FORM 10-K

73

MDU RESOURCES G ROUP, INC.

CONSOLIDATED BAL ANCE SHEETS

December 31,

2007

2006

(In thousands, except shares and per share amounts)

Assets

Current assets:

Cash and cash equivalents

$ 105,820

$

73,078

Receivables, net

715,484

622,478

Inventories

229,255

204,440

Deferred income taxes

7,046

--

Short-term investments

91,550

23,250

Prepayments and other current assets

64,998

57,833

Current assets held for sale (Note 3)

179

12,656

1,214,332

993,735

Investments

118,602

155,111

Property, plant and equipment (Note 1)

5,930,246

4,727,725

Less accumulated depreciation, depletion and amortization

2,270,691

1,735,302

3,659,555

2,992,423

Deferred charges and other assets:

Goodwill (Note 5)

425,698

224,298

Other intangible assets, net (Note 5)

27,792

22,802

Other

146,455

103,840

Noncurrent assets held for sale (Note 3)

--

411,265

599,945

762,205

$5,592,434

$4,903,474

Liabilities and Stockholders' Equity

Current liabilities:

Short-term borrowings (Note 9)

$

1,700

$

--

Long-term debt due within one year

161,682

84,034

Accounts payable

369,235

289,836

Taxes payable

60,407

54,290

Deferred income taxes

--

5,969

Dividends payable

26,619

24,606

Accrued compensation

66,255

62,121

Other accrued liabilities

163,990

118,206

Current liabilities held for sale (Note 3)

--

14,900

849,888

653,962

Long-term debt (Note 10)

1,146,781

1,170,548

Deferred credits and other liabilities:

Deferred income taxes

668,016

546,602

Other liabilities

396,430

336,916

Noncurrent liabilities held for sale (Note 3)

--

30,533

1,064,446

914,051

Commitments and contingencies (Notes 17, 19 and 20)

Stockholders' equity:

Preferred stocks (Note 12)

15,000

15,000

Common stockholders' equity:

Common stock (Note 13)

Authorized -- 500,000,000 shares, $1.00 par value in 2007,

250,000,000 shares, $1.00 par value in 2006

Issued -- 182,946,528 shares in 2007 and 181,557,543 shares in 2006

182,947

181,558

Other paid-in capital

912,806

874,253

Retained earnings

1,433,585

1,104,210

Accumulated other comprehensive loss

(9,393)

(6,482)

Treasury stock at cost -- 538,921 shares

(3,626)

(3,626)

Total common stockholders' equity

2,516,319

2,149,913

Total stockholders' equity

2,531,319

2,164,913

$5,592,434

$4,903,474

The accompanying notes are an integral part of these consolidated financial statements.