MDU Resources Group (MDU) risk factors, FY2024 10-K

Other

1. 01The Company is subject to government regulations that may have a negative impact on its business and its results of operations and cash flows. Statutory and regulatory requirements also may limit another party's ability to acquire the Company or impose conditions on an acquisition of or by the Company
2. 02Economic volatility affects the Company's operations, as well as the demand for its products and services
3. 03The Company's operations involve risks that may result from catastrophic events
4. 04The Company’s insurance policies have limits and exclusions that may not fully mitigate losses, and an increase in cost, or the unavailability or cancellation of third-party insurance coverages, would increase the Company’s overall risk exposure
5. 05The Company is subject to capital market, debt and interest rate risks
6. 06The Company's stock price may be volatile and the value of its common stock may decline
7. 07The Company's operations are exposed to fluctuations in prices for labor, petroleum products, raw materials and services. Prices are generally subject to change in response to fluctuations in supply and demand and other general economic and market conditions beyond the Company's control
8. 08In 2024, 2023 and 2022, the Company experienced elevated commodity and supply chain costs including the costs of labor, raw materials, energy-related products and other inputs used in the production and distribution of its products and services
9. 09The Company's operations could be negatively impacted by import tariffs and/or other government mandates
10. 10Reductions in the Company's credit ratings could increase financing costs
11. 11Increasing costs associated with health care plans and changes in employment laws or regulations may adversely affect the Company's results of operations
12. 12The Company is exposed to risk of loss resulting from the nonpayment and/or nonperformance by the Company's customers and counterparties
13. 13Changes in tax law and other regulations may negatively affect the Company's business
14. 14Financial market changes could impact the Company’s pension and postretirement benefit plans and obligations

Operational Risks

1. 15Significant portions of the Company’s natural gas pipelines and power generation and transmission facilities are aging. The aging infrastructure may require significant additional maintenance or replacement that could adversely affect the Company’s results of operations
2. 16The Company's utility and pipeline operations are subject to planning risks
3. 17The Company's inability to implement its long-term strategic plan may adversely affect future results
4. 18The regulatory approval, permitting, construction, startup and/or operation of pipelines, power generation and transmission facilities may involve unanticipated events, delays and unrecoverable costs
5. 19Supply chain disruptions may adversely affect Company operations
6. 20Joint ownership of coal-fired generation facilities could impact the Company’s ability to manage changing regulations and economic conditions
7. 21The Company's operations could be adversely impacted by severe weather
8. 22The insurance industry may be adversely affected by severe weather events, which may impact availability of insurance coverage, insurance premiums and insurance policy terms
9. 23The Company's operations are subject to environmental laws and regulations that may increase costs of operations, impact or limit business plans, or expose the Company to environmental liabilities
10. 24Stakeholder actions and increased regulatory activity related to ESG matters, particularly climate change and reducing GHG emissions, could adversely impact the Company's operations, costs of or access to capital and impact or limit business plans

Other Risks

1. 25The Company's businesses are seasonal and subject to weather conditions that could adversely affect the Company's operations, revenues and cash flows
2. 26Competition exists in all of the Company's businesses
3. 27The Company must attract, develop and retain executive officers and other professional, technical and skilled labor forces with the skills and experience necessary to successfully manage, operate and grow the Company's businesses
4. 28The Company is a holding company and relies on cash from its subsidiaries to pay dividends
5. 29Costs related to obligations under a MEPP could have a material negative effect on the Company's results of operations and cash flows
6. 30The Company may face risks associated with stockholder activism
7. 31Technology disruptions or cyberattacks could adversely impact the Company's operations
8. 32Pandemics may have a negative impact on the Company's business operations, revenues, results of operations, liquidity and cash flows
9. 33If the completed separations of Knife River or Everus, together with certain related transactions, were to fail to qualify as transactions that are generally tax-free for U.S. federal income tax purposes, the Company and its stockholders could be subject to significant tax liabilities