Q3 2021 MDU Resources Group Inc Earnings Call
Okay.
[music].
Hello, My name is Erica and I will be your conference facilitator at this time I would like to welcome everyone to the MDU Resources Group 2021 third quarter Conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question didn't answer period. If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
You would like to withdraw your question press the pound key on your telephone keypad. This call will be available for replay beginning at five P. M. Eastern time today through 11 59 P. M. Eastern time on November 18th the conference I D for the replay is 5194.
306 again the conference I'd number for the replay is 519 or three zero sex the number to dial for the replay is 185585920564404.
<unk> 5373406, 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.
Great.
Thank you Erika and welcome everyone to our third quarter 2021 earnings Conference call you can find our earnings release and supplemental materials for this call on our website at Www Dot <unk> dot com under the investors tab.
President and CEO, Dave Goodin, and I will be leading today's discussion on the line to answer questions. Following our prepared remarks art.
Dave Barney President and CEO of Knife River Corporation, Jeff Thiede, President and CEO of MDU construction services group.
Paul Caruso, President and CEO of our utility group.
Trevor Hastings, President and CEO of WBI energy.
And Stephanie Barth, Vice President Chief Accounting Officer, and controller of MDU resources.
Today's discussion, including responses to questions may contain certain forward looking statements within the meaning of section 20 <unk> of the Securities Exchange Act of $19 34.
Although the company believes that its expectations and beliefs are based on reasonable assumptions actual results could differ materially.
In addition, any non-GAAP measures discussed today are reconciled to the most directly comparable GAAP measure in our earnings release and SEC filings.
Yesterday, we announced third quarter earnings of $139 3 million or <unk> 68 per share compared to third quarter 2020 earnings of $153 1 million or <unk> 76 per share.
On a year to date basis, we have earned $291 6 million or $1 44 per share compared to the prior year's $277 9 million or $1 39 per share.
Let's look at some of the details by segment, starting with the quarterly comparisons of our construction operations construction services reported third quarter earnings of $23 1 million compared to the prior year's record third quarter earnings of $29 8 million.
EBITDA at this business decreased $10 9 million from the same period in 2020 to $35 9 million.
Results were negatively impacted by $5 $5 million after tax for changes in estimates on a construction contract during the quarter.
This business also had decreased margins from higher employee costs attributed to a shortage of available skilled labor.
While we saw less storm recovery work this quarter than the prior year the demand for our general utility workers remained very strong.
Our construction materials business reported earnings of <unk>, $96 3 million for the third quarter down from the prior year's $107 3 million.
EBITDA decreased $13 4 million from the same period last year to $158 9 million.
The primary drivers behind the decrease earnings were lower asphalt and related product sales and margins as well as lower contracting revenues.
Asphalt products and contracting margins were impacted by an increase in asphalt oil and diesel fuel costs as well as less available highway paving work in certain regions. When you compare that to the strong third quarter, we experienced in 2020.
Partially offsetting these impacts were lower seller selling general administrative expense, primarily from lower incentive accruals and lower benefit related costs.
Turning to our regulated energy delivery business, our combined utility business reported net income of $5 2 million for the quarter compared to a net loss of $800000 in the third quarter of 2020.
The electric utility segment reported strong third quarter earnings of $20 6 million compared to $16 8 million for the same period in 2020.
Warmer weather helped drive an 11, 1% increase in electric retail sales volumes, along with more business is being open when compared to last year due to pandemic related impacts.
Increased MISO revenues in transmission interconnect upgrades also had a positive impact on earnings of this business.
Our natural gas segment reported an expected seasonal loss of $15 4 million for the quarter, which was <unk>, which was a $2 $2 million improvement from the previous year.
Higher adjusted gross margin from rate relief and a 2% increase in our retail natural gas sales volumes drove the decrease loss, partially offset by higher O&M expense.
The pipeline business had earnings of $10 6 million in the third quarter compared to $8 million in the third quarter of 2020, primarily from higher AFDC on the company's North Bakken expansion project.
Also during the quarter MDU resources experienced lower income tax benefits of approximately $4 6 million when compared to the third quarter of 2020 related to the timing of recognition of our consolidated annualized estimated tax rate.
That summarizes the key financial highlights from the quarter and now I would like to turn the call over to Dave for his formal remarks, Dave.
Thank you, Jason and thank you to everyone listening for spending time with US here today and for your continued interest in MDU resources.
The strength of our two platform business model was evident during the third quarter as the strong results from our regulated energy delivery business helped to offset some of the headwinds our construction businesses faced.
MDU resources remains well positioned for a strong end to 2021 and beyond.
To summarize activity by business unit I'll start off with the regulated energy delivery businesses.
Third quarter highlights for our utility operations include significantly high earnings on a year over year basis.
The utility continues to seek regulatory recovery for the costs associated with providing safe and reliable electric and natural gas service to our growing customer base.
On a combined basis, we saw one 7% customer growth since the same period in 2020.
And in the third quarter, our natural gas utility re filed in the state of Washington for a $13 7 million annual rate increase that is currently pending.
You can read more about these and other regulatory filings and our 10-Q that we filed just this morning.
We continue preparing to kick off construction in early 2020 on our Heskett station unit, four which is expected to be in service in early 2023.
As a reminder, heskett for as a natural gas, peaking unit that will aid in partially replacing the generation loss with a pending retirements of our coal fired heskett station units, one and unit two.
And the coal fired Lewis and Clark unit, one that was retired in the first quarter of this year.
At our pipeline business also performed very well throughout the third quarter and reported earnings just shy of its third quarter 2018 record.
Construction is well underway on the North Bakken expansion project. We expect this fully subscribed project will be in service in early 2022 with capacity to transport 250 million cubic feet of natural gas per day for our customers.
While a portion of the first year customer committed volumes are delayed one year as we discussed last time at this last year at this time the project is well positioned in the Bakken and can be readily expanded in the future for forecasted natural gas production growth.
I recently had the opportunity to visit the construction site in North Western North Dakota with other members of our management team and I can tell you firsthand. It was an impressive to see over 700 employees and contractors are safely and efficiently working together to complete this $260 million.
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Our pipeline business also received FERC approval during the third quarter to use the pre filing review process for its <unk> expansion project.
This project involves constructing a prize can make approximately 60 miles of 12 inch pipeline from our existing facilities have been able to north Dakota extending to Wap its in North Dakota.
We had 20 million cubic feet per day of natural gas capacity is expected to cost approximately $75 million.
Depending on regulatory approvals construction is expected to begin in early 2024 with the completion date later that same year.
When the north Bakken and weapon and expansion projects are complete WBI is total system capacity will be more than $2 4 billion cubic feet of natural gas per day, which will help to reduce natural gas flaring in the region and allow producers to move more natural gas to markets.
Now I'd like to move on to our construction platform.
Our construction services group.
Our results were impacted by changes in estimates on a construction project contract as well as higher labor costs for the quarter.
In 2021, the markets, where construction services operates have experienced labor shortages that have in turn caused the increased employee related costs as we continue to focus on the attraction and the retention of skilled specialized labor.
Storm related utility repair work was down compared to last year, but we continue to see strong demand overall for utility related work.
Demand for sales and leasing of the transmission line equipment that this business manufactures remains very high coupled with the strong capex budgets that we see across utility industry.
Our outlook for the outside specialty contracting remains positive.
Opportunities for inside specialty contracting also remain high, especially in the commercial sector.
Construction services ended the quarter with a backlog of $1 $2 7 billion down just slightly from the prior year's third year record of $1 two 8 billion bid.
Bidding remains competitive across the company's footprint.
And we do expect that our relationships with existing customers combined with our high quality of service and effective cost management will continue to aid us in securing profitable projects.
While construction services had a very strong first half of the year, we have adjusted our revenue and margin margin guidance for this segment to reflect the impacts of here in the third quarter.
We now expect revenues to be in the range of two <unk> to $2 2 billion with margins comparable to 2020 levels.
And finally, our construction materials business.
Knife River had a solid third quarter, although down from last year's record third quarter earnings the primary impacts to earnings at this business were higher costs for asphalt oil and diesel fuel as commodity cost returned to levels closer to what we saw in 2019.
As you May remember decreased energy related cost pushed our asphalt and asphalt related product line margins to a near all time high last year.
<unk> has also been impacted by labor constraints largely for truck drivers as the COVID-19 pandemic amplified our prior and existing labor shortage, while labor challenges continue to impact. Many construction companies named forever is actively engaged in attracting the next generation to.
The construction industry the.
The company is nearly finishing building a training center on a 270 acre tract of property in the Pacific Northwest.
That is designed to enhance the skills of its current employees and those of partner organizations as well as provide training to newcomers to the industry.
The knife River training Center features an 80000 square foot heated indoor arena for training on trucks, and heavy equipment and an attached 16000 square foot office with classroom and lab facility.
The center already is holding classes, helping students build marketable skills through both classroom education and hands on experience. In addition to developing individual talents. The goal of the center is to showcase construction as a true career of choice.
<unk> and classes are open to all construction companies beyond even knife River.
Given the third quarter results, we have adjusted our margin guidance for this business revenues are still expected to be in the range of two 1% to $2 3 billion. However margins are now projected to be slightly lower than those seen in 2020.
Knife River backlog as of September 30th was $651 7 million, a 14% increase from the prior year's $571 3 million.
We are seeing more bidding opportunities in certain regions from strong economic conditions.
We have exceptional employees from entry level to management level with a number of our employees spending their entire careers in the industry I am confident that our management teams will continue to navigate through the labor challenges we are seeing over.
Over the last year and a half our teams have managed through numerous challenges presented by the COVID-19 pandemic and we continue to produce solid results overall MDU resources in our company's had solid performance through the third quarter and while results did not reach the level, we anticipated our operations continue.
To operate safely and effectively.
Based on our results through the third quarter, we have adjusted our earnings per share guidance to now a range of $1 90 to $2 <unk> per share.
Looking forward, both our construction materials and construction services businesses are well positioned to benefit from the allocation of the American rescue plan AG funds, along with a federal infrastructure plan.
As the bipartisan Bill progresses, the focus on traditional infrastructure projects, including the construction of roads and bridges electric vehicle and broadband build out an upgraded power infrastructure will provide significant upside for our construction companies and will also provide fun.
<unk> certainty for our customers in the coming years.
We also continue to seek acquisition opportunities that will enhance market share for our construction operations.
As always MDU resources is committed to operating with integrity and with a focus on safety, while creating superior shareholder value as we continue providing essential services to our customers and delivering on our tagline of building a strong America.
I appreciate your interest in and commitment to MDU resources and ask now that we open the line to questions operator.
At this time I would like to remind everyone. If you would like to ask a question. Please press the star followed by one on your telephone keypad.
I would like to withdraw your question press the pound key.
If you're on a speakerphone. Please pick up your handset before entering your request, we will pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Adarsh <unk> with Bank of America.
Okay.
Hey, good afternoon, guys. Thank you for taking my question I think you should start.
Material segment I noticed in the Q it seems like the language around disbursement from the American rescue plan seems a little odd.
<unk>.
It seems like perhaps you have better visibility on a prospective basis than in previous quarters. It sounds like Youre, saying states are beginning to.
<unk> allocation now.
Can you maybe comment as to when we might see that manifest itself in that segments results.
Darius I'll start and then ask Dave Barney if he wants to add to that.
We're starting to see various state legislators legislate chores actually look to deal with some of those funds that are have headed their way in and some of those funds I actually have a fuse associated with those so they are they need to be used up by a certain point in time and so I would say that's just in the prior.
Assess of but I think we would start to expect to see some of those funds, making their way to the marketplace as early as next year, but.
Dave Barney would you have any other color you'd want to add to that.
No Dave thank.
Thank you covered it.
We would.
I would definitely expect to.
Let's see more of that next year 2022.
Darius did we catch your question.
You certainly did no that's very helpful color.
If I could stay in the materials segment I think there was also some additional language in there about.
Youre seeing an increase in bidding opportunities in certain regions related to economic conditions could you.
Perhaps elaborate on.
Sort of the delta, there or which regions those are.
And also what kind of margins youre seeing on those opportunities.
Dave could you take that question. Please.
Sure.
Now, we're seeing an increased spending in quite a few of our regions, especially in our.
Idaho and Oregon.
Montana.
Really strong right now.
Even in California.
Sure.
Coming out.
So in the margins.
Margins are tight right now.
They're really tight there is a lot of people.
But.
We'll get our share of it.
Okay.
Okay.
Okay great.
If I could ask one on <unk>.
The guide down on revenue is that principally related to.
The adjustment related to the one contract that you guys called out or is it.
Perhaps driven by demand.
Yes.
Gary So I'll ask Jeff thiede to respond to that one.
Yeah. Thanks for the question it's primarily.
Driven by timing.
Our major projects that we are finishing or have finished.
Have not been replaced right away with other projects if you take a look at our.
Backlog at one 7 billion very close to our record backlog of one.
A year ago.
It's just a timing issue.
Yes.
Projects.
August.
Next year.
Darius I know, Jeff maybe broke up a little bit there did you catch that that talking about primarily timing in that given the one point to seven backlog see it's more of a again more of a timing issue given our strong current backlog that we have.
I did catch that thank you for that detail and if I could just squeeze in one more briefly regarding your 5% to 8% long term guidance should we think of that now that you're lower on 'twenty. One should we think of the sort of run rate off of 'twenty, one as potentially being perhaps above or at the high end of that range.
Paresh. This is Jason I can weigh in on that one quickly here I mean, our 5% to 8% long term, we are confident without reiterated that number here again as you saw with the release out last night that is really based off our $1 95 that we have for 2020, and we feel confident that we'll be able to see that on a long.
Term run rate standpoint, going forward and I wont comment on exactly how much we would expect.
Year over year based on where we see things are waiting to see how 2021 ramps up here for the rest of the year, but very confident that we'll be able to hit that 5% to 8% range over the long term.
Okay. Thank you very much I'll turn it back now.
Thank you Darius.
Your next question comes from the line of Ryan Levine with Citi.
Hi, good afternoon.
Hi, Brian Hi, Dave.
In terms of the construction service business can you elaborate on what drove the $5 $5 million estimate change.
Construction contract.
I'll just start a little bit and then Jeff can certainly jump in but it was really the the largest difference. If you will think of on a year over year basis again, an estimate on a single project.
If you look at the run rate third quarter 2020 versus third quarter 2021, it's really the.
Largest difference between the two and Jeff maybe you can add a little more color to that particular project.
Sure. Thank you, Dave and good question Ryan.
Projected date references.
Now.
Standard.
Year.
Quarters passenger original all complete.
Completion.
The baseline schedule.
Significantly impacted.
Also we have materials that are purchased.
Cost period.
<unk>.
Last one.
Paul.
The biggest drivers.
Roger.
Sure.
Yes.
Yes.
Sure.
Okay.
Behind us.
Okay.
Okay, and then I guess on that.
Follow up to that given the higher cost and construction services, if I understood correctly previously some of your contracts have.
Cost pass throughs and inflation provision.
Is there anything that happened this quarter that prevented some of those mechanisms to work our reason why we should.
Not expect further deterioration in margin in the service business in light of some of these inflationary pressures.
Some some contracts have those pass through provisions that you mentioned.
Others, do not and we've seen impact to productivity given the pandemic.
And also to supply chain availability and a year ago, we thought we'd have more supply chain issues, but inventory levels are still.
Relatively.
Hi.
Provided our jobs this.
This year, we're really seeing light fixtures.
<unk>.
Okay.
Component of electronic components.
We are seeing those impacts.
Okay, and then shifting gears to the north Bakken expansion.
Some of the federal policy conversations around.
Around methane emission.
Are you seeing any added interest and expansion opportunities on that pipeline.
Thanks, Ryan this is Trevor.
We continued to see increased activity in the Bakken itself.
On the last <unk>.
Six to 12 months in particular.
As it relates to the new methane rules.
That just came out this week, we are evaluating that one would think on its face it should it should add.
Additional pressures for people to capture and move that gas to market. So it should we haven't seen anything in the last week, but we have seen increased.
Interest and overall just in the Bakken in terms of projects.
And opportunities to get.
Natural gas out of the basin.
And does that project.
I need to take any hydrogen as well to blended into the pipe.
Not as currently designed the moving.
Moving hydrogen through carbon steel pipe is being evaluated in different parts of the world. There are different studies going on in terms of the ability to blend a certain portion of hydrogen into our natural gas stream.
So.
We continue to watch those but not as it's originally designed it is designed to basically move pipeline quality gas.
I appreciate the color.
Ryan I'm going to just follow on a little bit from where <unk> left off you asked about kind of activity in the Bakken and the ability to potentially expand that pipe.
Another dynamic that we're seeing and it's actually being <unk>.
<unk> by the North Dakota pipeline authority as the gas oil ratio continues to decline.
As the producers produce oil and so that actually well I think bode well for our future potential here so far as overall natural gas production, even at current oil levels will likely increase given where the trajectory of the gas oil ratio is but.
A little more detail there, but again I think it bodes well just for our pipeline and where it's positioned.
Okay and then one last question in terms of the underground opportunity on the West Coast has M.
<unk> had face to face conversations with.
The large potential customer in California.
Jeff do you want to take that one.
You bet we have.
Very well positioned.
Sure.
Can we understand to be a multiyear effort to underground approximately 10000 miles.
<unk>, which is the margins.
Wildfires country, we submitted our qualifications with PGA.
He has a long standing customer for us.
Also perform this type of work for PGA in the past and given our talented team our experience our performance we expect to capture part of this opportunity once the engineering the permits in the procurement process need to bidding opportunities.
Thank you.
Thank you Ryan.
Your next.
Next question comes from the line of Chris Allen House with fiber to Williams.
Okay.
Hi, Chris Hey, guys how are you.
Good.
You mentioned being below expectations for the quarter I assume that principally that that is the law.
Labor and petroleum product cost pressures.
No.
Is this a function of not being contractually hedged.
On the petroleum products side.
And in great detail and is that something that as you go through the next.
Contracting cycle will reverse.
It's sort of a special.
The situation for these last couple of quarters.
Yes.
Fair question, Chris So the answer is part yes in part no and let me.
Breakdown for you and others, maybe a few of the just a few of the major parts again.
When I think of CST quarter over quarter is really the estimate on the one large project.
Year over year basis, there, but to your comment about petroleum or petroleum of hedges, if we think quarter over quarter, we had roughly about a $4 million after tax impact on diesel alone for the quarter within materials.
And then the other one that I said is part yes in part no its really in the asphalt and asphalt oil related areas and I will say, while still a very good business for us.
We did enjoy if you will the low commodity prices of a year ago and combined between asphalt and asphalt oil was about a $10 million after tax delta between.
Those two and so to your point some of that.
Yes, it does become a hedge but also some of it is.
The escalation of inflation that we saw on a quarter over quarter basis. So.
We believe we've captured it it's captured in our forward guidance as we look through the remainder of the year. We feel good about these businesses. It was just more of a one quarter occurrence.
Okay.
Really depending on how you bid your contract business.
Unanticipated spike in <unk>.
Oil prices.
Next year, you will be able to anticipate as you're contracting.
I would say that's certainly true for the diesel and diesel related products I think for the asphalt asphalt oil. It also becomes a product of what's out in the marketplace and what's available from what others are providing and so again, we enjoyed some record high margins in that business a year ago.
Very solid margins this year, but off some record high margins that we had a year ago.
And you also sort of mentioned that volumes on road work might have been down.
That a function of.
Some customers trying to anticipate that surge in asphalt oil cost and.
And maybe postponing work.
What led to that volumetric decline do you think.
So I will say it was more specific to a couple of areas and then Dave Barney if you would like to add to this.
One area being in Hawaii for instance.
Even more restrictive lockdowns in the islands and again, we have a strong presence throughout the islands that certainly had an effect on the amount of workload that we were able to work on in the islands and then our second area that I would say we were down more on a year over year basis, but really seeing it more of a <unk>.
One year down because next year's forecast looks.
Much more promising as our kind of our Minnesota in Northern Minnesota area, just happened to be an off year. If you will for some of what we would typically see in some of that highway asphalt asphalt related overlay type activity and so those would be kind of the key areas that we saw other areas again, we were quite strong in.
But again due to some COVID-19 activities and more just from a bid timing perspective.
Dave Barney anything to add to that or any more details that you might have.
No I was just.
Timing of work, we just didn't see a lot of we saw enough asphalt pay more but we didn't see what we've seen in the past, we expect that to turn around and as Dave said.
Minnesota operations.
It might be off a little bit on there.
Walt paving work.
This year.
And a few other regions were down on the asphalt paving we expect that to turn around in 2022.
But on another note, Chris we do do fixed forward contracts on our fuel cell.
You can only do about 50% of that.
Okay.
And on the construction side.
Okay.
There's.
Some maybe backlog that's not in your backlog technically but.
For renewable projects for transmission project.
We're going to come into the fore.
Are you guys seeing some.
Pent up demand that you are expecting that we'll gain some greater momentum next year as we see the legislation.
I'll now and.
Maybe some details of the legislation.
Some of those kinds of projects and obviously port.
Really constrained so.
What are you seeing on the horizon and some of those areas.
Yeah, Chris Thanks for that Great question, Jeff do you want to touch on that and maybe even start with some of our renewable activity.
Absolutely, we're performing distribution work for utility customers in some parts of the country to handle the demand.
Electric vehicles and they're charging stations. We're also installing charging stations many of our locations we see more opportunities in this market. We are working for a large.
Vehicle manufacturer and we're in conversations with another one to work at their facilities as well.
Continue to see expanded opportunities also renewables.
Morning.
Projects one.
$40 million range.
$8 million.
One of them.
And the southwest.
Okay.
We're also partnering with.
Global parts.
Performance for additional sites.
Western.
Renewables.
Sure.
We just picked up some more.
Long Beach.
Airports.
Airport.
Growing right now.
And we have experience to be able to capitalize on expanded infrastructure work in the transportation part.
Of our markets in the future.
Okay. Thanks, guys I appreciate it.
Thank you Chris.
This marks the last call for questions. If you would like to ask a question. Please press the star followed by one on your telephone keypad. This call will be available for replay beginning at five PM Eastern time today through 11, 59 PM Eastern time on Nova.
M Birch 18, the conference I'd number for the replay is 5194306.
Again, the conference I'd number for the replay is 519430 sacks.
Your next question comes from the line of Brian Russo with Sidoti.
Hi, good afternoon.
Hi, Brian.
Hey, Justin.
On the materials side.
You talked about labor shortages.
Higher asphalt oil.
And.
Diesel prices.
I.
<unk>.
You're accurate.
Your peers are also experiencing.
Jewelry material peers are experiencing the same issues so.
As the industry as a whole.
Our.
As the industry, raising prices and or MDU raising prices.
To kind of sustain margins.
That you may have seen in 2020.
Dave would you want to take that one please.
Sure.
Yes, Brian.
Our margins on our aggregate and ready mix were up this year over last year.
We were able to capture.
Increase our pricing.
In ready mix and we will continue to do that it was more on.
This was on the asphalt oil side this year.
Margins were quite a bit down and they were about $11 million.
$14 million.
Thank you Miss on our side.
Our portfolio.
Okay.
But we are increasing our margins underwriting.
Great.
Okay got it and then just on the services side could you just kind of characterize.
The types of contracts from mix of contracts or your fixed cost cost plus and then.
The average duration of a project that when you enter into a project.
It's less than a year you can lock in your raw material prices.
Having risk of any inflationary pressures.
That you might not be to capture with a longer contract.
Sure. This is Jeff approximately 80% of our backlog is in our inside businesses.
And a lot of our projects, we secure on a cost plus with a guaranteed Max brought on currently.
To provide design services. So we're updating pricing they were coming to our owners are general contractors.
With recommendations locking in whether it's copper aluminum.
From a wire.
That processes is.
As ever going as far as our utility customers that also.
Sure.
We work with unit unitize pricing to try to mitigate any of the procurement for commodity and inflationary.
Pressures that we've seen especially this year.
Okay.
Okay, and just to clarify on the.
Our revised guidance.
That is not.
Not only.
The year to date performance or the weakening of margins you saw in the third quarter, but it's also capturing.
What your experience is experiencing in the fourth quarter as well.
Is that accurate.
Yes, Brian Thats accurate that would be our expectation as we finish 2021 here.
Okay, great. Thank you very much.
Thank you Brian.
At this time there are no further questions I'd now like to turn the conference back over to management for closing remarks.
Thank you operator, and thank you all for taking the time to join US here on this third quarter earnings call. We.
We are optimistic about our growth opportunities with near record construction backlog and the ongoing and future regulated energy delivery projects that we highlighted here today.
We look forward to connecting again as we finish out 2021 and look forward to 2022 and again. Thank you. We appreciate your continued interest in and support of MDU resources group.
Operator.
This concludes today's Andy you Resources Group Conference call. Thank you for your participation you may now disconnect.
[music].