MDU Resources prices public offering at $19.70 per share

MDU Resources Group Inc. (NYSE: MDU) announced it has priced an underwritten public offering of 10,152,284 shares of common stock at $19.70 per share. The company also granted underwriters an option to purchase up to 1,522,842 additional shares.

Wells Fargo Securities, BofA Securities, and J.P. Morgan are serving as joint lead bookrunners, with TD Securities acting as a bookrunner. The offering is expected to close on December 5, 2025, subject to customary closing conditions.

The transaction includes forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank. Under these agreements, MDU Resources will sell shares to the forward purchasers at the same price paid by underwriters, with settlement expected within 24 months of the offering completion.

MDU Resources will not initially receive proceeds from the share sales by forward sellers to underwriters. If the company elects physical settlement of the forward agreements, it plans to use net proceeds for general corporate purposes including debt repayment, capital expenditures, acquisitions, and working capital. This includes a planned 2026 payment for a 49% ownership interest in the Badger Wind Farm project.

The offering is being conducted under an effective shelf registration statement filed with the Securities and Exchange Commission. MDU Resources provides electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest, and operates a natural gas pipeline network spanning more than 3,800 miles.

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