Understanding WBI Energy's Size & Scope -- August 15, 2025

 

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Understanding WBI Energy’s Size & Scope

• WBI Energy is the regulated pipeline and storage subsidiary of MDU Resources, carrying:

  • ~3,800 miles of natural gas transmission pipelines

  • Roughly 2.9 Bcf/day of transportation capacity

  • Underground storage—among the largest naturally occurring fields in North America

• Financial contribution:

  • In 2022, WBI Energy generated $35.3 million in profit (presumably operating income)  .

  • MDU’s regulated energy delivery earnings (which includes WBI plus utilities) were projected at $155–165 million for 2023  .

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Estimating Enterprise Value Using Comparable Metrics

In energy infrastructure deals, especially regulated pipelines, valuations typically rely on multiples such as EV/EBITDA.

A conservative range for such assets is roughly 8× to 12× EBITDA, which reflects the predictable, regulated cash flows.

Rough Estimate:

• Assumed EBITDA for WBI: Let’s start with the 2022 profit (~$35 million) as a proxy for EBITDA.

• Valuation Range:

  • Low-end (8×): ~$280 million

  • High-end (12×): ~$420 million

This suggests a hypothetical valuation of $300–$400 million, assuming WBI is standalone and similarly structured to peers.

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Additional Context That Could Adjust Valuation

Here are several factors that might drive WBI’s potential value up or down in the eyes of an acquirer like ONEOK:

1. Growth Prospects

   • WBI is actively expanding—investing $405 million from 2024–2028 in upgrades and growth projects  .

   • Continued capacity and storage utilization increases could justify higher multiples.

2. Regulated Stability

   • As a regulated utility-like asset, WBI offers low risk and reliable returns, which could command a valuation premium.

3. Balance Sheet Considerations

   • WBI had $235 million in debt outstanding against a $350 million note facility  .

   • Enterprise value calculations would incorporate such debt, impacting overall deal pricing.

4. Strategic Fit for ONEOK

   • If WBI strategically complements ONEOK’s footprint—e.g., filling geographic gaps or providing storage synergies—the acquisition could merit a premium multiple.

 

Final Thoughts

While we lack an official valuation on WBI Energy, applying industry-standard multiples based on known profit figures suggests a base enterprise value around $300–$400 million. That said, strategic value, growth projects, and regulatory factors may push the price higher—potentially toward $500 million or more in a favorable acquisition scenario.