Building a Strong America®

MDU Resources is Building a Strong America®

A strong infrastructure is the heart of our economy. It is the natural gas and electricity that power business, industry and our daily lives. It is the pipes and wires that connect our homes, factories, offices and stores to bring them to life. It is the transportation network of roads, highways and airports that keeps our economy moving. Infrastructure is our business, and we are building a strong America.



MDU Resources Statement on COVID-19

As the situation with COVID-19 (coronavirus) continues to evolve, MDU Resources Group’s first priority is always the safety and health of our employees and the public. While we have modified certain processes to ensure employees’ well-being, our operations continue at near-normal conditions. Customers can be assured that we will continue to provide the essential electricity, natural gas, and energy and transportation infrastructure that they need and expect from us.

Our operations remain strong and active, and we continue to maintain a sound financial position to execute our business strategy. Our employees are proud of the work they do and are very dedicated to serving our customers.

We know how critical electricity, natural gas, and energy and transportation infrastructure are to the country’s ability to respond to and overcome this pandemic. We assure you that MDU Resources is equipped and able to fulfill our obligations as we continue Building a Strong America.®




Return to Mergers & Acquisitions

Deal Overview

Buyer:
MDU Resources Group, Inc.
Actual Acquirer:
MDU Resources Group, Inc.
Target:
Cascade Natural Gas Corporation
Deal Type:
Utility
Agreement Date:
7/8/2006
Announcement Date:
7/8/2006
Announcement Deal Value ($ 000)
305,195
Short-term and Current Long-term Debt ($ 000)
8,000
Cash and Cash Equivalents ($ 000)
6,678
Current Investments ($ 000)
0
Inventories ($ 000)
6,289
Obligations under Capital Leases ($ 000)
NA
Postretirement Benefits ($ 000)
NA
Announced Transaction Value ($ 000)
465,829
Status:
Completed
Completion Date:
7/2/2007
Announced Deal Value Per Share ($ )
26.50

Consideration Breakout
Cash ($M) 305.2

Deal Pricing Ratios

Announcement Completion
Transaction Value / LTM Recurring EBITDA (x) 8.1 7.5
Transaction Value / Energy Operating Revenues (x) 1.09 0.92
Transaction Value / Assets (%) 95.98 91.12
Transaction Value / Assets (%) 95.98 91.12
Price / Adj. Op. Cash Flows (x) 9.11 3.46
Price / Book (%) 232.5 225.7
Price / Tangible Book (%) NA 225.7
Price / Earnings (x) 25.0 24.3
Transaction Value / Electricity Sold ($ /MWH) NM NM
Transaction Value / Elec. Customer Acquired ($ /customer) NM NM
Transaction Value / Gas Throughput ($ /MCF) NA NA
Price / Tangible Book (%) NA 225.7
Price / Earnings (x) 25.0 24.3
Transaction Value / Nameplate Capacity ($ /KW) NA NA
Transaction Value / Net Generation ($ /MWH) NA NA
Deal Terms
Description of Consideration

MDU has acquired Cascade Natural Gas for $26.50 per share in cash. MDU Resources assumed Cascade's $165.2 million in liabilities and $37.5 million in assets.

Accounting Method Purchase
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) 175,000
Estimated Cost Savings (%) NA
Est. Restructuring Charges ($ 000) NA
Termination Fee ($ 000) 9,000
Exchange Ratio (Common For Common) NA
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes UBS Investment Bank
Seller Yes J.P. Morgan Securities Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Thelen LLP
Seller Yes Preston Gates & Ellis LLP