10-Q 1 mdu-20220331.htm MDU RESOURCES FORM 10-Q 03-31-2022 mdu-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ______________
Commission file number 1-03480
MDU RESOURCES GROUP INC
(Exact name of registrant as specified in its charter)
Delaware30-1133956
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)

1200 West Century Avenue
P.O. Box 5650
Bismarck, North Dakota 58506-5650
(Address of principal executive offices)
(Zip Code)
(701) 530-1000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00 per shareMDUNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No .
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No .
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated Filer
Non-Accelerated Filer
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No .
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of April 28, 2022: 203,350,740 shares.
1


Index
Page
 

2

Definitions
The following abbreviations and acronyms used in this Form 10-Q are defined below:
Abbreviation or Acronym
2021 Annual ReportCompany's Annual Report on Form 10-K for the year ended December 31, 2021
AFUDC
Allowance for funds used during construction
ASC
FASB Accounting Standards Codification
ASU
FASB Accounting Standards Update
Cascade
Cascade Natural Gas Corporation, an indirect wholly owned subsidiary of MDU Energy Capital
Centennial
Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of the Company
Centennial Capital
Centennial Holdings Capital LLC, a direct wholly owned subsidiary of Centennial
CompanyMDU Resources Group, Inc.
COVID-19Coronavirus disease 2019. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency.
Coyote Creek
Coyote Creek Mining Company, LLC, a subsidiary of The North American Coal Corporation
Coyote Station427-MW coal-fired electric generating facility near Beulah, North Dakota (25 percent ownership)
dk
Decatherm
Dodd-Frank Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
EPAUnited States Environmental Protection Agency
Exchange Act
Securities Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
FERCFederal Energy Regulatory Commission
FidelityFidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings (previously referred to as the Company's exploration and production segment)
GAAP
Accounting principles generally accepted in the United States of America
GHG
Greenhouse gas
Great PlainsGreat Plains Natural Gas Co., a public utility division of Montana-Dakota
Intermountain
Intermountain Gas Company, an indirect wholly owned subsidiary of MDU Energy Capital
IRSInternal Revenue Service
Knife River
Knife River Corporation, a direct wholly owned subsidiary of Centennial
kWh
Kilowatt-hour
LIBOR
London Inter-bank Offered Rate
MDU Construction Services
MDU Construction Services Group, Inc., a direct wholly owned subsidiary of Centennial
MDU Energy Capital
MDU Energy Capital, LLC, a direct wholly owned subsidiary of the Company
MISOMidcontinent Independent System Operator, Inc., the organization that provides open-access transmission services and monitors the high-voltage transmission system in the Midwest United States and Manitoba, Canada and a southern United States region which includes much of Arkansas, Mississippi, and Louisiana.
MMcf
Million cubic feet
MMdk
Million dk
MNPUC
Minnesota Public Utilities Commission
Montana-DakotaMontana-Dakota Utilities Co., a direct wholly owned subsidiary of MDU Energy Capital
MW
Megawatt
NDDEQNorth Dakota Department of Environmental Quality
NDPSC
North Dakota Public Service Commission
Oil
Includes crude oil and condensate
PHMSAPipeline and Hazardous Materials Safety Administration
3

Regional Haze RuleThe EPA developed the Regional Haze Rule requiring states to develop and implement comprehensive plans to reduce human-caused regional haze in designated areas such as national parks and wilderness areas.
SDPUC
South Dakota Public Utilities Commission
SEC
United States Securities and Exchange Commission
SOFR
Secured Overnight Financing Rate
VIE
Variable interest entity
Washington DOEWashington State Department of Ecology
WBI Energy WBI Energy, Inc., an indirect wholly owned subsidiary of WBI Holdings
WBI Holdings
WBI Holdings, Inc., a direct wholly owned subsidiary of Centennial
WUTC
Washington Utilities and Transportation Commission
Wygen III100-MW coal-fired electric generating facility near Gillette, Wyoming (25 percent ownership)
4

Introduction
The Company is a regulated energy delivery and construction materials and services business. Its principal executive offices are located at 1200 West Century Avenue, P.O. Box 5650, Bismarck, North Dakota 58506-5650, telephone (701) 530-1000.
Montana-Dakota was incorporated under the state laws of Delaware in 1924. The Company was incorporated under the state laws of Delaware in 2018 upon the completion of an internal holding company reorganization, which resulted in Montana-Dakota becoming a subsidiary of the Company.
The Company's mission is to deliver superior value to stakeholders by providing essential infrastructure and services to America. The Company's strategy is to deliver superior value with a two-platform model of regulated energy delivery and construction materials and services, while pursuing organic growth opportunities and strategic acquisitions of well-managed companies and properties. Each of the Company's platforms are comprised of different operating segments. Most of these segments experience seasonality related to the industries in which they operate. The two-platform approach helps balance this seasonality and the risks associated with each type of industry. Through its regulated energy delivery platform, the Company generates, transmits and distributes electricity and provides natural gas distribution, transportation and storage services. These businesses are regulated by state public service commissions and/or the FERC. The construction materials and services platform provides construction services to a variety of industries, including commercial, industrial and utility customers, and provides construction materials through aggregate mining and marketing of related products, such as ready-mix concrete, asphalt and asphalt oil.
The Company is organized into five reportable business segments. These business segments include: electric, natural gas distribution, pipeline, construction materials and contracting, and construction services. The Company's business segments are determined based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these segments is defined based on the reporting and review process used by the Company's chief executive officer.
The Company, through its wholly owned subsidiary, MDU Energy Capital, owns Montana-Dakota, Cascade and Intermountain. The electric segment is comprised of Montana-Dakota while the natural gas distribution segment is comprised of Montana-Dakota, Cascade and Intermountain.
The Company, through its wholly owned subsidiary, Centennial, owns WBI Energy, Knife River, MDU Construction Services and Centennial Capital. WBI Energy is the pipeline segment, Knife River is the construction materials and contracting segment, MDU Construction Services is the construction services segment and Centennial Capital is reflected in the Other category.
For more information on the Company's business segments, see Note 17 of the Notes to Consolidated Financial Statements.
5

Part I -- Financial Information
Item 1. Financial Statements
MDU Resources Group, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
 March 31,
 20222021
 (In thousands, except per share amounts)
Operating revenues:  
Electric, natural gas distribution and regulated pipeline
$553,456 $442,381 
Non-regulated pipeline, construction materials and contracting, construction services and other863,103 785,557 
Total operating revenues 1,416,559 1,227,938 
Operating expenses:  
Operation and maintenance:  
Electric, natural gas distribution and regulated pipeline
97,665 94,333 
Non-regulated pipeline, construction materials and contracting, construction services and other810,232 717,326 
Total operation and maintenance907,897 811,659 
Purchased natural gas sold267,353 176,237 
Depreciation, depletion and amortization80,121 73,723 
Taxes, other than income67,484 62,534 
Electric fuel and purchased power26,361 18,621 
Total operating expenses1,349,216 1,142,774 
Operating income67,343 85,164 
Other income (expense)(2,400)3,354 
Interest expense25,260 23,453 
Income before income taxes39,683 65,065 
Income taxes7,950 12,949 
Income from continuing operations31,733 52,116 
Income from discontinued operations, net of tax30 15 
Net income$31,763 $52,131 
Earnings per share - basic:  
Income from continuing operations$.16 $.26 
Discontinued operations, net of tax  
Earnings per share - basic$.16 $.26 
Earnings per share - diluted:  
Income from continuing operations$.16 $.26 
Discontinued operations, net of tax  
Earnings per share - diluted$.16 $.26 
Weighted average common shares outstanding - basic203,351 200,708 
Weighted average common shares outstanding - diluted203,391 200,952 
The accompanying notes are an integral part of these consolidated financial statements.
6

MDU Resources Group, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
 March 31,
 20222021
 (In thousands)
Net income$31,763 $52,131 
Other comprehensive income:
Reclassification adjustment for loss on derivative instruments included in net income, net of tax of $36 and $37 for the three months ended in 2022 and 2021, respectively
112 111 
Amortization of postretirement liability losses included in net periodic benefit credit, net of tax of $164 and $151 for the three months ended in 2022 and 2021, respectively
445 466 
Net unrealized loss on available-for-sale investments:
Net unrealized loss on available-for-sale investments arising during the period, net of tax of $(85) and $(12) for the three months ended in 2022 and 2021, respectively
(320)(44)
Reclassification adjustment for loss on available-for-sale investments included in net income, net of tax of $8 and $9 for the three months ended in 2022 and 2021, respectively
32 35 
Net unrealized loss on available-for-sale investments(288)(9)
Other comprehensive income269 568 
Comprehensive income attributable to common stockholders$32,032 $52,699 
The accompanying notes are an integral part of these consolidated financial statements.
7

MDU Resources Group, Inc.
Consolidated Balance Sheets
(Unaudited)
 March 31, 2022March 31, 2021December 31, 2021
Assets(In thousands, except shares and per share amounts)
Current assets:   
Cash and cash equivalents$64,904 $55,094 $54,161 
Receivables, net948,024 784,582 946,741 
Inventories380,316 316,737 335,609 
Current regulatory assets89,078 98,452 118,691 
Prepayments and other current assets89,586 68,409 95,741 
Total current assets1,571,908 1,323,274 1,550,943 
Noncurrent assets:   
Property, plant and equipment8,958,600 8,288,879 8,972,849 
Less accumulated depreciation, depletion and amortization3,158,091 3,096,371 3,216,461 
Net property, plant and equipment5,800,509 5,192,508 5,756,388 
Goodwill763,262 714,963 765,386 
Other intangible assets, net21,389 23,961 22,578 
Regulatory assets359,228 379,917 357,851 
Investments174,555 167,741 175,476 
Operating lease right-of-use assets119,845 116,663 124,138 
Other160,019 150,248 157,675 
Total noncurrent assets 7,398,807 6,746,001 7,359,492 
Total assets$8,970,715 $8,069,275 $8,910,435 
Liabilities and Stockholders' Equity   
Current liabilities:   
Short-term borrowings$99,958 $50,000 $ 
Long-term debt due within one year147,953 1,552 148,053 
Accounts payable449,746 379,348 478,933 
Taxes payable90,572 88,711 80,372 
Dividends payable44,229 42,740 44,229 
Accrued compensation64,796 69,612 81,904 
Operating lease liabilities due within one year34,618 32,562 35,368 
Regulatory liabilities due within one year31,186 34,266 16,303 
Other accrued liabilities203,670 201,246 207,078 
Total current liabilities 1,166,728 900,037 1,092,240 
Noncurrent liabilities:   
Long-term debt2,599,810 2,251,722 2,593,847 
Deferred income taxes587,940 528,551 591,962 
Asset retirement obligations463,080 445,170 458,061 
Regulatory liabilities433,628 429,060 428,790 
Operating lease liabilities85,874 84,494 89,253 
Other272,937 329,935 273,408 
Total noncurrent liabilities 4,443,269 4,068,932 4,435,321 
Commitments and contingencies
Stockholders' equity:
   
Common stock
Authorized - 500,000,000 shares, $1.00 par value
Shares issued - 203,889,661 at March 31, 2022, 201,733,458 at
March 31, 2021 and 203,889,661 at December 31, 2021
203,889 201,733 203,889 
Other paid-in capital1,451,464 1,382,158 1,461,205 
Retained earnings1,749,726 1,567,551 1,762,410 
Accumulated other comprehensive loss(40,735)(47,510)(41,004)
Treasury stock at cost - 538,921 shares
(3,626)(3,626)(3,626)
Total stockholders' equity3,360,718 3,100,306 3,382,874 
Total liabilities and stockholders' equity $8,970,715 $8,069,275 $8,910,435 
The accompanying notes are an integral part of these consolidated financial statements.
8

MDU Resources Group, Inc.
Consolidated Statements of Equity
(Unaudited)
Other
Paid-in
Capital
Retained EarningsAccumu-lated
Other
Compre-hensive
Loss
Common StockTreasury Stock
SharesAmountSharesAmountTotal
 (In thousands, except shares)
At December 31, 2021203,889,661 $203,889 $1,461,205 $1,762,410 $(41,004)(538,921)$(3,626)$3,382,874 
Net income
— — — 31,763 — — — 31,763 
Other comprehensive income
— — — — 269 — — 269 
Dividends declared on common stock
— — — (44,447)— — — (44,447)
Stock-based compensation
— — 2,689 — — — — 2,689 
Repurchase of common stock— — — — — (266,821)(7,399)(7,399)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings
— — (12,303)— — 266,821 7,399 (4,904)
Issuance of common stock
— — (127)— — — — (127)
At March 31, 2022203,889,661 $203,889 $1,451,464 $1,749,726 $(40,735)(538,921)$(3,626)$3,360,718 

Other
Paid-in
Capital
Retained EarningsAccumu-lated
Other
Compre-hensive
Loss
Common StockTreasury Stock
SharesAmountSharesAmountTotal
 (In thousands, except shares)
At December 31, 2020201,061,198 $201,061 $1,371,385 $1,558,363 $(48,078)(538,921)$(3,626)$3,079,105 
Net income
— — — 52,131 — — — 52,131 
Other comprehensive income
— — — — 568 — — 568 
Dividends declared on common stock
— — — (42,943)— — — (42,943)
Stock-based compensation
— — 2,574 — — — — 2,574 
Repurchase of common stock— — — — — (392,294)(6,701)(6,701)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings
— — (10,828)— — 392,294 6,701 (4,127)
Issuance of common stock
672,260 672 19,027 — — — — 19,699 
At March 31, 2021201,733,458 $201,733 $1,382,158 $1,567,551 $(47,510)(538,921)$(3,626)$3,100,306 
The accompanying notes are an integral part of these consolidated financial statements.
9

MDU Resources Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
 March 31,
 20222021
 (In thousands)
Operating activities:  
Net income$31,763 $52,131 
Income from discontinued operations, net of tax30 15 
Income from continuing operations31,733 52,116 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation, depletion and amortization80,121 73,723 
Deferred income taxes(6,466)9,843 
Provision for credit losses1,735 (317)
Amortization of debt issuance costs341 332 
Employee stock-based compensation costs2,689 2,574 
Pension & postretirement benefit plan net periodic benefit credit(1,491)(1,226)
Unrealized losses on investments5,147 529 
Gains on sales of assets(3,136)(2,919)
Changes in current assets and liabilities, net of acquisitions: 
Receivables(5,723)89,724 
Inventories(44,080)(25,613)
Other current assets34,491 (46,837)
Accounts payable2,980 (41,965)
Other current liabilities13,086 (13,977)
Pension & postretirement benefit plan contributions(149)(119)
Other noncurrent changes1,139 (223)
Net cash provided by continuing operations112,417 95,645 
Net cash used in discontinued operations(7)(25)
Net cash provided by operating activities112,410 95,620 
Investing activities:  
Capital expenditures(150,288)(111,091)
Acquisitions, net of cash acquired(524)(1,023)
Net proceeds from sale or disposition of property and other4,586 9,035 
Investments(4,442)(3,248)
Net cash used in investing activities(150,668)(106,327)
Financing activities:  
Issuance of short-term borrowings100,000 50,000 
Repayment of short-term borrowings (50,000)
Issuance of long-term debt150,000 93,298 
Repayment of long-term debt(143,622)(53,301)
Debt issuance costs(718)(3)
Net proceeds from issuance of common stock(127)19,699 
Dividends paid(44,229)(42,611)
Repurchase of common stock(7,399)(6,701)
Tax withholding on stock-based compensation(4,904)(4,127)
Net cash provided by financing activities49,001 6,254 
Increase (decrease) in cash and cash equivalents10,743 (4,453)
Cash and cash equivalents -- beginning of year54,161 59,547 
Cash and cash equivalents -- end of period$64,904 $55,094 
The accompanying notes are an integral part of these consolidated financial statements.
10

MDU Resources Group, Inc.
Notes to Consolidated
Financial Statements
March 31, 2022 and 2021
(Unaudited)
Note 1 - Basis of presentation
The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2021 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses.
The assets and liabilities of the Company's discontinued operations have been classified as held for sale and are included in prepayments and other current assets, noncurrent assets - other and other accrued liabilities on the Consolidated Balance Sheets. The results and supporting activities are shown in income from discontinued operations on the Consolidated Statements of Income. Unless otherwise indicated, the amounts presented in the accompanying notes to the consolidated financial statements relate to the Company's continuing operations.
In the fourth quarter of 2021, the Company made changes to the presentation of the Consolidated Statements of Cash Flows to provide further clarity on the sources and uses of net cash provided by operating activities and net cash provided by (used in) financing activities. Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not impact total net cash provided by operating activities or net cash provided by financing activities for the three months ended March 31, 2021.
Management has also evaluated the impact of events occurring after March 31, 2022, up to the date of the issuance of these consolidated interim financial statements on May 5, 2022, that would require recognition or disclosure in the Consolidated Financial Statements.
Note 2 - New accounting standards
The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its Consolidated Financial Statements and/or disclosures:
StandardDescriptionEffective dateImpact on financial statements/disclosures
ASU 2021-10 - Government AssistanceIn November 2021, the FASB issued guidance on modifying the disclosure requirements to increase the transparency of government assistance including disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements.January 1, 2022The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2022.
ASU 2020-04 - Reference Rate ReformIn March 2020, the FASB issued optional guidance to ease the facilitation of the effects of reference rate reform on financial reporting. The guidance applies to certain contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Beginning January 1, 2022, LIBOR or other discontinued reference rates cannot be applied to new contracts. New contracts will incorporate a new reference rate, which includes SOFR. LIBOR or other discontinued reference rates cannot be applied to contract modifications or hedging relationships entered into or evaluated after December 31, 2022. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must identify a replacement rate by June 30, 2023. Effective as of March 12, 2020 and will continue through December 31, 2022The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR, and a review of other contracts and agreements is on-going. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures.
Note 3 - Seasonality of operations
Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year.
11

Note 4 - Receivables and allowance for expected credit losses
Receivables consists primarily of trade receivables from the sale of goods and services, which are recorded at the invoiced amount, and contract assets, net of expected credit losses. For more information on contract assets, see Note 9. The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $50.7 million, $33.9 million and $44.8 million at March 31, 2022 and 2021, and December 31, 2021, respectively.
The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses at each of its reportable business segments. Risk characteristics used by the business segments may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected credit losses and believes it is reasonable.
Details of the Company's expected credit losses were as follows:
ElectricNatural gas
distribution
PipelineConstruction
materials and
contracting
Construction
services
Total
 (In thousands)
At December 31, 2021$269 $1,506 $2 $5,406 $2,533 $9,716 
Current expected credit loss provision565 1,369  (253)54 1,735 
Less write-offs charged against the allowance597 932  27 71 1,627 
Credit loss recoveries collected124 180   28 332 
At March 31, 2022$361 $2,123 $2 $5,126 $2,544 $10,156 
ElectricNatural gas
distribution
PipelineConstruction
materials and
contracting
Construction
services
Total
 (In thousands)
At December 31, 2020$899 $2,571 $2 $6,164 $5,722 $15,358 
Current expected credit loss provision538 1,273  (1,049)(1,079)(317)
Less write-offs charged against the allowance888 1,107  273 401 2,669 
Credit loss recoveries collected129 213    342 
At March 31, 2021$678 $2,950 $2 $4,842 $4,242 $12,714 
Note 5 - Inventories and natural gas in storage
Natural gas in storage for the Company's regulated operations is generally valued at lower of cost or market using the last-in, first-out method or lower of cost or net realizable value using the average cost or first-in, first-out method. The majority of all other inventories are valued at the lower of cost or net realizable value using the average cost method. The portion of the cost of natural gas in storage expected to be used within 12 months was included in inventories. Inventories on the Consolidated Balance Sheets were as follows:
 March 31, 2022March 31, 2021December 31, 2021
 (In thousands)
Aggregates held for resale$195,489 $180,450 $184,363 
Asphalt oil93,816 59,853 57,002 
Materials and supplies35,967 26,481 30,629 
Merchandise for resale33,393 24,319 28,501 
Natural gas in storage (current)10,801 8,113 18,867 
Other10,850 17,521 16,247 
Total$380,316 $316,737 $335,609 
The remainder of natural gas in storage, which largely represents the cost of gas required to maintain pressure levels for normal operating purposes, was included in noncurrent assets - other and was $47.5 million at March 31, 2022 and 2021, and December 31, 2021.
12

Note 6 - Earnings per share
Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance share awards and restricted stock units. Common stock outstanding includes issued shares less shares held in treasury. Net income was the same for both the basic and diluted earnings per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings per share calculations follows:
Three Months Ended
March 31,
20222021
(In thousands, except per share amounts)
Weighted average common shares outstanding - basic203,351 200,708 
Effect of dilutive performance share awards and restricted stock units40 244 
Weighted average common shares outstanding - diluted203,391 200,952 
Shares excluded from the calculation of diluted earnings per share
  
Dividends declared per common share
$.2175 $.2125 
Note 7 - Equity
The Company currently has a shelf registration statement on file with the SEC, under which the Company may issue and sell any combination of common stock and debt securities. The Company may sell such securities if warranted by market conditions and the Company's capital requirements.
In August 2020, the Company amended the Distribution Agreement dated February 22, 2019, with J.P. Morgan Securities LLC and MUFG Securities Americas Inc., as sales agents. This agreement, as amended, allows the offering, issuance and sale of up to 6.4 million shares of the Company's common stock in connection with an "at-the-market" offering. The common stock may be offered for sale, from time to time, in accordance with the terms and conditions of this agreement. As of March 31, 2022, the Company had capacity to issue up to 3.6 million additional shares of common stock under the "at-the-market" offering program.
Details of the Company's "at-the-market" offering activity was as follows:
Three Months Ended
March 31,
20222021
(In millions)
Shares issued .7 
Net proceeds *$(.1)$19.7 **
*    Net proceeds include issuance costs of $127,000 and $300,000 for the three months ended March 31, 2022 and 2021, respectively
**    Net proceeds were used for capital expenditures.
Note 8 - Accumulated other comprehensive loss
The after-tax changes in the components of accumulated other comprehensive loss were as follows:
Net Unrealized
Gain (Loss) on
Derivative
 Instruments
 Qualifying as
Hedges
Postretirement
 Liability
Adjustment
Net Unrealized
Gain (Loss) on
Available-for-sale
Investments
Total
Accumulated
 Other
Comprehensive
 Loss
 (In thousands)
At December 31, 2021$(538)$(40,461)$(5)$(41,004)
Other comprehensive loss before reclassifications  (320)(320)
Amounts reclassified from accumulated other comprehensive loss112 445 32 589 
Net current-period other comprehensive income (loss) 112 445 (288)269 
At March 31, 2022$(426)$(40,016)$(293)$(40,735)
13

Net Unrealized
Gain (Loss) on
Derivative
 Instruments
 Qualifying as
Hedges
Postretirement
 Liability
Adjustment
Net Unrealized
Gain (Loss) on
Available-for-sale
Investments
Total
Accumulated
 Other
Comprehensive
 Loss
 (In thousands)
At December 31, 2020$(984)$(47,207)$113 $(48,078)
Other comprehensive loss before reclassifications  (44)(44)
Amounts reclassified from accumulated other comprehensive loss111 466 35 612 
Net current-period other comprehensive income (loss)111 466 (9)568 
At March 31, 2021$(873)$(46,741)$104 $(47,510)
The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Income. The reclassifications were as follows:
Three Months EndedLocation on Consolidated
Statements of
Income
March 31,
20222021
(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income
$(148)$(148)Interest expense
36 37 Income taxes
(112)(111)
Amortization of postretirement liability losses included in net periodic benefit credit(609)(617)Other income
164 151 Income taxes
(445)(466)
Reclassification adjustment on available-for-sale investments included in net income
(40)(