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MDU drops out of production, focuses more on infrastructure

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.

21 comments

  1. Hey! check out that company! 😉 Looks like news travels fast.

  2. Always remember that gasoline and diesel are not expensive to produce, but expensive due to guv regulations and taxes.

  3. Heard about this. There is supposed to be 4-5 others to build as well

  4. I’m all for Diesel, just keep the Ethanol Out! Winter is Coming and it Gets Cold in North and South Dakota. Bio Diesel in Winter is Crap, better be dumping Fuel Treatment in!

  5. The should build the refinery

  6. We pay .38 cents a gallon in taxes in Az. That’s close to 14% of my gas cost.

  7. Keep it coming! We’ve been getting squeezed on fuel prices for far too long!

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