INVESTOR RELATIONS. DORAN SCHWARTZ Vice President & Chief Financial Officer BUILDING A STRONG AMERICA

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1 INVESTOR RELATIONS DORAN SCHWARTZ Vice President & Chief Financial Officer

2 FORWARD-LOOKING STATEMENTS During the course of this presentation, we will make certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of Although the company believes that its expectations and beliefs are based on reasonable assumptions, actual results may differ materially. For a discussion of factors that may cause actual results to differ, refer to Item 1A Risk Factors in the company s most recent Form 10-K and Form 10-Q.

3 With integrity, create superior shareholder value by expanding upon our expertise to be the supplier of choice in all of our markets while being a safe and great place to work.

4 YEAR IN REVIEW 2016 Solid year for MDU Resources Consolidated EPS from continuing operations $1.19 compared to $0.90 in 2015 Total construction materials and services earnings of $136.6 million, an increase of 21 percent Construction materials reported record earnings and record year-end backlog Construction services earnings increased 43 percent Total regulated energy delivery earnings of $92.7 million, an increase of 27 percent Electric and natural gas utility earnings increased 16 percent Pipeline and midstream business experienced a 59 percent increase in natural gas storage levels

5 millions RESULTS FROM CONTINUING OPERATIONS FOR THE 12 MONTHS ENDING DECEMBER 31, 2016 $250 EARNINGS FROM CONTINUING OPERATIONS $1.40 EPS FROM CONTINUING OPERATIONS $200 $150 $175.7 $232.4 $1.20 $1.00 $0.80 $0.90 $1.19 $100 $0.60 $0.40 $50 $0.20 $- $

6 2016 TOTAL RETURN COMPARISONS 70% 60% 62.1% (Ending December 31, 2016) 50% 40% 30% 20% 10% 11.9% 20.7% 0% MDU S&P 500 S&P 400

7 LOOKING AHEAD Utility is projecting 4% rate base growth compounded annually $1.2 billion capital program in place to facilitate growth 160-mile, 345-kV transmission line; expected completion 2019 Customer growth of 1-2% In the process of completing a 2017 Integrated Resource Plan; to be filed mid 2017 Expansion of the Thunder Spirit II project will be online in 2018 Pipeline has returned focus to profitable core pipeline and fee-based gathering business $387 million 5-year organic capital investment planned Charbonneau & Line Section 25 Expansion will add 62,000 dk/day of capacity; expected completion late 2017 Moving forward on Valley Expansion Project targeting a 2018 in-service date

8 LOOKING AHEAD Construction materials working off record year-end backlog of $538 million FAST Act spending of $305B viewed as a positive Positive construction trends Potential opportunities with national focus on incremental infrastructure investments Strong bidding environment Construction services working off backlog of $475 million Strong bidding environment Looking at organic growth and acquisition opportunities Pursue additional opportunities in renewable energy construction

9 millions CAPITAL PROGRAM $1.9 billion five-year capital program Additional growth capital of $150 million in both 2017 and 2018 Additional growth capital will be allocated based on risk-adjusted return potential identified by business units $2,500 $2,000 $1,500 $1,000 $500 $300 $285 $387 $1,248 $ Utility Pipeline Construction Additional Growth Capital

10 REGULATED ENERGY DELIVERY

11 INVESTOR RELATIONS MARCH 2017 UTILITY ELECTRIC & NATURAL GAS

12 ELECTRIC AND NATURAL GAS 1,066,000 electric and natural gas customers in 448 communities Electric 143,000 customers 758 MW of owned generation Natural Gas 923,000 customers

13 22% 51% 27% 2016 Generation Coal Gas Renewables ELECTRIC GENERATION Increased renewable generation from 11% of portfolio to 22% since 2010 Thunder Spirit II expansion will increase renewable generation to 27% In the process of completing a 2017 Integrated Resource Plan and currently evaluating future generation and power supply portfolio options Note: Based on nameplate rating

14 TSW2 PURCHASE OPTION Must be exercised by 2/28/18 Would seek ND Advance Determination of Prudence before option is exercised Purchased cost about $85M Levelized cost of $23/MW

15 CUSTOMER GROWTH NATURAL GAS ELECTRIC 950, , , , , , , , , , , , , National Average 0.57% CAGR National Average 0.55% CAGR

16 RATE BASE Rate base at December 2016 of $1.9 billion; projected rate base of $2.3 billion at December 2021 Projecting 4% CAGR in rate base for Estimated capital investment of $277 million in 2017 and $971 million in Excludes resource requirements identified in IRP and those needed for Clean Power Plan compliance

17 REGULATORY UPDATE Pending cases ND electric; requested $13.4 million; interim increase of $11.7 million implemented Dec. 13, 2016; hearing scheduled April ID natural gas; requested $10.2 million; updated to $9.4 million; hearing held March 1-3 MN infrastructure cost tariff filed Dec. 21, 2016, for $456,000, effective May 20; pending before the PUC 2017 Potential filings Review and evaluation of gas jurisdictions in progress

18 ELECTRIC REGULATORY MECHANISMS Fuel Clause Adjustment Transmission Rider Environmental/ Renewable Rider Property Tax Tracker Interim Rate Relief Forecasted Test Period Forward Year Test Period MT ND SD WY

19 NATURAL GAS REGULATORY MECHANISMS Purchased Gas Adjustment MN MT ND SD WY ID WA OR Full Decoupling Weather Normalization Full Fixed General Service Rate Pipeline Replacement / Integrity Tracker Property Tax Tracker Earnings Sharing Interim Rate Relief Forecasted Test Period Forward Year Test Period Historical Test Period

20 OUTLOOK Customer base growth of 1-2 percent annually Organic growth opportunities; $1.2 billion capital program for Expect 4 percent rate base growth over next 5 years (compounded annually) Future rate base growth includes: 160-mile, 345-kV transmission line; expected completion 2019 Pipeline projects to enhance system reliability and deliverability Focused on timely regulatory recovery

21 INVESTOR RELATIONS MARCH 2017 PIPELINE & MIDSTREAM

22 PIPELINE & MIDSTREAM Regulated operations Approx. 4,000 miles of pipe 138,771 HP compression Over 1.5 Bcf/d system capacity 193 Bcf working storage Non-regulated operations 800 operated miles of pipe Producer/energy services

23 BUSINESS OVERVIEW Sale of Dakota Prairie Refining completed in June 2016 and sale of Pronghorn natural gas processing plant completed in January 2017 Significantly reduced exposure to commodity prices Now low risk/stable returns primarily regulated business Between 80% and 90% long term fixed fee contracts Average contract life is over five years; High quality customers Storage balances increased 59% compared to prior year

24 VALLEY EXPANSION PROJECT ORGANIC GROWTH Project Overview 38-mile pipeline, approximately $55 million - $60 million, FERC-regulated project to deliver natural gas supply to eastern ND and far western MN Timeline 2016 open season successful 2017 FERC approval process, design, right-ofway acquisition, procurement Construction in 2018

25 CHARBONNEAU & LINE SECTION 25 EXPANSION ORGANIC GROWTH Project Overview Adds 62,000 dk/day of capacity with additional compression on existing system in NW ND: New station near Tioga Two new units at Charbonneau New unit at Williston Timeline In service second quarter 2017

26 ACQUISITION TARGETS Currently underperforming or trending lower Reflected in purchase price Not strategic or core to current owner Strategic to WBI Energy Leverage our core strengths Priorities Regulated dry gas or fee-based gathering Enhance current assets/operations Near growth markets and end-use customers Bolt-ons in adjoining states or territories Similar terrain to existing system Off-market basins with follow-on expansion opportunities

27 OUTLOOK Valley Expansion and Charbonneau and Line Section 25 Expansion projects Continue to target growth by means of both organic growth projects in areas of existing operations and potential acquisitions that fit existing expertise

28 CONSTRUCTION

29 INVESTOR RELATIONS MARCH 2017 CONSTRUCTION MATERIALS

30 CONSTRUCTION MATERIALS Top 10 U.S. aggregate producer 5th sand and gravel 1.0B tons of reserves $ $1.95B in revenue projected for 2017 Record year-end backlog of $538 million Operations in 15 states

31 In Millions In Millions POSITIVE MOMENTUM $110 EARNINGS $2,500 REVENUE $100 $90 $80 $70 $60 $89.1 $102.7 $2,000 $1,500 $1,617.4 $1,712.1 $1,765.3 $ $1,904.3 $1,874.3 $1,850.0 $50 $40 $50.9 $51.5 $1,000 $30 $20 $32.4 $500 $10 $ $ A 2013 A 2014 A 2015 A 2016 A 2017 E

32 millions RECORD YEAR-END BACKLOG $ $ $ $406.0 $456.0 $438.0 $490.0 $538.0 $ $ $ $

33 VOLUME GROWTH TTM 12/31/16 TTM 12/31/15 % Change Aggregate (tons) 27,580 26, % Asphalt (tons) 7,203 6, % Ready-mix (cubic yards) 3,655 3, %

34 millions ADDITIONAL CAPACITY FOR GROWTH peak volumes year Agg. Volumes (tons) $85.7 Earnings Record earnings with additional capacity for volume growth $ Actual 2016 Actual

35 OUTLOOK Record year-end backlog of $538M Major jobs $63.4 million I-29 in Iowa $21.0 million bypass in Oregon Phase 2 $16.7 million Caltrans HWY 191 in California Forecasting 2017 revenue of $1.85B $1.95B Expect slightly higher margins in 2017 vs Growing Demand Housing starts strong $305B FAST Act spending

36 INVESTOR RELATIONS MARCH 2017 CONSTRUCTION SERVICES

37 CONSTRUCTION SERVICES Outside Power lines Substations Excavation & underground utilities Inside Electrical Mechanical Fire suppression Industrial Refinery turnaround Electrical Equipment & supply Electric transmission and distribution Rental and sales Local resources, national strength Ranked 13 th on ENR s Top 600 Specialty Contractors List

38 millions millions REBUILDING EARNINGS & REVENUE EARNINGS REVENUE $60 $50 $40 $38.4 $52.2 $54.4 $33.9 $1,200 $1,000 $800 $938.6 $ $ $926.4 $ $1100 $1000 $30 $23.8 $600 $20 $400 $10 $200 $ $ A 2013 A 2014 A 2015 A 2016 A 2017 E

39 millions REBUILDING BACKLOG $600 YEAR-END BACKLOG $500 $400 $459 $493 $475 $300 $200 $325 $305 $100 $

40 OPPORTUNITIES Outside International Line Builders Three-year contract renewal Loy Clark Pipeline Five-year contract renewal Rocky Mountain Contractors Three-year contract extension Capital Electric Line Builders 135-mile, 345 kv transmission line Industrial USI Industrial Turnarounds, capital projects, maintenance Wagner Industrial Energy, automotive, manufacturing Inside ESI Electrical Contractors - Ohio Healthcare, government, higher ed. On Electric Group Corporate campus headquarter expansion, high tech/mission critical Bombard Electric Solar, hospitality, gaming Capital Electric Research facility, health care Equipment & Supply Wagner Smith Equipment Operational excellence, customer focus

41 VALLEY ELECTRIC ASSOCIATION COMMUNITY SOLAR PROJECT Bombard Renewable Energy Pahrump, Nevada Provided turnkey engineering, procurement and construction 17.5-megawatt utility-scale project More than 51,400 solar PV panels cover the 80 acre site 2,640-foot, 24.9-kilovolt distribution line

42 OUTLOOK Successfully rebuilding backlog $475M at year-end Forecasting revenue $1.0B $1.1B Positive growth trend Expect 2017 margins to be comparable to 2016 Organic growth and acquisition opportunities

43 FINANCIAL OVERVIEW

44 millions RESULTS FROM CONTINUING OPERATIONS YEAR-TO-DATE DECEMBER 31, 2016 EARNINGS EPS $250 $1.40 $200 $232.4 $1.20 $1.19 $150 $175.7 $1.00 $0.80 $0.90 $100 $0.60 $0.40 $50 $0.20 $ $

45 millions CONSOLIDATED RESULTS* YEAR-TO-DATE DECEMBER 31, 2016 EARNINGS EPS $100 $1.0 $0 -$100 $63.7 $0.5 $0.0 $0.33 -$200 -$300 -$400 -$0.5 -$1.0 -$1.5 -$2.0 -$500 -$600 -$ $2.5 -$3.0 -$3.20 -$ * Includes both continuing and discontinued operations -$

46 millions UTILITY ELECTRIC & NATURAL GAS LOOKING AHEAD $277 million 2017 Cap Ex Significant rate case activity Pending : $55.4 million, which includes implemented interim rates Key to timely return on investments Expect 1% 2% customer growth Rate base at year-end 2016 of $1.9 billion $80 $70 $60 $50 $40 $30 $20 $59.5 EARNINGS $69.3 $10 $

47 millions PIPELINE & MIDSTREAM LOOKING AHEAD $41 million 2017 Cap Ex $25 Expansion projects Valley expansion $20 Charbonneau and Line 25 Continue to target growth by $15 means of both organic growth projects and potential acquisitions $13.3 $10 EARNINGS $23.4 $5 $

48 millions CONSTRUCTION MATERIALS LOOKING AHEAD Strong backlog of $538M at year-end; up over 9% FAST Act spending Expect slightly higher margins vs Forecasting 2017 revenue of $1.85B $1.95B $120 $100 $80 $60 $40 $89.1 EARNINGS $102.7 $20 $

49 millions CONSTRUCTION SERVICES Looking Ahead Backlog of $475 at year-end Expect 2017 margins to be comparable to 2016 Forecasting 2017 revenue $1.0B $1.1B $40 $35 $30 $25 $20 $23.8 EARNINGS $33.9 $15 $10 $5 $

50 FUNDING PLAN FOR 2017 Based on current estimates, the company s gross capital expenditures for its continuing operations and dividends are expected to be funded with operating cash flows, asset sales and small debt issuances No expected equity issuance in 2017 to fund capital expenditures or dividends Maintain commitment to a strong balance sheet Current ratings for the company are BBB+/Stable

51 DIVIDEND GROWTH $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $ Years $ consecutive years of quarterly dividend payments Dividend increased November 2016, marking 26 consecutive years of increases Committed to paying a competitive dividend $0.10 $ Note: Based on annualized dividends

52 INVESTOR RELATIONS QUESTIONS