Bismarck, ND, April 26, 2007 — MDU Resources Group Inc. announced that its subsidiary, Centennial Energy Resources LLC, has entered into a definitive purchase and sale agreement with Montana Acquisition Company LLC (Montana), a new company formed by energy industry executive Paul Prager and Natural Gas Partners VIII, LP (NGP). Under the agreement, MDU will sell its domestic independent power production business unit consisting of Centennial Power Inc. (Centennial Power) and Colorado Energy Management, LLC (Colorado Energy Management) to Montana.
The transaction is valued at $636 million, which includes the assumption of approximately $36 million of project-related debt. The closing of the sale is expected to occur in June and is subject to the receipt of regulatory approvals and fulfillment of other conditions established in the agreement. Proceeds from the sale will be used to fund MDU Resources’ acquisition of Cascade Natural Gas Corp. and will provide additional cash to deploy into growth opportunities that exist in its core lines of business.
Centennial Power’s generating assets include 603 MW of electric generating capacity located in Montana, Colorado, California and Georgia. The assets are fully contracted under mid- to long-term power purchase and sale agreements, and include coal-fired, natural gas-fired and wind-powered generation. Colorado Energy Management provides design, construction, operation and maintenance services to energy providers.
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