BISMARCK, N.D. (BUSINESS WIRE), April 25, 2005 — MDU Resources Group, Inc. announced that, on April 19, 2005, its indirect wholly owned subsidiary, Fidelity Exploration & Production Company (Fidelity), signed Purchase and Sale Agreements to acquire natural gas and oil properties from a Houston-based independent producer for an aggregate cash purchase price of $145 million, subject to accounting and purchase price adjustments customary for oil and natural gas acquisitions of this type.
The acquisition is expected to close in May 2005, conditional upon completion of a due diligence process, including environmental reviews, and satisfaction of other standard closing conditions. Funds for the acquisition are expected to be provided from a combination of cash on hand and available debt capacity. Upon closing, the company anticipates the acquisition will be accretive to earnings per share and cash flow. The properties being acquired are located in south Texas with primary production from the Frio and Vicksburg formations. The seller will continue to operate one of the production fields and Fidelity will operate the rest of the acquired properties.
About MDU Resources Group, Inc. [ www.mdu.com ]
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure. MDU Resources includes natural gas and oil production, construction materials and mining, domestic and international independent power production, electric and natural gas utilities, natural gas pipelines and energy services, and utility services.