MDU Resources Group announced this week that it would be selling its production company Fidelity Exploration & Production. The company cites a drop in earnings to its decision and plans on focusing on other aspects of energy generation. They are currently proposing building the second diesel fuel refinery in North Dakota. It would produce 20,000 barrels of diesel fuel per day. Construction on a pre-determined site may start as early as next April. The Dickinson Press reported that the subsidiary, Fidelity Exploration, halted business due to rapidly falling oil prices’ effect on overall revenue.
Investors predict that a diesel refinery would meet the demand sought by the state as well as feature MDU’s construction business. It has not been decided whether or not Fidelity will be sold as a company or separate assets. MDU Resources reported its third quarter consolidated adjusted earnings were $84.9 million, or 44 cents per common share, compared to $92.3 million, or 49 cents per common share for the third quarter of 2013.