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BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE:MDU) has priced an underwritten public offering of 10,152,284 shares of its common stock at $19.70 per share, the company announced Thursday. The offering price represents a slight discount to MDU’s current trading price of $20.24. According to InvestingPro data, MDU shares have gained nearly 22% over the past six months, outperforming amid the utility sector’s volatility.
The offering involves forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank, where the shares are expected to be borrowed by the forward sellers from third parties and sold to underwriters. MDU Resources has also granted underwriters an option to purchase up to 1,522,842 additional shares.
Under the forward sale agreements, settlement is expected to occur within 24 months following the offering’s completion. The company may elect physical settlement, cash settlement, or net share settlement for all or part of its obligations.
MDU Resources will not initially receive proceeds from the share sale. If the company elects physical settlement, it plans to use any net proceeds for general corporate purposes, including debt repayment, capital expenditures, acquisitions, and payment for a 49% ownership interest in the Badger Wind Farm project in 2026. InvestingPro data shows MDU currently carries $2.35 billion in total debt with a debt-to-equity ratio of 0.86, suggesting potential benefits from debt reduction initiatives.
Wells Fargo Securities, BofA Securities, and J.P. Morgan are serving as joint lead bookrunners for the offering, with TD Securities acting as an additional bookrunner. The offering is expected to close on or about December 5, 2025, subject to customary closing conditions.
The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, according to the company’s press release statement.
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 3,800-mile natural gas pipeline network. With a market capitalization of $4.14 billion, MDU offers a dividend yield of 2.77% with consistent dividend growth of 7.69% over the past year. InvestingPro analysis indicates MDU is currently overvalued based on its Fair Value assessment, with an overall financial health score rated as "GOOD." For comprehensive insights on MDU and 1,400+ other US equities, Pro Research Reports are available exclusively through the InvestingPro platform.
In other recent news, MDU Resources Group Inc. reported its third-quarter 2025 financial results, showing a mixed performance. The company missed its earnings per share (EPS) forecast, posting $0.09 compared to the expected $0.105, which was a 14.29% negative surprise. However, MDU Resources exceeded revenue expectations, reporting $315.1 million, surpassing forecasts by 37.87%. Additionally, MDU Resources announced a $200 million common stock offering with a forward sale component, involving major financial institutions like Wells Fargo Securities, BofA Securities, and J.P. Morgan. The company has also granted underwriters an option to purchase up to an additional $30 million in shares. Moreover, MDU Resources declared a quarterly dividend of 14 cents per share, maintaining the same rate as the previous quarter. These developments reflect the company’s ongoing financial activities and strategic decisions.
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