MDU Resources announces $200 million common stock offering

BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE:MDU) announced Wednesday it has commenced an underwritten public offering of $200 million of common stock shares with a forward sale component. The utility company, currently trading at $20.24 with a market capitalization of $4.14 billion, has seen its shares gain 21.23% over the past six months according to InvestingPro data.

The utility and pipeline company said all shares are expected to be borrowed by forward sellers Wells Fargo Securities, BofA Securities, and J.P. Morgan from third parties and sold to underwriters. MDU Resources is granting underwriters an option to purchase up to an additional $30 million in shares.

In connection with the offering, MDU Resources plans to enter into separate forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank. These agreements would allow the company to sell approximately $200 million of common stock at an initial forward sale price equal to the underwriters’ purchase price, subject to adjustments.

Settlement of the forward sale agreements is expected within 24 months following the offering’s completion. The company may elect cash settlement or net share settlement for all or part of its obligations.

MDU Resources will not initially receive proceeds from the stock sale. If the company elects physical settlement, it expects to use any net proceeds for general corporate purposes, including debt repayment, capital expenditures, acquisitions, and payment in 2026 for a 49% ownership interest in the Badger Wind Farm project. The capital raise comes as InvestingPro data shows the company’s short-term obligations exceed its liquid assets, with a current ratio of 0.75 as of the most recent quarter.

The joint lead bookrunners for the offering are Wells Fargo Securities, BofA Securities, and J.P. Morgan. The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission.

MDU Resources provides electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest, and operates a more than 3,800-mile natural gas pipeline network in the Northern Plains.

The information in this article is based on a company press release statement.

In other recent news, MDU Resources Group Inc. reported its third-quarter 2025 earnings, showing a mixed performance. The company posted an earnings per share (EPS) of $0.09, which fell short of the forecasted $0.105, resulting in a 14.29% negative surprise. However, MDU Resources exceeded revenue expectations, bringing in $315.1 million, surpassing forecasts by 37.87%. Additionally, the board of directors declared a quarterly dividend of 14 cents per share, maintaining the same rate as the previous quarter. This dividend will be payable on January 1, 2026, to stockholders of record as of December 11, 2025. These recent developments highlight the company’s ability to maintain its dividend rate while navigating earnings challenges.

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