Random Observations From MDU's Most Recent Presentation On Its Regulated Businesses (Electric And Natural Gas Utilities)

The pdf. (Of course, this link will break over time.)

24 slides.

Second slide (2): strategy includes pursuit of mergers and acquisitions. Think: the Berkshire Hathaway in the utility sector.

Slide 23: three focal data points

• the three pipelines that come on-line this summer/autumn (Paradox, Garden Creek, Black Hills)
• first rate case filed since 1999; rates increased
• proposed Dakota Pipeline

Third slide (3), four utilities:

• Montana-Dakota Utilities
• Great Plains Natural Gas
• Intermountain Gas
• Cascade Natural Gas

Sixth slide (6):

CAPEX of $70 million in the Bakken in 2014
$77 million 88-MW gas turbine in Mandan (think $1 billion for 400 MW wind farm)

• $2.5 million/MW for wind
• $875,000/MW for gas

Slide thirteen (13): forecast Bakken oil and Bakken natural gas (I'm not exactly sure why this is in the "regulated" presentation but I guess it puts things into perspective).

• Oil, current: about 175,000 bopd; base case, 1,750,000 bopd, high case scenario, 2,750 bopd by 2025
• Natural gas, current, about 280 mmcf/d; base case 2,700 mmcf/d; high case 3,900 mmcf/d by 2025

Slide 14: recap of pronghorn asset acquisition in 2012
Slide 15: update on the Dakota Prairie Refinery, west of Dickinson
Slide 16: photograph of the Dakota Prairie Refinery, west of Dickinson
Slide 18: 2014 growth-related capital projects -- total CAPEX ~ $50 million; all three in service this summer; this autumn

• Paradox Pipeline
• Garden Creek Pipeline
• Black Hills Pipeline

Slide 20: proposed Dakota Pipeline (natural gas pipeline from western ND to northwestern MN)

• 375 miles
• $650 million 
• 400 mmcf/day, scalable to 500 mmcf/day (about 8,000 boe/day?)

Slide 21: map of proposed Dakota Pipeline Route (does not cross the Canadian border; President Obama won't have to weigh in)

• the sweep of the pipeline might give folks an idea of where future natural gas processing plants will be located