4,368 56,507 Intersegment eliminations (102) (206) (37,309) (4,391) (4,368) (46,376) Revenues from contracts with customers 283,372 793,973 76,787 1,935,914 — 3,090,046 Revenues out of scope (4,854) (831) 210 34,780 — 29,305 Total external operating revenues $ 278,518 $ 793,142 $ 76,997 $ 1,970,694 $ — $ 3,119,351 |
Contract balances | The changes in contract assets and liabilities were as follows: September 30, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 199,370 $ 154,144 $ 45,226 Receivables, net Contract liabilities - current (183,705) (168,361) (15,344) Accounts payable Contract liabilities - noncurrent (435) (6) (429) Noncurrent liabilities - other Net contract assets (liabilities) $ 15,230 $ (14,223) $ 29,453 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other amortizable intangible assets | Other amortizable intangible assets were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Customer relationships $ 10,450 $ 10,450 $ 10,450 Less accumulated amortization 7,924 5,834 6,356 2,526 4,616 4,094 Noncompete agreements 292 552 552 Less accumulated amortization 292 520 544 — 32 8 Total $ 2,526 $ 4,648 $ 4,102 |
Estimated amortization expense | Amortization expense for identifiable intangible assets as of September 30, 2023 is estimated to be as follows: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Amortization expense $ 522 $ 1,888 $ 116 $ — $ — $ — |
Regulatory assets and liabili_2
Regulatory assets and liabilities (Tables) | 9 Months Ended |
Sep. 30, 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 as of September 30, 2023 * September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 107,101 $ 112,079 $ 141,306 Electric fuel and purchased power deferral Up to 1 year 17,775 2,328 2,656 Conservation programs Up to 1 year 14,411 9,363 8,544 Cost recovery mechanisms Up to 1 year 9,461 3,354 4,019 Other Up to 1 year 20,500 21,036 8,567 169,248 148,160 165,092 Noncurrent: Pension and postretirement benefits ** 144,448 137,582 143,349 Cost recovery mechanisms Up to 10 years 68,539 67,094 67,171 Natural gas costs recoverable through rate adjustments Up to 2 years 64,914 462 — Plant costs/asset retirement obligations Over plant lives 43,520 61,941 44,462 Environmental compliance programs - 36,605 — — Manufactured gas plant site remediation - 24,577 25,963 26,624 Plant to be retired - 19,947 24,740 21,525 Taxes recoverable from customers Over plant lives 12,266 12,394 12,330 Long-term debt refinancing costs Up to 37 years 2,747 3,335 3,188 Other Up to 16 years 11,406 10,931 11,010 428,969 344,442 329,659 Total regulatory assets $ 598,217 $ 492,602 $ 494,751 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year 20,445 873 955 Electric fuel and purchased power deferral Up to 1 year — 3,763 4,929 Cost recovery mechanisms Up to 1 year 5,754 2,674 1,977 Conservation programs Up to 1 year 1,976 325 4,126 Taxes refundable to customers Up to 1 year 1,513 4,264 3,937 Refundable fuel and electric costs Up to 1 year 18 1,812 3,253 Other Up to 1 year 15,307 4,888 7,263 45,013 18,599 26,440 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,499 174,481 208,650 Taxes refundable to customers Over plant lives 194,804 205,517 203,222 Environmental compliance programs - 36,126 — — Cost recovery mechanisms Up to 19 years 20,012 12,535 14,025 Accumulated deferred investment tax credit Up to 19 years 14,800 14,665 13,594 Pension and postretirement benefits ** 7,120 19,687 7,376 Other Up to 15 years 1,751 6,327 1,587 495,112 433,212 448,454 Total regulatory liabilities $ 540,125 $ 451,811 $ 474,894 Net regulatory position $ 58,092 $ 40,791 $ 19,857 * Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers. ** Recovered as expense is incurred or cash contributions are made. |
Regulatory Liabilities | The following table summarizes the individual components of unamortized regulatory assets and liabilities: Estimated Recovery or Refund Period as of September 30, 2023 * September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 107,101 $ 112,079 $ 141,306 Electric fuel and purchased power deferral Up to 1 year 17,775 2,328 2,656 Conservation programs Up to 1 year 14,411 9,363 8,544 Cost recovery mechanisms Up to 1 year 9,461 3,354 4,019 Other Up to 1 year 20,500 21,036 8,567 169,248 148,160 165,092 Noncurrent: Pension and postretirement benefits ** 144,448 137,582 143,349 Cost recovery mechanisms Up to 10 years 68,539 67,094 67,171 Natural gas costs recoverable through rate adjustments Up to 2 years 64,914 462 — Plant costs/asset retirement obligations Over plant lives 43,520 61,941 44,462 Environmental compliance programs - 36,605 — — Manufactured gas plant site remediation - 24,577 25,963 26,624 Plant to be retired - 19,947 24,740 21,525 Taxes recoverable from customers Over plant lives 12,266 12,394 12,330 Long-term debt refinancing costs Up to 37 years 2,747 3,335 3,188 Other Up to 16 years 11,406 10,931 11,010 428,969 344,442 329,659 Total regulatory assets $ 598,217 $ 492,602 $ 494,751 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year 20,445 873 955 Electric fuel and purchased power deferral Up to 1 year — 3,763 4,929 Cost recovery mechanisms Up to 1 year 5,754 2,674 1,977 Conservation programs Up to 1 year 1,976 325 4,126 Taxes refundable to customers Up to 1 year 1,513 4,264 3,937 Refundable fuel and electric costs Up to 1 year 18 1,812 3,253 Other Up to 1 year 15,307 4,888 7,263 45,013 18,599 26,440 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,499 174,481 208,650 Taxes refundable to customers Over plant lives 194,804 205,517 203,222 Environmental compliance programs - 36,126 — — Cost recovery mechanisms Up to 19 years 20,012 12,535 14,025 Accumulated deferred investment tax credit Up to 19 years 14,800 14,665 13,594 Pension and postretirement benefits ** 7,120 19,687 7,376 Other Up to 15 years 1,751 6,327 1,587 495,112 433,212 448,454 Total regulatory liabilities $ 540,125 $ 451,811 $ 474,894 Net regulatory position $ 58,092 $ 40,791 $ 19,857 * 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
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale securities | Details of available-for-sale securities were as follows: September 30, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,386 $ — $ 750 $ 7,636 U.S. Treasury securities 3,307 11 23 3,295 Total $ 11,693 $ 11 $ 773 $ 10,931 September 30, 2022 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,486 $ — $ 783 $ 7,703 U.S. Treasury securities 2,468 — 82 2,386 Total $ 10,954 $ — $ 865 $ 10,089 December 31, 2022 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,928 $ 2 $ 636 $ 8,294 U.S. Treasury securities 2,608 — 72 2,536 Total $ 11,536 $ 2 $ 708 $ 10,830 |
Assets and liabilities measured at fair value on a recurring basis | The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at September 30, 2023, Using Quoted Prices in Significant Significant Balance at September 30, 2023 (In thousands) Assets: Investment in Knife River 276,213 $ — $ — $ 276,213 Money market funds — 25,818 — 25,818 Insurance contracts* — 62,736 — 62,736 Available-for-sale securities: Mortgage-backed securities — 7,637 — 7,637 U.S. Treasury securities — 3,295 — 3,295 Total assets measured at fair value $ 276,213 $ 99,486 $ — $ 375,699 * The insurance contracts invest approximately 50 percent in fixed-income investments, 19 percent in common stock of large-cap companies, 10 percent in target date investments, 10 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 3 percent in cash equivalents, 1 percent in international investments, and 1 percent in high-yield investments. Fair Value Measurements at September 30, 2022, Using Quoted Prices in Significant Significant Balance at September 30, 2022 (In thousands) Assets: Money market funds $ — $ 4,878 $ — $ 4,878 Insurance contracts* — 75,723 — 75,723 Available-for-sale securities: Mortgage-backed securities — 7,703 — 7,703 U.S. Treasury securities — 2,386 — 2,386 Total assets measured at fair value $ — $ 90,690 $ — $ 90,690 * The insurance contracts invest approximately 65 percent in fixed-income investments, 14 percent in common stock of large-cap companies, 7 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents. Fair Value Measurements at December 31, 2022, Using Quoted Prices in Significant Significant Balance at December 31, 2022 (In thousands) Assets: Money market funds $ — $ 4,913 $ — $ 4,913 Insurance contracts* — 77,958 — 77,958 Available-for-sale securities: Mortgage-backed securities — 8,294 — 8,294 U.S. Treasury securities — 2,536 — 2,536 Total assets measured at fair value $ — $ 93,701 $ — $ 93,701 * 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. |
Fair value of long term debt outstanding | The estimated fair value of the Company's Level 2 long-term debt was as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Carrying amount $ 2,341,147 $ 2,278,730 $ 2,365,667 Fair value $ 1,960,926 $ 1,989,362 $ 2,053,396 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt outstanding | Long-term debt outstanding was as follows: Weighted Average Interest Rate at September 30, 2023 September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Senior Notes due on dates ranging from July 15, 2024 to June 15, 2062 4.33 % $ 1,757,000 $ 1,847,000 $ 1,848,500 Term Loan Agreements due on dates ranging from May 31, 2025 to September 3, 2032 6.52 % 381,300 7,000 7,000 Commercial paper supported by revolving credit agreement 5.80 % 97,700 268,272 349,050 Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029 7.32 % 35,000 35,000 35,000 Credit agreements due on dates ranging from October 13, 2027 to November 30, 2027 8.50 % 38,900 125,580 130,000 Other notes due on dates ranging from January 1, 2024 to November 30, 2038 8.41 % 37,884 1,617 1,614 Less unamortized debt issuance costs 6,637 5,295 5,211 Less discount — 444 286 Total long-term debt 2,341,147 2,278,730 2,365,667 Less current maturities 61,319 86,319 47,819 Net long-term debt $ 2,279,828 $ 2,192,411 $ 2,317,848 |
Schedule of debt maturities | Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at September 30, 2023, were as follows: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Long-term debt maturities $ 619 $ 158,400 $ 532,700 $ 140,700 $ 59,600 $ 1,455,765 |
Cash flow information (Tables)
Cash flow information (Tables) | 9 Months Ended |
Sep. 30, 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: Nine Months Ended September 30, 2023 2022 (In thousands) Interest, net* $ 84,352 $ 55,954 Income taxes paid (refunded), net** $ 40,290 $ (5,499) * AFUDC - borrowed was $7.4 million and $2.4 million for the nine months ended September 30, 2023 and 2022, respectively. ** Income taxes paid, including discontinued operations, were $39.4 million and $17.7 million for the nine months ended September 30, 2023 and 2022, respectively. Noncash investing and financing transactions were as follows: September 30, 2023 September 30, 2022 December 31, 2022 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,307 $ 30,641 $ 39,158 Property, plant and equipment additions in accounts payable $ 37,598 $ 39,393 $ 35,637 |
Business segment data (Tables)
Business segment data (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Information on the Company's businesses | Information on the Company's segments was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) External operating revenues: Regulated operations: Electric $ 108,089 $ 99,283 $ 294,775 $ 278,518 Natural gas distribution 134,896 132,145 919,487 793,142 Pipeline 36,549 32,346 79,697 69,347 279,534 263,774 1,293,959 1,141,007 Non-regulated operations: Pipeline 3,855 3,712 9,389 7,650 Construction services 717,406 735,001 2,218,672 1,970,694 Other — — — — 721,261 738,713 2,228,061 1,978,344 Total external operating revenues $ 1,000,795 $ 1,002,487 $ 3,522,020 $ 3,119,351 Intersegment operating revenues: Regulated operations: Electric $ 27 $ 34 $ 82 $ 102 Natural gas distribution 69 69 208 206 Pipeline 3,666 3,508 37,624 36,845 3,762 3,611 37,914 37,153 Non-regulated operations: Pipeline 35 73 265 464 Construction services — 2,037 — 4,391 Other 1,689 1,472 6,412 4,368 1,724 3,582 6,677 9,223 Total intersegment operating revenues $ 5,486 $ 7,193 $ 44,591 $ 46,376 Operating income (loss): Electric $ 28,718 $ 30,395 $ 71,372 $ 53,764 Natural gas distribution (15,258) (16,688) 45,674 38,929 Pipeline 17,767 14,963 44,693 39,448 Construction services 50,091 34,949 139,619 110,588 Other 3,286 (2,617) (16,201) (11,726) Total operating income $ 84,604 $ 61,002 $ 285,157 $ 231,003 Income (loss) from continuing operations: Regulated operations: Electric $ 20,942 $ 21,596 $ 53,887 $ 37,476 Natural gas distribution (17,764) (18,058) 18,007 10,758 Pipeline 11,450 9,381 29,029 25,015 14,628 12,919 100,923 73,249 Non-regulated operations: Pipeline 508 779 337 (179) Construction services 35,975 29,248 105,951 86,596 Other 27,107 (577) 102,515 (12,769) 63,590 29,450 208,803 73,648 Income from continuing operations 78,218 42,369 309,726 146,897 Discontinued operations, net of tax (3,289) 105,602 (65,752) 103,504 Net income $ 74,929 $ 147,971 $ 243,974 $ 250,401 |
Reconciliation of Revenue from Segments to Consolidated | A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating revenues reconciliation: Total reportable segment operating revenues $ 1,004,592 $ 1,008,208 $ 3,560,199 $ 3,161,359 Other revenue 1,689 1,472 6,412 4,368 Elimination of intersegment operating revenues (5,486) (7,193) (44,591) (46,376) Total consolidated operating revenues $ 1,000,795 $ 1,002,487 $ 3,522,020 $ 3,119,351 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 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: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit credit: Interest cost $ 3,380 $ 2,349 $ 10,140 $ 7,047 Expected return on assets (4,299) (4,370) (12,897) (13,112) Amortization of net actuarial loss 773 1,456 2,319 4,370 Net periodic benefit credit $ (146) $ (565) $ (438) $ (1,695) Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit credit: Service cost $ 131 $ 223 $ 405 $ 669 Interest cost 489 346 1,467 1,038 Expected return on assets (1,334) (1,319) (4,026) (3,957) Amortization of prior service credit (330) (330) (989) (989) Amortization of net actuarial gain (96) (142) (408) (425) Net periodic benefit credit, including amount capitalized (1,140) (1,222) (3,551) (3,664) Less amount capitalized 23 47 76 131 Net periodic benefit credit $ (1,163) $ (1,269) $ (3,627) $ (3,795) |
Discontinued Operations and D_4
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 25, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Discontinued Operations Pro Rata Distribution | 90% | |||||
Retained Shares Ownership Percentage | 10% | |||||
Long-term debt | $ 2,341,147 | $ 2,341,147 | $ 2,278,730 | $ 2,365,667 | ||
Repayments of Long-term Debt | $ 434,994 | 0 | ||||
Treasury Stock, Shares, Retired | 538,921 | 538,921 | ||||
Restructuring and Related Cost, Incurred Cost | $ 1,000 | $ 47,100 | ||||
Retained Shares [Abstract] | 5,700,000 | |||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Knife River Corporation | Cash Received, TSA | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | 1,300 | 1,900 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Knife River Corporation | Cash Paid, TSA | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | 407 | 684 | ||||
Knife River Corporation | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Repayments of Long-term Debt | $ 825,000 | |||||
Senior Notes | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Long-term debt | $ 1,757,000 | $ 1,757,000 | $ 1,847,000 | $ 1,848,500 | ||
Senior Notes | Knife River Corporation | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Long-term debt | 425,000 | |||||
Revolving Credit Facility | Knife River Corporation | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Long-term debt | 350,000 | |||||
Term Loan Agreement | Knife River Corporation | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Long-term debt | $ 275,000 |
Discontinued Operations (Detail
Discontinued Operations (Details - Balance Sheet) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Cash and Cash Equivalents | $ 10,090 | $ 16,761 | ||
Discontinued Operation, Receivables, Net | 241,302 | 447,882 | ||
Discontinued Operation, Inventory, Current | 323,277 | 308,829 | ||
Discontinued Operation, Prepaid and Other Assets, Current | 17,848 | 16,949 | ||
Discontinued Operation, Assets, Current | 592,517 | 790,421 | ||
Discontinued Operation, Property, Plant and Equipment, Net | 1,315,213 | 1,275,649 | ||
Discontinued Operation, Goodwill | 274,540 | 274,302 | ||
Discontinued Operation, Intangible Assets, Net | 13,430 | 14,097 | ||
Discontinued Operation, Long-Term Investments | 33,086 | 32,326 | ||
Discontinued Operation, Operating Lease, Right-of-Use Asset | 45,872 | 43,431 | ||
Discontinued Operation, Other Assets, Noncurrent | 3,610 | 3,233 | ||
Noncurrent assets of discontinued operations | $ 0 | 1,685,751 | 1,643,038 | |
Discontinued Operation, Total Assets | 2,278,268 | 2,433,459 | ||
Discontinued Operation, Short-Term Debt | 208,000 | 100,000 | ||
Discontinued Operation, Long-Term Debt, Current Maturities | 30,211 | 128,133 | ||
Discontinued Operation, Accounts Payable | 131,608 | 178,320 | ||
Discontinued Operation, Taxes Payable, Current | 8,502 | 12,874 | ||
Discontinued Operation, Employee-related Liabilities, Current | 29,192 | 27,383 | ||
Discontinued Operation, Operating Lease, Liability, Current | 13,210 | 13,000 | ||
Discontinued Operation, Accrued Liabilities, Current | 76,200 | 73,852 | ||
Current liabilities of discontinued operations | 0 | 496,923 | 533,562 | |
Discontinued Operation, Long-Term Debt, Excluding Current Maturities | 445,546 | 581,588 | ||
Discontinued Operation, Deferred Income Tax Liabilities, Net | 175,804 | 175,529 | ||
Discontinued Operation, Asset Retirement Obligations, Noncurrent | 33,015 | 27,964 | ||
Discontinued Operation, Operating Lease Liability, Noncurrent | 32,663 | 30,431 | ||
Discontinued Operation, Other Liabilities, Noncurrent | 78,876 | 87,159 | ||
Noncurrent liabilities of discontinued operations | 0 | 765,904 | 902,671 | |
Discontinued Operation, Total Liabilities | $ 1,262,827 | $ 1,436,233 | ||
Separation of Knife River | $ (185) | $ (954,541) |
Discontinued Operations (Deta_2
Discontinued Operations (Details Income Stmt) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Revenue | $ 0 | $ 974,774 | $ 735,259 | $ 1,995,500 |
Discontinued Operation, Operating Expense | 1,447 | 825,874 | 769,407 | 1,828,602 |
Discontinued Operation, Operating Income (Loss) | (1,447) | 148,900 | (34,148) | 166,898 |
Discontinued Operation, Other Income (Expense) | 0 | (1,005) | 2,382 | (4,399) |
Discontinued Operation, Interest Expense | (66) | 11,173 | 37,545 | 26,466 |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (1,381) | 136,722 | (69,311) | 136,033 |
Discontinued Operations, Income Tax Expense (Benefit) | 1,908 | 31,120 | (3,559) | 32,529 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $ (3,289) | $ 105,602 | $ (65,752) | $ 103,504 |
Receivables and allowance for_4
Receivables and allowance for expected credit losses (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Credit Loss [Abstract] | |||
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing | $ 51.1 | $ 34.3 | $ 30.8 |
Receivables and allowance for_5
Receivables and allowance for expected credit losses (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Provision for credit losses | $ 9,769 | $ 3,554 | ||||||
Trade Accounts Receivable | ||||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance | $ 6,873 | $ 6,351 | $ 4,154 | $ 4,535 | $ 5,030 | $ 4,310 | 4,154 | 4,310 |
Provision for credit losses | 3,907 | 2,097 | 3,765 | 1,070 | 497 | 1,988 | ||
Less write-offs charged against the allowance | 3,357 | 1,873 | 1,943 | 2,373 | 1,277 | 1,600 | ||
Credit loss recoveries collected | 308 | 298 | 375 | 294 | 285 | 332 | ||
Balance | 7,731 | 6,873 | 6,351 | 3,526 | 4,535 | 5,030 | 7,731 | 3,526 |
Electric | Trade Accounts Receivable | ||||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance | 413 | 468 | 375 | 348 | 361 | 269 | 375 | 269 |
Provision for credit losses | 513 | 182 | 615 | 300 | 113 | 565 | ||
Less write-offs charged against the allowance | 572 | 316 | 667 | 399 | 234 | 597 | ||
Credit loss recoveries collected | 75 | 79 | 145 | 85 | 108 | 124 | ||
Balance | 429 | 413 | 468 | 334 | 348 | 361 | 429 | 334 |
Natural gas distribution | Trade Accounts Receivable | ||||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance | 1,740 | 2,943 | 1,615 | 1,453 | 2,123 | 1,506 | 1,615 | 1,506 |
Provision for credit losses | 1,661 | 90 | 2,324 | 881 | 92 | 1,369 | ||
Less write-offs charged against the allowance | 2,758 | 1,454 | 1,225 | 1,822 | 939 | 932 | ||
Credit loss recoveries collected | 233 | 161 | 229 | 169 | 177 | 180 | ||
Balance | 876 | 1,740 | 2,943 | 681 | 1,453 | 2,123 | 876 | 681 |
Pipeline | Trade Accounts Receivable | ||||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Provision for credit losses | 0 | 0 | 0 | 0 | 0 | 0 | ||
Less write-offs charged against the allowance | 0 | 0 | 0 | 0 | 0 | 0 | ||
Credit loss recoveries collected | 0 | 0 | 0 | 0 | 0 | 0 | ||
Balance | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Construction services | Trade Accounts Receivable | ||||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance | 4,718 | 2,938 | 2,162 | 2,732 | 2,544 | 2,533 | 2,162 | 2,533 |
Provision for credit losses | 1,733 | 1,825 | 826 | (111) | 292 | 54 | ||
Less write-offs charged against the allowance | 27 | 103 | 51 | 152 | 104 | 71 | ||
Credit loss recoveries collected | 0 | 58 | 1 | 40 | 0 | 28 | ||
Balance | $ 6,424 | $ 4,718 | $ 2,938 | $ 2,509 | $ 2,732 | $ 2,544 | $ 6,424 | $ 2,509 |
Inventories and natural gas i_4
Inventories and natural gas in storage (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | |||
Merchandise for resale | $ 36,815 | $ 27,910 | $ 26,538 |
Natural gas in storage (current) | 29,821 | 22,533 | 48,532 |
Materials and supplies | 7,824 | 6,846 | 9,917 |
Other | 5,775 | 6,959 | 4,827 |
Total | 80,235 | 64,248 | 89,814 |
Natural gas in storage noncurrent | $ 47,400 | $ 47,500 | $ 47,200 |
Treasury Stock (Details)
Treasury Stock (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Earnings Per Share [Abstract] | ||
Treasury Stock, Shares, Retired | 538,921 | 538,921 |
Earnings per share (Details 2)
Earnings per share (Details 2) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding - basic | 203,638 | 203,351 | 203,633 | 203,351 |
Effect of dilutive performance share awards and restricted stock units | 248 | 293 | 258 | 56 |
Weighted average common shares outstanding - diluted | 203,886 | 203,644 | 203,891 | 203,407 |
Income from continuing operations | $ 0.38 | $ 0.21 | $ 1.52 | $ 0.72 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | (0.01) | 0.52 | (0.32) | 0.51 |
Earnings Per Share, Basic | 0.37 | 0.73 | 1.20 | 1.23 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.38 | 0.21 | 1.52 | 0.72 |
Discontinued operations, net of tax | (0.01) | 0.52 | (0.32) | 0.51 |
Earnings Per Share, Diluted | $ 0.37 | $ 0.73 | $ 1.20 | $ 1.23 |
Shares excluded from the calculation of diluted earnings per share | 0 | 0 | 0 | 77 |
Dividends declared per common share | $ 0.1250 | $ 0.2175 | $ 0.5700 | $ 0.6525 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Balance | $ 2,706,193 | $ 3,575,382 | $ 3,587,129 | $ 3,386,810 | $ 3,360,718 | $ 3,382,874 | $ 3,587,129 | $ 3,382,874 |
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | 0 | 0 | 0 | (3,265) | ||||
Other comprehensive income (loss) | (62) | 363 | 217 | 285 | (2,796) | 269 | 518 | (2,242) |
Balance | 2,757,434 | 2,706,193 | 3,575,382 | 3,491,858 | 3,386,810 | 3,360,718 | 2,757,434 | 3,491,858 |
Net unrealized gain (loss) on derivative instruments qualifying as hedges | ||||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Balance | 0 | (91) | (125) | (315) | (426) | (538) | (125) | (538) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 47 | 34 | 111 | 111 | 112 | ||
Other comprehensive income (loss) | 0 | 47 | 34 | 111 | 111 | 112 | ||
Amounts reclassified related to the separation of Knife River | 44 | |||||||
Balance | 0 | 0 | (91) | (204) | (315) | (426) | 0 | (204) |
Postretirement liability adjustment | ||||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Balance | (17,151) | (29,800) | (29,900) | (42,820) | (40,016) | (40,461) | (29,900) | (40,461) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | (3,265) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (6) | 387 | 100 | 461 | 461 | 445 | ||
Other comprehensive income (loss) | (6) | 387 | 100 | 461 | (2,804) | 445 | ||
Amounts reclassified related to the separation of Knife River | 12,262 | |||||||
Balance | (17,157) | (17,151) | (29,800) | (42,359) | (42,820) | (40,016) | (17,157) | (42,359) |
Net unrealized gain (loss) on available-for-sale investments | ||||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Balance | (546) | (475) | (558) | (396) | (293) | (5) | (558) | (5) |
Other comprehensive loss before reclassifications | (66) | (84) | 70 | 329 | (128) | (320) | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | 269 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 10 | 13 | 13 | 42 | 25 | 32 | ||
Other comprehensive income (loss) | (56) | (71) | 83 | (287) | (103) | (288) | ||
Amounts reclassified related to the separation of Knife River | 0 | |||||||
Balance | (602) | (546) | (475) | (683) | (396) | (293) | (602) | (683) |
Total accumulated other comprehensive loss | ||||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Balance | (17,697) | (30,366) | (30,583) | (43,531) | (40,735) | (41,004) | (30,583) | (41,004) |
Other comprehensive loss before reclassifications | (66) | (84) | 70 | 329 | (128) | (320) | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment to AOCI, Postretirement Liability Adjustment From Regulatory Asset , Net of Tax | (3,265) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 4 | 447 | 147 | 614 | 597 | 589 | ||
Other comprehensive income (loss) | (62) | 363 | 217 | 285 | (2,796) | 269 | ||
Amounts reclassified related to the separation of Knife River | 12,306 | |||||||
Balance | $ (17,759) | $ (17,697) | $ (30,366) | $ (43,246) | $ (43,531) | $ (40,735) | $ (17,759) | $ (43,246) |
Reclassification out of accumul
Reclassification out of accumulated other comprehensive loss (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||||
Interest expense | $ (32,129) | $ (20,196) | $ (82,541) | $ (58,275) | ||||
Other income | 8,918 | 5,774 | 29,251 | 2,521 | ||||
Income taxes | (13,325) | (4,211) | (92,311) | (28,352) | ||||
Net income | 74,929 | $ 130,692 | $ 38,353 | 147,971 | $ 70,667 | $ 31,763 | 243,974 | 250,401 |
Reclassification out of accumulated other comprehensive loss | ||||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||||
Net income | (4) | (614) | (598) | (1,800) | ||||
Reclassification adjustment for loss on derivative instruments included in net income | Reclassification out of accumulated other comprehensive loss | Interest rate contract | ||||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||||
Interest expense | 0 | (148) | (98) | (443) | ||||
Income taxes | 0 | 37 | 17 | 109 | ||||
Net income | 0 | (111) | (81) | (334) | ||||
Amortization of postretirement liability losses included in net periodic benefit credit | Reclassification out of accumulated other comprehensive loss | ||||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||||
Other income | (92) | (609) | (744) | (1,827) | ||||
Income taxes | 98 | 148 | 263 | 460 | ||||
Net income | 6 | (461) | (481) | (1,367) | ||||
Reclassification adjustment on available-for-sale investments included in net income | Reclassification out of accumulated other comprehensive loss | ||||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||||
Other income | (13) | (54) | (45) | (126) | ||||
Income taxes | 3 | 12 | 9 | 27 | ||||
Net income | $ (10) | $ (42) | $ (36) | $ (99) |
Disaggregation of revenue (Deta
Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | $ 1,000,795 | $ 1,002,487 | $ 3,522,020 | $ 3,119,351 |
Natural gas transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 48,388 | 44,054 | 142,941 | 131,432 |
Natural gas storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 4,808 | 3,595 | 12,427 | 10,210 |
Electrical & mechanical specialty contracting | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 514,378 | 543,717 | 1,672,948 | 1,443,758 |
Transmission & distribution specialty contracting | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 192,056 | 181,550 | 511,563 | 496,190 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 24,098 | 19,739 | 66,231 | 56,507 |
Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 991,276 | 989,085 | 3,493,191 | 3,090,046 |
Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 9,519 | 13,402 | 28,829 | 29,305 |
Residential utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 103,036 | 101,055 | 620,304 | 543,287 |
Commercial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 90,114 | 82,519 | 440,846 | 388,097 |
Industrial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 18,019 | 18,047 | 65,173 | 61,309 |
Other utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 1,865 | 2,002 | 5,349 | 5,632 |
Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 108,089 | 99,283 | 294,775 | 278,518 |
Electric | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (27) | (34) | (82) | (102) |
Electric | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 14,701 | 10,758 | 38,111 | 33,727 |
Electric | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 111,343 | 99,330 | 302,574 | 283,372 |
Electric | Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (3,254) | (47) | (7,799) | (4,854) |
Electric | Residential utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 34,303 | 36,981 | 102,953 | 103,648 |
Electric | Commercial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 49,754 | 38,785 | 124,363 | 108,400 |
Electric | Industrial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 10,747 | 10,838 | 31,880 | 32,067 |
Electric | Other utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 1,865 | 2,002 | 5,349 | 5,632 |
Natural gas distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 134,896 | 132,145 | 919,487 | 793,142 |
Natural gas distribution | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (69) | (69) | (208) | (206) |
Natural gas distribution | Natural gas transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 13,050 | 11,910 | 38,225 | 35,747 |
Natural gas distribution | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 3,881 | 3,495 | 11,874 | 9,854 |
Natural gas distribution | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 133,227 | 130,353 | 917,018 | 793,973 |
Natural gas distribution | Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 1,669 | 1,792 | 2,469 | (831) |
Natural gas distribution | Residential utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 68,733 | 64,074 | 517,351 | 439,639 |
Natural gas distribution | Commercial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 40,360 | 43,734 | 316,483 | 279,697 |
Natural gas distribution | Industrial utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 7,272 | 7,209 | 33,293 | 29,242 |
Natural gas distribution | Other utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 0 | 0 | 0 | 0 |
Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 40,404 | 36,058 | 89,086 | 76,997 |
Pipeline | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (3,701) | (3,581) | (37,889) | (37,309) |
Pipeline | Natural gas transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 35,338 | 32,144 | 104,716 | 95,685 |
Pipeline | Natural gas storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 4,808 | 3,595 | 12,427 | 10,210 |
Pipeline | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 3,916 | 3,814 | 9,713 | 8,201 |
Pipeline | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 40,361 | 35,972 | 88,967 | 76,787 |
Pipeline | Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 43 | 86 | 119 | 210 |
Construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 717,406 | 735,001 | 2,218,672 | 1,970,694 |
Construction services | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 0 | (2,037) | 0 | (4,391) |
Construction services | Electrical & mechanical specialty contracting | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 514,378 | 543,717 | 1,672,948 | 1,443,758 |
Construction services | Transmission & distribution specialty contracting | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 192,056 | 181,550 | 511,563 | 496,190 |
Construction services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (89) | 200 | 121 | 357 |
Construction services | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 706,345 | 723,430 | 2,184,632 | 1,935,914 |
Construction services | Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 11,061 | 11,571 | 34,040 | 34,780 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 0 | 0 | 0 | 0 |
Other | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | (1,689) | (1,472) | (6,412) | (4,368) |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 1,689 | 1,472 | 6,412 | 4,368 |
Other | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 0 | 0 | 0 | 0 |
Other | Revenues out of scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | 0 | 0 | 0 | 0 |
Consolidated Operations | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues: | $ (5,486) | $ (7,193) | $ (44,591) | $ (46,376) |
Contract balances (Details 2)
Contract balances (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Construction Contractor, Contract Cost, Subject to Uncertainty, Amount | $ 30,000 | $ 30,000 | |||
Contract assets | 199,370 | 199,370 | $ 154,144 | ||
Change in contract assets | 45,226 | ||||
Contract liabilities - current | (183,705) | (183,705) | (168,361) | ||
Change in contract liabilities - current | (15,344) | ||||
Contract liabilities - noncurrent | (435) | (435) | (6) | ||
Change in contract liabilities - noncurrent | (429) | ||||
Net contract assets (liabilities) | 15,230 | 15,230 | $ (14,223) | ||
Change in net contract assets (liabilities) | 29,453 | ||||
Amounts included in contract liability at the beginning of the period | 6,300 | $ 8,200 | 164,300 | $ 118,700 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 20,200 | $ 9,600 | $ 41,700 | $ 43,700 |
Revenue from contracts with c_4
Revenue from contracts with customers Remaining performance obligations (Details 3) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 2,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,600 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 371 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 13 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 519.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 25 months |
Lessor accounting (Details)
Lessor accounting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating Lease, Lease Income | $ 11.2 | $ 11.7 | $ 34.5 | $ 35.1 |
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | $ 9.1 | $ 9.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 488,960 | $ 488,960 | $ 488,960 |
Other intangible assets (Detail
Other intangible assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net (excluding goodwill) | $ 2,526 | $ 4,648 | $ 2,526 | $ 4,648 | $ 4,102 |
Amortization of intangible assets | 522 | 565 | 1,600 | 1,700 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 10,450 | 10,450 | 10,450 | 10,450 | 10,450 |
Intangible assets, less accumulated amortization | 7,924 | 5,834 | 7,924 | 5,834 | 6,356 |
Intangible assets, net (excluding goodwill) | 2,526 | 4,616 | 2,526 | 4,616 | 4,094 |
Noncompete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 292 | 552 | 292 | 552 | 552 |
Intangible assets, less accumulated amortization | 292 | 520 | 292 | 520 | 544 |
Intangible assets, net (excluding goodwill) | $ 0 | $ 32 | $ 0 | $ 32 | $ 8 |
Future amortization expense (De
Future amortization expense (Details 3) $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2023 | $ 522 |
2024 | 1,888 |
2025 | 116 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Regulatory assets (Details)
Regulatory assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Regulatory Assets | |||
Regulatory Assets, Current | $ 169,248 | $ 165,092 | $ 148,160 |
Regulatory Assets, Noncurrent | 428,969 | 329,659 | 344,442 |
Total regulatory assets | 598,217 | 494,751 | 492,602 |
Regulatory assets not earning a rate of return | $ 211,800 | 242,500 | 264,400 |
Natural gas costs recoverable through rate adjustments | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory Assets, Current | $ 107,101 | 141,306 | 112,079 |
Regulatory Assets, Noncurrent | $ 64,914 | 0 | 462 |
Natural gas costs recoverable through rate adjustments | Maximum [Member] | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 2 years | ||
Conservation programs | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory Assets, Current | $ 14,411 | 8,544 | 9,363 |
Cost recovery mechanisms | |||
Regulatory Assets | |||
Regulatory Assets, Current | 9,461 | 4,019 | 3,354 |
Regulatory Assets, Noncurrent | $ 68,539 | 67,171 | 67,094 |
Cost recovery mechanisms | Minimum [Member] | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Cost recovery mechanisms | Maximum [Member] | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 10 years | ||
Other regulatory assets | |||
Regulatory Assets | |||
Regulatory Assets, Current | $ 20,500 | 8,567 | 21,036 |
Regulatory Assets, Noncurrent | $ 11,406 | 11,010 | 10,931 |
Other regulatory assets | Minimum [Member] | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Other regulatory assets | Maximum [Member] | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 16 years | ||
Pension and postretirement benefits | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | ** | ||
Regulatory Assets, Noncurrent | $ 144,448 | 143,349 | 137,582 |
Plant costs/asset retirement obligations | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Over plant lives | ||
Regulatory Assets, Noncurrent | $ 43,520 | 44,462 | 61,941 |
Manufactured gas plant site remediation | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | - | ||
Regulatory Assets, Noncurrent | $ 24,577 | 26,624 | 25,963 |
Plant to be retired | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | - | ||
Regulatory Assets, Noncurrent | $ 19,947 | 21,525 | 24,740 |
Environmental compliance programs | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | - | ||
Regulatory Assets, Noncurrent | $ 36,605 | 0 | 0 |
Taxes recoverable from customers | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Over plant lives | ||
Regulatory Assets, Noncurrent | $ 12,266 | 12,330 | 12,394 |
Long-term debt refinancing costs | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 37 years | ||
Regulatory Assets, Noncurrent | $ 2,747 | 3,188 | 3,335 |
Regulatory Asset, Electric Fuel & Purchased Power Deferral | |||
Regulatory Assets | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory Assets, Current | $ 17,775 | $ 2,656 | $ 2,328 |
Regulatory liabilities (Details
Regulatory liabilities (Details 2) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities due within one year | $ 45,013 | $ 26,440 | $ 18,599 |
Regulatory liabilities | 495,112 | 448,454 | 433,212 |
Total regulatory liabilities | 540,125 | 474,894 | 451,811 |
Net regulatory position | $ 58,092 | 19,857 | 40,791 |
Natural gas costs refundable through rate adjustments | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory liabilities due within one year | $ 20,445 | 955 | 873 |
Electric fuel and purchased power deferral | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory liabilities due within one year | $ 0 | 4,929 | 3,763 |
Cost Recovery Mechanisms | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities due within one year | 5,754 | 1,977 | 2,674 |
Regulatory liabilities | $ 20,012 | 14,025 | 12,535 |
Cost Recovery Mechanisms | Minimum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Cost Recovery Mechanisms | Maximum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 19 years | ||
Conservation programs | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory liabilities due within one year | $ 1,976 | 4,126 | 325 |
Taxes refundable to customers | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities due within one year | 1,513 | 3,937 | 4,264 |
Regulatory liabilities | $ 194,804 | 203,222 | 205,517 |
Taxes refundable to customers | Minimum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Taxes refundable to customers | Maximum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Over plant lives | ||
Refundable Fuel and Electric Costs | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Regulatory liabilities due within one year | $ 18 | 3,253 | 1,812 |
Other regulatory liabilities | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities due within one year | 15,307 | 7,263 | 4,888 |
Regulatory liabilities | $ 1,751 | 1,587 | 6,327 |
Other regulatory liabilities | Minimum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 1 year | ||
Other regulatory liabilities | Maximum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 15 years | ||
Plant removal and decommissioning costs | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Over plant lives | ||
Regulatory liabilities | $ 220,499 | 208,650 | 174,481 |
Accumulated Deferred ITC | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | Up to 19 years | ||
Regulatory liabilities | $ 14,800 | 13,594 | 14,665 |
Pension and postretirement benefits | |||
Regulatory Liabilities [Line Items] | |||
Estimated Recovery or Refund Period as of September 30, 2023 | ** | ||
Regulatory liabilities | $ 7,120 | 7,376 | 19,687 |
Environmental compliance programs | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities | $ 36,126 | $ 0 | $ 0 |
Environmental allowances and _2
Environmental allowances and obligations (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Accounting Policies [Abstract] | |
Environmental Compliance Obligations | $ 36.6 |
Fair value measurements Insuran
Fair value measurements Insurance contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |||||
Investments used to satisfy nonqualified benefit plans obligations | $ 62.7 | $ 75.7 | $ 62.7 | $ 75.7 | $ 78 |
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans | $ (1.4) | $ (1.3) | $ 3.5 | $ (12.4) |
Available-for-sale securities (
Available-for-sale securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Available-for-sale securities [Abstract] | |||
Cost | $ 11,693 | $ 11,536 | $ 10,954 |
Gross Unrealized Gains | 11 | 2 | 0 |
Gross Unrealized Losses | 773 | 708 | 865 |
Fair Value | 10,931 | 10,830 | 10,089 |
Mortgage-backed securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 8,386 | 8,928 | 8,486 |
Gross Unrealized Gains | 0 | 2 | 0 |
Gross Unrealized Losses | 750 | 636 | 783 |
Fair Value | 7,636 | 8,294 | 7,703 |
U.S. Treasury securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 3,307 | 2,608 | 2,468 |
Gross Unrealized Gains | 11 | 0 | 0 |
Gross Unrealized Losses | 23 | 72 | 82 |
Fair Value | $ 3,295 | $ 2,536 | $ 2,386 |
Investment in Knife River (Deta
Investment in Knife River (Details 3) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2023 | |
Fair value, balance sheet grouping [Line Items] | ||||
Retained Shares Ownership Percentage | 10% | |||
Retained Shares | 5.7 | |||
Unrealized Gain (Loss) on Investments | $ 3,501 | $ (12,357) | ||
Investment in Knife River | ||||
Fair value, balance sheet grouping [Line Items] | ||||
Investments, Fair Value Disclosure | $ 276,200 | 276,200 | ||
Unrealized Gain (Loss) on Investments | $ 30,200 | $ 170,200 |
Fair value measurements Assets
Fair value measurements Assets (Details 4) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Concentration risks, percentage [Abstract] | |||
Percentage in fixed-income and other investments | 50% | 63% | 65% |
Percentage investment in common stock of large-cap companies | 19% | 15% | 14% |
Percentage investment in target date investments | 10% | 6% | 6% |
Percentage investment in common stock of mid-cap companies | 10% | 8% | 7% |
Percentage investment in common stock of small-cap companies | 6% | 6% | 6% |
Percentage investment in cash and cash equivalents | 3% | 2% | 2% |
Percentage investment in international investments | 1% | ||
Percentage Investment in High-Yield Investments | 1% | ||
Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | $ 375,699 | $ 93,701 | $ 90,690 |
Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 276,213 | ||
Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 99,486 | 93,701 | 90,690 |
Investment in Knife River | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 276,213 | ||
Investment in Knife River | Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 276,213 | ||
Money market funds | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 25,818 | 4,913 | 4,878 |
Money market funds | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 25,818 | 4,913 | 4,878 |
Insurance contracts* | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 62,736 | 77,958 | 75,723 |
Insurance contracts* | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 62,736 | 77,958 | 75,723 |
Mortgage-backed securities | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 7,637 | 8,294 | 7,703 |
Mortgage-backed securities | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 7,637 | 8,294 | 7,703 |
U.S. Treasury securities | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 3,295 | 2,536 | 2,386 |
U.S. Treasury securities | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | $ 3,295 | $ 2,536 | $ 2,386 |
Fair value measurements Debt (D
Fair value measurements Debt (Details 5) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | $ 2,341,147 | $ 2,365,667 | $ 2,278,730 |
Carrying amount | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | 2,341,147 | 2,365,667 | 2,278,730 |
Fair value | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 1,960,926 | $ 2,053,396 | $ 1,989,362 |
Short-term Debt (Details 1)
Short-term Debt (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |||||||||
May 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 01, 2023 | Mar. 17, 2023 | Jan. 20, 2023 | Dec. 31, 2022 | Dec. 19, 2022 | |
Short-Term Debt [Line Items] | ||||||||||
Short-term borrowings | $ 306,400 | $ 0 | $ 38,500 | |||||||
Repayment of short-term borrowings | 193,500 | $ 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% | |||||||||
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% | |||||||||
Repayment of short-term borrowings | $ 30,000 | $ 30,000 | $ 20,000 | |||||||
Term Loan Agreement | Centennial Energy Holdings, Inc. | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Short-term borrowings | $ 100,000 | $ 135,000 | ||||||||
Term Loan Agreement | Centennial Energy Holdings, Inc. | Maximum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Repayment of short-term borrowings | 135,000 | |||||||||
Term Loan Agreement | Centennial Energy Holdings, Inc. | Minimum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Repayment of short-term borrowings | 100,000 | |||||||||
Term Loan Agreement | MDU Resources Group, Inc. | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Short-term borrowings | $ 75,000 | |||||||||
Repayment of short-term borrowings | 75,000 | |||||||||
Revolving Credit Facility | MDU Resources Group, Inc. | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Short-term borrowings | $ 150,000 | |||||||||
Ratio of total debt to total capitalization as specified in debt covenants | 65% | |||||||||
Revolving Credit Agreement, Amount Outstanding | MDU Resources Group, Inc. | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Short-term borrowings | $ 111,400 |
Long-term debt outstanding (Det
Long-term debt outstanding (Details 2) - USD ($) $ in Thousands | 9 Months Ended | ||||
Jun. 09, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2023 | Dec. 31, 2022 | |
Long-term debt outstanding [Line Items] | |||||
Repayments of Long-term Debt | $ 434,994 | $ 0 | |||
Long-term debt | 2,341,147 | 2,278,730 | $ 2,365,667 | ||
Long-term debt due within one year | 61,319 | 86,319 | 47,819 | ||
Long-term debt | 2,279,828 | 2,192,411 | 2,317,848 | ||
Long-term Debt | |||||
Long-term debt outstanding [Line Items] | |||||
Unamortized Debt Issuance Costs | 6,637 | 5,295 | 5,211 | ||
Discount | 0 | 444 | 286 | ||
Long-term Debt | Centennial Energy Holdings, Inc. | |||||
Long-term debt outstanding [Line Items] | |||||
Repayments of Long-term Debt | $ 455,000 | ||||
Revolving Credit Facility | MDU Resources Group, Inc. | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 200,000 | ||||
Ratio of total debt to total capitalization as specified in debt covenants | 65% | ||||
Term Loan Agreement | MDU Resources Group, Inc. | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 375,000 | ||||
Ratio of total debt to total capitalization as specified in debt covenants | 65% | ||||
Senior Notes | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 1,757,000 | 1,847,000 | 1,848,500 | ||
Weighted Average Interest Rate | 4.33% | ||||
Term Loan Agreements | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 381,300 | 7,000 | 7,000 | ||
Weighted Average Interest Rate | 6.52% | ||||
Commercial Paper | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 97,700 | 268,272 | 349,050 | ||
Weighted Average Interest Rate | 5.80% | ||||
Medium-term Notes | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 35,000 | 35,000 | 35,000 | ||
Weighted Average Interest Rate | 7.32% | ||||
Credit Agreements | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 38,900 | 125,580 | 130,000 | ||
Weighted Average Interest Rate | 8.50% | ||||
Other Notes | |||||
Long-term debt outstanding [Line Items] | |||||
Long-term debt | $ 37,884 | $ 1,617 | $ 1,614 | ||
Weighted Average Interest Rate | 8.41% |
Schedule of debt maturities (De
Schedule of debt maturities (Details 3) $ in Thousands | Sep. 30, 2023 USD ($) |
Long-term debt maturities [Line Items] | |
Remainder of 2023 | $ 619 |
2024 | 158,400 |
2025 | 532,700 |
2026 | 140,700 |
2027 | 59,600 |
Thereafter | $ 1,455,765 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 91,543 | $ 46,580 | $ 402,037 | $ 175,249 |
Income taxes | $ 13,325 | $ 4,211 | $ 92,311 | $ 28,352 |
Effective Income Tax Rate Reconciliation, Percent | 14.60% | 9% | 23% | 16.20% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.80% | 24.80% |
Cash flow information (Details)
Cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Interest, net* | $ 84,352 | $ 55,954 | |
Income taxes paid (refunded), net** | 40,290 | (5,499) | |
AFUDC borrowed | 7,400 | 2,400 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 36,307 | 30,641 | $ 39,158 |
Property, plant and equipment additions in accounts payable | 37,598 | 39,393 | $ 35,637 |
Continuing and discontinued operations | |||
Income taxes paid (refunded), net** | $ 39,400 | $ 17,700 |
Restricted Cash (Details 2)
Restricted Cash (Details 2) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 32,493 | $ 80,518 | $ 74,620 | $ 54,161 |
Restricted Cash-Captive Insurance | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 24,700 | $ 35,600 | $ 33,800 |
Business segment data (Details)
Business segment data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 1,000,795 | $ 1,002,487 | $ 3,522,020 | $ 3,119,351 | ||||
Operating income | 84,604 | 61,002 | 285,157 | 231,003 | ||||
Income from continuing operations | 78,218 | 42,369 | 309,726 | 146,897 | ||||
Discontinued operations, net of tax | (3,289) | 105,602 | (65,752) | 103,504 | ||||
Net income | 74,929 | $ 130,692 | $ 38,353 | 147,971 | $ 70,667 | $ 31,763 | 243,974 | 250,401 |
Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 108,089 | 99,283 | 294,775 | 278,518 | ||||
Operating income | 28,718 | 30,395 | 71,372 | 53,764 | ||||
Natural gas distribution | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 134,896 | 132,145 | 919,487 | 793,142 | ||||
Operating income | (15,258) | (16,688) | 45,674 | 38,929 | ||||
Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 40,404 | 36,058 | 89,086 | 76,997 | ||||
Operating income | 17,767 | 14,963 | 44,693 | 39,448 | ||||
Construction services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 717,406 | 735,001 | 2,218,672 | 1,970,694 | ||||
Operating income | 50,091 | 34,949 | 139,619 | 110,588 | ||||
Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Operating income | 3,286 | (2,617) | (16,201) | (11,726) | ||||
Intersegment eliminations | Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (27) | (34) | (82) | (102) | ||||
Intersegment eliminations | Natural gas distribution | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (69) | (69) | (208) | (206) | ||||
Intersegment eliminations | Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (3,701) | (3,581) | (37,889) | (37,309) | ||||
Intersegment eliminations | Construction services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | (2,037) | 0 | (4,391) | ||||
Intersegment eliminations | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (1,689) | (1,472) | (6,412) | (4,368) | ||||
Intersegment eliminations | Consolidated Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (5,486) | (7,193) | (44,591) | (46,376) | ||||
Total intersegment operating revenues | Consolidated Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 5,486 | 7,193 | 44,591 | 46,376 | ||||
Regulated operation | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 279,534 | 263,774 | 1,293,959 | 1,141,007 | ||||
Income from continuing operations | 14,628 | 12,919 | 100,923 | 73,249 | ||||
Regulated operation | Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 108,089 | 99,283 | 294,775 | 278,518 | ||||
Income from continuing operations | 20,942 | 21,596 | 53,887 | 37,476 | ||||
Regulated operation | Natural gas distribution | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 134,896 | 132,145 | 919,487 | 793,142 | ||||
Income from continuing operations | (17,764) | (18,058) | 18,007 | 10,758 | ||||
Regulated operation | Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 36,549 | 32,346 | 79,697 | 69,347 | ||||
Income from continuing operations | 11,450 | 9,381 | 29,029 | 25,015 | ||||
Regulated operation | Intersegment eliminations | Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 27 | 34 | 82 | 102 | ||||
Regulated operation | Intersegment eliminations | Natural gas distribution | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 69 | 69 | 208 | 206 | ||||
Regulated operation | Intersegment eliminations | Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 3,666 | 3,508 | 37,624 | 36,845 | ||||
Regulated operation | Intersegment eliminations | Regulated Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 3,762 | 3,611 | 37,914 | 37,153 | ||||
Nonregulated operation | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 721,261 | 738,713 | 2,228,061 | 1,978,344 | ||||
Income from continuing operations | 63,590 | 29,450 | 208,803 | 73,648 | ||||
Nonregulated operation | Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 3,855 | 3,712 | 9,389 | 7,650 | ||||
Income from continuing operations | 508 | 779 | 337 | (179) | ||||
Nonregulated operation | Construction services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 717,406 | 735,001 | 2,218,672 | 1,970,694 | ||||
Income from continuing operations | 35,975 | 29,248 | 105,951 | 86,596 | ||||
Nonregulated operation | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Income from continuing operations | 27,107 | (577) | 102,515 | (12,769) | ||||
Nonregulated operation | Intersegment eliminations | Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 35 | 73 | 265 | 464 | ||||
Nonregulated operation | Intersegment eliminations | Construction services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | 2,037 | 0 | 4,391 | ||||
Nonregulated operation | Intersegment eliminations | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 1,689 | 1,472 | 6,412 | 4,368 | ||||
Nonregulated operation | Intersegment eliminations | Non-regulated Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 1,724 | $ 3,582 | $ 6,677 | $ 9,223 |
Business segment data operating
Business segment data operating revenues reconciliation (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,000,795 | $ 1,002,487 | $ 3,522,020 | $ 3,119,351 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,004,592 | 1,008,208 | 3,560,199 | 3,161,359 |
Corporate, Non-Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,689 | 1,472 | 6,412 | 4,368 |
Intersegment Eliminations [Member] | Consolidated Operations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (5,486) | $ (7,193) | $ (44,591) | $ (46,376) |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Qualified plan | Underfunded plan | Pension benefits | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Interest cost | $ 3,380 | $ 2,349 | $ 10,140 | $ 7,047 |
Expected return on assets | (4,299) | (4,370) | (12,897) | (13,112) |
Amortization of net actuarial (gain) loss | 773 | 1,456 | 2,319 | 4,370 |
Net periodic benefit cost (credit) | (146) | (565) | (438) | (1,695) |
Qualified plan | Overfunded Plan | Other postretirement benefits | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Service cost | 131 | 223 | 405 | 669 |
Interest cost | 489 | 346 | 1,467 | 1,038 |
Expected return on assets | (1,334) | (1,319) | (4,026) | (3,957) |
Amortization of prior service credit | (330) | (330) | (989) | (989) |
Amortization of net actuarial (gain) loss | (96) | (142) | (408) | (425) |
Net periodic benefit credit, including amount capitalized | (1,140) | (1,222) | (3,551) | (3,664) |
Less amount capitalized | 23 | 47 | 76 | 131 |
Net periodic benefit cost (credit) | (1,163) | (1,269) | (3,627) | (3,795) |
Nonqualified plan | Unfunded plan | Supplemental employee retirement plans | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Net periodic benefit cost (credit) | $ 759 | $ 648 | $ 2,300 | $ 1,900 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Employee Stock | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share-Based Payment Arrangement, Plan Modification, Incremental Cost | $ 204,000 |
MTPSC (Details)
MTPSC (Details) - MTPSC - Montana-Dakota Utilities Co. [Member] - Electric - USD ($) $ in Millions | Jun. 12, 2023 | 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 | $ 6.1 | $ 11.5 | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | 9.10% | 17% | ||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ 1.7 | |||
Public Utilities, Interim Rate Increase (Decrease), Percentage | 2.70% | |||
Public Utilities, Requested Return on Equity, Percentage | 9.65% |
NDPSC (Details 2)
NDPSC (Details 2) - NDPSC [Member] - Montana-Dakota Utilities Co. [Member] - USD ($) $ in Millions | Nov. 01, 2023 | Aug. 25, 2023 | Jul. 14, 2023 |
Electric | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (10.7) | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 1.3 | ||
Total Transmission Cost Adjustment Rider | 2.2 | ||
Public Utilities, Requested Rate (Decrease), Net Benefit Amount | $ (7.6) | ||
Electric | Subsequent Event [Member] | Pending Rate Case [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 5.7 | ||
Renewable Resource Cost Adjustment Rate Tariff | 21 | ||
Natural gas distribution | Subsequent Event [Member] | Pending Rate Case [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 11.6 | ||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 7.50% | ||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ 10.1 |
SDPUC (Details 3)
SDPUC (Details 3) - Pending Rate Case [Member] - SDPUC - Montana-Dakota Utilities Co. [Member] $ in Millions | Aug. 15, 2023 USD ($) |
Electric | |
Public Utilities, General Disclosures [Line Items] | |
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 3 |
Public Utilities, Requested Rate Increase (Decrease), Percentage | 17.30% |
Natural gas distribution | |
Public Utilities, General Disclosures [Line Items] | |
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 7.4 |
Public Utilities, Requested Rate Increase (Decrease), Percentage | 11.20% |
WUTC (Details 4)
WUTC (Details 4) - Pipeline Cost Recovery Mechanism - WUTC [Member] - Cascade Natural Gas [Member] - USD ($) $ in Millions | Oct. 13, 2023 | Jun. 01, 2023 |
Public Utilities, General Disclosures [Line Items] | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 3.1 | |
Public Utilities, Requested Rate Increase (Decrease), Percentage | 0.90% | |
Subsequent Event [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 2.4 | |
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | 0.70% |
FERC (Details 5)
FERC (Details 5) $ in Millions | Jan. 01, 2024 USD ($) |
Electric | FERC [Member] | Montana-Dakota Utilities Co. [Member] | Subsequent Event [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Transmission Formula Revenue Requirement | $ 15.2 |
Litigation (Details)
Litigation (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Loss Contingencies [Line Items] | |||
Potential liabilities related to litigation and environmental matters | $ 21,000 | $ 31,900 | $ 33,500 |
Insurance Receivable | 98 | 10,000 | 11,900 |
Regulatory Assets | $ 20,100 | $ 20,900 | $ 20,500 |
Guarantees (Details 2)
Guarantees (Details 2) | Sep. 30, 2023 USD ($) |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 330,800,000 |
Fixed maximum amounts guaranteed by year 2023 | 9,500,000 |
Fixed maximum amounts guaranteed by year 2024 | 67,400,000 |
Fixed maximum amounts guaranteed by year 2025 | 251,100,000 |
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 |
Amount outstanding under guarantees that is reflected on balance sheet | 0 |
Letters of credit | 11,100,000 |
Outstanding letters of credit | 0 |
Letters of credit set to expire - 2023 | 8,900,000 |
Letters of credit set to expire - 2024 | 2,200,000 |
Amount of surety bonds outstanding | $ 330,800,000 |
Variable interest entities (Det
Variable interest entities (Details 3) $ in Millions | Sep. 30, 2023 USD ($) |
Fuel contract | |
Variable Interest Entities [Line Items] | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 28.1 |