Schedule I-Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule I-Condensed Financial Information of Registrant

Condensed Financial Information of Registrant (Unconsolidated)

Condensed Statements of Income and Comprehensive Income

Years ended December 31,	2017			2016			2015
	(In thousands)
Operating revenues	$	623,693		$	561,266		$	556,112
Operating expenses	516,524			469,062			478,198
Operating income	107,169			92,204			77,914
Other income	1,331			1,491			8,318
Interest expense	31,997			31,519			23,562
Income before income taxes	76,503			62,176			62,670
Income taxes	13,800			6,355			15,882
Equity in earnings of subsidiaries from continuing operations	222,283			177,275			129,601
Net income from continuing operations	284,986			233,096			176,389
Equity in loss of subsidiaries from discontinued operations attributable to the Company	(3,783		)	(168,663		)	(798,824		)
Loss on redemption of preferred stocks	600			—			—
Dividends declared on preferred stocks	171			685			685
Earnings (loss) on common stock	$	280,432		$	63,748		$	(623,120	)
Comprehensive income (loss)	$	279,602		$	65,848		$	(617,480	)

The accompanying notes are an integral part of these condensed financial statements.Condensed Financial Information of Registrant (Unconsolidated)

Condensed Balance Sheets

December 31,	2017			2016
(In thousands, except shares and per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	843		$	4,159
Receivables, net	83,453			80,467
Accounts receivable from subsidiaries	34,029			34,424
Inventories	13,864			17,352
Prepayments and other current assets	34,400			24,531
Total current assets	166,589			160,933
Investments	76,779			70,370
Investment in subsidiaries	1,704,908			1,603,874
Property, plant and equipment	2,631,161			2,502,264
Less accumulated depreciation, depletion and amortization	797,130			756,191
Net property, plant and equipment	1,834,031			1,746,073
Deferred charges and other assets:
Goodwill	4,812			4,812
Other	175,599			183,654
Total deferred charges and other assets	180,411			188,466
Total assets	$	3,962,718		$	3,769,716
Liabilities and Stockholders' Equity
Current liabilities:
Long-term debt due within one year	$	100,011		$	110
Accounts payable	47,000			37,697
Accounts payable to subsidiaries	7,234			5,592
Taxes payable	13,717			14,992
Dividends payable	38,573			37,767
Accrued compensation	20,017			16,086
Other accrued liabilities	36,881			34,929
Total current liabilities	263,433			147,173
Long-term debt	612,493			679,667
Deferred credits and other liabilities:
Deferred income taxes	147,847			270,126
Other	509,902			356,506
Total deferred credits and other liabilities	657,749			626,632
Commitments and contingencies
Stockholders' equity:
Preferred stocks	—			15,000
Common stockholders' equity:
Common stock
Authorized - 500,000,000 shares, $1.00 par value
Issued - 195,843,297 shares in 2017 and 2016	195,843			195,843
Other paid-in capital	1,233,412			1,232,478
Retained earnings	1,040,748			912,282
Accumulated other comprehensive loss	(37,334		)	(35,733		)
Treasury stock at cost - 538,921 shares	(3,626		)	(3,626		)
Total common stockholders' equity	2,429,043			2,301,244
Total stockholders' equity	2,429,043			2,316,244
Total liabilities and stockholders' equity	$	3,962,718		$	3,769,716

The accompanying notes are an integral part of these condensed financial statements.Condensed Financial Information of Registrant (Unconsolidated)

Condensed Statements of Cash Flows

Years ended December 31,	2017			2016			2015
	(In thousands)
Net cash provided by operating activities	$	284,075		$	238,125		$	255,273
Investing activities:
Capital expenditures	(146,370		)	(159,570		)	(349,985		)
Net proceeds from sale or disposition of property and other	(5,665		)	3,784			3,268
Investments in and advances to subsidiaries	(40,000		)	(5,000		)	(7,000		)
Advances from subsidiaries	40,000			15,000			100,000
Investments	(468		)	(129		)	5
Net cash used in investing activities	(152,503		)	(145,915		)	(253,712		)
Financing activities:
Issuance of long-term debt	70,080			106,420			224,185
Repayment of long-term debt	(37,569		)	(50,010		)	(108,008		)
Proceeds from issuance of common stock	—			—			21,898
Dividends paid	(150,727		)	(147,156		)	(142,835		)
Redemption of preferred stock	(15,600		)	—			—
Repurchase of common stock	(564		)	—			—
Tax withholding on stock-based compensation	(508		)	(226		)	—
Net cash used in financing activities	(134,888		)	(90,972		)	(4,760		)
Increase (decrease) in cash and cash equivalents	(3,316		)	1,238			(3,199		)
Cash and cash equivalents - beginning of year	4,159			2,921			6,120
Cash and cash equivalents - end of year	$	843		$	4,159		$	2,921

The accompanying notes are an integral part of these condensed financial statements.Summary of Significant Accounting Policies

Basis of presentation The condensed financial information reported in Schedule I is being presented to comply with Rule 12-04 of Regulation S-X. The information is unconsolidated and is presented for the parent company only, which is comprised of MDU Resources Group, Inc. (the Company) and Montana-Dakota and Great Plains, public utility divisions of the Company. In Schedule I, investments in subsidiaries are presented under the equity method of accounting where the assets and liabilities of the subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded on the Condensed Balance Sheets. The income from subsidiaries is reported as equity in earnings of subsidiaries on the Condensed Statements of Income. The consolidated financial statements of MDU Resources Group, Inc. reflect certain businesses as discontinued operations. These statements should be read in conjunction with the consolidated financial statements and notes thereto of MDU Resources Group, Inc.

Earnings (loss) per common share Please refer to the Consolidated Statements of Income of the registrant for earnings (loss) per common share. In addition, see Item 8 - Note 1 for information on the computation of earnings (loss) per common share.

Note 2 - Debt At December 31, 2017, the Company had long-term debt maturities, excluding unamortized debt issuance costs, of $100.0 million in 2018, $74.5 million in 2019, $700,000 in 2020, $700,000 in 2021, $700,000 in 2022 and $538.1 million scheduled to mature in years after 2022.

For more information on debt, see Item 8 - Note 6.

Note 3 - Dividends The Company depends on earnings from its divisions and dividends from its subsidiaries to pay dividends on common stock. Cash dividends paid to the Company by subsidiaries were $116.1 million, $115.8 million and $110.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.