The Company is an essential services provider, and its strategy is to enhance shareholder value by increasing market share and profitability in its regulated energy delivery and construction materials and services businesses, and through organic growth opportunities and a disciplined approach to strategic acquisitions of well-managed companies and properties. The Company operates a two-platform business model. Its regulated energy delivery platform and its construction materials and services platform are each comprised of different operating segments. Some of these segments experience seasonality related to the industries in which they operate. The two-platform approach helps balance this seasonality and the risk associated with each type of industry. Through its regulated energy delivery platform, the Company provides electric and natural gas services to customers; generates, transmits and distributes electricity; and provides natural gas transportation, storage and gathering services. These businesses are regulated by state public service commissions and/or theFERC . The construction materials and services platform provides construction services to a variety of industries, including commercial, industrial and governmental, and provides construction materials through aggregate mining and marketing of related products, such as ready-mixed concrete and asphalt. 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 based on 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 anticipates that all of the funds required for capital expenditures for 2020 will be met from various sources, including internally generated funds; credit facilities and commercial paper of the Company's subsidiaries, as described later; and issuance of debt and equity securities if necessary. For more information on the Company's capital expenditures, see Liquidity and Capital Commitments. Impact of the COVID-19 Pandemic on the Company InMarch 2020 , theWorld Health Organization declared the outbreak of COVID-19 a pandemic, and the President ofthe United States declared the COVID-19 outbreak as a national emergency. Most of the Company's products and services are considered essential to our country and our communities; therefore, operations have generally been permitted to continue. For more information on specific impacts to each of the Company's business segments, see the respective Outlook sections. The Company has been able to maintain employment for most of its workforce and remains committed to the health and safety of its employees and the communities where it operates.The MDU Resources Group Foundation also accelerated and provided additional donations to charitable organizations impacted by COVID-19 in the communities in which the Company operates. InMarch 2020 , the President ofthe United States signed into law the CARES Act in response to the COVID-19 pandemic. The CARES Act provides approximately$2.3 trillion of economic relief and stimulus to support the national economy during the pandemic including support for individuals and businesses affected by the pandemic and economic downturn. The Company did not apply for, nor receive, any loans through the programs made available as a result of the CARES Act. The Company evaluated the provisions of the CARES Act and does not expect the provisions to have a material effect on the Company's financial position or liquidity. The Company is adjusting its business in response to the pandemic while positioning for an economic rebound and potential opportunities to enhance its competitive position. The Company's business strategy incorporates preparation for unexpected economic adversity, which includes maintaining a strong liquidity position to weather a variety of economic scenarios, a strong balance sheet with conservative debt leverage and financial flexibility to access diverse sources of capital. For more information on the Company's liquidity, see Liquidity and Capital Commitments. In addition, the Company is evaluating its planned capital projects to identify potential expenditures for delay due to the economic environment and to ensure projects will provide acceptable returns on investment. The Company established a task force to monitor developments related to the pandemic and has implemented procedures consistent with both the CDC and state health departments to protect employees. Procedures are established to promptly notify employees, contractors and customers when individuals may have been exposed to COVID-19 and need to be tested or self-quarantined due to potential contact. Additionally, the Company has modified its work practices to include social distancing measures and hygiene practices. Many employees that have the capacity to do so are currently working from home. The Company has enacted additional physical and cybersecurity measures to safeguard systems for remote work locations. Although there have been logistical and other challenges to date, there were no material adverse impacts on the Company's first quarter 2020 results of operations. Customer demand remains strong at the construction companies, as evidenced by backlog levels atMarch 31, 2020 . The situation surrounding COVID-19 remains fluid and the potential for a material impact on the Company increases the longer the virus impacts the level of economic activity inthe United States . There is a great deal of uncertainty around the overall economic outlook due to the COVID-19 pandemic, and the Company is monitoring the situation closely. For more information on the possible impacts, see Item 1A. Risk Factors. 29
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