Q2 2021 MDU Resources Group Inc Earnings Call
[music].
Okay.
Hello, My name is Catherine and I will be here.
Conference facilitator at this time I would like to welcome everyone to the MTA you Resources Group 2021 second quarter Conference call.
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This call will be available for replay beginning at 5 P. M. Eastern today through 11.59 P M. Eastern on August 19th the.
The conference I'd number for the replay is 5.5 to 7896.
The conference I'd number for the replay is 5.5 to 7896.
The number to dial for the replay is 18558592056 or 404.
537.
3406.
I would now like to turn the conference over to Jason Vollmer, Vice President and Chief Financial Officer of MDU Resources Group. Thank you. Mr. Vollmer you may begin your conference.
Thank you and welcome everyone to our second quarter 2021 earnings Conference call you can find our earnings release of materials for this call on our website at Www Dot MDU dot com under the investors tab.
Leading our quarterly earnings discussion today are Dave Goodin, President and CEO of MDU resources and myself.
On the line to answer any questions. You may have following our presentations are Dave Barney President and CEO of the Knife River Corporation, Jeff Thiede, President and CEO of the MDU construction services group and Nicole <unk>, President and CEO of our utility group.
Trevor Hastings, President and CEO of WBI energy.
And Stephanie Barth, Vice President and Chief Accounting Officer, and controller of MDU resources.
During today's discussion, including responses to your questions. Some comments may contain forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 1034.
Although the company believes that its expectations and beliefs are based on reasonable assumptions actual results may differ materially.
A discussion of factors that may cause actual results to differ we direct you to our earnings release and the item <unk> risk factors and our most recent form 10-K and 10-Q.
For the second quarter of 2021, we delivered earnings of $100.2 million or <unk> 50 per share compared to the second quarter 2020 earnings of $99.7 million or also of <unk> 50 per share.
During the quarter, our results were impacted by higher stock based compensation and healthcare costs of approximately $4.2 million after tax.
Further impacting our second quarter consolidated results was a $5.4 million lower investment returns on certain benefit plans compared to the same quarter in 2020.
These items had an impact on the quarter's results all of our operations performed very well throughout the first 6 months of the year growing consolidated revenues by 3.5% and increasing earnings $27.5 million year to date.
Our utility business or and $9.6 million for the second quarter compared to earnings of $11.2 million and the second quarter of 2020.
For the electric utility segment reported earnings of $10.3 million for the quarter compared to $12.2 million for the same period and 2020.
Higher operation and maintenance expense largely the result of higher labor related costs, including the increased stock based compensation expense and healthcare costs as we previously discussed.
As well as increased generating station expenses drove the decrease in earnings.
Lower benefit plan investment returns also negatively impacted the results.
Partially offsetting the decrease was higher adjusted gross margin driven by a 6.9% increase and retail sales volumes.
Sales volumes increased for industrial and commercial customers during the quarter and were offset impart by lower residential volumes as the impacts of the COVID-19 pandemic started to reverse and individuals' are returning to work as businesses reopen.
Higher demand revenues and higher revenue is associated with transmission of interconnect.
<unk> also had a positive impact on the adjusted gross margin.
Our natural gas utility segment reported a seasonal loss of $700000 improved from the seasonal loss of $1 million for the same period and 2020.
The adjusted gross margin increased during the quarter from approved rate recovery and 2% customer growth.
Transportation revenue has also increased from higher volumes transported to the company's electric generation customers.
Partially offsetting the decrease loss was higher operation and maintenance expense, primarily labor related costs as previously discussed as well as lower returns on certain benefit plan investments.
The pipeline business had earnings of $9.2 million and the second quarter compared to $9 million and the second quarter of 2020.
Higher Nonregulated project revenues and increased allowance for funds used during construction were the primary drivers of the increase in earnings.
Partially offsetting this was higher operation and maintenance expense relating to the previously mentioned increase and nonregulated projects as well as higher payroll.
Now turning to the construction businesses construction services reported record second quarter earnings of $28.9 million compared to the prior year's record of $27.9 million.
Revenues increased 6% on a year over year basis, the second quarter 2 of second quarter record of $525.6 million.
Demand for construction services remains high for both the inside and outside specialty contracting.
Inside specialty contracting saw strong demand for commercial and industrial work, specifically and the manufacturing industry and outside contracting workloads increased with high demand from the utility industry.
Lower depreciation depletion and amortization expense, resulting from decreased intangible amortization related to prior acquisitions also contributed to the increase in earnings.
The construction materials business reported second quarter earnings of $51.4 million compared to the prior year's $53 million and the second quarter.
Revenues increased 2% to $633.8 million.
The decrease in earnings was primarily the result of higher selling general and administrative expenses from increased labor related costs as we previously as we have previously discussed.
Or returns on certain benefit plans also impacted the quarter, partially offsetting these items was lower interest expense due to lower average interest rates that summarizes the financial highlights for the quarter and now I'll turn the call over to Dave for his formal remarks David.
Great and thank you, Jason and thanks to those of you listening in and spending some time with us today and for your continued interest and MDU resources.
Today I'll walk through each of our business lines to highlight some notable drivers and the quarter and go into greater detail about some of the organic growth items covered and Yesterdays news release.
Starting with our regulated energy delivery platform, we now have approximately 1.15 million customers across our electric and natural gas utility businesses.
And the utility employees remain focused on organic growth and infrastructure improvements that helped to safely and efficiently serve our customers.
We continue to expect strong customer growth across our service territory outpacing the national average and and the range between 1% and 2% compounded annually.
The electric utility finished the pre commissioning.
Decommissioning activities on the coal fired unit, 1 at that Lewis and Clark generating station here and the second quarter and commenced decommissioning here in July.
We expect to retire units, 1 and 2 add heskett station near Mandan North Dakota early next year.
Which are the last of the company's wholly owned coal fired facilities.
Our generation portfolio and regards to the nameplate capacity prior to the commencement of the retirements. These retirements was 48% coal and will decrease of 31% and 2023 upon completion of the proposed heska for natural gas fired peaking unit.
Our natural gas utility along with our pipeline business WBI Energy recently announced the project that will increase natural gas service to Washington, North Dakota, while also being able to offer natural gas service for the first time to Kindred North Dakota.
This project is driven by customer contracts, requiring more firm natural gas supply that our current infrastructure. It can provide to eastern North Dakota the.
And the project involves constructing approximately 60 miles of 12 inch pipeline from our existing facilities at Naples, and North Dakota 2 opposite.
It will add 20 million cubic feet per day of natural gas capacity and is expected to cost of approximately $75 million.
And depending on regulatory approvals construction is expected to begin in early 2024 with the completion date later that year.
Speaking of our pipeline business. We're excited that in early July WBI energy received final FERC approval, allowing construction to begin on the North Bakken expansion project and Western North Dakota the.
This $260 million of project will add 250 million cubic feet of daily natural gas transportation capacity to our system.
And bringing <unk> total pipeline capacity to more than 2.4 bcf per day.
While helping the reduced natural gas flaring in the region, and allowing Bakken producers to move natural gas to market.
Construction began here in mid July and with favorable weather during the construction season, we expect the project to be and service by end of this year.
Now moving on to construction, our construction services group had an outstanding second quarter as demand for both inside and outside specialty contracting remains very strong.
<unk> reported record second quarter revenues and earnings and an all time record backlog now standing at 132 billion as the end of June.
Bidding remains highly competitive in all areas, but we are confident that our relationships with existing customers, our skilled workforce and our high quality of service will aid and securing and executing on profitable projects.
As a reminder, revenue guidance at this business for 2021 continues to be and the range of $2, 1 to $2.3 billion with margins comparable to or slightly higher than 2020 levels.
And finally at our construction materials business, while earnings were down slightly year over year knife River is operating at near record levels falling just short of the prior year's record second quarter earnings while continuing to produce record revenues.
Demand and pricing for aggregates and ready mix concrete is strong across a number of markets construction materials reported backlog at the end of the quarter at $912 million and increase of over 4% from the prior year.
Revenue guidance for this business is also and the range of $2.1 to $2.3 billion with margins comparable to our 2020 levels.
We remain optimistic about our construction businesses and continue to evaluate strategic acquisition opportunities that will enhance our existing footprint and.
And appropriately expand our business, all while earning attractive returns on invested capital.
As mentioned in our news release yesterday, we feel very positive about the conversation surrounding infrastructure funding packages at the federal level as well as at various state levels across our footprint.
With combined construction backlog at an all time record at 2.23 billion as of June 30, We believe we are well positioned to take advantage of these multiyear growth opportunities.
While we believe these infrastructure proposals will provide additional opportunities to some of our core areas of business such as surface transportation improvements renewable energy power grid modernization broadband and much more of these.
Of these infrastructure proposals are not included in our earnings per share guidance.
Of $2 to $2.15 for this year of 2021 or in our 5 year capital investment plan for that matter as well.
Overall, we are very pleased with our performance throughout the first half of the year. Our focus at MDU resources has been and continues to be to produce significant long term value as we execute on our business plans and our organic growth projects and our targeted acquisitions, we continue to maintain a strong.
Balance sheet solid credit ratings and a good liquidity position for the last 83 consecutive years, we provide a competitive dividend for our shareholders and have been increasing it for the last 30 years.
As always MDU resources is committed to operating with integrity and a focus on safety, while creating superior shareholder value and we continue to act along our tagline of building a strong America and with that operator, we'll open it up for questions.
At this time I would like to remind everyone if you'd like to add.
Ask your question and please press Star and then the <unk>.
On your telephone keypad.
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Sure.
We will pause.
And the Q&A roster.
Okay.
Yes.
Thank you. Our first question comes from the line of Chris Cooley.
Okay.
And everybody how are you.
Hi, Chris and good afternoon.
And Sir.
Can the guys sort of just talk about what the construction season, and the second quarter looked like and and how thats shaping up and.
And July so far.
Sure, Chris we will of Starwood, Jeff Thiede at construction services coming off the record second quarter that the just posted go ahead go ahead Jeff.
Alright, Thanks for the question Chris.
Bidding opportunities are strong and all of our markets and there continues to be demand for our services that we provide that's demonstrated of course by our Q2 record backlog of Dave.
And we've always operated and these competitive markets and the secure many of our project awards based upon the price and non price criteria for the best value and.
And that helps us continue to perform at good margins and so.
All of our markets have experienced some increased competition over the strength of people on the attention to meeting or exceeding our expectations and safety and production and quality and resulted in strong backlog and performance through Q2 this year.
And we are seeing some projects.
Large projects get completed.
We're still seeing good bidding opportunities going forward.
And.
Thank you Oh go ahead.
Just wanted to ask go ahead, Chris rather was for the construction season was the favorable.
I think it's fair Jeff Yes.
Absolutely yes.
Chris.
Should we turn to Dave Barney sure.
Yes, so Dave you on a talk about the second quarter, just a bit and certainly highlight the $912 million you have and backlog here at the end of the second quarter.
Well I think you did that day, but yes, our backlog and strong.
Got it into.
The next 2 quarters, and we're happy where we're at with our backlog.
Margins are very strong force and continue to drill.
We've had some.
Definitely increases and <unk>.
<unk>, we've been able the.
As of the alone.
The second quarter was of great quarter over year over year, our margins on all materials, we expect that to continue throughout the year.
July.
We did have some hot weather some days out there the more.
Over 100 degrees.
All of this down a little bit but.
We believe the July and the rest of the year is still going to be strong force.
Okay.
For the 2 construction business and have you guys evaluated.
And where the infrastructure Bill stands today and have you got any thoughts on how that might impact you and sort.
And the Si.
And.
You're already pretty well strain in terms of construction capacity.
How do you envision.
And influx of infrastructure projects over the next couple of years.
And.
Margins and labor capacity and things like that.
Chris I'll start and then both Dave and Jeff can give a little maybe detail.
With respect of businesses, but as we've.
Reviewed the the.
The current infrastructure package thats under debate and the Senate.
On the incremental new dollars associated with that and if you look at the large buckets, whether it be of transportation.
Roads bridges kind of traditional transportation highway infrastructure broad band.
Some EBIT dollars and they're for EV net work, you'll also get on.
I'll say power delivery energy delivery upgrades of some renewables.
You take those buckets and of the total roughly 2 thirds of the dollars within that infrastructure plan fit right and the wheelhouse of what we do between our materials and services business and so.
Again, Thats broad base, but we wouldn't we look at the big buckets, we get quite excited and the fact that those are new dollars flowing into the industries that we.
Perform and I think we performed very well, obviously, the devils and the details of what the final Bill.
And is produced and.
And the back over and the house and through the Conference Committee et cetera, but certainly what indicators today is it's a lot of what we do today and so.
And that might be of some face answer for you at the moment, but I think he also wondered about how we would handle the additional work and work load opportunities at each of services and materials and maybe for that I'll kick it over to Jeff Jeff can you kind of touch on that in light of again, we see this beyond 'twenty..1 this is <unk>.
2 and beyond I mean from a timing perspective, but just maybe help Chris out with some of your thinking.
Okay, and we've been able to retain our workforce during the second quarter and.
We've been doing that by focusing on retaining training and attracting the industry top talent.
Commitment to safety and treating people with respect and working together as a team, especially during the last year and a half through COVID-19 given our backlog, we're seeing some challenges with available qualified labor, mostly and our outside transmission and distribution work, which we think will be benefiting from the <unk>.
Restructure of Bill our insight group had some similar challenges with qualified labor, but our recruitment and training efforts continue and we're very proactive and their respective markets and also industry on recruiting and high schools and stem programs women and trades minority and college groups. So we've been able to recruit the workforce.
Needed to keep up with the demand.
And to build out our backlog safely productively and timely and of course always with quality.
And maybe following on Dave Barney and the materials area.
Yes, Chris.
And our plan and Cowen is about where it was last year.
Definitely focused on retaining and recruiting and employees.
And the process of building on a world Class Training Center, right now and Oregon for all of our companies and yacht.
And the knife river for the industry.
That will definitely help us going forward and the future, but it is something we're focused on and.
Continue to focus on but we definitely think of.
Infrastructure Bill gets passed and we will see.
The increase and.
Bidding opportunities.
We expect our margin to continue the growth also.
Okay, great. Thanks for the thanks for the details guys I appreciate it.
Thank you Chris I appreciate the questions.
Your next question comes from the line of Brian Russo with Sidoti.
Yes.
Hi, good afternoon.
Hi, Brian Good afternoon to you.
Hey, I know you touched upon.
Possibly.
Labor issues as the industry as a whole and raw material Inflations and was the large.
Construction materials peer of the other day that reported and they noted.
Of that.
Higher price for diesel and liquid asphalt.
Impacting their margins and I'm wondering how are you countering that generally speaking and.
Could you just maybe get a little bit more granular on.
No.
Your cost inputs and how youre managing it seems to be and industrywide issue impacting some companies more or less and others.
Yes, sure and.
And the question Brian is more particular on the on the materials side and you said for example, others have noted.
Diesel and liquid asphalt as 2 of the drivers, though I'll ask Dave Barney to address what he's seeing and his business. So far is inflationary pressures.
And commodity price.
The items that you noted Dave.
Yes, Brian.
We definitely are seeing diesel prices continue to increase it is the concern going forward.
And so like I said before we continue to push our margins up.
On the revenue mix, even on the construction side, we have seen of late.
On the oil pricing come down from last year. So.
We've been able to pretty much hold on.
Margins on that and we've lost a little bit on margins and some of our jobs, but most of our jobs and we continue to increase those prices.
Okay, Great and I think.
Maybe on the services side, you mentioned strength and manufacturing.
And just be more specific what submarkets of manufacturing you're seeing.
And that strength.
Okay.
Certainly sure Jeff.
Jeff.
Okay.
Okay.
Go ahead, Jeff.
Okay.
Great.
Manufacturing compasses, the production of goods and services with confidential clients and that really sounds like and on the answer. However, we're bound by a confidentiality agreements with these clients what I can share is that we've been asked to enter new geographic market with a satellite office for a couple of our clients to serve them.
Another large build that's just getting started.
And we're expanding and as part of the country leveraging our performance on large medium and small projects.
Successfully completed and are completing for nearly 3 decades of this.
The client that we've had.
Okay, great and it's true.
Construction services business and or the materials side involved and.
Under grounding of the transmission and distribution.
We are.
Jeff.
Yes, if you're talking about.
What's been published by Pacific Gas and electric has 1 of our largest customers and that is an area of work that is right on our wheelhouse, we're doing distribution and transmission.
This client and we also do underground work so combined with our expertise in the markets that we're serving for PGE plus adding to that with some of our sister companies, we see that of a great opportunity to serve our clients in this area.
Okay.
Okay, Great and just on the pipeline side of the $75 million expansion project I'm. Just curious why is construction not until 2024.
Yes, Brian.
Just touch on that Trevor is here to give you more details, but really that's the timing to go through the full regulatory process. The full siting and just we just kind of went through this process preceding our north Bakken expansion project. So we've got a pretty good feel for that and.
The thing traveling to add to that.
Okay.
Okay understood. So it sounds like that's kind of a and <unk>.
Organic growth opportunity for the pipeline segment.
Can you quantify.
Or put some numbers behind kind of the size of that opportunity.
And for expansion.
This is James.
Sure This is Trevor.
At this point, we haven't disclosed any of the financial numbers around it we're in the.
Front, and we're getting ready for the pre filing process that David referenced later this fall.
Generally if you take the $75 million.
Capital budget, our FERC cap structure, and 60% equity and apply a FERC return you get and the wheelhouse of kind of what the earnings impact of the project could be.
Okay got it and when can we expect the.
AARP to be filed at the electric utility.
Oh.
Certainly and Nicole can touch on that that was actually filed here just recently mid.
Mid year, but Nicole any more details on the ERP.
Nope you hit of Dave, Yes, we filed that and the state of North Dakota here in July.
Okay.
Okay, and then just lastly, both electric and gas utility.
And just update us on your regulatory strategy do you of any plans to file.
Any rate cases, and any of your jurisdictions.
Yes, certainly.
And most likely aware of we monitor this on a very regular basis and what we're looking at right now as we look ahead is it probably on.
And the evaluation around our electric segment in terms of the timing of those rate cases. So again, we haven't made any final decisions there, but are evaluating timing on a few states for on the electric side of our business. We just recently implemented final rates for several jurisdictions on the gas side of the business North Dakota Monte.
Donna and Minnesota, and then the last 1 and then I would touch on is and the state of Washington. Following the outcome. We just had we are currently contemplating on a limited issue case to recover some of the 2020 plant additions as well as 2021 wage increases so that would be top of the way of some of the key activities. We're focused on right now.
And.
Okay. Thank you very much.
Okay.
Thank you for the question Brian.
This marks the last call for a question if you'd like to ask a question press star.
And then the number 1 on your telephone keypad. This call we will be available for replay beginning at 5 P. M. Eastern today through 11, 59 PM Eastern on August 19th and <unk>.
The number for the replay is 5.5.
And then 8.9.
Again, the conference I'd number for the replay is.
5 to 7.
7.8.
Your last question comes from the line of Ryan Levine with Citi.
Good afternoon.
Hi, Rod and and good afternoon to you as well.
Hey, Dave.
What's the status of the north.
And.
And the conversations for additional customers and what's the capacity with compression that spell of available for sale.
Hey, Ryan this is Trevor.
And we as we always do are and kind of constant contact with customers out in the Bakken.
And our gas production and the Bakken is really almost back near to its peak I think it's 95% of it.
Peak production, even though of oils only at 74% of its peak, so we're seeing gas oil ratios and the field.
The continued to increase I think they are up 80% over the last 5 years.
And the North Dakota pipeline authority adjusted <unk> has a new slide deck out.
Talks to this and and his outlook.
Continue the distress and the need for or the expectation for needing additional gas processing and <unk>.
I'll take away as well as natural gas pipeline capacity takeaway so with that.
Our north Bakken pipe is strategically located right through the heart of the Bakken kind of north to south of.
The lakes Chicago, we are interconnecting with northern border. So.
And so we think we're well situated as the Bakken continues to regain its footing in terms of drilling and production and.
And we will be able to.
And really be a good opportunity for our customers and that area.
In terms of expansion and the project is readily expandable with compression.
There's a lot of variables that go into how far how much additional but it could be and the range of 600000 Mcf a day of potential total capacity and right now are contracted.
And we get to full year volumes and it'll be 245000.
Thanks, and then 1 for probably nichol.
Things like the electric load was pretty strong this quarter and wondering how much of that was weather related and.
And various more organic volume growth and then as you look at your planning forecast through 2030.
And what's embedded in that from an EV air transportation demand for electricity and has that compare with some of the federal.
The announcements this morning for 50% of vehicle electric sales by 23.
Okay, Let me start with the thanks for the question and I'll start with the volume is really when you look at the quarter. What we saw I would characterize more as a getting back to post pandemic levels. So what we saw really was as.
It was mentioned and increase on our commercial industrial side and that was offset by actually lower volumes on the residential side for the quarter I will acknowledge and most people are aware of with the heat waves. We've seen in our territory and June we did see higher residential but when you look at the quarter and total real.
It was driven by higher volumes of industrial commercial and we feel that was largely driven by kind of again the post.
Pandemic in terms of businesses reopening and getting back to.
The full volume there.
As we as we look ahead here and in July obviously, we've.
On the residential side, we have continued to see on.
Pretty good volumes relative to what I would characterize as weather now so back to the is it weather is it post pandemic I would say as we look to July.
We haven't finalized all of this but we are seeing probably some some increased volumes due to weather and that month youre.
Your next question relates to as we look at our forecasting.
For our electric demand going forward.
And we have not really at this point based on any significant EV transition, we haven't seen the same level of penetration and our electric markets that has been happening and other areas of the country. So as of this point and time I would say that it's really not a significant piece of the overall increasing our <unk>.
Kris and our demand that we're disclosing and the 10-K as an example.
And I believe I've covered your questions, but any follow up.
Yes, I appreciate that in terms of trend of larger transmission projects in the areas is there any projects that could potentially be advance due to the.
And the broader mandate or federal policy discussions and are being had.
Yes, so you bring up and a very good point. We are currently and I was just last week and meeting with the.
Our regional transmission organization, which is myself and as you know and they have done several modeling efforts on what the future looks like in terms of scenario planning around.
Individual company's goals on the renewable focuses and de carbonization as well as what could happen.
And as we think about this more broadly federally and certainly transmission is of significant investment as we look forward in fact, 1 of their planning scenarios would have called for and again. This is just within the MISO.
Markets and again this isn't covering the U S, but additional build out of $100 billion and so again there is multiple scenarios here, but just to level set. That's 1 example of the amount of transmission thats needed to meet some of these proposed goals out there so far.
First the question is kind of all of that and be done within the timeframe and then secondly of the question is.
And what we're looking ahead to is how do you get those permitted constructed and operating so again. These are again within the MISO footprint. This isn't necessarily on our company specifically here. So it's a more of a broader look but to get to the question is there opportunity and transmission going forward.
Yes.
And then last on the utilities front do you of any <unk> related to the any of it.
And it's incorporate and MISO and then.
And I guess, 1 on the construction and service can you speak to some of the cost pressures you're seeing.
Yes.
Okay.
And can you repeat the question on the.
Do you of any right of first offer credit first refusal and developing any of the transmission that may be developed in MISO.
Within the broader.
And within your footprint.
Okay.
I guess, how I respond to that is the kind of depends on how they decide to move forward and so as an example, we had we were involved in the multi value project on.
Previously it was the based on cell at the Allendale project, where we then how the FERC.
Transmission facility, that's not directly allocated to our customers through state regulation. So.
That would be 1 example of an opportunity that came out of the multi value project within the MISO market.
Thank you.
Yes.
Ryan was the.
And your second part of that was relative to services, but maybe you could repeat the question. So I make sure of Jeff gets it.
Okay.
Okay.
And he could press star Brian are you still there.
Okay.
Very good maybe we got Ryan's question answered.
Back to you operator.
Oh here comes Ryan.
Yes.
Yes, I think I got disconnected and.
In terms of the margin pressure youre seeing and construction and service, hoping you could elaborate on some of the drivers of the the.
Cost pressures.
Okay.
Jeff could you take that 1.
Yes, we think about steel and copper and aluminum and PVC.
Fuel and.
And those have.
And the sharply over the past 6 to 9 months, but we've also had some impacts of the electronic components and a part of most of the materials and supply.
And of course, our vehicles, which have had some availability delays.
Our teams have been proactive and notifying our customers, while also working with our suppliers to mitigate the impact.
And mitigating the impact of the backhaul margins, we've had success and anticipating these increases and availability issues also use the purchasing power of the financial strength and.
Bulk purchase some commodities.
And some of our markets, where it makes sense, where we can collaborate and give our customers evolve and take the risk off the table procuring and advance.
Great. Thank you.
Yeah, Ryan just as the kind of a top level. There again, we reiterated on our guidance margins comparable to actually slightly increasing and services. So I think that gives you kind of and overall direction with regards to margin. So.
Very good back to you operator.
And at this time there are no further questions I would now like to turn the conference back over to management for closing remarks.
Okay.
Great well. Thank you all for taking the time to join US here on our second quarter earnings call and again, we're certainly pleased with the results of the first half of the year and we look forward to of continued strong performance throughout the remainder of 2021 and.
And assets, we are affirming our earnings per share guidance and the range of $2 to $2.15 for 2021 and again. We appreciate your continued interest and and strong support of MDU resources as we continue to building a strong America and so with that I'll turn it back to the operator.
This concludes today's MDU resources Group conference call.
And for your participation you may now disconnect.
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