MDU Resources Group Inc. announced its capital expenditure forecast for 2017 through 2021.
“Our capital forecast reflects our resolve to grow our company,” said David L. Goodin, president and CEO of MDU Resources. “After completing recent sales of our exploration and production, and refining businesses, our more streamlined business operations are focused on the growth opportunities at the regulated energy delivery and construction materials and services businesses. These businesses provide opportunities for growth with a lower business-risk profile that is now much less exposed to commodity prices.”
At the company’s construction materials and services businesses, the capital expenditure forecast is focused primarily on normal equipment and plant replacements and upgrades.
The passage of the $305 billion, five-year highway bill for funding of transportation infrastructure projects is a key part of the construction materials market and is expected to provide organic growth opportunities for this business, according to the company.
MDU Resources stated that it has sufficient working capital liquidity under its short-term credit facilities to take advantage of these opportunities. In addition to organic growth, the construction businesses are focused on growth through mergers and acquisitions, which would be funded through the additional growth capital of its five-year forecast.
“We are well-positioned to grow through organic opportunities at our regulated energy delivery businesses, as well as through the robust momentum we see in our construction businesses,” Goodin said. “We also see potential for merger and acquisition opportunities in all of our businesses. We expect, with a lower overall business-risk profile, to grow and generate solid long-term value for MDU Resources’ shareholders.”