North Dakota approves MDU Resources’ wind farm investment as prudent

BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE:MDU), a $3.5 billion market cap utility company currently trading at $17.16, announced Wednesday that its subsidiary Montana-Dakota Utilities Co. received regulatory approval for its planned acquisition of a 49% stake in the Badger Wind Farm. According to InvestingPro data, the company maintains a strong financial health score of "GOOD."

The North Dakota Public Service Commission granted an Advanced Determination of Prudence and Certificate of Public Convenience and Necessity for the project, affirming the investment as prudent up to $295.5 million, which includes $1.5 million in capitalized internal costs.

The Badger Wind project, currently under construction near Wishek, North Dakota, is expected to be completed by the end of 2025. MDU’s investment represents a 122.5 MW stake in the 250 MW wind project.

"Securing the ADP approval and CPCN from the NDPSC is a pivotal milestone in bringing cost-effective energy to our customers," said Nicole Kivisto, president and CEO of MDU Resources, in the press release statement.

MDU Resources, a member of the S&P SmallCap 600 index, provides electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. The company also operates a natural gas pipeline network spanning over 3,800 miles across the Northern Plains.

The regulatory approval provides a framework supporting the project’s financial viability and affirms the company’s investment strategy in renewable energy resources.

In other recent news, MDU Resources Group Inc. reported its earnings for the second quarter of 2025, revealing an earnings per share (EPS) of $0.07, which missed the forecasted $0.11. Despite the earnings miss, the company managed to exceed revenue expectations, though it faced challenges from increased operating costs and unfavorable weather conditions. Additionally, MDU Resources announced a 7.7% increase in its quarterly dividend, raising it to 14 cents per share from the previous 13 cents, bringing the annualized payout to 56 cents per share. The company’s board maintains a long-term dividend payout target of 60% to 70% of earnings.

Jefferies upgraded MDU Resources from Hold to Buy, raising the stock price target to $20 from $18. This decision was based on MDU’s compelling value, with the stock trading at an 11% discount to its core business value. Moreover, MDU Resources has elected Charles M. Kelley and Tammy J. Miller to its board of directors, effective August 12, 2025. Kelley brings extensive experience from his tenure at ONEOK, Inc., where he managed over $600 million in capital projects.

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