Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $1.00 per share | |
Trading Symbol | MDU | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 203,888,237 | |
Entity Central Index Key | 0000067716 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating revenues: | ||
Operating revenues: | $ 1,213,825 | $ 1,430,098 |
Operating expenses: | ||
Total operation and maintenance | 671,917 | 796,545 |
Purchased natural gas sold | 258,602 | 371,015 |
Depreciation and amortization | 55,750 | 52,233 |
Taxes, other than income | 58,992 | 67,428 |
Electric fuel and purchased power | 32,617 | 24,356 |
Total operating expenses | 1,077,878 | 1,311,577 |
Operating income | 135,947 | 118,521 |
Other income | 13,787 | 10,374 |
Interest expense | 28,706 | 23,953 |
Income before income taxes | 121,028 | 104,942 |
Income taxes | 20,130 | 21,067 |
Income from continuing operations | 100,898 | 83,875 |
Discontinued operations, net of tax | 0 | (45,522) |
Net income | $ 100,898 | $ 38,353 |
Earnings per share - basic: | ||
Income from continuing operations (in usd per share) | $ 0.50 | $ 0.41 |
Discontinued operations, net of tax (in usd per share) | 0 | (0.22) |
Earnings per share - basic (in usd per share) | 0.50 | 0.19 |
Earnings per share - diluted: | ||
Income from continuing operations (in usd per share) | 0.49 | 0.41 |
Discontinued operations, net of tax (in usd per share) | 0 | (0.22) |
Earnings per share - diluted (in usd per share) | $ 0.49 | $ 0.19 |
Weighted average common shares outstanding - basic (in shares) | 203,779 | 203,624 |
Weighted average common shares outstanding - diluted (in shares) | 204,187 | 203,910 |
Regulated operation | ||
Operating revenues: | ||
Operating revenues: | $ 586,017 | $ 673,932 |
Operating expenses: | ||
Total operation and maintenance | 105,680 | 102,041 |
Income from continuing operations | 73,343 | 64,464 |
Nonregulated operation | ||
Operating revenues: | ||
Operating revenues: | 627,808 | 756,166 |
Operating expenses: | ||
Total operation and maintenance | 566,237 | 694,504 |
Income from continuing operations | $ 27,555 | $ 19,411 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 100,898 | $ 38,353 |
Other comprehensive income: | ||
Reclassification adjustment for loss on derivative instruments included in net income, net of tax of $11 for the three months ended 2023 | 0 | 34 |
Postretirement liability adjustment: | ||
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax of $34 and $34 for the three months ended in 2024 and 2023, respectively | 104 | 100 |
Net unrealized gain (loss) on available-for-sale investments: | ||
Net unrealized (loss) gain on available-for-sale investments arising during the period, net of tax of $(10) and $19 for the three months ended in 2024 and 2023, respectively | (36) | 70 |
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax of $2 and $3 for the three months ended in 2024 and 2023, respectively | 6 | 13 |
Net unrealized (loss) gain on available-for-sale investments | (30) | 83 |
Other comprehensive income | 74 | 217 |
Comprehensive income attributable to common stockholders | $ 100,972 | $ 38,570 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Current assets: | |||
Cash, cash equivalents and restricted cash | $ 89,296 | $ 76,975 | $ 85,971 |
Receivables, net | 932,146 | 942,782 | 1,086,385 |
Current regulatory assets | 158,614 | 172,492 | 216,318 |
Inventories | 57,429 | 87,392 | 52,619 |
Prepayments and other current assets | 82,459 | 84,082 | 46,525 |
Current assets of discontinued operations | 0 | 0 | 620,896 |
Total current assets | 1,319,944 | 1,363,723 | 2,108,714 |
Noncurrent assets: | |||
Property, plant and equipment | 7,441,589 | 7,341,116 | 6,962,954 |
Less accumulated depreciation and amortization | 2,262,789 | 2,220,206 | 2,127,607 |
Net property, plant and equipment | 5,178,800 | 5,120,910 | 4,835,347 |
Goodwill | 488,960 | 488,960 | 488,960 |
Other intangible assets, net | 1,482 | 2,004 | 3,571 |
Regulatory assets | 414,433 | 447,099 | 349,500 |
Investments | 119,396 | 124,235 | 136,924 |
Operating lease right-of-use assets | 76,223 | 74,363 | 74,057 |
Other | 240,633 | 211,865 | 157,903 |
Noncurrent assets of discontinued operations | 0 | 0 | 1,687,611 |
Total noncurrent assets | 6,519,927 | 6,469,436 | 7,733,873 |
Total assets | 7,839,871 | 7,833,159 | 9,842,587 |
Current liabilities: | |||
Short-term borrowings | 0 | 95,000 | 293,500 |
Long-term debt due within one year | 60,700 | 61,319 | 47,819 |
Accounts payable | 420,168 | 475,215 | 429,014 |
Taxes payable | 81,972 | 58,110 | 75,316 |
Dividends payable | 25,044 | 25,461 | 45,306 |
Accrued compensation | 47,394 | 85,512 | 51,499 |
Operating lease liabilities due within one year | 23,134 | 22,884 | 21,994 |
Regulatory liabilities due within one year | 90,115 | 70,761 | 44,395 |
Other accrued liabilities | 174,296 | 181,471 | 178,771 |
Current liabilities of discontinued operations | 0 | 0 | 448,715 |
Total current liabilities | 922,823 | 1,075,733 | 1,636,329 |
Noncurrent liabilities: | |||
Long-term debt | 2,325,697 | 2,236,904 | 2,191,898 |
Deferred income taxes | 461,808 | 458,548 | 467,007 |
Asset retirement obligations | 388,451 | 384,371 | 376,085 |
Regulatory liabilities | 523,484 | 521,050 | 454,669 |
Operating lease liabilities | 53,204 | 51,645 | 52,619 |
Other | 183,463 | 199,675 | 191,513 |
Noncurrent liabilities of discontinued operations | 0 | 0 | 897,085 |
Total noncurrent liabilities | 3,936,107 | 3,852,193 | 4,630,876 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock Authorized - 500,000,000 shares, $1.00 par value Shares issued - 203,888,237 at March 31, 2024, 204,162,814 at March 31, 2023 and 203,689,090 at December 31, 2023 | 203,888 | 203,689 | 204,163 |
Other paid-in capital | 1,466,551 | 1,466,235 | 1,461,294 |
Retained earnings | 1,328,812 | 1,253,693 | 1,943,917 |
Accumulated other comprehensive loss | (18,310) | (18,384) | (30,366) |
Treasury stock at cost - 538,921 shares at March 31, 2023 | 0 | 0 | (3,626) |
Total stockholders' equity | 2,980,941 | 2,905,233 | 3,575,382 |
Total liabilities and stockholders' equity | $ 7,839,871 | $ 7,833,159 | $ 9,842,587 |
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 stock, beginning balance (in shares) at Dec. 31, 2022 | 204,162,814 | |||||
Beginning balance at Dec. 31, 2022 | $ 3,587,129 | $ 204,163 | $ 1,466,037 | $ 1,951,138 | $ (30,583) | $ (3,626) |
Treasury stock, common, beginning balance (in shares) at Dec. 31, 2022 | (538,921) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
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 (in shares) | (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 (in shares) | 153,622 | |||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | $ (3,040) | (7,851) | $ 4,811 | |||
Common stock, ending balance (in shares) at Mar. 31, 2023 | 204,162,814 | 204,162,814 | ||||
Ending balance at Mar. 31, 2023 | $ 3,575,382 | $ 204,163 | 1,461,294 | 1,943,917 | (30,366) | $ (3,626) |
Treasury stock, common, ending balance (in shares) at Mar. 31, 2023 | (538,921) | (538,921) | ||||
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 203,689,090 | 203,689,090 | ||||
Beginning balance at Dec. 31, 2023 | $ 2,905,233 | $ 203,689 | 1,466,235 | 1,253,693 | (18,384) | $ 0 |
Treasury stock, common, beginning balance (in shares) at Dec. 31, 2023 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 100,898 | 100,898 | ||||
Other comprehensive income | 74 | 74 | ||||
Dividends declared on common stock | (25,779) | (25,779) | ||||
Stock-based compensation | 3,173 | 3,173 | ||||
Issuance of common stock | (35) | (35) | ||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings (in shares) | 199,147 | 0 | ||||
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings | $ (2,623) | $ 199 | (2,822) | $ 0 | ||
Common stock, ending balance (in shares) at Mar. 31, 2024 | 203,888,237 | 203,888,237 | ||||
Ending balance at Mar. 31, 2024 | $ 2,980,941 | $ 203,888 | $ 1,466,551 | $ 1,328,812 | $ (18,310) | $ 0 |
Treasury stock, common, ending balance (in shares) at Mar. 31, 2024 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Operating activities: | |||
Net income | $ 100,898 | $ 38,353 | |
Discontinued operations, net of tax | 0 | (45,522) | |
Income from continuing operations | 100,898 | 83,875 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 55,750 | 52,233 | |
Deferred income taxes | 1,059 | 9,613 | |
Provision for credit losses | 2,287 | 3,765 | |
Amortization of debt issuance costs | 228 | 248 | |
Employee stock-based compensation costs | 3,173 | 2,655 | |
Pension and postretirement benefit plan net periodic benefit credit | (964) | (1,392) | |
Unrealized gains on investments | (2,873) | (3,066) | |
Gains on sales of assets | (1,276) | (1,545) | |
Changes in current assets and liabilities, net of acquisitions: | |||
Receivables | 12,283 | (19,299) | |
Inventories | 28,127 | 9,053 | |
Other current assets | 36,570 | (41,319) | |
Accounts payable | (41,468) | (96,054) | |
Other current liabilities | (3,889) | 50,322 | |
Pension and postretirement benefit plan contributions | (8) | (9) | |
Other noncurrent changes | (24,800) | (11,380) | |
Net cash provided by continuing operations | 165,097 | 37,700 | |
Net cash used in discontinued operations | 0 | (81,348) | |
Net cash provided by (used in) operating activities | 165,097 | (43,648) | |
Investing activities: | |||
Capital expenditures | (126,209) | (111,641) | |
Net proceeds from sale or disposition of property | 2,820 | 3,169 | |
Salvage value, net of cost of removal | 31 | 892 | |
Investments | (2,906) | (2,690) | |
Proceeds from investment cost basis withdrawal | 9,000 | 0 | |
Net cash used in continuing operations | (117,264) | (110,270) | |
Net cash used in discontinued operations | 0 | (40,754) | |
Net cash used in investing activities | (117,264) | (151,024) | |
Financing activities: | |||
Issuance of short-term borrowings | 0 | 275,000 | |
Repayment of short-term borrowings | (95,000) | (20,000) | |
Issuance of long-term debt | 89,200 | 43,835 | |
Repayment of long-term debt | (623) | (169,823) | |
Debt issuance costs | (527) | (93) | |
Costs of issuance of common stock | (35) | 0 | |
Dividends paid | (25,904) | (45,246) | |
Repurchase of common stock | 0 | (4,811) | |
Tax withholding on stock-based compensation | (2,623) | (3,040) | |
Net cash (used in) provided by continuing operations | (35,512) | 75,822 | |
Net cash provided by discontinued operations | 0 | 131,522 | |
Net cash (used in) provided by financing activities | (35,512) | 207,344 | |
Increase in cash, cash equivalents and restricted cash | 12,321 | 12,672 | |
Cash, cash equivalents and restricted cash - beginning of year | 76,975 | 80,517 | |
Cash, cash equivalents and restricted cash - end of period * | [1] | $ 89,296 | $ 93,189 |
[1]Includes cash of discontinued operations of $7.2 million at March 31, 2023. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification adjustment for loss on derivative instruments included in net income, tax | $ 11 | |
Amortization of postretirement liability losses included in net periodic benefit credit, tax | $ 34 | 34 |
Net unrealized gain (loss) on available-for-sale investments arising during the period, tax | (10) | 19 |
Reclassification adjustment for loss on available-for-sale investments included in net income, tax | $ 2 | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value per share (in usd per share) | $ 1 | $ 1 | $ 1 |
Common stock, issued (in shares) | 203,888,237 | 203,689,090 | 204,162,814 |
Treasury stock, common (in shares) | 538,921 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | Mar. 31, 2023 USD ($) |
Statement of Cash Flows [Abstract] | |
Disposal group, including discontinued operation, cash and cash equivalents | $ 7.2 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 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 and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses. On 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, which were disposed of in a tax-free exchange in November 2023. 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. The assets and liabilities of the Company's discontinued operations are included in current assets of discontinued operations, noncurrent assets of discontinued operations, current liabilities of discontinued operations and noncurrent liabilities of discontinued operations on the Consolidated Balance Sheets. 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. On March 13, 2024, the Company announced its construction services business, MDU Construction Services, rebranded to Everus Construction. 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. The separation will occur by means of a tax-free spinoff of a newly formed company, Everus, which will own the assets and liabilities of Everus Construction. |
New accounting standards
New accounting standards | 3 Months Ended |
Mar. 31, 2024 | |
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 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. Recently issued accounting standards not yet adopted ASU 2023-05 Business Combinations - Joint Venture Formations - Recognition and Initial Measurement In August 2023, the FASB issued guidance on accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statement in order to provide decision-useful information to investors and other allocators of capital (collectively investors) in a joint venture's financial statements and reduce diversity in practice. The new basis of accounting will require that a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with the exceptions to fair value measurement that are consistent with the business combinations guidance). A joint venture that was formed before January 1, 2025 may elect to apply the guidance retrospectively if it has sufficient information. Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. The Company is currently evaluating the impact the guidance will have on its interim and annual disclosures for the year ended December 31, 2025. ASU 2023-07 Segment Reporting - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on improving financial reporting by requiring disclosure of incremental segment information, primarily through enhanced disclosures about significant segment expenses, on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Effective for fiscal year December 31, 2024 and interim periods beginning January 1, 2025, with prior periods disclosed in the period of adoption. The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and future interim periods. ASU 2023-09 Income Taxes - Improvements to Income Tax Disclosures an Amendment, December 2023 The FASB issued guidance to address investors requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information and effectiveness of income tax disclosures. December 31, 2025 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. ASU 2024-01 Compensation - Stock Compensation This FASB issued improvements to GAAP through an example to demonstrate application of the scope of paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted in Compensation - Stock Compensation. Effective for fiscal year beginning after December 15, 2024. The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Discontinued operations
Discontinued operations | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | 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. In the fourth quarter of 2023, the Company completed the tax-free exchange of its retained shares. 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. On April 25, 2023, Knife River issued $425.0 million of senior notes, pursuant to an indenture, due in 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 $350.0 million and a senior secured term loan facility in an amount up to $275.0 million. The net proceeds from the notes offering, revolving credit facility and the term loan were used to repay $825.0 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 provided to Knife River and Knife River provided to the Company transition services in accordance with the TSA entered into on May 31, 2023. For the three months ended March 31, 2024, the Company received $1.0 million; and paid $78,200 , 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 $4.3 million, net of tax, were incurred during the three months ended March 31, 2023. 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 March 31, 2024 or December 31, 2023. The carrying amounts of the major classes of assets and liabilities of discontinued operations included in the Company’s Consolidated Balance Sheet at March 31, 2023 were as follows: March 31, 2023 Assets (In Thousands) Current assets: Cash and cash equivalents $ 7,218 Receivables, net 205,564 Inventories 373,215 Prepayments and other current assets 34,899 Total current assets of discontinued operations 620,896 Noncurrent assets: Net property, plant and equipment 1,317,368 Goodwill 274,540 Other intangible assets, net 12,763 Investments 35,542 Operating lease right-of-use assets 43,995 Other 3,403 Total noncurrent assets of discontinued operations 1,687,611 Total assets of discontinued operations $ 2,308,507 Liabilities Current liabilities: Short-term borrowings $ 208,000 Long-term debt due within one year 30,211 Accounts payable 118,175 Taxes payable (1,402) Accrued compensation 14,010 Operating lease liabilities due within one year 12,981 Other accrued liabilities 66,740 Total current liabilities of discontinued operations 448,715 Noncurrent liabilities: Long-term debt 577,138 Deferred income taxes 175,062 Asset retirement obligations 33,462 Operating lease liabilities 31,014 Other 80,409 Total noncurrent liabilities of discontinued operations 897,085 Total liabilities of discontinued operations $ 1,345,800 The reconciliation of the major classes of income and expense constituting pretax loss from discontinued operations to the after-tax loss from discontinued operations on the Consolidated Statements of Income were as follows: Three Months Ended March 31, 2023 (In thousands) Operating revenues $ 307,239 Operating expenses 351,274 Operating loss (44,035) Other income 493 Interest expense 14,067 Loss from discontinued operations before income taxes (57,609) Income taxes (12,087) Discontinued operations, net of tax $ (45,522) |
Seasonality of operations
Seasonality of operations | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Seasonality of operations | Seasonality of operations Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year. |
Receivables and allowance for e
Receivables and allowance for expected credit losses | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Receivables and allowance for expected credit loss | Receivables and allowance for expected credit losses Receivables consist primarily of trade and contracting services receivables from the sale of goods and services, net of expected credit losses. 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 $70.2 million, $39.8 million and $45.7 million at March 31, 2024 and 2023, and December 31, 2023, 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, 2023 $ 414 $ 1,189 $ — $ 7,967 $ 9,570 Current expected credit loss provision 782 1,916 — (411) 2,287 Less write-offs charged against the allowance 659 1,455 — 48 2,162 Credit loss recoveries collected 147 314 — — 461 At March 31, 2024 $ 684 $ 1,964 $ — $ 7,508 $ 10,156 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 |
Inventories and natural gas in
Inventories and natural gas in storage | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Merchandise for resale 38,280 29,934 34,955 Natural gas in storage (current) 9,309 8,662 39,377 Materials and supplies $ 3,636 $ 7,064 $ 5,460 Other 6,204 6,959 7,600 Total $ 57,429 $ 52,619 $ 87,392 |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury. Net income was the same for both the basic and diluted earnings per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows: Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Weighted average common shares outstanding - basic 203,779 203,624 Effect of dilutive performance share awards and restricted stock units 408 286 Weighted average common shares outstanding - diluted 204,187 203,910 Earnings per share - basic: Income from continuing operations $ .50 $ .41 Discontinued operations, net of tax — (.22) Earnings per share - basic $ .50 $ .19 Earnings per share - diluted: Income from continuing operations $ .49 $ .41 Discontinued operations, net of tax — (.22) Earnings per share - diluted $ .49 $ .19 Shares excluded from the calculation of diluted earnings per share — — Dividends declared per common share 0.1250 $ .2225 |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2024 | |
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. As part of the adoption of ASC 606 - Revenue from Contracts with Customers , the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less. 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 10. 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 in 2023 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 $31.0 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 fully 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 15. Three Months Ended March 31, 2024 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 39,222 $ 263,103 $ — $ — $ — $ 302,325 Commercial utility sales 41,515 162,130 — — — 203,645 Industrial utility sales 11,349 14,579 — — — 25,928 Other utility sales 1,936 — — — — 1,936 Natural gas transportation — 14,591 43,637 — — 58,228 Natural gas storage — — 5,382 — — 5,382 Electrical & mechanical specialty contracting — — — 439,378 — 439,378 Transmission & distribution specialty contracting — — — 176,860 — 176,860 Other 15,630 3,201 2,256 46 1,433 22,566 Intersegment eliminations (28) (56) (30,311) (87) (1,417) (31,899) Revenues from contracts with customers 109,624 457,548 20,964 616,197 16 1,204,349 Other revenues (1,897) 1,921 47 9,405 — 9,476 Total external operating revenues $ 107,727 $ 459,469 $ 21,011 $ 625,602 $ 16 $ 1,213,825 Three Months Ended March 31, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 37,825 $ 327,651 $ — $ — $ — $ 365,476 Commercial utility sales 36,347 204,927 — — — 241,274 Industrial utility sales 10,763 16,838 — — — 27,601 Other utility sales 1,774 — — — — 1,774 Natural gas transportation — 13,504 34,983 — — 48,487 Natural gas storage — — 3,861 — — 3,861 Electrical & mechanical specialty contracting — — — 590,263 — 590,263 Transmission & distribution specialty contracting — — — 152,022 — 152,022 Other 11,878 4,721 1,859 33 1,572 20,063 Intersegment eliminations (27) (70) (26,270) — (1,572) (27,939) Revenues from contracts with customers 98,560 567,571 14,433 742,318 — 1,422,882 Other revenues (2,863) (1,974) 38 12,015 — 7,216 Total external operating revenues $ 95,697 $ 565,597 $ 14,471 $ 754,333 $ — $ 1,430,098 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. The changes in contract assets and liabilities were as follows: March 31, 2024 December 31, 2023 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 165,924 $ 158,861 $ 7,063 Receivables, net Contract liabilities - current (187,741) (202,144) 14,403 Accounts payable Contract liabilities - noncurrent (2,161) (291) (1,870) Noncurrent liabilities - other Net contract liabilities $ (23,978) $ (43,574) $ 19,596 The Company recognized $97.6 million in revenue for the three months ended March 31, 2024, which was previously included in contract liabilities at December 31, 2023. The Company recognized $134.6 million in revenue for the three months ended March 31, 2023, which was previously included in contract liabilities at December 31, 2022. The Company recognized a net increase in revenues of $33.4 million and $17.7 million for the three months ended March 31, 2024 and 2023, 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 include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The majority of the Company's construction contracts have an original duration of less than two years. The remaining performance obligations at the pipeline segment include firm transportation and storage contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient that does not require additional disclosures for contracts with an original duration of less than 12 months, to certain firm transportation, storage and non-regulated contracts. The Company's firm transportation and storage contracts included in the remaining performance obligations have weighted average remaining durations of less than five years and two years, respectively. At March 31, 2024, the Company's remaining performance obligations were $2.8 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.8 billion within the next 12 months or less; $412.8 million within the next 13 to 24 months; and $530.6 million in 25 months or more. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
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 $9.5 million and $12.2 million for the three months ended March 31, 2024 and 2023, respectively. At March 31, 2024, the Company had $8.5 million of lease receivables with a majority due within 12 months. |
Regulatory assets and liabiliti
Regulatory assets and liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 * March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 110,481 $ 198,166 $ 98,844 Electric fuel and purchased power deferral Up to 1 year 17,061 3,279 33,918 Conservation programs Up to 1 year 13,735 8,599 14,425 Environmental compliance programs Up to 1 year 7,443 1,191 5,525 Cost recovery mechanisms Up to 1 year 6,454 3,954 9,153 Other Up to 1 year 3,440 1,129 10,627 158,614 216,318 172,492 Noncurrent: Pension and postretirement benefits ** 142,511 143,349 142,511 Cost recovery mechanisms Up to 25 years 84,546 65,732 85,944 Environmental compliance programs - 50,372 21,942 66,806 Plant costs/asset retirement obligations Over plant lives 45,702 44,131 46,009 Natural gas costs recoverable through rate adjustments Up to 2 years 25,915 — 55,493 Manufactured gas plant site remediation - 25,851 26,605 26,127 Taxes recoverable from customers Over plant lives 12,331 12,198 12,249 Electric fuel and purchased power deferral Up to 2 years 15,612 — — Long-term debt refinancing costs Up to 36 years 2,453 3,041 2,600 Plant to be retired - 294 21,072 772 Other Up to 15 years 8,846 11,430 8,588 414,433 349,500 447,099 Total regulatory assets $ 573,047 $ 565,818 $ 619,591 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year $ 54,282 $ 6,331 $ 43,161 Provision for rate refund Up to 1 year 6,517 1,115 6,866 Cost recovery mechanisms Up to 1 year 5,642 2,926 6,284 Conservation programs Up to 1 year 3,576 3,834 2,130 Margin sharing Up to 1 year 2,869 — 5,243 Taxes refundable to customers Up to 1 year 1,991 1,513 2,149 Refundable fuel and electric costs Up to 1 year 1,122 1,179 263 Electric fuel and purchased power deferral Up to 1 year 746 9,630 — Other Up to 1 year 13,370 17,867 4,665 90,115 44,395 70,761 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,519 214,467 220,147 Taxes refundable to customers Over plant lives 190,850 200,879 193,578 Environmental compliance programs - 63,746 — 61,941 Cost recovery mechanisms Up to 18 years 24,269 16,313 21,791 Accumulated deferred investment tax credit Over plant lives 16,129 13,996 15,740 Pension and postretirement benefits ** 6,044 7,376 6,044 Other Up to 14 years 1,927 1,638 1,809 523,484 454,669 521,050 Total regulatory liabilities $ 613,599 $ 499,064 $ 591,811 Net regulatory position $ (40,552) $ 66,754 $ 27,780 * Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers. ** Recovered as expense is incurred or cash contributions are made. At March 31, 2024 and 2023, and December 31, 2023, approximately $191.7 million, $255.6 million and $194.3 million, respectively, of regulatory assets were not earning a rate of return; however, these regulatory assets are expected to be recovered from customers in future rates. These assets are largely comprised of the unfunded portion of pension and postretirement benefits, asset retirement obligations, certain pipeline integrity costs and the estimated future cost of manufactured gas plant site remediation. 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. |
Environmental allowances and ob
Environmental allowances and obligations | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Environmental allowances and obligations | Environmental allowances and obligations Beginning in 2023, 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 prepayments and other current assets and 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 current liabilities - other accrued liabilities and noncurrent liabilities - other on the Consolidated Balance Sheets. 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 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 10. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2024 | |
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, $83.5 million and $66.2 million, at March 31, 2024 and 2023, and December 31, 2023, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized gain on these investments was $2.9 million for both the three months ended March 31, 2024 and 2023. 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. In the first quarter of 2024 and the fourth quarter of 2023 the Company withdrew $9.0 million and $20.0 million, respectively, of its cost basis, which reduced investments on the Consolidated Balance Sheets. 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: March 31, 2024 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,072 $ 4 $ 507 $ 7,569 U.S. Treasury securities 3,756 35 2 3,789 Total $ 11,828 $ 39 $ 509 $ 11,358 March 31, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,557 $ 3 $ 561 $ 7,999 U.S. Treasury securities 3,023 8 51 2,980 Total $ 11,580 $ 11 $ 612 $ 10,979 December 31, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,234 $ 17 $ 470 $ 7,781 U.S. Treasury securities 3,521 28 8 3,541 Total $ 11,755 $ 45 $ 478 $ 11,322 The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at March 31, 2024, Using Quoted Prices in Significant Significant Balance at March 31, 2024 (In thousands) Assets: Money market funds $ — $ 6,985 — $ 6,985 Insurance contracts* — 62,713 — 62,713 Available-for-sale securities: Mortgage-backed securities — 7,569 — 7,569 U.S. Treasury securities — 3,789 — 3,789 Total assets measured at fair value $ — $ 81,056 $ — $ 81,056 * The insurance contracts invest approximately 57 percent in fixed-income investments, 17 percent in common stock of large-cap companies, 10 percent in target date investments, 8 percent in common stock of mid-cap companies, 4 percent in common stock of small-cap companies, 3 percent in cash equivalents, and 1 percent in international investments. Fair Value Measurements at March 31, 2023, Using Quoted Prices in Significant Significant Balance at March 31, 2023 (In thousands) Assets: Money market funds $ — $ 5,447 $ — $ 5,447 Insurance contracts* — 83,460 — 83,460 Available-for-sale securities: Mortgage-backed securities — 7,999 — 7,999 U.S. Treasury securities — 2,980 — 2,980 Total assets measured at fair value $ — $ 99,886 $ — $ 99,886 * The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments. Fair Value Measurements at December 31, 2023, Using Quoted Prices in Significant Significant Balance at December 31, 2023 (In thousands) Assets: Money market funds $ — $ 6,409 $ — $ 6,409 Insurance contracts* — 66,283 — 66,283 Available-for-sale securities: Mortgage-backed securities — 7,781 — 7,781 U.S. Treasury securities — 3,541 — 3,541 Total assets measured at fair value $ — $ 84,014 $ — $ 84,014 * The insurance contracts invest approximately 60 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in target date investments, 7 percent in common stock of mid-cap companies, 5 percent in common stock of small-cap companies, 3 percent in cash equivalents, 1 percent in high yield investments and 1 percent in international investments. 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: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Carrying amount $ 2,386,397 $ 2,239,718 $ 2,298,223 Fair value $ 2,098,002 $ 1,974,344 $ 2,046,039 The carrying amounts of the Company's remaining financial instruments included in current assets and current liabilities approximate their fair values . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024. 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 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 Montana-Dakota. 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. On December 5, 2023, Cascade paid down $100.0 million of the outstanding balance. On January 19, 2024, Cascade made the final $50.0 million repayment on the $150.0 million term loan agreement. 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. On January 19, 2024, Intermountain made the final $45.0 million repayment on the $125.0 million term loan agreement. Long-term debt Long-term Debt Outstanding Long-term debt outstanding was as follows: Weighted Average Interest Rate at March 31, 2024 March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Senior Notes due on dates ranging from July 15, 2024 to June 15, 2062 4.46 % $ 1,882,000 $ 1,848,500 $ 1,882,000 Term Loan Agreements due on dates ranging from May 31, 2025 to September 3, 2032 6.48 % 196,300 7,000 196,300 Commercial paper supported by revolving credit agreement 5.72 % 158,800 264,540 144,200 Credit agreements due on dates ranging from October 13, 2027 to November 30, 2027 8.57 % 120,700 89,144 46,100 Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029 7.32 % 35,000 35,000 35,000 Other notes due on dates ranging from May 31, 2028 to November 30, 2038 6.00 % 357 991 980 Less unamortized debt issuance costs 6,760 5,174 6,357 Less discount — 284 — Total long-term debt 2,386,397 2,239,717 2,298,223 Less current maturities 60,700 47,819 61,319 Net long-term debt $ 2,325,697 $ 2,191,898 $ 2,236,904 Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at March 31, 2024, were as follows: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt maturities $ 60,700 $ 347,700 $ 140,700 $ 141,400 $ 234,500 $ 1,468,157 |
Cash flow information
Cash flow information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Cash flow information | Cash flow information Cash expenditures for interest and income taxes were as follows: Three Months Ended March 31, 2024 2023 (In thousands) Interest, net* $ 21,155 $ 21,362 Income taxes paid (refunded), net** $ (257) $ 7,972 * AFUDC - borrowed was $2.7 million and $2.4 million for the three months ended March 31, 2024 and 2023, respectively. Interest, net also includes interest classified as discontinued operations in 2023. Noncash investing and financing transactions were as follows: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 12,735 $ 13,201 $ 46,181 Property, plant and equipment additions in accounts payable $ 32,972 $ 29,564 $ 46,622 |
Business segment data
Business segment data | 3 Months Ended |
Mar. 31, 2024 | |
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 energy-related services, including cathodic protection. 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 certain 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, associated separation costs and interest on debt facilities repaid in connection with the Knife River separation. 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 2023 Annual Report. Information on the Company's segments was as follows: Three Months Ended March 31, 2024 2023 (In thousands) External operating revenues: Regulated operations: Electric $ 107,727 $ 95,697 Natural gas distribution 459,469 565,597 Pipeline 18,821 12,638 586,017 673,932 Non-regulated operations: Pipeline 2,190 1,833 Construction services 625,602 754,333 Other 16 — 627,808 756,166 Total external operating revenues $ 1,213,825 $ 1,430,098 Intersegment operating revenues: Regulated operations: Electric $ 28 $ 27 Natural gas distribution 56 70 Pipeline 30,275 26,259 30,359 26,356 Non-regulated operations: Pipeline 36 11 Construction services 87 — Other 1,417 1,572 1,540 1,583 Total intersegment operating revenues $ 31,899 $ 27,939 Operating income (loss): Electric $ 22,788 $ 21,091 Natural gas distribution 58,238 58,505 Pipeline 22,650 13,040 Construction services 38,884 35,217 Other (6,613) (9,332) Total operating income $ 135,947 $ 118,521 Income (loss) from continuing operations: Regulated operations: Electric $ 17,869 $ 16,607 Natural gas distribution 40,070 38,928 Pipeline 15,404 8,929 73,343 64,464 Non-regulated operations: Pipeline (346) (458) Construction services 28,214 28,809 Other (313) (8,940) 27,555 19,411 Income from continuing operations 100,898 83,875 Discontinued operations, net of tax — (45,522) Net income $ 100,898 $ 38,353 A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Operating revenues reconciliation: Total reportable segment operating revenues $ 1,244,291 $ 1,456,465 Other revenue 1,433 1,572 Elimination of intersegment operating revenues (31,899) (27,939) Total consolidated operating revenues $ 1,213,825 $ 1,430,098 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans Pension and other postretirement plans The Company has noncontributory qualified defined benefit pension plans and other postretirement benefit plans for certain eligible employees. Components of net periodic benefit cost (credit) for the Company's pension benefit plans were as follows: Three Months Ended March 31, 2024 2023 (In thousands) Components of net periodic benefit cost (credit): Interest cost $ 3,200 $ 3,380 Expected return on assets (4,028) (4,298) Amortization of net actuarial loss 1,037 773 Net periodic benefit cost (credit) $ 209 $ (145) Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows: Three Months Ended March 31, 2024 2023 (In thousands) Components of net periodic benefit credit: Service cost $ 126 $ 138 Interest cost 459 489 Expected return on assets (1,329) (1,348) Amortization of prior service credit (330) (330) Amortization of net actuarial gain (72) (168) Net periodic benefit credit, including amount capitalized (1,146) (1,219) Less amount capitalized 22 24 Net periodic benefit credit $ (1,168) $ (1,243) The components of net periodic benefit cost (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 $733,000 and $746,000 for the three months ended March 31, 2024 and 2023, respectively. The components of net periodic benefit cost for these plans are included in other income on the Consolidated Statements of Income. |
Regulatory matters
Regulatory matters | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 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. NDPSC 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. On December 13, 2023, the NDPSC approved an interim rate increase of approximately $10.1 million annually or 6.5 percent above current rates, subject to refund, for service rendered on and after January 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 expense and taxes associated with the increased investment. On January 26, 2024, Montana-Dakota filed a notice of intent to implement interim rates of $2.7 million annually or 15.4 percent above current rates, which reflects the removal of Heskett Unit 4 due to the project delay caused by unforeseen operational setbacks. The interim rates, subject to refund, were effective March 1, 2024. 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 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. On January 26, 2024, Montana-Dakota filed a notice of intent to implement interim rates, subject to refund, which were effective March 1, 2024. This matter is pending before the SDPUC. WUTC On March 29, 2024, Cascade filed a request with the WUTC for a multi-year natural gas general rate increase of $43.8 million or 11.6 percent effective March 1, 2025 and $11.7 million or 2.8 percent to be effective March 1, 2026. Multi-year filings are now required by Washington law that went into effect on January 1, 2022. The requested increase is primarily to recover infrastructure investments necessary to provide safe and reliable service and higher operating costs due to inflation. This matter is pending before the WUTC. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories. At March 31, 2024 and 2023, and December 31, 2023, the Company accrued liabilities, which have not been discounted, of $22.9 million, $23.4 million and $22.5 million, respectively. At March 31, 2024 and 2023, and December 31, 2023, the Company also recorded corresponding insurance receivables of $80,000, $2.0 million and $202,000, respectively, and regulatory assets of $21.6 million, $20.9 million and $21.6 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 2023 Annual Report. Guarantees Certain subsidiaries of the Company have outstanding guarantees to third parties that guarantee the performance of other subsidiaries of the Company. These guarantees are related to construction contracts, insurance deductibles and loss limits, and certain other guarantees. At March 31, 2024, the fixed maximum amounts guaranteed under these agreements aggregate $329.9 million. Certain of the guarantees also have no fixed maximum amounts specified. At March 31, 2024, the amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate to $53.0 million in 2024; $210.7 million in 2025; $64.9 million in 2026; $1.0 million in 2027; $0.3 million in 2028; and $0 thereafter. There were no amounts outstanding under the previously mentioned guarantees at March 31, 2024. 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. The Company and certain subsidiaries have outstanding letters of credit to third parties related to insurance policies and other agreements, some of which are guaranteed by other subsidiaries of the Company. At March 31, 2024, the fixed maximum amounts guaranteed under these letters of credit aggregated $14.3 million, with the scheduled expiration of the maximum amounts guaranteed under these letters aggregate $12.3 million in 2024 and $2.0 million in 2025. There were no amounts outstanding under the previously mentioned letters of credit at March 31, 2024. 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 Everus Construction 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 Everus Construction would be required to make payments under these guarantees. Any amounts outstanding by subsidiaries of the Company were reflected on the Consolidated Balance Sheet at March 31, 2024. In the normal course of business, Centennial has surety bonds related to construction contracts and reclamation obligations of its subsidiaries. In the event a subsidiary of Centennial does not fulfill a bonded obligation, Centennial would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds is expected to expire within the next 12 months; however, Centennial will likely continue to enter into surety bonds for its subsidiaries in the future. At March 31, 2024, approximately $738.1 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 March 31, 2024, 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 $27.1 million. |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event On April 1, 2024, WBI Energy Transmission entered into a $60.0 million term loan agreement with an interest rate of 4.52 percent and a maturity date of April 1, 2039. The agreement contains customary covenants and provisions, including a covenant of WBI Energy Transmission not to permit, at any time, the ratio of total debt to total capitalization to be greater than 65 percent. The covenants also include certain restrictions on the sale of certain assets, loans and investments. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 100,898 | $ 38,353 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
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) | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 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 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 | 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 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. Recently issued accounting standards not yet adopted ASU 2023-05 Business Combinations - Joint Venture Formations - Recognition and Initial Measurement In August 2023, the FASB issued guidance on accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statement in order to provide decision-useful information to investors and other allocators of capital (collectively investors) in a joint venture's financial statements and reduce diversity in practice. The new basis of accounting will require that a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with the exceptions to fair value measurement that are consistent with the business combinations guidance). A joint venture that was formed before January 1, 2025 may elect to apply the guidance retrospectively if it has sufficient information. Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. The Company is currently evaluating the impact the guidance will have on its interim and annual disclosures for the year ended December 31, 2025. ASU 2023-07 Segment Reporting - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on improving financial reporting by requiring disclosure of incremental segment information, primarily through enhanced disclosures about significant segment expenses, on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Effective for fiscal year December 31, 2024 and interim periods beginning January 1, 2025, with prior periods disclosed in the period of adoption. The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and future interim periods. ASU 2023-09 Income Taxes - Improvements to Income Tax Disclosures an Amendment, December 2023 The FASB issued guidance to address investors requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information and effectiveness of income tax disclosures. December 31, 2025 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. ASU 2024-01 Compensation - Stock Compensation This FASB issued improvements to GAAP through an example to demonstrate application of the scope of paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted in Compensation - Stock Compensation. Effective for fiscal year beginning after December 15, 2024. The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Discontinued operations | 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. |
Expected credit loss | The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. |
Inventories and natural gas in storage | 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 | Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury. |
Revenue from contracts with customers | 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. As part of the adoption of ASC 606 - Revenue from Contracts with Customers , the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less. 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 10. |
Environmental allowances and obligations | Environmental allowances and obligations Beginning in 2023, 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 prepayments and other current assets and 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 current liabilities - other accrued liabilities and noncurrent liabilities - other on the Consolidated Balance Sheets. 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 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 10. |
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 | The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. |
Contingencies | 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 (Tables
Discontinued operations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Sheet at March 31, 2023 were as follows: March 31, 2023 Assets (In Thousands) Current assets: Cash and cash equivalents $ 7,218 Receivables, net 205,564 Inventories 373,215 Prepayments and other current assets 34,899 Total current assets of discontinued operations 620,896 Noncurrent assets: Net property, plant and equipment 1,317,368 Goodwill 274,540 Other intangible assets, net 12,763 Investments 35,542 Operating lease right-of-use assets 43,995 Other 3,403 Total noncurrent assets of discontinued operations 1,687,611 Total assets of discontinued operations $ 2,308,507 Liabilities Current liabilities: Short-term borrowings $ 208,000 Long-term debt due within one year 30,211 Accounts payable 118,175 Taxes payable (1,402) Accrued compensation 14,010 Operating lease liabilities due within one year 12,981 Other accrued liabilities 66,740 Total current liabilities of discontinued operations 448,715 Noncurrent liabilities: Long-term debt 577,138 Deferred income taxes 175,062 Asset retirement obligations 33,462 Operating lease liabilities 31,014 Other 80,409 Total noncurrent liabilities of discontinued operations 897,085 Total liabilities of discontinued operations $ 1,345,800 The reconciliation of the major classes of income and expense constituting pretax loss from discontinued operations to the after-tax loss from discontinued operations on the Consolidated Statements of Income were as follows: Three Months Ended March 31, 2023 (In thousands) Operating revenues $ 307,239 Operating expenses 351,274 Operating loss (44,035) Other income 493 Interest expense 14,067 Loss from discontinued operations before income taxes (57,609) Income taxes (12,087) Discontinued operations, net of tax $ (45,522) |
Receivables and allowance for_2
Receivables and allowance for expected credit losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ 414 $ 1,189 $ — $ 7,967 $ 9,570 Current expected credit loss provision 782 1,916 — (411) 2,287 Less write-offs charged against the allowance 659 1,455 — 48 2,162 Credit loss recoveries collected 147 314 — — 461 At March 31, 2024 $ 684 $ 1,964 $ — $ 7,508 $ 10,156 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 |
Inventories and natural gas i_2
Inventories and natural gas in storage (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories on the Consolidated Balance Sheets were as follows: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Merchandise for resale 38,280 29,934 34,955 Natural gas in storage (current) 9,309 8,662 39,377 Materials and supplies $ 3,636 $ 7,064 $ 5,460 Other 6,204 6,959 7,600 Total $ 57,429 $ 52,619 $ 87,392 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In thousands, except per share amounts) Weighted average common shares outstanding - basic 203,779 203,624 Effect of dilutive performance share awards and restricted stock units 408 286 Weighted average common shares outstanding - diluted 204,187 203,910 Earnings per share - basic: Income from continuing operations $ .50 $ .41 Discontinued operations, net of tax — (.22) Earnings per share - basic $ .50 $ .19 Earnings per share - diluted: Income from continuing operations $ .49 $ .41 Discontinued operations, net of tax — (.22) Earnings per share - diluted $ .49 $ .19 Shares excluded from the calculation of diluted earnings per share — — Dividends declared per common share 0.1250 $ .2225 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 15. Three Months Ended March 31, 2024 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 39,222 $ 263,103 $ — $ — $ — $ 302,325 Commercial utility sales 41,515 162,130 — — — 203,645 Industrial utility sales 11,349 14,579 — — — 25,928 Other utility sales 1,936 — — — — 1,936 Natural gas transportation — 14,591 43,637 — — 58,228 Natural gas storage — — 5,382 — — 5,382 Electrical & mechanical specialty contracting — — — 439,378 — 439,378 Transmission & distribution specialty contracting — — — 176,860 — 176,860 Other 15,630 3,201 2,256 46 1,433 22,566 Intersegment eliminations (28) (56) (30,311) (87) (1,417) (31,899) Revenues from contracts with customers 109,624 457,548 20,964 616,197 16 1,204,349 Other revenues (1,897) 1,921 47 9,405 — 9,476 Total external operating revenues $ 107,727 $ 459,469 $ 21,011 $ 625,602 $ 16 $ 1,213,825 Three Months Ended March 31, 2023 Electric Natural gas Pipeline Construction Other Total (In thousands) Residential utility sales $ 37,825 $ 327,651 $ — $ — $ — $ 365,476 Commercial utility sales 36,347 204,927 — — — 241,274 Industrial utility sales 10,763 16,838 — — — 27,601 Other utility sales 1,774 — — — — 1,774 Natural gas transportation — 13,504 34,983 — — 48,487 Natural gas storage — — 3,861 — — 3,861 Electrical & mechanical specialty contracting — — — 590,263 — 590,263 Transmission & distribution specialty contracting — — — 152,022 — 152,022 Other 11,878 4,721 1,859 33 1,572 20,063 Intersegment eliminations (27) (70) (26,270) — (1,572) (27,939) Revenues from contracts with customers 98,560 567,571 14,433 742,318 — 1,422,882 Other revenues (2,863) (1,974) 38 12,015 — 7,216 Total external operating revenues $ 95,697 $ 565,597 $ 14,471 $ 754,333 $ — $ 1,430,098 |
Contract balances | The changes in contract assets and liabilities were as follows: March 31, 2024 December 31, 2023 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 165,924 $ 158,861 $ 7,063 Receivables, net Contract liabilities - current (187,741) (202,144) 14,403 Accounts payable Contract liabilities - noncurrent (2,161) (291) (1,870) Noncurrent liabilities - other Net contract liabilities $ (23,978) $ (43,574) $ 19,596 |
Regulatory assets and liabili_2
Regulatory assets and liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 * March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 110,481 $ 198,166 $ 98,844 Electric fuel and purchased power deferral Up to 1 year 17,061 3,279 33,918 Conservation programs Up to 1 year 13,735 8,599 14,425 Environmental compliance programs Up to 1 year 7,443 1,191 5,525 Cost recovery mechanisms Up to 1 year 6,454 3,954 9,153 Other Up to 1 year 3,440 1,129 10,627 158,614 216,318 172,492 Noncurrent: Pension and postretirement benefits ** 142,511 143,349 142,511 Cost recovery mechanisms Up to 25 years 84,546 65,732 85,944 Environmental compliance programs - 50,372 21,942 66,806 Plant costs/asset retirement obligations Over plant lives 45,702 44,131 46,009 Natural gas costs recoverable through rate adjustments Up to 2 years 25,915 — 55,493 Manufactured gas plant site remediation - 25,851 26,605 26,127 Taxes recoverable from customers Over plant lives 12,331 12,198 12,249 Electric fuel and purchased power deferral Up to 2 years 15,612 — — Long-term debt refinancing costs Up to 36 years 2,453 3,041 2,600 Plant to be retired - 294 21,072 772 Other Up to 15 years 8,846 11,430 8,588 414,433 349,500 447,099 Total regulatory assets $ 573,047 $ 565,818 $ 619,591 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year $ 54,282 $ 6,331 $ 43,161 Provision for rate refund Up to 1 year 6,517 1,115 6,866 Cost recovery mechanisms Up to 1 year 5,642 2,926 6,284 Conservation programs Up to 1 year 3,576 3,834 2,130 Margin sharing Up to 1 year 2,869 — 5,243 Taxes refundable to customers Up to 1 year 1,991 1,513 2,149 Refundable fuel and electric costs Up to 1 year 1,122 1,179 263 Electric fuel and purchased power deferral Up to 1 year 746 9,630 — Other Up to 1 year 13,370 17,867 4,665 90,115 44,395 70,761 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,519 214,467 220,147 Taxes refundable to customers Over plant lives 190,850 200,879 193,578 Environmental compliance programs - 63,746 — 61,941 Cost recovery mechanisms Up to 18 years 24,269 16,313 21,791 Accumulated deferred investment tax credit Over plant lives 16,129 13,996 15,740 Pension and postretirement benefits ** 6,044 7,376 6,044 Other Up to 14 years 1,927 1,638 1,809 523,484 454,669 521,050 Total regulatory liabilities $ 613,599 $ 499,064 $ 591,811 Net regulatory position $ (40,552) $ 66,754 $ 27,780 * 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 March 31, 2024 * March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Regulatory assets: Current: Natural gas costs recoverable through rate adjustments Up to 1 year $ 110,481 $ 198,166 $ 98,844 Electric fuel and purchased power deferral Up to 1 year 17,061 3,279 33,918 Conservation programs Up to 1 year 13,735 8,599 14,425 Environmental compliance programs Up to 1 year 7,443 1,191 5,525 Cost recovery mechanisms Up to 1 year 6,454 3,954 9,153 Other Up to 1 year 3,440 1,129 10,627 158,614 216,318 172,492 Noncurrent: Pension and postretirement benefits ** 142,511 143,349 142,511 Cost recovery mechanisms Up to 25 years 84,546 65,732 85,944 Environmental compliance programs - 50,372 21,942 66,806 Plant costs/asset retirement obligations Over plant lives 45,702 44,131 46,009 Natural gas costs recoverable through rate adjustments Up to 2 years 25,915 — 55,493 Manufactured gas plant site remediation - 25,851 26,605 26,127 Taxes recoverable from customers Over plant lives 12,331 12,198 12,249 Electric fuel and purchased power deferral Up to 2 years 15,612 — — Long-term debt refinancing costs Up to 36 years 2,453 3,041 2,600 Plant to be retired - 294 21,072 772 Other Up to 15 years 8,846 11,430 8,588 414,433 349,500 447,099 Total regulatory assets $ 573,047 $ 565,818 $ 619,591 Regulatory liabilities: Current: Natural gas costs refundable through rate adjustments Up to 1 year $ 54,282 $ 6,331 $ 43,161 Provision for rate refund Up to 1 year 6,517 1,115 6,866 Cost recovery mechanisms Up to 1 year 5,642 2,926 6,284 Conservation programs Up to 1 year 3,576 3,834 2,130 Margin sharing Up to 1 year 2,869 — 5,243 Taxes refundable to customers Up to 1 year 1,991 1,513 2,149 Refundable fuel and electric costs Up to 1 year 1,122 1,179 263 Electric fuel and purchased power deferral Up to 1 year 746 9,630 — Other Up to 1 year 13,370 17,867 4,665 90,115 44,395 70,761 Noncurrent: Plant removal and decommissioning costs Over plant lives 220,519 214,467 220,147 Taxes refundable to customers Over plant lives 190,850 200,879 193,578 Environmental compliance programs - 63,746 — 61,941 Cost recovery mechanisms Up to 18 years 24,269 16,313 21,791 Accumulated deferred investment tax credit Over plant lives 16,129 13,996 15,740 Pension and postretirement benefits ** 6,044 7,376 6,044 Other Up to 14 years 1,927 1,638 1,809 523,484 454,669 521,050 Total regulatory liabilities $ 613,599 $ 499,064 $ 591,811 Net regulatory position $ (40,552) $ 66,754 $ 27,780 * 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) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale securities | Details of available-for-sale securities were as follows: March 31, 2024 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,072 $ 4 $ 507 $ 7,569 U.S. Treasury securities 3,756 35 2 3,789 Total $ 11,828 $ 39 $ 509 $ 11,358 March 31, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,557 $ 3 $ 561 $ 7,999 U.S. Treasury securities 3,023 8 51 2,980 Total $ 11,580 $ 11 $ 612 $ 10,979 December 31, 2023 Cost Gross Gross Fair Value (In thousands) Mortgage-backed securities $ 8,234 $ 17 $ 470 $ 7,781 U.S. Treasury securities 3,521 28 8 3,541 Total $ 11,755 $ 45 $ 478 $ 11,322 |
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 March 31, 2024, Using Quoted Prices in Significant Significant Balance at March 31, 2024 (In thousands) Assets: Money market funds $ — $ 6,985 — $ 6,985 Insurance contracts* — 62,713 — 62,713 Available-for-sale securities: Mortgage-backed securities — 7,569 — 7,569 U.S. Treasury securities — 3,789 — 3,789 Total assets measured at fair value $ — $ 81,056 $ — $ 81,056 * The insurance contracts invest approximately 57 percent in fixed-income investments, 17 percent in common stock of large-cap companies, 10 percent in target date investments, 8 percent in common stock of mid-cap companies, 4 percent in common stock of small-cap companies, 3 percent in cash equivalents, and 1 percent in international investments. Fair Value Measurements at March 31, 2023, Using Quoted Prices in Significant Significant Balance at March 31, 2023 (In thousands) Assets: Money market funds $ — $ 5,447 $ — $ 5,447 Insurance contracts* — 83,460 — 83,460 Available-for-sale securities: Mortgage-backed securities — 7,999 — 7,999 U.S. Treasury securities — 2,980 — 2,980 Total assets measured at fair value $ — $ 99,886 $ — $ 99,886 * The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments. Fair Value Measurements at December 31, 2023, Using Quoted Prices in Significant Significant Balance at December 31, 2023 (In thousands) Assets: Money market funds $ — $ 6,409 $ — $ 6,409 Insurance contracts* — 66,283 — 66,283 Available-for-sale securities: Mortgage-backed securities — 7,781 — 7,781 U.S. Treasury securities — 3,541 — 3,541 Total assets measured at fair value $ — $ 84,014 $ — $ 84,014 * The insurance contracts invest approximately 60 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in target date investments, 7 percent in common stock of mid-cap companies, 5 percent in common stock of small-cap companies, 3 percent in cash equivalents, 1 percent in high yield investments and 1 percent in international investments. |
Fair value of long term debt outstanding | The estimated fair value of the Company's Level 2 long-term debt was as follows: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Carrying amount $ 2,386,397 $ 2,239,718 $ 2,298,223 Fair value $ 2,098,002 $ 1,974,344 $ 2,046,039 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term debt outstanding | Long-term debt outstanding was as follows: Weighted Average Interest Rate at March 31, 2024 March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Senior Notes due on dates ranging from July 15, 2024 to June 15, 2062 4.46 % $ 1,882,000 $ 1,848,500 $ 1,882,000 Term Loan Agreements due on dates ranging from May 31, 2025 to September 3, 2032 6.48 % 196,300 7,000 196,300 Commercial paper supported by revolving credit agreement 5.72 % 158,800 264,540 144,200 Credit agreements due on dates ranging from October 13, 2027 to November 30, 2027 8.57 % 120,700 89,144 46,100 Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029 7.32 % 35,000 35,000 35,000 Other notes due on dates ranging from May 31, 2028 to November 30, 2038 6.00 % 357 991 980 Less unamortized debt issuance costs 6,760 5,174 6,357 Less discount — 284 — Total long-term debt 2,386,397 2,239,717 2,298,223 Less current maturities 60,700 47,819 61,319 Net long-term debt $ 2,325,697 $ 2,191,898 $ 2,236,904 |
Schedule of debt maturities | Long-term debt maturities, which excludes unamortized debt issuance costs and discount, at March 31, 2024, were as follows: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt maturities $ 60,700 $ 347,700 $ 140,700 $ 141,400 $ 234,500 $ 1,468,157 |
Cash flow information (Tables)
Cash flow information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, 2024 2023 (In thousands) Interest, net* $ 21,155 $ 21,362 Income taxes paid (refunded), net** $ (257) $ 7,972 * AFUDC - borrowed was $2.7 million and $2.4 million for the three months ended March 31, 2024 and 2023, respectively. Interest, net also includes interest classified as discontinued operations in 2023. Noncash investing and financing transactions were as follows: March 31, 2024 March 31, 2023 December 31, 2023 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 12,735 $ 13,201 $ 46,181 Property, plant and equipment additions in accounts payable $ 32,972 $ 29,564 $ 46,622 |
Business segment data (Tables)
Business segment data (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Information on the Company's businesses | Information on the Company's segments was as follows: Three Months Ended March 31, 2024 2023 (In thousands) External operating revenues: Regulated operations: Electric $ 107,727 $ 95,697 Natural gas distribution 459,469 565,597 Pipeline 18,821 12,638 586,017 673,932 Non-regulated operations: Pipeline 2,190 1,833 Construction services 625,602 754,333 Other 16 — 627,808 756,166 Total external operating revenues $ 1,213,825 $ 1,430,098 Intersegment operating revenues: Regulated operations: Electric $ 28 $ 27 Natural gas distribution 56 70 Pipeline 30,275 26,259 30,359 26,356 Non-regulated operations: Pipeline 36 11 Construction services 87 — Other 1,417 1,572 1,540 1,583 Total intersegment operating revenues $ 31,899 $ 27,939 Operating income (loss): Electric $ 22,788 $ 21,091 Natural gas distribution 58,238 58,505 Pipeline 22,650 13,040 Construction services 38,884 35,217 Other (6,613) (9,332) Total operating income $ 135,947 $ 118,521 Income (loss) from continuing operations: Regulated operations: Electric $ 17,869 $ 16,607 Natural gas distribution 40,070 38,928 Pipeline 15,404 8,929 73,343 64,464 Non-regulated operations: Pipeline (346) (458) Construction services 28,214 28,809 Other (313) (8,940) 27,555 19,411 Income from continuing operations 100,898 83,875 Discontinued operations, net of tax — (45,522) Net income $ 100,898 $ 38,353 |
Reconciliation of Revenue from Segments to Consolidated | A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Operating revenues reconciliation: Total reportable segment operating revenues $ 1,244,291 $ 1,456,465 Other revenue 1,433 1,572 Elimination of intersegment operating revenues (31,899) (27,939) Total consolidated operating revenues $ 1,213,825 $ 1,430,098 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | Components of net periodic benefit cost (credit) for the Company's pension benefit plans were as follows: Three Months Ended March 31, 2024 2023 (In thousands) Components of net periodic benefit cost (credit): Interest cost $ 3,200 $ 3,380 Expected return on assets (4,028) (4,298) Amortization of net actuarial loss 1,037 773 Net periodic benefit cost (credit) $ 209 $ (145) Components of net periodic benefit credit for the Company's other postretirement benefit plans were as follows: Three Months Ended March 31, 2024 2023 (In thousands) Components of net periodic benefit credit: Service cost $ 126 $ 138 Interest cost 459 489 Expected return on assets (1,329) (1,348) Amortization of prior service credit (330) (330) Amortization of net actuarial gain (72) (168) Net periodic benefit credit, including amount capitalized (1,146) (1,219) Less amount capitalized 22 24 Net periodic benefit credit $ (1,168) $ (1,243) |
Basis of presentation (Details)
Basis of presentation (Details) - Discontinued Operations, Disposed of by Means Other than Sale, Spinoff - Knife River Corporation shares in Millions | May 31, 2023 shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Pro rata distribution of shares, percentage | 0.90 |
Stock split, conversion ratio | 4 |
Retained ownership percentage | 0.10 |
Number of retained shares (in shares) | 5.7 |
Discontinued operations - Narra
Discontinued operations - Narrative (Details) | 3 Months Ended | ||||
May 31, 2023 shares | Apr. 25, 2023 USD ($) | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Long-term debt | $ 2,386,397,000 | $ 2,239,717,000 | $ 2,298,223,000 | ||
Repayment of long-term debt | $ 623,000 | 169,823,000 | |||
Treasury stock retired (in shares) | shares | 538,921 | ||||
Separation related costs | $ 4,300,000 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Knife River Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pro rata distribution of shares, percentage | 0.90 | ||||
Stock split, conversion ratio | 4 | ||||
Retained ownership percentage | 0.10 | ||||
Number of retained shares (in shares) | shares | 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 | $ 1,000,000 | ||||
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 | $ 78,200 | ||||
Knife River Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Repayment of long-term debt | $ 825,000,000 | ||||
Knife River Corporation | Revolving Credit Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 350,000,000 | ||||
Knife River Corporation | Term Loan Agreement | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Debt instrument, face amount | 275,000,000 | ||||
Senior Notes | Knife River Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Long-term debt | $ 425,000,000 |
Discontinued operations - Sched
Discontinued operations - Schedule of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Current assets: | ||||
Cash and cash equivalents | $ 7,200 | |||
Noncurrent assets: | ||||
Total noncurrent assets of discontinued operations | $ 0 | $ 0 | 1,687,611 | |
Current liabilities: | ||||
Total current liabilities of discontinued operations | 0 | 0 | 448,715 | |
Noncurrent liabilities: | ||||
Total noncurrent liabilities of discontinued operations | $ 0 | $ 0 | $ 897,085 | |
Knife River Corporation | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Current assets: | ||||
Cash and cash equivalents | $ 7,218 | |||
Receivables, net | 205,564 | |||
Inventories | 373,215 | |||
Prepayments and other current assets | 34,899 | |||
Total current assets of discontinued operations | 620,896 | |||
Noncurrent assets: | ||||
Net property, plant and equipment | 1,317,368 | |||
Goodwill | 274,540 | |||
Other intangible assets, net | 12,763 | |||
Investments | 35,542 | |||
Operating lease right-of-use assets | 43,995 | |||
Other | 3,403 | |||
Total noncurrent assets of discontinued operations | 1,687,611 | |||
Total assets of discontinued operations | 2,308,507 | |||
Current liabilities: | ||||
Short-term borrowings | 208,000 | |||
Long-term debt due within one year | 30,211 | |||
Accounts payable | 118,175 | |||
Taxes payable | (1,402) | |||
Accrued compensation | 14,010 | |||
Operating lease liabilities due within one year | 12,981 | |||
Other accrued liabilities | 66,740 | |||
Total current liabilities of discontinued operations | 448,715 | |||
Noncurrent liabilities: | ||||
Long-term debt | 577,138 | |||
Deferred income taxes | 175,062 | |||
Asset retirement obligations | 33,462 | |||
Operating lease liabilities | 31,014 | |||
Other | 80,409 | |||
Total noncurrent liabilities of discontinued operations | 897,085 | |||
Total liabilities of discontinued operations | $ 1,345,800 |
Discontinued operations - Sch_2
Discontinued operations - Schedule of Income and Expense Constituting Pretax Income (Loss) From Discontinued Operations (Details) - Knife River Corporation - Discontinued Operations, Disposed of by Means Other than Sale, Spinoff $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Operating revenues | $ 307,239 |
Operating expenses | 351,274 |
Operating loss | (44,035) |
Other income | 493 |
Interest expense | 14,067 |
Loss from discontinued operations before income taxes | (57,609) |
Income taxes | (12,087) |
Discontinued operations, net of tax | $ (45,522) |
Receivables and allowance for_3
Receivables and allowance for expected credit losses - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Credit Loss [Abstract] | |||
Accounts receivable, noncurrent, 90 days or more past due, still accruing | $ 70.2 | $ 45.7 | $ 39.8 |
Receivables and allowance for_4
Receivables and allowance for expected credit losses - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Current expected credit loss provision | $ 2,287 | $ 3,765 |
Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 9,570 | 4,154 |
Current expected credit loss provision | 2,287 | 3,765 |
Less write-offs charged against the allowance | 2,162 | 1,943 |
Credit loss recoveries collected | 461 | 375 |
Ending balance | 10,156 | 6,351 |
Electric | Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 414 | 375 |
Current expected credit loss provision | 782 | 615 |
Less write-offs charged against the allowance | 659 | 667 |
Credit loss recoveries collected | 147 | 145 |
Ending balance | 684 | 468 |
Natural gas distribution | Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,189 | 1,615 |
Current expected credit loss provision | 1,916 | 2,324 |
Less write-offs charged against the allowance | 1,455 | 1,225 |
Credit loss recoveries collected | 314 | 229 |
Ending balance | 1,964 | 2,943 |
Pipeline | Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | 2 |
Current expected credit loss provision | 0 | 0 |
Less write-offs charged against the allowance | 0 | 0 |
Credit loss recoveries collected | 0 | 0 |
Ending balance | 0 | 2 |
Construction services | Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 7,967 | 2,162 |
Current expected credit loss provision | (411) | 826 |
Less write-offs charged against the allowance | 48 | 51 |
Credit loss recoveries collected | 0 | 1 |
Ending balance | $ 7,508 | $ 2,938 |
Inventories and natural gas i_3
Inventories and natural gas in storage (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | |||
Merchandise for resale | $ 38,280 | $ 34,955 | $ 29,934 |
Natural gas in storage (current) | 9,309 | 39,377 | 8,662 |
Materials and supplies | 3,636 | 5,460 | 7,064 |
Other | 6,204 | 7,600 | 6,959 |
Total | 57,429 | 87,392 | 52,619 |
Natural gas in storage noncurrent | $ 50,100 | $ 48,500 | $ 47,400 |
Earnings per share - Schedule o
Earnings per share - Schedule of Weighted Average Number of Shares (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding - basic (in shares) | 203,779 | 203,624 |
Effect of dilutive performance share awards and restricted stock units (in shares) | 408 | 286 |
Weighted average common shares outstanding - diluted (in shares) | 204,187 | 203,910 |
Earnings per share - basic: | ||
Income from continuing operations (in usd per share) | $ 0.50 | $ 0.41 |
Discontinued operations, net of tax (in usd per share) | 0 | (0.22) |
Earnings per share - basic (in usd per share) | 0.50 | 0.19 |
Earnings per share - diluted: | ||
Income from continuing operations (in usd per share) | 0.49 | 0.41 |
Discontinued operations, net of tax (in usd per share) | 0 | (0.22) |
Earnings per share - diluted (in usd per share) | $ 0.49 | $ 0.19 |
Shares excluded from the calculation of diluted earnings per share (in shares) | 0 | 0 |
Dividends declared per common share (in usd per share) | $ 0.1250 | $ 0.2225 |
Revenue from contracts with c_3
Revenue from contracts with customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Construction contractor, contract cost, subject to uncertainty, amount | $ 31 | |
Contract with customer, liability, revenue recognized | 97.6 | $ 134.6 |
Amounts from performance obligations satisfied in prior periods | 33.4 | $ 17.7 |
Remaining performance obligation, amount | 2,800 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 1,800 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 412.8 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 530.6 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | ||
Construction services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, term (less than) | 2 years | |
Pipeline | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, term (less than) | 12 months | |
Pipeline | Firm Transportation Contract | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract weighted average remaining duration (less than) | 5 years | |
Pipeline | Firm Storage Contract | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract weighted average remaining duration (less than) | 2 years |
Revenue from contracts with c_4
Revenue from contracts with customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 1,204,349 | $ 1,422,882 |
Other revenues | 9,476 | 7,216 |
Total external operating revenues | 1,213,825 | 1,430,098 |
Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (31,899) | (27,939) |
Total external operating revenues | (31,899) | (27,939) |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total external operating revenues | 1,244,291 | 1,456,465 |
Natural gas transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 58,228 | 48,487 |
Natural gas storage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,382 | 3,861 |
Electrical & mechanical specialty contracting | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 439,378 | 590,263 |
Transmission & distribution specialty contracting | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 176,860 | 152,022 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 22,566 | 20,063 |
Residential utility sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 302,325 | 365,476 |
Commercial utility sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 203,645 | 241,274 |
Industrial utility sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 25,928 | 27,601 |
Other utility sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,936 | 1,774 |
Electric | Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (28) | (27) |
Electric | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 109,624 | 98,560 |
Other revenues | (1,897) | (2,863) |
Total external operating revenues | 107,727 | 95,697 |
Electric | Natural gas transportation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric | Natural gas storage | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric | Electrical & mechanical specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric | Transmission & distribution specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 15,630 | 11,878 |
Electric | Residential utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 39,222 | 37,825 |
Electric | Commercial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 41,515 | 36,347 |
Electric | Industrial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 11,349 | 10,763 |
Electric | Other utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,936 | 1,774 |
Natural gas distribution | Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (56) | (70) |
Natural gas distribution | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 457,548 | 567,571 |
Other revenues | 1,921 | (1,974) |
Total external operating revenues | 459,469 | 565,597 |
Natural gas distribution | Natural gas transportation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 14,591 | 13,504 |
Natural gas distribution | Natural gas storage | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas distribution | Electrical & mechanical specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas distribution | Transmission & distribution specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas distribution | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,201 | 4,721 |
Natural gas distribution | Residential utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 263,103 | 327,651 |
Natural gas distribution | Commercial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 162,130 | 204,927 |
Natural gas distribution | Industrial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 14,579 | 16,838 |
Natural gas distribution | Other utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (30,311) | (26,270) |
Pipeline | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 20,964 | 14,433 |
Other revenues | 47 | 38 |
Total external operating revenues | 21,011 | 14,471 |
Pipeline | Natural gas transportation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 43,637 | 34,983 |
Pipeline | Natural gas storage | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,382 | 3,861 |
Pipeline | Electrical & mechanical specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Transmission & distribution specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2,256 | 1,859 |
Pipeline | Residential utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Commercial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Industrial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Pipeline | Other utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (87) | 0 |
Construction services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 616,197 | 742,318 |
Other revenues | 9,405 | 12,015 |
Total external operating revenues | 625,602 | 754,333 |
Construction services | Natural gas transportation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Natural gas storage | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Electrical & mechanical specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 439,378 | 590,263 |
Construction services | Transmission & distribution specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 176,860 | 152,022 |
Construction services | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 46 | 33 |
Construction services | Residential utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Commercial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Industrial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Construction services | Other utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Intersegment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (1,417) | (1,572) |
Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 16 | 0 |
Other revenues | 0 | 0 |
Total external operating revenues | 16 | 0 |
Other | Natural gas transportation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Natural gas storage | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Electrical & mechanical specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Transmission & distribution specialty contracting | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,433 | 1,572 |
Other | Residential utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Commercial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Industrial utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Other utility sales | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 0 | $ 0 |
Revenue from contracts with c_5
Revenue from contracts with customers - Contract balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Construction contractor, contract cost, subject to uncertainty, amount | $ 31,000 | ||
Contract assets | 165,924 | $ 158,861 | |
Change in contract assets | 7,063 | ||
Contract liabilities - current | (187,741) | (202,144) | |
Change in contract liabilities - current | 14,403 | ||
Contract liabilities - noncurrent | (2,161) | (291) | |
Change in contract liabilities - noncurrent | (1,870) | ||
Net contract liabilities | (23,978) | $ (43,574) | |
Change in net contract assets (liabilities) | 19,596 | ||
Contract with customer, liability, revenue recognized | 97,600 | $ 134,600 | |
Amounts from performance obligations satisfied in prior periods | $ 33,400 | $ 17,700 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease, lease income | $ 9.5 | $ 12.2 |
Lease receivables | $ 8.5 |
Regulatory assets and liabili_3
Regulatory assets and liabilities - Schedule of Unamortized Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Regulatory Asset [Abstract] | |||
Current regulatory assets | $ 158,614 | $ 172,492 | $ 216,318 |
Regulatory assets | 414,433 | 447,099 | 349,500 |
Total regulatory assets | 573,047 | 619,591 | 565,818 |
Regulatory Liability [Abstract] | |||
Regulatory liabilities due within one year | 90,115 | 70,761 | 44,395 |
Regulatory liabilities | 523,484 | 521,050 | 454,669 |
Total regulatory liabilities | 613,599 | 591,811 | 499,064 |
Net regulatory position | $ (40,552) | 27,780 | 66,754 |
Natural gas costs refundable through rate adjustments | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 54,282 | 43,161 | 6,331 |
Provision for rate refund | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 6,517 | 6,866 | 1,115 |
Cost recovery mechanisms | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities due within one year | 5,642 | 6,284 | 2,926 |
Regulatory liabilities | $ 24,269 | 21,791 | 16,313 |
Conservation programs | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 3,576 | 2,130 | 3,834 |
Margin sharing | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 2,869 | 5,243 | 0 |
Taxes recoverable from customers | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 1,991 | 2,149 | 1,513 |
Regulatory liabilities | $ 190,850 | 193,578 | 200,879 |
Refundable fuel and electric costs | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 1,122 | 263 | 1,179 |
Electric fuel and purchased power deferral | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Regulatory liabilities due within one year | $ 746 | 0 | 9,630 |
Other | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities due within one year | 13,370 | 4,665 | 17,867 |
Regulatory liabilities | 1,927 | 1,809 | 1,638 |
Plant to be retired | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities | 220,519 | 220,147 | 214,467 |
Environmental compliance programs | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities | 63,746 | 61,941 | 0 |
Accumulated deferred investment tax credit | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities | 16,129 | 15,740 | 13,996 |
Pension and postretirement benefits | |||
Regulatory Liability [Abstract] | |||
Regulatory liabilities | $ 6,044 | 6,044 | 7,376 |
Minimum | Cost recovery mechanisms | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Minimum | Other | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Maximum | Cost recovery mechanisms | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 18 years | ||
Maximum | Other | |||
Regulatory Liability [Abstract] | |||
Estimated Recovery or Refund Period | 14 years | ||
Natural gas costs recoverable through rate adjustments | |||
Regulatory Asset [Abstract] | |||
Current regulatory assets | $ 110,481 | 98,844 | 198,166 |
Regulatory assets | $ 25,915 | 55,493 | 0 |
Natural gas costs recoverable through rate adjustments | Minimum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Natural gas costs recoverable through rate adjustments | Maximum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 2 years | ||
Electric fuel and purchased power deferral | |||
Regulatory Asset [Abstract] | |||
Current regulatory assets | $ 17,061 | 33,918 | 3,279 |
Regulatory assets | $ 15,612 | 0 | 0 |
Electric fuel and purchased power deferral | Minimum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Electric fuel and purchased power deferral | Maximum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 2 years | ||
Conservation programs | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Current regulatory assets | $ 13,735 | 14,425 | 8,599 |
Environmental compliance programs | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Current regulatory assets | $ 7,443 | 5,525 | 1,191 |
Regulatory assets | 50,372 | 66,806 | 21,942 |
Cost recovery mechanisms | |||
Regulatory Asset [Abstract] | |||
Current regulatory assets | 6,454 | 9,153 | 3,954 |
Regulatory assets | $ 84,546 | 85,944 | 65,732 |
Cost recovery mechanisms | Minimum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Cost recovery mechanisms | Maximum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 25 years | ||
Other | |||
Regulatory Asset [Abstract] | |||
Current regulatory assets | $ 3,440 | 10,627 | 1,129 |
Regulatory assets | $ 8,846 | 8,588 | 11,430 |
Other | Minimum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 1 year | ||
Other | Maximum | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 15 years | ||
Pension and postretirement benefits | |||
Regulatory Asset [Abstract] | |||
Regulatory assets | $ 142,511 | 142,511 | 143,349 |
Plant costs/asset retirement obligations | |||
Regulatory Asset [Abstract] | |||
Regulatory assets | 45,702 | 46,009 | 44,131 |
Manufactured gas plant site remediation | |||
Regulatory Asset [Abstract] | |||
Regulatory assets | 25,851 | 26,127 | 26,605 |
Taxes recoverable from customers | |||
Regulatory Asset [Abstract] | |||
Regulatory assets | $ 12,331 | 12,249 | 12,198 |
Long-term debt refinancing costs | |||
Regulatory Asset [Abstract] | |||
Estimated Recovery or Refund Period | 36 years | ||
Regulatory assets | $ 2,453 | 2,600 | 3,041 |
Plant to be retired | |||
Regulatory Asset [Abstract] | |||
Regulatory assets | $ 294 | $ 772 | $ 21,072 |
Regulatory assets and liabili_4
Regulatory assets and liabilities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Regulatory Assets and Liabilities Disclosure [Abstract] | |||
Regulatory assets not earning a rate of return | $ 191.7 | $ 194.3 | $ 255.6 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Available-for-sale securities [Line Items] | |||
Investments used to satisfy nonqualified benefit plans obligations | $ 62.7 | $ 66.2 | $ 83.5 |
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans | 2.9 | $ 2.9 | |
Investment withdrawal, reduction in cost basis | $ 9 | $ 20 |
Fair value measurements - Avail
Fair value measurements - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Available-for-sale securities [Abstract] | |||
Cost | $ 11,828 | $ 11,755 | $ 11,580 |
Gross Unrealized Gains | 39 | 45 | 11 |
Gross Unrealized Losses | 509 | 478 | 612 |
Fair Value | 11,358 | 11,322 | 10,979 |
Mortgage-backed securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 8,072 | 8,234 | 8,557 |
Gross Unrealized Gains | 4 | 17 | 3 |
Gross Unrealized Losses | 507 | 470 | 561 |
Fair Value | 7,569 | 7,781 | 7,999 |
U.S. Treasury securities | |||
Available-for-sale securities [Abstract] | |||
Cost | 3,756 | 3,521 | 3,023 |
Gross Unrealized Gains | 35 | 28 | 8 |
Gross Unrealized Losses | 2 | 8 | 51 |
Fair Value | $ 3,789 | $ 3,541 | $ 2,980 |
Fair value measurements - Sched
Fair value measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Concentration risks, percentage [Abstract] | |||
Percentage in fixed-income and other investments | 57% | 60% | 61% |
Percentage investment in common stock of large-cap companies | 17% | 15% | 15% |
Percentage investment in target date investments | 10% | 8% | 7% |
Percentage investment in common stock of mid-cap companies | 8% | 7% | 8% |
Percentage investment in common stock of small-cap companies | 4% | 5% | 6% |
Percentage investment in cash and cash equivalents | 3% | 3% | 2% |
Percentage investment in international investments | 1% | 1% | 1% |
Percentage investment in high-yield investments | 1% | ||
Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | $ 81,056 | $ 84,014 | $ 99,886 |
Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 81,056 | 84,014 | 99,886 |
Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Money market funds | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 6,985 | 6,409 | 5,447 |
Money market funds | Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Money market funds | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 6,985 | 6,409 | 5,447 |
Money market funds | Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Insurance contracts | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 62,713 | 66,283 | 83,460 |
Insurance contracts | Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Insurance contracts | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 62,713 | 66,283 | 83,460 |
Insurance contracts | Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Mortgage-backed securities | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 7,569 | 7,781 | 7,999 |
Mortgage-backed securities | Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
Mortgage-backed securities | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 7,569 | 7,781 | 7,999 |
Mortgage-backed securities | Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
U.S. Treasury securities | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 3,789 | 3,541 | 2,980 |
U.S. Treasury securities | Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 0 | 0 | 0 |
U.S. Treasury securities | Fair value, inputs, level 2 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | 3,789 | 3,541 | 2,980 |
U.S. Treasury securities | Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Assets, fair value disclosure | $ 0 | $ 0 | $ 0 |
Fair value measurements - Fair
Fair value measurements - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | $ 2,386,397 | $ 2,298,223 | $ 2,239,717 |
Carrying amount | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | 2,386,397 | 2,298,223 | 2,239,718 |
Fair value | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 2,098,002 | $ 2,046,039 | $ 1,974,344 |
Debt - Short-Term Debt (Details
Debt - Short-Term Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||||
Jan. 19, 2024 | Dec. 05, 2023 | May 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 20, 2023 | |
Short-Term Debt [Line Items] | |||||||||
Short-term borrowings | $ 293,500 | $ 0 | $ 293,500 | $ 95,000 | |||||
Repayment of short-term borrowings | $ 95,000 | $ 20,000 | |||||||
Term Loan Agreement | Cascade Natural Gas | |||||||||
Short-Term Debt [Line Items] | |||||||||
Short-term borrowings | $ 150,000 | ||||||||
Repayment of short-term borrowings | $ 50,000 | $ 100,000 | |||||||
Term Loan Agreement | Intermountain Gas Company | |||||||||
Short-Term Debt [Line Items] | |||||||||
Short-term borrowings | $ 125,000 | ||||||||
Repayment of short-term borrowings | $ 45,000 | $ 30,000 | $ 30,000 | $ 20,000 |
Debt - Long-Term Debt Outstandi
Debt - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Long-term debt outstanding [Line Items] | |||
Less unamortized debt issuance costs | $ 6,760 | $ 6,357 | $ 5,174 |
Less discount | 0 | 0 | 284 |
Long-term debt | 2,386,397 | 2,298,223 | 2,239,717 |
Less current maturities | 60,700 | 61,319 | 47,819 |
Long-term debt | $ 2,325,697 | 2,236,904 | 2,191,898 |
Senior Notes | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 4.46% | ||
Long-term debt, gross | $ 1,882,000 | 1,882,000 | 1,848,500 |
Term Loan Agreements | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 6.48% | ||
Long-term debt, gross | $ 196,300 | 196,300 | 7,000 |
Commercial Paper | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 5.72% | ||
Long-term debt, gross | $ 158,800 | 144,200 | 264,540 |
Credit Agreements | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 8.57% | ||
Long-term debt, gross | $ 120,700 | 46,100 | 89,144 |
Medium-term Notes | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 7.32% | ||
Long-term debt, gross | $ 35,000 | 35,000 | 35,000 |
Other Notes | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate | 6% | ||
Long-term debt, gross | $ 357 | $ 980 | $ 991 |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 60,700 |
2025 | 347,700 |
2026 | 140,700 |
2027 | 141,400 |
2028 | 234,500 |
Thereafter | $ 1,468,157 |
Cash flow information - Schedul
Cash flow information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest, net | $ 21,155 | $ 21,362 | |
Income taxes paid, net | (257) | 7,972 | |
AFUDC borrowed | 2,700 | 2,400 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 12,735 | 13,201 | $ 46,181 |
Property, plant and equipment additions in accounts payable | $ 32,972 | $ 29,564 | $ 46,622 |
Business segment data - Schedul
Business segment data - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,213,825 | $ 1,430,098 |
Operating income | 135,947 | 118,521 |
Income from continuing operations | 100,898 | 83,875 |
Discontinued operations, net of tax | 0 | (45,522) |
Net income | 100,898 | 38,353 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,244,291 | 1,456,465 |
Operating Segments | Electric | ||
Segment Reporting Information [Line Items] | ||
Revenues | 107,727 | 95,697 |
Operating income | 22,788 | 21,091 |
Operating Segments | Natural gas distribution | ||
Segment Reporting Information [Line Items] | ||
Revenues | 459,469 | 565,597 |
Operating income | 58,238 | 58,505 |
Operating Segments | Pipeline | ||
Segment Reporting Information [Line Items] | ||
Revenues | 21,011 | 14,471 |
Operating income | 22,650 | 13,040 |
Operating Segments | Construction services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 625,602 | 754,333 |
Operating income | 38,884 | 35,217 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 16 | 0 |
Operating income | (6,613) | (9,332) |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (31,899) | (27,939) |
Regulated operation | ||
Segment Reporting Information [Line Items] | ||
Revenues | 586,017 | 673,932 |
Income from continuing operations | 73,343 | 64,464 |
Regulated operation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 586,017 | 673,932 |
Regulated operation | Operating Segments | Electric | ||
Segment Reporting Information [Line Items] | ||
Revenues | 107,727 | 95,697 |
Income from continuing operations | 17,869 | 16,607 |
Regulated operation | Operating Segments | Natural gas distribution | ||
Segment Reporting Information [Line Items] | ||
Revenues | 459,469 | 565,597 |
Income from continuing operations | 40,070 | 38,928 |
Regulated operation | Operating Segments | Pipeline | ||
Segment Reporting Information [Line Items] | ||
Revenues | 18,821 | 12,638 |
Income from continuing operations | 15,404 | 8,929 |
Regulated operation | Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (30,359) | (26,356) |
Regulated operation | Intersegment eliminations | Electric | ||
Segment Reporting Information [Line Items] | ||
Revenues | (28) | (27) |
Regulated operation | Intersegment eliminations | Natural gas distribution | ||
Segment Reporting Information [Line Items] | ||
Revenues | (56) | (70) |
Regulated operation | Intersegment eliminations | Pipeline | ||
Segment Reporting Information [Line Items] | ||
Revenues | (30,275) | (26,259) |
Nonregulated operation | ||
Segment Reporting Information [Line Items] | ||
Revenues | 627,808 | 756,166 |
Income from continuing operations | 27,555 | 19,411 |
Nonregulated operation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 627,808 | 756,166 |
Nonregulated operation | Operating Segments | Pipeline | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,190 | 1,833 |
Income from continuing operations | (346) | (458) |
Nonregulated operation | Operating Segments | Construction services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 625,602 | 754,333 |
Income from continuing operations | 28,214 | 28,809 |
Nonregulated operation | Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 16 | 0 |
Income from continuing operations | (313) | (8,940) |
Nonregulated operation | Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (1,540) | (1,583) |
Nonregulated operation | Intersegment eliminations | Pipeline | ||
Segment Reporting Information [Line Items] | ||
Revenues | (36) | (11) |
Nonregulated operation | Intersegment eliminations | Construction services | ||
Segment Reporting Information [Line Items] | ||
Revenues | (87) | 0 |
Nonregulated operation | Intersegment eliminations | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ (1,417) | $ (1,572) |
Business segment data - Operati
Business segment data - Operating Revenues Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 1,213,825 | $ 1,430,098 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,244,291 | 1,456,465 |
Corporate, Non-Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,433 | 1,572 |
Intersegment eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ (31,899) | $ (27,939) |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension benefits | ||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||
Interest cost | $ 3,200 | $ 3,380 |
Expected return on assets | (4,028) | (4,298) |
Amortization of net actuarial gain (loss) | 1,037 | 773 |
Net periodic benefit cost (credit) | 209 | (145) |
Other postretirement benefits | ||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||
Service cost | 126 | 138 |
Interest cost | 459 | 489 |
Expected return on assets | (1,329) | (1,348) |
Amortization of prior service credit | (330) | (330) |
Amortization of net actuarial gain (loss) | (72) | (168) |
Net periodic benefit credit, including amount capitalized | (1,146) | (1,219) |
Less amount capitalized | 22 | 24 |
Net periodic benefit cost (credit) | $ (1,168) | $ (1,243) |
Employee benefit plans - Narrat
Employee benefit plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental employee retirement plans | ||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||
Net periodic benefit cost (credit) | $ 733 | $ 746 |
Regulatory matters - NDPSC (Det
Regulatory matters - NDPSC (Details) - Natural gas distribution - NDPSC - Montana-Dakota Utilities Co. - Pending Rate Case - USD ($) $ in Millions | Dec. 13, 2023 | Nov. 01, 2023 |
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 | |
Public utilities, interim rate increase (decrease), percentage | 6.50% |
Regulatory matters - SDPUC (Det
Regulatory matters - SDPUC (Details) - Pending Rate Case - SDPUC - Montana-Dakota Utilities Co. - USD ($) $ in Millions | Jan. 26, 2024 | Aug. 15, 2023 |
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% | |
Public utilities, interim rate increase (decrease), amount | $ 2.7 | |
Public utilities, interim rate increase (decrease), percentage | 15.40% |
Regulatory matters - WUTC (Deta
Regulatory matters - WUTC (Details) - Natural gas distribution - WUTC - Cascade Natural Gas $ in Millions | Mar. 29, 2024 USD ($) |
Pending Rate Case, Multi-Year, Year One | |
Public Utilities, General Disclosures [Line Items] | |
Public utilities, requested rate increase (decrease), amount | $ 43.8 |
Public utilities, requested rate increase (decrease), percentage | 11.60% |
Pending Rate Case, Multi-Year, Year Two | |
Public Utilities, General Disclosures [Line Items] | |
Public utilities, requested rate increase (decrease), amount | $ 11.7 |
Public utilities, requested rate increase (decrease), percentage | 2.80% |
Contingencies - Litigation (Det
Contingencies - Litigation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | |||
Potential liabilities related to litigation and environmental matters | $ 22,900 | $ 22,500 | $ 23,400 |
Loss contingency, receivable | 80 | 202 | 2,000 |
Loss contingency, regulatory asset | $ 21,600 | $ 21,600 | $ 20,900 |
Contingencies - Guarantees (Det
Contingencies - Guarantees (Details) | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 329,900,000 |
Fixed maximum amounts guaranteed by year 2024 | 53,000,000 |
Fixed maximum amounts guaranteed by year 2025 | 210,700,000 |
Fixed maximum amounts guaranteed by year 2026 | 64,900,000 |
Fixed maximum amounts guaranteed by year 2027 | 1,000,000 |
Fixed maximum amounts guaranteed by year 2028 | 300,000 |
Fixed maximum amounts guaranteed, thereafter | 0 |
Amount outstanding under guarantees that is reflected on balance sheet | 0 |
Letters of credit | 14,300,000 |
Letters of credit set to expire - 2023 | 12,300,000 |
Letters of credit set to expire - 2025 | 2,000,000 |
Outstanding letters of credit | 0 |
Amount of surety bonds outstanding | $ 738,100,000 |
Contingencies - Variable Intere
Contingencies - Variable Interest Entities (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Fuel contract | |
Variable Interest Entities [Line Items] | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 27.1 |
Subsequent event (Details)
Subsequent event (Details) - Term Loan Agreement - WBI Energy Transmission - Subsequent Event $ in Millions | Apr. 01, 2024 USD ($) |
Subsequent Events [Line Items] | |
Debt instrument, face amount | $ 60 |
Interest rate, stated percentage | 4.52% |
Ratio of total debt to total capitalization | 65% |