ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-0423660 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ý | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o |
Abbreviation or Acronym | |
2011 Annual Report | Company's Annual Report on Form 10-K for the year ended December 31, 2011 |
Alusa | Tecnica de Engenharia Electrica - Alusa |
ASC | FASB Accounting Standards Codification |
BART | Best available retrofit technology |
Bbl | Barrel |
Bicent | Bicent Power LLC |
Big Stone Station | 450-MW coal-fired electric generating facility near Big Stone City, South Dakota (22.7 percent ownership) |
Bitter Creek | Bitter Creek Pipelines, LLC, an indirect wholly owned subsidiary of WBI Holdings |
BOE | One barrel of oil equivalent - determined using the ratio of one barrel of crude oil, condensate or natural gas liquids to six Mcf of natural gas |
Brazilian Transmission Lines | Company's equity method investment in the company owning ECTE, ENTE and ERTE (ownership interests in ENTE and ERTE were sold in the fourth quarter of 2010 and a portion of the ownership interest in ECTE was sold in the fourth quarter of 2011 and 2010) |
Btu | British thermal unit |
Cascade | Cascade Natural Gas Corporation, an indirect wholly owned subsidiary of MDU Energy Capital |
CELESC | Centrais Elétricas de Santa Catarina S.A. |
CEM | Colorado Energy Management, LLC, a former direct wholly owned subsidiary of Centennial Resources (sold in the third quarter of 2007) |
CEMIG | Companhia Energética de Minas Gerais |
Centennial | Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of the Company |
Centennial Capital | Centennial Holdings Capital LLC, a direct wholly owned subsidiary of Centennial |
Centennial Resources | Centennial Energy Resources LLC, a direct wholly owned subsidiary of Centennial |
Clean Air Act | Federal Clean Air Act |
Colorado State District Court | Colorado Thirteenth Judicial District Court, Yuma County |
Company | MDU Resources Group, Inc. |
dk | Decatherm |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act |
ECTE | Empresa Catarinense de Transmissão de Energia S.A. (7.51 percent ownership interest at March 31, 2012, 2.5 and 14.99 percent ownership interest was sold in the fourth quarter of 2011 and 2010, respectively) |
ENTE | Empresa Norte de Transmissão de Energia S.A. (entire 13.3 percent ownership interest sold in the fourth quarter of 2010) |
EPA | U.S. Environmental Protection Agency |
ERISA | Employee Retirement Income Security Act of 1974 |
ERTE | Empresa Regional de Transmissão de Energia S.A. (entire 13.3 percent ownership interest sold in the fourth quarter of 2010) |
Exchange Act | Securities Exchange Act of 1934, as amended |
FASB | Financial Accounting Standards Board |
Fidelity | Fidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings |
FIP | Funding improvement plan |
GAAP | Accounting principles generally accepted in the United States of America |
GHG | Greenhouse gas |
Great Plains | Great Plains Natural Gas Co., a public utility division of the Company |
IFRS | International Financial Reporting Standards |
Intermountain | Intermountain Gas Company, an indirect wholly owned subsidiary of MDU Energy Capital |
JTL | JTL Group, Inc., an indirect wholly owned subsidiary of Knife River |
Knife River | Knife River Corporation, a direct wholly owned subsidiary of Centennial |
Knife River - Northwest | Knife River Corporation - Northwest, an indirect wholly owned subsidiary of Knife River |
kWh | Kilowatt-hour |
LPP | Lea Power Partners, LLC, a former indirect wholly owned subsidiary of Centennial Resources (member interests were sold in October 2006) |
LTM | LTM, Inc., an indirect wholly owned subsidiary of Knife River |
LWG | Lower Willamette Group |
MBbls | Thousands of barrels |
MBOE | Thousands of BOE |
Mcf | Thousand cubic feet |
MDU Brasil | MDU Brasil Ltda., an indirect wholly owned subsidiary of Centennial Resources |
MDU Construction Services | MDU Construction Services Group, Inc., a direct wholly owned subsidiary of Centennial |
MDU Energy Capital | MDU Energy Capital, LLC, a direct wholly owned subsidiary of the Company |
MMBtu | Million Btu |
MMcf | Million cubic feet |
MMdk | Million decatherms |
MNDOC | Minnesota Department of Commerce |
MNPUC | Minnesota Public Utilities Commission |
Montana-Dakota | Montana-Dakota Utilities Co., a public utility division of the Company |
Montana DEQ | Montana Department of Environmental Quality |
Montana First Judicial District Court | Montana First Judicial District Court, Lewis and Clark County |
Montana Seventeenth Judicial District Court | Montana Seventeenth Judicial District Court, Phillips County |
MPPAA | Multiemployer Pension Plan Amendments Act of 1980 |
NDPSC | North Dakota Public Service Commission |
NSPS | New Source Performance Standards |
Oil | Includes crude oil, condensate and natural gas liquids |
Omimex | Omimex Canada, Ltd. |
OPUC | Oregon Public Utility Commission |
Oregon Circuit Court | Circuit Court of the State of Oregon for the County of Klamath |
Oregon DEQ | Oregon State Department of Environmental Quality |
Prairielands | Prairielands Energy Marketing, Inc., an indirect wholly owned subsidiary of WBI Holdings |
PRP | Potentially Responsible Party |
RCRA | Resource Conservation and Recovery Act |
ROD | Record of Decision |
RP | Rehabilitation plan |
SEC | U.S. Securities and Exchange Commission |
Securities Act | Securities Act of 1933, as amended |
SourceGas | SourceGas Distribution LLC |
WBI Holdings | WBI Holdings, Inc., a direct wholly owned subsidiary of Centennial |
Williston Basin | Williston Basin Interstate Pipeline Company, an indirect wholly owned subsidiary of WBI Holdings |
WUTC | Washington Utilities and Transportation Commission |
Part I -- Financial Information | Page |
Consolidated Statements of Income -- Three Months Ended March 31, 2012 and 2011 | |
Consolidated Statements of Comprehensive Income -- Three Months Ended March 31, 2012 and 2011 | |
Consolidated Balance Sheets -- March 31, 2012 and 2011, and December 31, 2011 | |
Consolidated Statements of Cash Flows -- Three Months Ended March 31, 2012 and 2011 | |
Notes to Consolidated Financial Statements | |
Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Quantitative and Qualitative Disclosures About Market Risk | |
Controls and Procedures | |
Part II -- Other Information | |
Legal Proceedings | |
Risk Factors | |
Unregistered Sales of Equity Securities and Use of Proceeds | |
Mine Safety Disclosures | |
Exhibits | |
Signatures | |
Exhibit Index | |
Exhibits |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In thousands, except per share amounts) | ||||||
Operating revenues: | ||||||
Electric, natural gas distribution and pipeline and energy services | $ | 395,081 | $ | 477,481 | ||
Exploration and production, construction materials and contracting, construction services and other | 457,726 | 424,324 | ||||
Total operating revenues | 852,807 | 901,805 | ||||
Operating expenses: | ||||||
Fuel and purchased power | 18,420 | 16,954 | ||||
Purchased natural gas sold | 185,428 | 244,686 | ||||
Operation and maintenance: | ||||||
Electric, natural gas distribution and pipeline and energy services | 68,401 | 67,963 | ||||
Exploration and production, construction materials and contracting, construction services and other | 376,146 | 359,797 | ||||
Depreciation, depletion and amortization | 85,380 | 84,674 | ||||
Taxes, other than income | 47,975 | 49,665 | ||||
Total operating expenses | 781,750 | 823,739 | ||||
Operating income | 71,057 | 78,066 | ||||
Earnings from equity method investments | 1,253 | 484 | ||||
Other income | 1,098 | 1,900 | ||||
Interest expense | 19,439 | 22,017 | ||||
Income before income taxes | 53,969 | 58,433 | ||||
Income taxes | 18,079 | 15,904 | ||||
Income from continuing operations | 35,890 | 42,529 | ||||
Income (loss) from discontinued operations, net of tax (Note 8) | (100 | ) | 448 | |||
Net income | 35,790 | 42,977 | ||||
Dividends declared on preferred stocks | 171 | 171 | ||||
Earnings on common stock | $ | 35,619 | $ | 42,806 | ||
Earnings per common share - basic: | ||||||
Earnings before discontinued operations | $ | .19 | $ | .22 | ||
Discontinued operations, net of tax | — | .01 | ||||
Earnings per common share - basic | $ | .19 | $ | .23 | ||
Earnings per common share - diluted: | ||||||
Earnings before discontinued operations | $ | .19 | $ | .22 | ||
Discontinued operations, net of tax | — | .01 | ||||
Earnings per common share - diluted | $ | .19 | $ | .23 | ||
Dividends declared per common share | $ | .1675 | $ | .1625 | ||
Weighted average common shares outstanding - basic | 188,811 | 188,671 | ||||
Weighted average common shares outstanding - diluted | 189,182 | 188,815 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Net income | $ | 35,790 | $ | 42,977 | ||
Other comprehensive loss: | ||||||
Net unrealized loss on derivative instruments qualifying as hedges: | ||||||
Net unrealized loss on derivative instruments arising during the period, net of tax of $(2,225) and $(13,109) in 2012 and 2011, respectively | (3,770 | ) | (21,848 | ) | ||
Less: Reclassification adjustment for gain on derivative instruments included in net income, net of tax of $1,366 and $137 in 2012 and 2011, respectively | 2,329 | 230 | ||||
Net unrealized loss on derivative instruments qualifying as hedges | (6,099 | ) | (22,078 | ) | ||
Foreign currency translation adjustment, net of tax of $138 and $137 in 2012 and 2011, respectively | 144 | 211 | ||||
Net unrealized gains on available-for-sale investments, net of tax of $14 and $9 in 2012 and 2011, respectively | 26 | 16 | ||||
Other comprehensive loss | (5,929 | ) | (21,851 | ) | ||
Comprehensive income | $ | 29,861 | $ | 21,126 |
March 31, 2012 | March 31, 2011 | December 31, 2011 | |||||||
(In thousands, except shares and per share amounts) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 91,389 | $ | 136,016 | $ | 162,772 | |||
Receivables, net | 539,589 | 533,279 | 646,251 | ||||||
Inventories | 313,341 | 262,696 | 274,205 | ||||||
Deferred income taxes | 42,239 | 45,206 | 40,407 | ||||||
Commodity derivative instruments | 26,698 | 13,250 | 27,687 | ||||||
Prepayments and other current assets | 64,897 | 73,556 | 43,316 | ||||||
Total current assets | 1,078,153 | 1,064,003 | 1,194,638 | ||||||
Investments | 113,799 | 117,015 | 109,424 | ||||||
Property, plant and equipment | 7,798,770 | 7,271,173 | 7,646,222 | ||||||
Less accumulated depreciation, depletion and amortization | 3,419,574 | 3,174,654 | 3,361,208 | ||||||
Net property, plant and equipment | 4,379,196 | 4,096,519 | 4,285,014 | ||||||
Deferred charges and other assets: | |||||||||
Goodwill | 635,389 | 634,931 | 634,931 | ||||||
Other intangible assets, net | 19,991 | 24,351 | 20,843 | ||||||
Other | 312,103 | 254,472 | 311,275 | ||||||
Total deferred charges and other assets | 967,483 | 913,754 | 967,049 | ||||||
Total assets | $ | 6,538,631 | $ | 6,191,291 | $ | 6,556,125 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Long-term debt due within one year | $ | 202,215 | $ | 12,785 | $ | 139,267 | |||
Accounts payable | 321,369 | 267,922 | 337,228 | ||||||
Taxes payable | 51,019 | 49,852 | 70,176 | ||||||
Dividends payable | 31,800 | 30,850 | 31,794 | ||||||
Accrued compensation | 28,463 | 25,774 | 47,804 | ||||||
Commodity derivative instruments | 20,183 | 40,499 | 13,164 | ||||||
Other accrued liabilities | 255,172 | 227,088 | 259,320 | ||||||
Total current liabilities | 910,221 | 654,770 | 898,753 | ||||||
Long-term debt | 1,213,974 | 1,414,077 | 1,285,411 | ||||||
Deferred credits and other liabilities: | |||||||||
Deferred income taxes | 798,669 | 701,933 | 769,166 | ||||||
Other liabilities | 842,169 | 731,428 | 827,228 | ||||||
Total deferred credits and other liabilities | 1,640,838 | 1,433,361 | 1,596,394 | ||||||
Commitments and contingencies | |||||||||
Stockholders' equity: | |||||||||
Preferred stocks | 15,000 | 15,000 | 15,000 | ||||||
Common stockholders' equity: | |||||||||
Common stock | |||||||||
Authorized - 500,000,000 shares, $1.00 par value | |||||||||
Shares issued - 189,369,450 at March 31, 2012, 189,332,485 at March 31, 2011 and 189,332,485 at December 31, 2011 | 189,369 | 189,332 | 189,332 | ||||||
Other paid-in capital | 1,035,800 | 1,032,040 | 1,035,739 | ||||||
Retained earnings | 1,589,985 | 1,509,449 | 1,586,123 | ||||||
Accumulated other comprehensive loss | (52,930 | ) | (53,112 | ) | (47,001 | ) | |||
Treasury stock at cost - 538,921 shares | (3,626 | ) | (3,626 | ) | (3,626 | ) | |||
Total common stockholders' equity | 2,758,598 | 2,674,083 | 2,760,567 | ||||||
Total stockholders' equity | 2,773,598 | 2,689,083 | 2,775,567 | ||||||
Total liabilities and stockholders' equity | $ | 6,538,631 | $ | 6,191,291 | $ | 6,556,125 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Operating activities: | ||||||
Net income | $ | 35,790 | $ | 42,977 | ||
Income (loss) from discontinued operations, net of tax | (100 | ) | 448 | |||
Income from continuing operations | 35,890 | 42,529 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | 85,380 | 84,674 | ||||
Earnings, net of distributions, from equity method investments | 1,181 | (484 | ) | |||
Deferred income taxes | 32,596 | 34,502 | ||||
Changes in current assets and liabilities, net of acquisitions: | ||||||
Receivables | 101,917 | 50,260 | ||||
Inventories | (38,357 | ) | (13,634 | ) | ||
Other current assets | (21,556 | ) | (18,897 | ) | ||
Accounts payable | (29,851 | ) | (21,875 | ) | ||
Other current liabilities | (33,751 | ) | (15,738 | ) | ||
Other noncurrent changes | (8,349 | ) | (20,510 | ) | ||
Net cash provided by continuing operations | 125,100 | 120,827 | ||||
Net cash used in discontinued operations | (107 | ) | (366 | ) | ||
Net cash provided by operating activities | 124,993 | 120,461 | ||||
Investing activities: | ||||||
Capital expenditures | (174,429 | ) | (82,664 | ) | ||
Acquisitions, net of cash acquired | (242 | ) | (157 | ) | ||
Net proceeds from sale or disposition of property | 18,256 | 10,524 | ||||
Investments | (27 | ) | (9,856 | ) | ||
Net cash used in continuing operations | (156,442 | ) | (82,153 | ) | ||
Net cash provided by discontinued operations | — | — | ||||
Net cash used in investing activities | (156,442 | ) | (82,153 | ) | ||
Financing activities: | ||||||
Repayment of short-term borrowings | — | (20,000 | ) | |||
Repayment of long-term debt | (8,297 | ) | (80,630 | ) | ||
Proceeds from issuance of common stock | 88 | 5,744 | ||||
Dividends paid | (31,794 | ) | (30,773 | ) | ||
Excess tax benefit on stock-based compensation | 26 | 1,248 | ||||
Net cash used in continuing operations | (39,977 | ) | (124,411 | ) | ||
Net cash provided by discontinued operations | — | — | ||||
Net cash used in financing activities | (39,977 | ) | (124,411 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 43 | 45 | ||||
Decrease in cash and cash equivalents | (71,383 | ) | (86,058 | ) | ||
Cash and cash equivalents -- beginning of year | 162,772 | 222,074 | ||||
Cash and cash equivalents -- end of period | $ | 91,389 | $ | 136,016 |
March 31, 2012 | March 31, 2011 | December 31, 2011 | |||||||
(In thousands) | |||||||||
Aggregates held for resale | $ | 85,958 | $ | 82,086 | $ | 78,518 | |||
Asphalt oil | 82,949 | 51,506 | 32,335 | ||||||
Materials and supplies | 68,369 | 61,788 | 61,611 | ||||||
Merchandise for resale | 28,459 | 31,830 | 32,165 | ||||||
Natural gas in storage (current) | 15,475 | 11,953 | 36,578 | ||||||
Other | 32,131 | 23,533 | 32,998 | ||||||
Total | $ | 313,341 | $ | 262,696 | $ | 274,205 |
Three Months Ended | ||||
March 31, | ||||
2012 | 2011 | |||
(In thousands) | ||||
Weighted average common shares outstanding - basic | 188,811 | 188,671 | ||
Effect of dilutive stock options and performance share awards | 371 | 144 | ||
Weighted average common shares outstanding - diluted | 189,182 | 188,815 | ||
Shares excluded from the calculation of diluted earnings per share | — | — |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Interest, net of amount capitalized | $ | 22,433 | $ | 25,579 | ||
Income taxes, net | $ | 285 | $ | 9,981 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Property, plant and equipment additions in accounts payable | $ | 51,739 | $ | 15,838 |
Three Months Ended March 31, 2012 | Balance as of January 1, 2012* | Goodwill Acquired During the Year** | Balance as of March 31, 2012* | ||||||
(In thousands) | |||||||||
Electric | $ | — | $ | — | $ | — | |||
Natural gas distribution | 345,736 | — | 345,736 | ||||||
Pipeline and energy services | 9,737 | — | 9,737 | ||||||
Exploration and production | — | — | — | ||||||
Construction materials and contracting | 176,290 | — | 176,290 | ||||||
Construction services | 103,168 | 458 | 103,626 | ||||||
Other | — | — | — | ||||||
Total | $ | 634,931 | $ | 458 | $ | 635,389 |
Three Months Ended March 31, 2011 | Balance as of January 1, 2011* | Goodwill Acquired During the Year** | Balance as of March 31, 2011* | ||||||
(In thousands) | |||||||||
Electric | $ | — | $ | — | $ | — | |||
Natural gas distribution | 345,736 | — | 345,736 | ||||||
Pipeline and energy services | 9,737 | — | 9,737 | ||||||
Exploration and production | — | — | — | ||||||
Construction materials and contracting | 176,290 | — | 176,290 | ||||||
Construction services | 102,870 | 298 | 103,168 | ||||||
Other | — | — | — | ||||||
Total | $ | 634,633 | $ | 298 | $ | 634,931 |
Year Ended December 31, 2011 | Balance as of January 1, 2011* | Goodwill Acquired During the Year** | Balance as of December 31, 2011* | ||||||
(In thousands) | |||||||||
Electric | $ | — | $ | — | $ | — | |||
Natural gas distribution | 345,736 | — | 345,736 | ||||||
Pipeline and energy services | 9,737 | — | 9,737 | ||||||
Exploration and production | — | — | — | ||||||
Construction materials and contracting | 176,290 | — | 176,290 | ||||||
Construction services | 102,870 | 298 | 103,168 | ||||||
Other | — | — | — | ||||||
Total | $ | 634,633 | $ | 298 | $ | 634,931 |
March 31, 2012 | March 31, 2011 | December 31, 2011 | |||||||
(In thousands) | |||||||||
Customer relationships | $ | 21,010 | $ | 21,702 | $ | 21,702 | |||
Accumulated amortization | (10,197 | ) | (8,890 | ) | (10,392 | ) | |||
10,813 | 12,812 | 11,310 | |||||||
Noncompete agreements | 7,086 | 7,685 | 7,685 | ||||||
Accumulated amortization | (4,921 | ) | (4,898 | ) | (5,371 | ) | |||
2,165 | 2,787 | 2,314 | |||||||
Other | 11,442 | 12,899 | 11,442 | ||||||
Accumulated amortization | (4,429 | ) | (4,147 | ) | (4,223 | ) | |||
7,013 | 8,752 | 7,219 | |||||||
Total | $ | 19,991 | $ | 24,351 | $ | 20,843 |
Asset Derivatives | Location on Consolidated Balance Sheets | Fair Value at | Fair Value at | Fair Value at | ||||||
March 31, 2012 | March 31, 2011 | December 31, 2011 | ||||||||
(In thousands) | ||||||||||
Designated as hedges: | ||||||||||
Commodity derivatives | Commodity derivative instruments | $ | 25,560 | $ | 13,250 | $ | 27,687 | |||
Other assets - noncurrent | 537 | 3,148 | 2,768 | |||||||
26,097 | 16,398 | 30,455 | ||||||||
Not designated as hedges: | ||||||||||
Commodity derivatives | Commodity derivative instruments | 1,138 | — | — | ||||||
Other assets - noncurrent | 45 | — | — | |||||||
1,183 | — | — | ||||||||
Total asset derivatives | $ | 27,280 | $ | 16,398 | $ | 30,455 |
Liability Derivatives | Location on Consolidated Balance Sheets | Fair Value at | Fair Value at | Fair Value at | ||||||
March 31, 2012 | March 31, 2011 | December 31, 2011 | ||||||||
(In thousands) | ||||||||||
Designated as hedges: | ||||||||||
Commodity derivatives | Commodity derivative instruments | $ | 18,964 | $ | 35,990 | $ | 12,727 | |||
Other liabilities - noncurrent | 6,098 | 18,082 | 937 | |||||||
Interest rate derivatives | Other accrued liabilities | 1,168 | — | 827 | ||||||
Other liabilities - noncurrent | 2,153 | — | 3,935 | |||||||
28,383 | 54,072 | 18,426 | ||||||||
Not designated as hedges: | ||||||||||
Commodity derivatives | Commodity derivative instruments | 1,219 | 4,509 | 437 | ||||||
Other liabilities - noncurrent | 49 | — | — | |||||||
1,268 | 4,509 | 437 | ||||||||
Total liability derivatives | $ | 29,651 | $ | 58,581 | $ | 18,863 |
March 31, 2012 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
(In thousands) | ||||||||||||
Insurance investment contract | $ | 37,250 | $ | 11,454 | $ | — | $ | 48,704 | ||||
Auction rate securities | 11,400 | — | — | 11,400 | ||||||||
Mortgage-backed securities | 7,952 | 119 | (1 | ) | 8,070 | |||||||
U.S. Treasury securities | 1,968 | 49 | (1 | ) | 2,016 | |||||||
Total | $ | 58,570 | $ | 11,622 | $ | (2 | ) | $ | 70,190 |
December 31, 2011 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
(In thousands) | ||||||||||||
Insurance investment contract | $ | 31,884 | $ | 6,468 | $ | — | $ | 38,352 | ||||
Auction rate securities | 11,400 | — | — | 11,400 | ||||||||
Mortgage-backed securities | 8,206 | 95 | (5 | ) | 8,296 | |||||||
U.S. Treasury securities | 1,619 | 37 | — | 1,656 | ||||||||
Total | $ | 53,109 | $ | 6,600 | $ | (5 | ) | $ | 59,704 |
Fair Value Measurements at March 31, 2012, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at March 31, 2012 | |||||||||
(In thousands) | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | — | $ | 9,942 | $ | — | $ | 9,942 | ||||
Available-for-sale securities: | ||||||||||||
Insurance investment contract* | — | 48,704 | — | 48,704 | ||||||||
Auction rate securities | — | 11,400 | — | 11,400 | ||||||||
Mortgage-backed securities | — | 8,070 | — | 8,070 | ||||||||
U.S. Treasury securities | — | 2,016 | — | 2,016 | ||||||||
Commodity derivative instruments | — | 27,280 | — | 27,280 | ||||||||
Total assets measured at fair value | $ | — | $ | 107,412 | $ | — | $ | 107,412 | ||||
Liabilities: | ||||||||||||
Commodity derivative instruments | $ | — | $ | 26,330 | $ | — | $ | 26,330 | ||||
Interest rate derivative instruments | — | 3,321 | — | 3,321 | ||||||||
Total liabilities measured at fair value | $ | — | $ | 29,651 | $ | — | $ | 29,651 |
Fair Value Measurements at March 31, 2011, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at March 31, 2011 | |||||||||
(In thousands) | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | — | $ | 75,658 | $ | — | $ | 75,658 | ||||
Available-for-sale securities: | ||||||||||||
Insurance investment contract* | — | 41,594 | — | 41,594 | ||||||||
Auction rate securities | — | 11,400 | — | 11,400 | ||||||||
Mortgage-backed securities | — | 8,064 | — | 8,064 | ||||||||
U.S. Treasury securities | — | 1,720 | — | 1,720 | ||||||||
Commodity derivative instruments | — | 16,398 | — | 16,398 | ||||||||
Total assets measured at fair value | $ | — | $ | 154,834 | $ | — | $ | 154,834 | ||||
Liabilities: | ||||||||||||
Commodity derivative instruments | $ | — | $ | 58,581 | $ | — | $ | 58,581 | ||||
Total liabilities measured at fair value | $ | — | $ | 58,581 | $ | — | $ | 58,581 |
Fair Value Measurements at December 31, 2011, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2011 | |||||||||
(In thousands) | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | — | $ | 97,500 | $ | — | $ | 97,500 | ||||
Available-for-sale securities: | ||||||||||||
Insurance investment contract* | — | 38,352 | — | 38,352 | ||||||||
Auction rate securities | — | 11,400 | — | 11,400 | ||||||||
Mortgage-backed securities | — | 8,296 | — | 8,296 | ||||||||
U.S. Treasury securities | — | 1,656 | — | 1,656 | ||||||||
Commodity derivative instruments | — | 30,455 | — | 30,455 | ||||||||
Total assets measured at fair value | $ | — | $ | 187,659 | $ | — | $ | 187,659 | ||||
Liabilities: | ||||||||||||
Commodity derivative instruments | $ | — | $ | 14,101 | $ | — | $ | 14,101 | ||||
Interest rate derivative instruments | — | 4,762 | — | 4,762 | ||||||||
Total liabilities measured at fair value | $ | — | $ | 18,863 | $ | — | $ | 18,863 |
Carrying Amount | Fair Value | |||||
(In thousands) | ||||||
Long-term debt at March 31, 2012 | $ | 1,416,189 | $ | 1,578,395 | ||
Long-term debt at March 31, 2011 | $ | 1,426,862 | $ | 1,526,923 | ||
Long-term debt at December 31, 2011 | $ | 1,424,678 | $ | 1,592,807 |
Three Months Ended March 31, 2012 | External Operating Revenues | Inter- segment Operating Revenues | Earnings on Common Stock | ||||||
(In thousands) | |||||||||
Electric | $ | 57,963 | $ | — | $ | 7,559 | |||
Natural gas distribution | 307,891 | — | 25,508 | ||||||
Pipeline and energy services | 29,227 | 20,409 | 2,760 | ||||||
395,081 | 20,409 | 35,827 | |||||||
Exploration and production | 88,494 | 11,328 | 12,930 | ||||||
Construction materials and contracting | 149,268 | 151 | (24,932 | ) | |||||
Construction services | 218,151 | 25 | 11,403 | ||||||
Other | 1,813 | 327 | 391 | ||||||
457,726 | 11,831 | (208 | ) | ||||||
Intersegment eliminations | — | (32,240 | ) | — | |||||
Total | $ | 852,807 | $ | — | $ | 35,619 |
Three Months Ended March 31, 2011 | External Operating Revenues | Inter- segment Operating Revenues | Earnings on Common Stock | ||||||
(In thousands) | |||||||||
Electric | $ | 57,845 | $ | — | $ | 8,524 | |||
Natural gas distribution | 370,385 | — | 27,516 | ||||||
Pipeline and energy services | 49,251 | 24,741 | 6,920 | ||||||
477,481 | 24,741 | 42,960 | |||||||
Exploration and production | 78,410 | 25,541 | 16,269 | ||||||
Construction materials and contracting | 143,533 | — | (21,402 | ) | |||||
Construction services | 202,180 | 1,217 | 4,632 | ||||||
Other | 201 | 2,288 | 347 | ||||||
424,324 | 29,046 | (154 | ) | ||||||
Intersegment eliminations | — | (53,787 | ) | — | |||||
Total | $ | 901,805 | $ | — | $ | 42,806 |
Three Months Ended March 31, | Pension Benefits | Other Postretirement Benefits | ||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | 345 | $ | 827 | $ | 412 | $ | 339 | ||||
Interest cost | 4,554 | 4,960 | 1,143 | 1,189 | ||||||||
Expected return on assets | (5,886 | ) | (5,700 | ) | (1,244 | ) | (1,218 | ) | ||||
Amortization of prior service cost (credit) | (21 | ) | 43 | (272 | ) | (669 | ) | |||||
Amortization of net actuarial loss | 1,681 | 1,543 | 526 | 311 | ||||||||
Amortization of net transition obligation | — | — | 532 | 531 | ||||||||
Net periodic benefit cost, including amount capitalized | 673 | 1,673 | 1,097 | 483 | ||||||||
Less amount capitalized | 234 | 248 | 138 | (67 | ) | |||||||
Net periodic benefit cost | $ | 439 | $ | 1,425 | $ | 959 | $ | 550 |
• | Organic growth as well as a continued disciplined approach to the acquisition of well-managed companies and properties |
• | The elimination of system-wide cost redundancies through increased focus on integration of operations and standardization and consolidation of various support services and functions across companies within the organization |
• | The development of projects that are accretive to earnings per share and return on invested capital |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions, where applicable) | ||||||
Electric | $ | 7.5 | $ | 8.5 | ||
Natural gas distribution | 25.5 | 27.5 | ||||
Pipeline and energy services | 2.8 | 6.9 | ||||
Exploration and production | 12.9 | 16.3 | ||||
Construction materials and contracting | (24.9 | ) | (21.4 | ) | ||
Construction services | 11.4 | 4.6 | ||||
Other | .5 | (.1 | ) | |||
Earnings before discontinued operations | 35.7 | 42.3 | ||||
Income (loss) from discontinued operations, net of tax | (.1 | ) | .5 | |||
Earnings on common stock | $ | 35.6 | $ | 42.8 | ||
Earnings per common share - basic: | ||||||
Earnings before discontinued operations | $ | .19 | $ | .22 | ||
Discontinued operations, net of tax | — | .01 | ||||
Earnings per common share - basic | $ | .19 | $ | .23 | ||
Earnings per common share - diluted: | ||||||
Earnings before discontinued operations | $ | .19 | $ | .22 | ||
Discontinued operations, net of tax | — | .01 | ||||
Earnings per common share - diluted | $ | .19 | $ | .23 | ||
Return on average common equity for the 12 months ended | 7.5 | % | 9.1 | % |
• | The absence of an income tax benefit of $4.2 million related to favorable resolution of certain income tax matters in 2011 |
• | Lower storage services revenue and lower gathering volumes at the pipeline and energy services business |
• | Lower aggregate margins and volumes, partially offset by higher ready-mixed concrete and construction margins and volumes at the construction materials and contracting business |
• | Lower average realized natural gas prices, decreased natural gas production and higher depreciation, depletion and amortization expense, partially offset by increased oil production, higher average realized oil prices and decreased gathering and transportation expense at the exploration and production business |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions, where applicable) | ||||||
Operating revenues | $ | 58.0 | $ | 57.8 | ||
Operating expenses: | ||||||
Fuel and purchased power | 18.4 | 16.9 | ||||
Operation and maintenance | 16.2 | 16.0 | ||||
Depreciation, depletion and amortization | 8.1 | 8.2 | ||||
Taxes, other than income | 2.7 | 2.5 | ||||
45.4 | 43.6 | |||||
Operating income | 12.6 | 14.2 | ||||
Earnings | $ | 7.5 | $ | 8.5 | ||
Retail sales (million kWh) | 769.7 | 794.7 | ||||
Sales for resale (million kWh) | 1.9 | 6.7 | ||||
Average cost of fuel and purchased power per kWh | $ | .022 | $ | .020 |
• | Decreased retail sales volumes of 3 percent, primarily to residential customers, reflecting decreased demand due to warmer weather than last year |
• | Higher income taxes, primarily due to the absence of an income tax benefit of $700,000 related to favorable resolution of certain income tax matters in 2011 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions, where applicable) | ||||||
Operating revenues | $ | 307.9 | $ | 370.4 | ||
Operating expenses: | ||||||
Purchased natural gas sold | 199.3 | 257.5 | ||||
Operation and maintenance | 35.3 | 34.4 | ||||
Depreciation, depletion and amortization | 11.2 | 11.1 | ||||
Taxes, other than income | 16.1 | 17.7 | ||||
261.9 | 320.7 | |||||
Operating income | 46.0 | 49.7 | ||||
Earnings | $ | 25.5 | $ | 27.5 | ||
Volumes (MMdk): | ||||||
Sales | 38.7 | 43.9 | ||||
Transportation | 37.9 | 34.1 | ||||
Total throughput | 76.6 | 78.0 | ||||
Degree days (% of normal)* | ||||||
Montana-Dakota | 77 | % | 111 | % | ||
Cascade | 101 | % | 103 | % | ||
Intermountain | 93 | % | 105 | % | ||
Average cost of natural gas, including transportation, per dk | $ | 5.15 | $ | 5.86 | ||
* Degree days are a measure of the daily temperature-related demand for energy for heating. |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions) | ||||||
Operating revenues | $ | 49.6 | $ | 74.0 | ||
Operating expenses: | ||||||
Purchased natural gas sold | 16.0 | 34.1 | ||||
Operation and maintenance | 17.1 | 17.6 | ||||
Depreciation, depletion and amortization | 6.2 | 6.4 | ||||
Taxes, other than income | 3.5 | 3.6 | ||||
42.8 | 61.7 | |||||
Operating income | 6.8 | 12.3 | ||||
Earnings | $ | 2.8 | $ | 6.9 | ||
Transportation volumes (MMdk) | 32.0 | 27.3 | ||||
Gathering volumes (MMdk) | 14.2 | 17.5 | ||||
Customer natural gas storage balance (MMdk): | ||||||
Beginning of period | 36.0 | 58.8 | ||||
Net withdrawal | (8.7 | ) | (25.9 | ) | ||
End of period | 27.3 | 32.9 |
• | Lower storage services revenue of $1.7 million (after tax), largely lower storage balances |
• | Lower gathering volumes of $1.4 million (after tax), largely resulting from customers experiencing normal production declines, curtailments, deferral of certain natural gas development activity and the Company's divestments |
• | The absence of an income tax benefit of $500,000 related to favorable resolution of certain income tax matters in 2011 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions, where applicable) | ||||||
Operating revenues: | ||||||
Oil | $ | 73.4 | $ | 58.6 | ||
Natural gas | 26.4 | 45.4 | ||||
99.8 | 104.0 | |||||
Operating expenses: | ||||||
Operation and maintenance: | ||||||
Lease operating costs | 18.5 | 18.0 | ||||
Gathering and transportation | 4.3 | 5.7 | ||||
Other | 9.2 | 8.3 | ||||
Depreciation, depletion and amortization | 36.8 | 34.2 | ||||
Taxes, other than income: | ||||||
Production and property taxes | 9.5 | 10.1 | ||||
Other | .4 | .3 | ||||
78.7 | 76.6 | |||||
Operating income | 21.1 | 27.4 | ||||
Earnings | $ | 12.9 | $ | 16.3 | ||
Production: | ||||||
Oil (MBbls) | 957 | 802 | ||||
Natural gas (MMcf) | 10,047 | 11,758 | ||||
Total production (MBOE) | 2,632 | 2,762 | ||||
Average realized prices (including hedges): | ||||||
Oil (per Bbl) | $ | 76.71 | $ | 72.98 | ||
Natural gas (per Mcf) | $ | 2.63 | $ | 3.86 | ||
Average realized prices (excluding hedges): | ||||||
Oil (per Bbl) | $ | 84.62 | $ | 79.24 | ||
Natural gas (per Mcf) | $ | 1.94 | $ | 3.39 | ||
Average depreciation, depletion and amortization rate, per BOE | $ | 13.32 | $ | 11.76 | ||
Production costs, including taxes, per BOE: | ||||||
Lease operating costs | $ | 7.02 | $ | 6.52 | ||
Gathering and transportation | 1.63 | 2.05 | ||||
Production and property taxes | 3.62 | 3.65 | ||||
$ | 12.27 | $ | 12.22 |
• | Lower earnings of $8.2 million (after tax) resulting from lower average realized natural gas prices of 32 percent |
• | Decreased natural gas production of 15 percent, largely related to normal production declines, curtailments, deferral of certain natural gas development activity and divestment at existing properties |
• | Higher depreciation, depletion and amortization expense of $1.6 million (after tax), due to higher depletion rates, partially offset by lower volumes |
• | Increased oil production of 19 percent, largely related to drilling activity in the Bakken area, as well as at the South Texas properties |
• | Higher earnings of $1.7 million (after tax) resulting from higher average realized oil prices of 5 percent |
• | Lower gathering and transportation expense of $900,000 (after tax), largely due to lower gathering costs resulting from lower volumes and lower gathering rates in the coalbed area |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(Dollars in millions) | ||||||
Operating revenues | $ | 149.4 | $ | 143.5 | ||
Operating expenses: | ||||||
Operation and maintenance | 157.0 | 146.8 | ||||
Depreciation, depletion and amortization | 19.8 | 21.5 | ||||
Taxes, other than income | 8.0 | 7.7 | ||||
184.8 | 176.0 | |||||
Operating loss | (35.4 | ) | (32.5 | ) | ||
Loss | $ | (24.9 | ) | $ | (21.4 | ) |
Sales (000's): | ||||||
Aggregates (tons) | 2,493 | 2,827 | ||||
Asphalt (tons) | 100 | 165 | ||||
Ready-mixed concrete (cubic yards) | 468 | 397 |
• | Lower earnings of $2.4 million (after tax) resulting from lower aggregate margins, primarily due to higher costs, as well as lower volumes |
• | Higher income taxes, primarily due to the absence of an income tax benefit of $2.0 million related to favorable resolution of certain income tax matters in 2011 |
• | Higher earnings of $900,000 (after tax) resulting from higher ready-mixed concrete margins, reflecting lower costs, as well as higher volumes |
• | Increased construction margins of $500,000 (after tax), largely due to increased margins and volumes |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In millions) | ||||||
Operating revenues | $ | 218.2 | $ | 203.4 | ||
Operating expenses: | ||||||
Operation and maintenance | 187.9 | 184.9 | ||||
Depreciation, depletion and amortization | 2.8 | 2.9 | ||||
Taxes, other than income | 7.8 | 7.7 | ||||
198.5 | 195.5 | |||||
Operating income | 19.7 | 7.9 | ||||
Earnings | $ | 11.4 | $ | 4.6 |
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(In millions) | ||||||
Other: | ||||||
Operating revenues | $ | 2.1 | $ | 2.5 | ||
Operation and maintenance | 1.3 | 2.9 | ||||
Depreciation, depletion and amortization | .5 | .4 | ||||
Taxes, other than income | — | .1 | ||||
Intersegment transactions: | ||||||
Operating revenues | $ | 32.2 | $ | 53.8 | ||
Purchased natural gas sold | 29.9 | 46.9 | ||||
Operation and maintenance | 2.3 | 6.9 |
• | Earnings per common share for 2012, diluted, are projected in the range of $1.00 to $1.25. The Company expects the approximate percentage of 2012 earnings per common share by quarter to be: |
◦ | Second quarter - 15 percent |
◦ | Third quarter - 35 percent |
◦ | Fourth quarter - 30 percent |
• | Although near term market conditions are uncertain, the Company's long-term compound annual growth goals on earnings per share from operations are in the range of 7 percent to 10 percent. |
• | The Company continually seeks opportunities to expand through strategic acquisitions and organic growth opportunities. |
• | The EPA approved the South Dakota Regional Haze Program on March 29, 2012, which requires the Big Stone Station to install and operate a BART air quality control system to reduce emissions of particulate matter, sulfur dioxide and nitrogen oxides. The Company's share of the cost of this air quality control system is estimated at $125 million. The Company intends to seek recovery of costs related to the above matter in electric rates charged to customers. The Company expects an order for an advance determination of prudence from the NDPSC in the second quarter of 2012, as discussed in Note 16. |
• | On July 7, 2011, the Company filed for an advance determination of prudence with the NDPSC on the construction of an 88-MW simple cycle natural gas turbine and associated facilities, as discussed in Note 16. |
• | The Company is analyzing potential projects for accommodating load growth in its industrial and agricultural sectors with company and customer-owned pipeline facilities designed to serve existing facilities currently served by fuel oil or propane, and to serve new customers. A project the Company is currently engaged on is a 30-mile natural gas line into the Hanford Nuclear Site in Washington. |
• | Currently the Company is involved with a number of pipeline projects to enhance the reliability and deliverability of its |
• | The Company is pursuing opportunities associated with the potential development of high-voltage transmission lines and system enhancements targeted towards delivery of renewable energy from the wind rich regions that lie within its traditional electric service territory to major market areas. The Company has a contract to develop a 30-mile high-voltage power line in southeast North Dakota to move power to the electric grid from a proposed 150-MW wind farm. The Company's portion of the project totals approximately $18 million and includes substation upgrades. Construction is underway and the transmission project is expected to be completed by the third quarter of 2012. |
• | As reported in Items 1 and 2 - Business and Properties - General in the 2011 Annual Report, the labor contract with the field operations group at Cascade was effective until April 1, 2012. This contract has been ratified and will be in effect through April 1, 2015. |
• | In February 2012, the Company and Calumet Refining, LLC signed a letter of intent to explore the feasibility of jointly building and operating a 20,000 barrel per day diesel topping plant in southwestern North Dakota. The facility would process Bakken crude and market the diesel within the Bakken region. Site selection, permitting, crude oil feed procurement, marketing and engineering studies are currently underway. |
• | The Company has recently seen an uptick in natural gas moving to storage and expects average balances for the remainder of the year to be comparable to last year. The divestment and/or curtailment of certain natural gas properties and the deferral of certain gas development activity are expected to result in gathering volumes being lower in 2012 compared to last year. The decline is expected to be partially offset by higher transportation volumes related to growth projects placed in service in the Bakken area. |
• | The Company continues to pursue expansion of facilities and services offered to customers. Energy development within its geographic region, which includes portions of Colorado, Wyoming, Montana and North Dakota, is expanding, most notably the Bakken of North Dakota and eastern Montana. The Company owns an extensive natural gas pipeline system in the Bakken area. Ongoing energy development is expected to have many direct and indirect benefits to this business. |
• | Installation of additional compression at the Charbonneau station was completed and placed into service in September 2011, providing additional firm capacity for producers in the Bakken production area. With some additional modifications, this project has the potential of adding a total of 27 MMcf of firm capacity. |
• | Construction has begun on approximately 13 miles of high pressure transmission pipeline from the Stateline processing facilities in northwestern North Dakota to deliver gas into the Northern Border Pipeline. The project is expected to be completed by mid 2012. |
• | The Company expects to spend approximately $400 million in capital expenditures in 2012. The Company continues its focus on returns by allocating the majority of its capital investment into the production of oil in the current commodity price environment. Its capital program reflects further exploitation of existing properties, acquisition of additional leasehold acreage, and exploratory drilling. The 2012 planned capital expenditure total does not include potential acquisitions of producing properties. |
• | For 2012, the Company expects a 20 percent to 30 percent increase in oil production and a 12 percent to 20 percent decrease in natural gas production. The projected decline in natural gas production is primarily the result of the divestment and/or curtailment of certain natural gas properties and the deferral of certain natural gas development activity because of sustained low natural gas prices. |
• | The Company has a total of 10 drilling rigs deployed on its acreage in the Bakken, Texas, Paradox, Heath Shale and other areas. Eight rigs were deployed at year end. Dependent upon results during 2012, further growth in rig activity could occur. |
• | Bakken Area |
◦ | The Company owns a total of approximately 124,000 net acres of leaseholds. |
◦ | Capital expenditures are expected to total approximately $160 million this year; approximately $60 million higher |
◦ | Mountrail County, North Dakota |
• | The Company owns approximately 16,000 net acres of leaseholds targeting the middle Bakken and Three Forks formations. |
• | The drilling of 17 operated wells and participation in various non-operated wells is expected for this year with approximately $75 million of capital expenditures. |
• | Over 50 future gross well sites have been identified. Estimated gross ultimate recovery per well is 250,000 to 500,000 Bbls. |
◦ | Stark County, North Dakota |
• | The Company holds approximately 51,000 net exploratory leasehold acres, targeting the Three Forks formation. |
• | The drilling of 7 operated wells and participation in various non-operated wells is expected for this year with approximately $60 million of capital expenditures. |
• | Based on 640-acre spacing, approximately 140 potential gross well sites have been identified. Estimated gross ultimate recovery rates per well are 250,000 to 400,000 Bbls. |
◦ | Richland County, Montana |
• | The Company has increased its acreage to approximately 57,000 net exploratory leasehold acres, targeting the Three Forks formation. |
• | The drilling of 5 operated wells is planned for this year with approximately $25 million of capital expenditures. |
• | Approximately 100 potential gross well sites have been identified. Estimated gross ultimate recovery rates per well are 250,000 to 400,000 Bbls. |
• | Niobrara - southeastern Wyoming |
◦ | The Company holds approximately 65,000 net exploratory leasehold acres. |
◦ | The drilling of 4 operated wells is expected for this year with approximately $25 million of capital expenditures. |
◦ | Approximately 200 potential gross well sites are available based on 640-acre spacing. |
• | Paradox Basin - Cane Creek Federal Unit, Utah |
◦ | The Company holds approximately 75,000 net exploratory leasehold acres. |
◦ | The Company is evaluating its potential in the area and anticipates increasing the number of wells to be drilled this year considering recently announced appraisal well results. |
◦ | Approximately 70 potential gross well sites have been identified. Estimated gross ultimate recovery rates per well range from 250,000 to 1,000,000 Bbls. |
• | Texas |
◦ | The Company is targeting areas that have the potential for higher liquids content with approximately $60 million of capital planned for this year. |
◦ | Plans are to drill 20 operated wells in Texas this year. |
◦ | Approximately 50 potential gross well sites have been identified. Estimated gross ultimate recovery rates per well are 250,000 to 400,000 Bbls. |
• | Heath Shale |
◦ | The Company holds approximately 90,000 net exploratory leasehold acres in the Heath Shale oil prospect in Montana and expects to drill 4 wells this year with capital of approximately $20 million. |
• | Other Opportunities |
◦ | The Company continues to pursue acquisitions of additional leaseholds. Approximately $25 million of capital has been allocated to leasehold acquisitions, focusing on expansion of existing positions and new opportunities. |
◦ | The remaining forecasted 2012 capital has been allocated to other operated and non-operated opportunities. |
• | Earnings guidance reflects estimated oil and natural gas prices for May through December as follows: |
Crude Oil Index: | |
NYMEX | $95.00 to $105.00 per Bbl |
Natural Gas Index: | |
NYMEX | $2.25 to $2.75 per Mcf |
Note: Estimated prices do not reflect potential basis differentials. |
• | For the last nine months of 2012, the Company has hedged approximately 60 percent to 65 percent of its estimated oil production and 35 percent to 40 percent of its estimated natural gas production. For 2013, the Company has hedged 35 percent to 40 percent of its estimated oil production. The hedges that are in place as of May 1, 2012, are summarized in the following chart: |
Commodity | Type | Index | Period Outstanding | Forward Notional Volume (Bbl/MMBtu) | Price (Per Bbl/MMBtu) | |||
Crude Oil | Collar | NYMEX | 4/12 - 12/12 | 275,000 | $80.00-$87.80 | |||
Crude Oil | Collar | NYMEX | 4/12 - 12/12 | 275,000 | $80.00-$94.50 | |||
Crude Oil | Collar | NYMEX | 4/12 - 12/12 | 275,000 | $80.00-$98.36 | |||
Crude Oil | Collar | NYMEX | 4/12 - 12/12 | 137,500 | $85.00-$102.75 | |||
Crude Oil | Collar | NYMEX | 4/12 - 12/12 | 137,500 | $85.00-$103.00 | |||
Crude Oil | Swap | NYMEX | 4/12 - 12/12 | 137,500 | $100.10 | |||
Crude Oil | Swap | NYMEX | 4/12 - 12/12 | 137,500 | $100.00 | |||
Crude Oil | Swap | NYMEX | 4/12 - 12/12 | 275,000 | $110.30 | |||
Crude Oil | Swap | NYMEX | 4/12 - 12/12 | 275,000 | $96.00 | |||
Crude Oil | Swap | NYMEX | 4/12 - 12/12 | 275,000 | $99.00 | |||
Natural Gas | Swap | NYMEX | 4/12 - 12/12 | 2,612,500 | $6.27 | |||
Natural Gas | Swap | NYMEX | 4/12 - 12/12 | 1,375,000 | $5.005 | |||
Natural Gas | Swap | NYMEX | 4/12 - 12/12 | 687,500 | $5.005 | |||
Natural Gas | Swap | NYMEX | 4/12 - 12/12 | 687,500 | $5.0125 | |||
Natural Gas | Swap | NYMEX | 4/12 - 12/12 | 2,750,000 | $3.05 | |||
Natural Gas | Swap | Ventura | 4/12 - 12/12 | 2,750,000 | $4.87 | |||
Crude Oil | Collar | NYMEX | 1/13 - 12/13 | 182,500 | $95.00-$117.00 | |||
Crude Oil | Collar | NYMEX | 1/13 - 12/13 | 182,500 | $95.00-$117.00 | |||
Crude Oil | Collar | NYMEX | 1/13 - 12/13 | 365,000 | $90.00-$97.05 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $95.00 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $95.30 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $100.00 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $100.02 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $102.00 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $102.00 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $104.00 | |||
Crude Oil | Swap | NYMEX | 1/13 - 12/13 | 182,500 | $104.00 | |||
Natural Gas | Basis Swap | CIG | 4/12 - 12/12 | 2,062,500 | $0.405 | |||
Natural Gas | Basis Swap | CIG | 4/12 - 12/12 | 550,000 | $0.41 | |||
Notes: Ventura is an index pricing point related to Northern Natural Gas Co.'s system; CIG is an index pricing point related to Colorado Interstate Gas Co.'s system. For all basis swaps, index prices are below NYMEX prices and are reported as a positive amount in the price column. |
• | Work backlog as of March 31, 2012, was approximately $532 million, compared to approximately $569 million a year ago. The backlog includes a variety of projects such as highway paving projects, airports, bridge work, reclamation and harbor expansion projects. |
• | The Company's operations in the prolific Bakken area of North Dakota currently have approximately $30 million of backlog. |
• | Projected revenues included in the Company's 2012 earnings guidance are in the range of $1.3 billion to $1.4 billion. |
• | The Company anticipates margins in 2012 to be higher than 2011 levels. |
• | The Company continues to pursue opportunities for expansion in energy projects such as refineries, transmission, wind towers and geothermal. Initiatives are aimed at capturing additional market share and expansion into new markets. |
• | As the country's 5th largest sand and gravel producer, the Company will continue to strategically manage its 1.1 billion tons of aggregate reserves in all its markets, as well as take further advantage of being vertically integrated. |
• | Of the ten labor contracts that Knife River was negotiating, as reported in Items 1 and 2 - Business and Properties - General in the 2011 Annual Report, four have been ratified. The six remaining contracts are still in negotiations. |
• | Work backlog as of March 31, 2012, was approximately $333 million, compared to approximately $347 million a year ago. The backlog includes a variety of projects such as substation and line construction, solar and other commercial, institutional and industrial projects including refinery work. |
• | The Company's operations in the prolific Bakken area of North Dakota currently have approximately $5 million of backlog. |
• | Projected revenues included in the Company's 2012 earnings guidance are in the range of $750 million to $850 million. |
• | The Company anticipates margins in 2012 to be higher than 2011 levels. |
• | The Company continues to pursue opportunities for expansion in energy projects such as refineries, transmission, substations, utility services, as well as solar. Initiatives are aimed at capturing additional market share and expansion into new markets. |
• | System upgrades |
• | Routine replacements |
• | Service extensions |
• | Routine equipment maintenance and replacements |
• | Buildings, land and building improvements |
• | Pipeline and gathering projects |
• | Further development of existing properties, acquisition of additional leasehold acreage and exploratory drilling at the exploration and production segment |
• | Power generation opportunities, including certain costs for additional electric generating capacity |
• | Environmental upgrades |
• | Other growth opportunities |
Company | Facility | Facility Limit | Amount Outstanding | Letters of Credit | Expiration Date | ||||||||||||
(In millions) | |||||||||||||||||
MDU Resources Group, Inc. | Commercial paper/Revolving credit agreement | (a) | $ | 100.0 | $ | — | (b) | $ | — | 5/26/15 | |||||||
Cascade Natural Gas Corporation | Revolving credit agreement | $ | 50.0 | (c) | $ | — | $ | 1.9 | (d) | 12/28/12 | (e) | ||||||
Intermountain Gas Company | Revolving credit agreement | $ | 65.0 | (f) | $ | — | $ | — | 8/11/13 | ||||||||
Centennial Energy Holdings, Inc. | Commercial paper/Revolving credit agreement | (g) | $ | 400.0 | $ | — | (b) | $ | 21.6 | (d) | 12/13/12 | ||||||
(a) The $125 million commercial paper program is supported by a revolving credit agreement with various banks totaling $100 million (provisions allow for increased borrowings, at the option of the Company on stated conditions, up to a maximum of $150 million). There were no amounts outstanding under the credit agreement. (b) Amount outstanding under commercial paper program. (c) Certain provisions allow for increased borrowings, up to a maximum of $75 million. (d) The outstanding letters of credit, as discussed in Note 17, reduce amounts available under the credit agreement. (e) Provisions allow for an extension of up to two years upon consent of the banks. Prior to the maturity of the credit agreement, Cascade expects that it will negotiate the extension or replacement of this agreement. (f) Certain provisions allow for increased borrowings, up to a maximum of $80 million. (g) The $400 million commercial paper program is supported by a revolving credit agreement with various banks totaling $400 million (provisions allow for increased borrowings, at the option of Centennial on stated conditions, up to a maximum of $450 million). There were no amounts outstanding under the credit agreement. |
(Forward notional volume and fair value in thousands) | |||||||||
Weighted Average Fixed Price (Per Bbl/MMBtu) | Forward Notional Volume (Bbl/MMBtu) | Fair Value | |||||||
Fidelity | |||||||||
Oil swap agreements maturing in 2012 | $ | 101.34 | 1,100 | $ | (3,515 | ) | |||
Oil swap agreements maturing in 2013 | $ | 99.05 | 1,095 | $ | (4,925 | ) | |||
Natural gas swap agreements maturing in 2012 | $ | 4.78 | 10,863 | $ | 24,927 | ||||
Natural gas basis swap agreements maturing in 2012 | $ | .41 | 2,613 | $ | (386 | ) | |||
Cascade | |||||||||
Natural gas swap agreement maturing in 2012 | $ | 4.47 | 214 | $ | (489 | ) | |||
Weighted Average Floor/Ceiling Price (Per Bbl) | Forward Notional Volume (Bbl) | Fair Value | |||||||
Fidelity | |||||||||
Oil collar agreements maturing in 2012 | $81.25/$95.88 | 1,100 | $ | (12,201 | ) | ||||
Oil collar agreements maturing in 2013 | $92.50/$107.03 | 730 | $ | (2,461 | ) |
(Notional amount and fair value in thousands) | ||||||||
Weighted Average Fixed Interest Rate | Notional Amount | Fair Value | ||||||
Centennial | ||||||||
Interest rate swap agreement with mandatory termination date in 2012 | 3.15 | % | $ | 10,000 | $ | (1,168 | ) | |
Interest rate swap agreements with mandatory termination dates in 2013 | 3.22 | % | $ | 50,000 | $ | (2,153 | ) |
Period | (a) Total Number of Shares (or Units) Purchased (1) | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2) | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2) | |||
January 1 through January 31, 2012 | — | ||||||
February 1 through February 29, 2012 | 17,360 | $21.67 | |||||
March 1 through March 31, 2012 | — | ||||||
Total | 17,360 | ||||||
(1) Represents shares of common stock withheld by the Company to pay taxes in connection with the vesting of shares granted pursuant to the Long-Term Performance-Based Incentive Plan. (2) Not applicable. The Company does not currently have in place any publicly announced plans or programs to purchase equity securities. |
MDU RESOURCES GROUP, INC. | |||
DATE: | May 4, 2012 | BY: | /s/ Doran N. Schwartz |
Doran N. Schwartz | |||
Vice President and Chief Financial Officer | |||
BY: | /s/ Nicole A. Kivisto | ||
Nicole A. Kivisto | |||
Vice President, Controller and Chief Accounting Officer |
Exhibit No. | ||
+10(a) | MDU Resources Group, Inc. Executive Incentive Compensation Plan, as amended March 1, 2012, and Rules and Regulations, as amended March 1, 2012 | |
12 | Computation of Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividends | |
31(a) | Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31(b) | Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
95 | Mine Safety Disclosures | |
101 | The following materials from MDU Resources Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements, tagged in summary and detail |
I. | ESTABLISHMENT AND PURPOSE |
II. | DEFINITIONS |
III. | BASIC PLAN CONCEPT |
IV. | ADMINISTRATION |
V. | ELIGIBILITY |
VI. | PLAN PERFORMANCE MEASURES |
VII. | TARGET INCENTIVE AWARDS |
VIII. | INCENTIVE FUND DETERMINATION |
IX. | INDIVIDUAL AWARD DETERMINATION |
X. | PAYMENT OF AWARDS |
XI. | ACCOUNTING RESTATEMENTS |
I. | DEFINITIONS |
1. | The “Administrator” shall be the Compensation Committee of the Board of Directors of MDUR with respect to employees subject to Section 16 of the Securities Exchange Act of 1934, as amended. With respect to employees who are not subject to Section 16, the Chief Executive Officer of MDUR, with respect to MDUR employees, and the chief executive officer of each business segment, in conjunction with the Chief Executive Officer of MDUR, with respect to the business segment’s employees, shall be the Administrator. |
2. | "Change in Control" shall mean the occurrence of any of the following transactions or events: (a) any person (which shall not include MDUR, any subsidiary of MDUR or any employee benefit plan of MDUR or of any subsidiary of MDUR) ("Person") or group (as that term is defined in Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of MDUR possessing 30% or more of |
3. | The “Code” shall mean the Internal Revenue Code of 1986, as amended. |
4. | The “Compensation Committee” shall be the Compensation Committee of the Board of Directors of MDUR. |
5. | "MDUR" shall refer to MDU Resources Group, Inc. alone and shall not refer to any of its business segments, divisions or subsidiaries. |
6. | The "Moody's Rate" is defined as the average of (i) the number that results from adding the daily Moody’s U.S. Long-Term Corporate Bond Yield Average for “A” rated companies as of the last day of each month for the 12-month period ending October 31 and dividing by 12 and (ii) the number that results from adding the daily Moody’s U.S. Long-Term Corporate Bond Yield Average for “BBB” rated companies as of the last day of each month for the 12-month period ending October 31 and dividing by 12. |
7. | "Participants" for any Plan Year shall be those executives who have been approved by the Administrator as eligible for participation in the Plan for such Plan Year. |
8. | "Payment Date" shall be the date set by the Administrator for payment of awards pursuant to Section X of the Plan, other than those awards deferred pursuant to Section X of the Plan and Section VII of these Rules and Regulations. |
9. | The "Plan" shall refer to the Executive Incentive Compensation Plan, as it has been and may be amended. |
10. | The "Plan Year" shall be the calendar year. |
11. | “Retirement” means the later of the day the Participant attains age 55 or the day the Participant ceases to be an employee of MDUR or any of its business segments, divisions or subsidiaries. |
12. | “Service Year” means the Plan Year during which the services giving rise to the incentive award are performed. |
13. | “Specified Employee” means an employee who, as of the date the employee separates from service, is a “specified employee” (as that term is used in Section 409A(a)(2)(B) of the Code), as determined under MDUR's policy for determining specified employees. |
II. | ADMINISTRATION |
1. | The Compensation Committee shall have the full power to construe and interpret the Plan and to establish and to amend these Rules and Regulations for its administration. |
2. | The Administrator shall not participate in a decision as to the Administrator’s eligibility for, or award of, an incentive award payment. |
3. | For each Plan Year, the Administrator shall approve a list of eligible executives and notify those so approved that they are eligible to participate in the Plan for such Plan Year. |
4. | No later than 90 days after the beginning of each Plan Year, the Administrator shall approve the Plan’s performance measures, performance targets and target incentive award levels for each salary grade covered by the Plan for the Plan Year. |
5. | The Administrator shall have final discretion to determine actual award payment levels, method of payment, and whether or not payments shall be made for any Plan Year. However, unless the Plan's performance goals are met for the Plan Year, no award shall be made for that Plan Year. Performance targets modified pursuant to Section III of the Plan will be deemed performance targets for purposes of determining whether or not these targets have been met. |
III. | PLAN PERFORMANCE MEASURES |
1. | The Administrator shall establish the percentage attainment of performance measures. The Administrator may establish more or fewer performance measures as it deems necessary. |
2. | The performance measures may be set by reference to earnings, return on invested capital or any other measure or combination of measures deemed appropriate by the Administrator. They may be established for MDUR or any of its business segments, divisions or subsidiaries. The Administrator may assign different performance |
3. | The Administrator shall cause to be prepared a list of individuals to whom the Plan performance measures will be applied and shall identify the applicable performance measures for each Participant, which may vary among Participants. |
4. | The Administrator may set threshold, target and/or maximum award levels for some or all of the performance measures, and those levels shall be included on the list referred to in paragraph 3 above. |
5. | The Administrator will retain the authority to determine whether or not the actual attainment of these measures has been made. |
IV. | TARGET INCENTIVE AWARDS |
1. | Target incentive awards will be a percentage of each Participant’s Salary, as defined in the Plan. |
2. | Target incentive awards shall be set by the Administrator annually and will be included on the list referred to above. |
V. | INCENTIVE FUND DETERMINATION |
1. | The target incentive fund is the sum of the individual target incentive awards for all eligible Participants. |
2. | Once individual incentive targets have been determined, a target incentive fund shall be established and accrued ratably by MDUR and each of its business segments, divisions and/or subsidiaries, as applicable. The incentive fund and accruals may be adjusted during the year. |
3. | As soon as practicable following the close of each Plan Year, the Chief Executive Officer of MDUR will cause to be prepared an analysis showing performance in relation to the performance measures. The Administrator will review the analysis and |
4. | In determining the actual incentive fund, any recommendations of the Chief Executive Officer of MDUR or the Administrator will be considered. |
VI. | INDIVIDUAL AWARD DETERMINATION |
1. | The Administrator shall have the sole discretion to determine each individual Participant's award. The Administrator's decision will be based upon the level of performance achieved. |
2. | Each individual Participant’s award will be based upon the level of performance achieved relative to the established performance measures, as determined by a percentage from 0 percent to a maximum of 200 percent, as determined by the Administrator. |
VII. | PAYMENT OF AWARDS |
1. | On the date the Administrator determines the awards to be made to individual Participants, it shall also establish the Payment Date. |
2. | Except as provided below or in the Plan or as the Administrator otherwise determines, in order to receive an award under the Plan, a Participant must remain in the employment of the Participant’s employer for the entire Service Year. |
3. | If a Participant terminates employment with MDUR pursuant to Section 5.01 of MDUR’s Bylaws, which provides for mandatory retirement for certain officers on their 65th birthday (or terminates employment with a business segment, division and/or subsidiary of MDUR pursuant to a similar company Bylaw provision), and if the Participant’s 65th birthday occurs during the Service Year, determination of whether the performance measures have been met will be made at the end of the Service Year, and to the extent met, payment of the award will be made to the Participant, prorated. Proration of awards shall be based upon the number of full months elapsed from and including January to |
4. | Payment of the awards shall be made in cash. Payments shall be made on the Payment Date unless the Participant has deferred, in whole or in part, the receipt of the award by making an election on the deferral form attached hereto, prior to the beginning of the Service Year. Deferral elections may not be changed or revoked after the Service Year begins. |
5. | In the event a Participant has elected to defer receipt of all or a portion of the award, MDUR or one of its business segments, divisions or subsidiaries, as applicable shall set up an account in the Participant's name. The amount of the Participant's award to the extent deferred will be credited to the Participant's account on the Payment Date. |
6. | The balance credited to an account of a Participant who has elected to defer receipt of an award will be an unsecured, unfunded obligation of MDUR or one of its business segments, divisions or subsidiaries, as applicable. |
7. | Interest shall accrue on the balance credited to a Participant's account from the date the balance is credited. The rate of interest for each Plan Year shall be the Moody’s Rate. |
8. | Interest shall be compounded and credited to the account monthly. |
9. | A Participant may elect to defer any percentage, not to exceed l00, of an annual award. |
10. | A Participant electing to defer any part of an award must elect one of the following dates on which (a) payment will be made, if payment will be made in a lump sum or (b) payments will commence, if payment will be made in monthly installments: |
(1) | Between January 1 and March 10 next following termination of employment with MDUR, its business segments, divisions and subsidiaries, as applicable; or |
(2) | Between January 1 and March 10 of the fifth year following the year in which the award would have been paid had it not been deferred. |
11. | A Participant may elect to receive the deferred amounts accumulated in the Participant's account in monthly installments, not to exceed 120. In the event the Participant elects to receive the amounts in the Participant's account in more than one installment, interest shall continue to accrue on the balance remaining in their account at the applicable rate or rates determined annually by the Compensation Committee. |
12. | Notwithstanding anything contained in the Plan or these Rules and Regulations to the contrary, if a Specified Employee's employment terminates, to the extent required by Section 409A(a)(2)(B) of the Code, except as otherwise provided in paragraph 13 below of this Section VII of these Rules and Regulations, payment of any deferred amounts under the Plan that are to be paid during the 6-month period following the Specified Employee's termination of employment shall not be paid or provided until the first business day after the date that is 6 months following the Specified Employee's termination of employment. Any payment that is made pursuant to the prior sentence shall include the cumulative amount of any amounts that could not be paid during the 6-month period following the Specified Employee's termination of employment. To |
13. | In the event of the death of a Participant in whose name a deferred account has been set up, MDUR or one of its business segments, divisions or subsidiaries, as applicable, shall, within 90 days thereafter, pay to the Participant's estate or the designated beneficiary the entire amount in the deferred account. |
14. | In the event of a "Change in Control" then any award deferred by each Participant shall become immediately payable to the Participant. In the event the Participant files suit to collect a deferred award then all of the Participant's court costs, other expenses of litigation, and attorneys' fees shall be paid by MDUR or one of its business segments, divisions or subsidiaries, as applicable, in the event the Participant prevails upon any of the Participant's claims for payment. |
_______________ | as applicable. |
_______________ | Between January 1 and March 10 of [ ]. |
(Print Name) | (Signature) | |
(Date) |
Twelve Months Ended March 31, 2012 | Year Ended December 31, 2011 | |||||||||
(In thousands of dollars) | ||||||||||
Earnings Available for Fixed Charges: | ||||||||||
Net Income (a) | $ | 218,869 | $ | 223,842 | ||||||
Income Taxes | 112,447 | 110,273 | ||||||||
331,316 | 334,115 | |||||||||
Rents (b) | 13,603 | 13,568 | ||||||||
Interest (c) | 84,258 | 86,505 | ||||||||
Total Earnings Available for Fixed Charges | $ | 429,177 | $ | 434,188 | ||||||
Preferred Dividend Requirements | $ | 685 | $ | 685 | ||||||
Ratio of Income Before Income Taxes to Net Income | 151 | % | 149 | % | ||||||
Preferred Dividend Factor on Pretax Basis | 1,034 | 1,021 | ||||||||
Fixed Charges (d) | 104,471 | 106,348 | ||||||||
Combined Fixed Charges and Preferred Stock Dividends | $ | 105,505 | $ | 107,369 | ||||||
Ratio of Earnings to Fixed Charges | 4.1x | 4.1x | ||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | 4.1x | 4.0x |
(a) | Net income excludes undistributed income for equity investees. |
(b) | Represents interest portion of rents estimated at 33 1/3%. |
(c) | Represents interest, amortization of debt discount and expense on all indebtedness and amortization of interest capitalized, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income) and interest capitalized. |
(d) | Represents rents (as defined above), interest, amortization of debt discount and expense on all indebtedness, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income). |
1. | I have reviewed this quarterly report on Form 10-Q of MDU Resources Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
1. | I have reviewed this quarterly report on Form 10-Q of MDU Resources Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
1. | Citations issued under Section 104 of the Mine Safety Act for violations that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard. |
2. | Orders issued under Section 104(b) of the Mine Safety Act. Orders are issued under this section when citations issued under Section 104 have not been totally abated within the time period allowed by the citation or subsequent extensions. |
3. | Citations or orders issued under Section 104(d) of the Mine Safety Act. Citations or orders are issued under this section when it has been determined that the violation is caused by an unwarrantable failure of the mine operator to comply with the standards. An unwarrantable failure occurs when the mine operator is deemed to have engaged in aggravated conduct constituting more than ordinary negligence. |
4. | Citations issued under Section 110(b)(2) of the Mine Safety Act for flagrant violations. Violations are considered flagrant for repeat or reckless failures to make reasonable efforts to eliminate a known violation of a mandatory health and safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury. |
5. | Imminent danger orders issued under Section 107(a) of the Mine Safety Act. An imminent danger is defined as the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated. |
6. | Notice received under Section 104(e) of the Mine Safety Act of a pattern of violations or the potential to have such a pattern of violations that could significantly and substantially contribute to the cause and effect of mine health and safety standards. |
MSHA Identification Number | Section 104 S&S Citations (#) | Total Dollar Value of MSHA Assessments Proposed ($) | Legal Actions Pending as of Last Day of Period (#) | Legal Actions Initiated During Period (#) | Legal Actions Resolved During Period (#) | ||||||
04-00081 | — | $ | — | 4 | — | — | |||||
04-01698 | — | — | 2 | — | — | ||||||
04-05156 | — | — | 3 | — | — | ||||||
13-02341 | 1 | 262 | — | — | — | ||||||
21-00462 | — | — | 1 | — | — | ||||||
21-02702 | — | — | 1 | 1 | 3 | ||||||
21-03502 | — | — | 5 | — | — | ||||||
24-02095 | 1 | 900 | 1 | 1 | — | ||||||
24-00462 | 2 | — | — | — | — | ||||||
32-00776 | — | 100 | 3 | 1 | — | ||||||
32-00777 | — | 370 | 1 | — | — | ||||||
35-00463 | — | 110 | — | — | — | ||||||
35-00495 | — | — | 2 | — | — | ||||||
35-02906 | — | — | 2 | — | — | ||||||
35-02968 | — | 599 | — | — | — | ||||||
35-03321 | — | — | 2 | — | 2 | ||||||
35-03449 | — | — | 5 | 5 | — | ||||||
35-03465 | — | — | 1 | — | — | ||||||
35-03581 | — | — | 1 | — | — | ||||||
35-03595 | — | 462 | — | — | — | ||||||
35-03667 | — | 190 | 3 | — | — | ||||||
35-03678 | 1 | — | 3 | — | — | ||||||
41-03931 | — | — | — | — | 1 | ||||||
48-01383 | — | — | 5 | — | — | ||||||
48-01670 | 1 | — | 1 | — | — | ||||||
50-00689 | — | — | — | — | 1 | ||||||
51-00036 | — | — | 3 | — | — | ||||||
51-00192 | — | 200 | — | — | 1 | ||||||
6 | $ | 3,193 | 49 | 8 | 8 |
• | Contests of Citations and Orders - A contest proceeding may be filed with the Commission by operators, miners or miners' representatives to challenge the issuance of a citation or order issued by MSHA. |
• | Contests of Proposed Penalties (Petitions for Assessment of Penalties) - A contest of a proposed penalty is an administrative proceeding before the Commission challenging a civil penalty that MSHA has proposed for the alleged violation contained in a citation or order. |
• | Complaints for Compensation - A complaint for compensation may be filed with the Commission by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due miners idled by the orders. |
• | Complaints of Discharge, Discrimination or Interference - A discrimination proceeding is a case that involves a miner's allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint. |
• | Applications for Temporary Relief - Applications for temporary relief from any modification or termination of any |
• | Appeals of Judges' Decisions or Orders to the Commission - A filing with the Commission for discretionary review of a judge's decision or order by a person who has been adversely affected or aggrieved by such decision or order. |
MSHA Identification Number | Contests of Citations and Orders | Contests of Proposed Penalties | Complaints for Compensation | Complaints of Discharge, Discrimination or Interference | Applications for Temporary Relief | Appeals of Judges' Decisions or Orders to the Commission | ||||||
04-00081 | — | — | — | — | — | 4 | ||||||
04-01698 | — | 2 | — | — | — | — | ||||||
04-05156 | — | 3 | — | — | — | — | ||||||
21-00462 | 1 | — | — | — | — | — | ||||||
21-02702 | — | 1 | — | — | — | — | ||||||
21-03502 | — | 5 | — | — | — | — | ||||||
24-02095 | 1 | — | — | — | — | — | ||||||
32-00776 | — | 3 | — | — | — | — | ||||||
32-00777 | — | 1 | — | — | — | — | ||||||
35-00495 | — | 2 | — | — | — | — | ||||||
35-02906 | — | 2 | — | — | — | — | ||||||
35-03321 | — | 2 | — | — | — | — | ||||||
35-03449 | — | 5 | — | — | — | — | ||||||
35-03465 | — | 1 | — | — | — | — | ||||||
35-03581 | — | 1 | — | — | — | — | ||||||
35-03667 | — | 3 | — | — | — | — | ||||||
35-03678 | — | 3 | — | — | — | — | ||||||
48-01383 | 5 | — | — | — | — | — | ||||||
48-01670 | 1 | — | — | — | — | — | ||||||
51-00036 | — | 3 | — | — | — | — | ||||||
8 | 37 | — | — | — | 4 |
Litigation (Details) (USD $)
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2011
|
Mar. 31, 2012
Pending or threatened litigation [Member]
Litigation related to construction materials [Member]
|
Aug. 31, 2011
Pending or threatened litigation [Member]
Litigation related to construction materials [Member]
|
Jan. 18, 2011
Pending or threatened litigation [Member]
Litigation related to construction materials [Member]
|
Mar. 31, 2012
Pending or threatened litigation [Member]
Natural gas gathering operations [Member]
|
Apr. 20, 2011
Pending or threatened litigation [Member]
Natural gas gathering operations [Member]
|
Oct. 31, 2010
Pending or threatened litigation [Member]
Natural gas gathering operations [Member]
|
Sep. 30, 2010
Pending or threatened litigation [Member]
Natural gas gathering operations [Member]
|
Jan. 13, 2012
Pending or threatened litigation [Member]
Guarantee obligation under construction contract [Member]
|
Sep. 19, 2011
Pending or threatened litigation [Member]
Guarantee obligation under construction contract [Member]
|
Dec. 31, 2009
Pending or threatened litigation [Member]
Guarantee obligation under construction contract [Member]
|
Jul. 31, 2007
Pending or threatened litigation [Member]
Guarantee obligation under construction contract [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Loss Contingencies [Line Items] | ||||||||||||||
Potential liabilities related to litigation and environmental matters | $ 70,700,000 | $ 64,100,000 | $ 40,500,000 | |||||||||||
Bicent's bank letter of credit guaranteeing CEM's obligation | 10,000,000 | |||||||||||||
Amount of compensatory damages in LPP's notice of demand | 149,700,000 | |||||||||||||
Amount of counterclaim | 14,000,000 | |||||||||||||
Arbitration award | 26,600,000 | 22,000,000 | ||||||||||||
Estimated damages in pending litigation, low estimate | 6,000,000 | 18,800,000 | ||||||||||||
Estimated damages in pending litigation, high estimate | 11,000,000 | 22,600,000 | ||||||||||||
Amount of damages dismissed in pending litigation | 5,000,000 | |||||||||||||
Estimated damages including interest in amended complaint | 21,900,000 | |||||||||||||
Loss contingency, estimate of possible loss | 3,700,000 | |||||||||||||
Additional amount per day of potential penalties | 5,000 | |||||||||||||
Amount of natural gas gathering contract dispute charged to operations and maintenance, before tax | 26,600,000 | |||||||||||||
Amount of natural gas gathering contract dispute charged to operation and maintenance expense, after tax | 16,500,000 | |||||||||||||
Legal fees and expenses awarded in litigation | $ 293,000 |
Inventories and natural gas in storage (Details) (USD $)
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2011
|
---|---|---|---|
Inventories and natural gas in storage [Abstract] | |||
Aggregates held for resale | $ 85,958,000 | $ 78,518,000 | $ 82,086,000 |
Asphalt oil | 82,949,000 | 32,335,000 | 51,506,000 |
Materials and supplies | 68,369,000 | 61,611,000 | 61,788,000 |
Merchandise for resale | 28,459,000 | 32,165,000 | 31,830,000 |
Natural gas in storage (current) | 15,475,000 | 36,578,000 | 11,953,000 |
Other | 32,131,000 | 32,998,000 | 23,533,000 |
Total | 313,341,000 | 274,205,000 | 262,696,000 |
Natural gas in storage noncurrent | $ 50,300,000 | $ 50,300,000 | $ 47,200,000 |
Earnings per common share (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
|
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average number of shares [Table Text Block] | A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculation was as follows:
|
Fair value measurements (Details 2) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2011
|
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Concentration risks, percentage [Abstract] | ||||||||||||
Percentage investment in common stock of mid-cap companies | 29.00% | 33.00% | 34.00% | |||||||||
Percentage investment in common stock of small-cap companies | 29.00% | 34.00% | 33.00% | |||||||||
Percentage investment in common stock of large-cap companies | 29.00% | 32.00% | 32.00% | |||||||||
Percentage in fixed-income and other investments | 13.00% | |||||||||||
Percentage investment in cash and cash equivalents | 1.00% | 1.00% | ||||||||||
Fair value, measurements, recurring [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 107,412 | 187,659 | 154,834 | |||||||||
Liabilities, fair value disclosure | 29,651 | 18,863 | 58,581 | |||||||||
Fair value, measurements, recurring [Member] | Commodity derivative instruments, liabilities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 26,330 | 14,101 | 58,581 | |||||||||
Fair value, measurements, recurring [Member] | Interest rate swap [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 3,321 | 4,762 | ||||||||||
Fair value, measurements, recurring [Member] | Money market funds [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 9,942 | 97,500 | 75,658 | |||||||||
Fair value, measurements, recurring [Member] | Insurance investment contract [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 48,704 | [1] | 38,352 | [2] | 41,594 | [3] | ||||||
Fair value, measurements, recurring [Member] | Auction rate securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 11,400 | 11,400 | 11,400 | |||||||||
Fair value, measurements, recurring [Member] | Collateralized mortgage backed securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 8,070 | 8,296 | 8,064 | |||||||||
Fair value, measurements, recurring [Member] | US Treasury securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 2,016 | 1,656 | 1,720 | |||||||||
Fair value, measurements, recurring [Member] | Commodity derivative instruments , assets [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 27,280 | 30,455 | 16,398 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Liabilities, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Commodity derivative instruments, liabilities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Interest rate swap [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 0 | 0 | ||||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Money market funds [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Insurance investment contract [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | [1] | 0 | [2] | 0 | [3] | ||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Auction rate securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Collateralized mortgage backed securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | US Treasury securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Commodity derivative instruments , assets [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 107,412 | 187,659 | 154,834 | |||||||||
Liabilities, fair value disclosure | 29,651 | 18,863 | 58,581 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Commodity derivative instruments, liabilities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 26,330 | 14,101 | 58,581 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Interest rate swap [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 3,321 | 4,762 | ||||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Money market funds [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 9,942 | 97,500 | 75,658 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Insurance investment contract [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 48,704 | [1] | 38,352 | [2] | 41,594 | [3] | ||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Auction rate securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 11,400 | 11,400 | 11,400 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Collateralized mortgage backed securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 8,070 | 8,296 | 8,064 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | US Treasury securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 2,016 | 1,656 | 1,720 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Commodity derivative instruments , assets [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 27,280 | 30,455 | 16,398 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Liabilities, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Commodity derivative instruments, liabilities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Interest rate swap [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Liabilities, fair value disclosure | 0 | 0 | ||||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Money market funds [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Insurance investment contract [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | [1] | 0 | [2] | 0 | [3] | ||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Auction rate securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Collateralized mortgage backed securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | US Treasury securities [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Commodity derivative instruments , assets [Member]
|
||||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||||||||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||||||||
|
Goodwill rollforward (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | $ 634,931 | [1] | $ 634,633 | [1] | $ 634,633 | [1] | ||||
Goodwill acquired during the year | 458 | [2] | 298 | [2] | 298 | [2] | ||||
Balance as of end of period | 635,389 | [1] | 634,931 | [1] | 634,931 | [1] | ||||
Electric [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 0 | 0 | 0 | |||||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | 0 | 0 | 0 | |||||||
Natural gas distribution [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 345,736 | 345,736 | 345,736 | |||||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | 345,736 | 345,736 | 345,736 | |||||||
Pipeline and energy services [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 9,737 | [1] | 9,737 | [1] | 9,737 | [1] | ||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | 9,737 | [1] | 9,737 | [1] | 9,737 | [1] | ||||
Exploration and production [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 0 | 0 | 0 | |||||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | 0 | 0 | 0 | |||||||
Construction materials and contracting [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 176,290 | 176,290 | 176,290 | |||||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | 176,290 | 176,290 | 176,290 | |||||||
Construction services [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 103,168 | 102,870 | 102,870 | |||||||
Goodwill acquired during the year | 458 | [2] | 298 | [2] | 298 | [2] | ||||
Balance as of end of period | 103,626 | 103,168 | 103,168 | |||||||
All Other Segments [Member]
|
||||||||||
Goodwill [Roll Forward] | ||||||||||
Balance as of beginning of period | 0 | 0 | 0 | |||||||
Goodwill acquired during the year | 0 | [2] | 0 | [2] | 0 | [2] | ||||
Balance as of end of period | $ 0 | $ 0 | $ 0 | |||||||
|
Regulatory matters and revenues subject to refund (Details) (USD $)
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Regulatory matters and revenues subject to refund [Abstract] | |
Estimated project cost of the natural gas turbine and associated facilities | $ 85,600,000 |
Annual reduction in rates | $ 250,000 |
Accounts receivable and allowance for doubtful accounts
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Accounts receivable and allowance for doubtful accounts [Abstract] | |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable consists primarily of trade receivables from the sale of goods and services which are recorded at the invoiced amount net of allowance for doubtful accounts, and costs and estimated earnings in excess of billings on uncompleted contracts. The total balance of receivables past due 90 days or more was $34.6 million, $33.9 million and $29.8 million as of March 31, 2012 and 2011, and December 31, 2011, respectively. The allowance for doubtful accounts is determined through a review of past due balances and other specific account data. Account balances are written off when management determines the amounts to be uncollectible. The Company's allowance for doubtful accounts as of March 31, 2012 and 2011, and December 31, 2011, was $12.2 million, $16.4 million and $12.4 million, respectively. |