MDU Resources Group Completes Spinoff of Knife River Corporation, Creating Two Independent Powerhouses

BISMARCK, N.D., June 1, 2023 – MDU Resources Group, Inc. (NYSE: MDU) has accomplished a significant milestone with the successful completion of the spinoff of its construction materials subsidiary, Knife River Corporation. This strategic move establishes Knife River as an independent, publicly traded company, marking the beginning of “regular way” trading on the New York Stock Exchange under the ticker symbol “KNF.” MDU Resources, on the other hand, will continue trading on the NYSE under the symbol “MDU.” The completion of this spinoff brings MDU Resources closer to its goal of becoming two best-in-class, pure-play companies.

Creating Long-Term Value

According to David L. Goodin, president and CEO of MDU Resources, the spinoff of Knife River represents an exciting day for both companies. Goodin expresses his confidence that the strategic shift and the spinoff of Knife River will generate long-term value for MDU Resources’ stockholders. By streamlining their operations and focusing on their respective core strengths, both MDU Resources and Knife River aim to optimize value for their stakeholders.

MDU Resources’ Path Towards a Pure-Play Regulated Energy Delivery Business

With the successful separation of Knife River now complete, MDU Resources can concentrate on its ongoing strategic review of its construction services business. The company remains committed to achieving its objective of becoming a pure-play regulated energy delivery business, with a focus on electric and natural gas utilities, as well as a natural gas pipeline company. This consolidation will enable MDU Resources to further enhance its position in the energy sector and provide value to its shareholders.

Distribution Details

As previously announced, the spinoff of Knife River Corporation was executed through a pro rata distribution of approximately 90% of the outstanding shares of Knife River common stock to MDU Resources stockholders. MDU Resources stockholders retained their shares of MDU common stock and received one share of KNF common stock on May 31 for every four shares of MDU common stock held on the record date of May 22. For more detailed information regarding the distribution and Knife River’s management and business, interested parties can refer to the information statement attached to Knife River’s Registration Statement on Form 10 as Exhibit 99.1, available at https://investors.kniferiver.com.

The completion of the spinoff marks a significant achievement for MDU Resources and Knife River. Both companies can now focus on their respective strengths and enhance their positions within their industries. MDU Resources moves forward in its quest to become a pure-play regulated energy delivery business, while Knife River stands poised to thrive as an independent entity. This strategic shift not only benefits the companies themselves but also instills confidence in their respective stakeholders. The successful spinoff of Knife River Corporation showcases MDU Resources’ commitment to creating long-term value for its stockholders and solidifies its position as a leader in the energy sector. As Knife River embarks on its journey as an independent public company, the industry can anticipate its continued excellence in mining aggregates and providing top-notch construction materials. With the support of esteemed financial advisors, J.P. Morgan Securities LLC and PJT Partners, and legal counsel from Wachtell, Lipton, Rosen & Katz, both MDU Resources and Knife River are poised for a promising future of growth and success in their respective markets.

About MDU Resources:

MDU Resources Group, Inc., a member of the S&P MidCap 400 and the S&P High-Yield Dividend Aristocrats indices, is a company that provides essential products and services through its regulated energy delivery and construction services businesses. To learn more about MDU Resources, please visit www.mdu.com

About Knife River:

Knife River Corporation, a member of the S&P MidCap 400 index, specializes in mining aggregates and marketing crushed stone, sand, gravel, and related construction materials. Additionally, Knife River offers value-added products such as ready-mix concrete, asphalt, cement distribution, and integrated contracting services. To find out more about Knife River, please visit www.kniferiver.com.

Advisors:

J.P. Morgan Securities LLC and PJT Partners have acted as financial advisors for the transaction, while Wachtell, Lipton, Rosen & Katz has served as the legal advisor.