SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) October 1, 1996
MDU RESOURCES GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-3480 41-0423660
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
400 North Fourth Street, Bismarck, ND 58501
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (701) 222-7900<PAGE>
Item 5. Other Events
On October 1, 1996, MDU Resources Group, Inc. issued a press release
announcing that third quarter earnings will include a write down to current
market price of the natural gas available under a repurchase commitment and
the reversal of certain reserves for tax and other contingencies. The net
effect of these items will result in a $3.7 million or 13 cents per common
share net charge to third quarter earnings.
Item 7. Financial Statements and Exhibits
(c) Exhibits. The following exhibit is filed herewith:
(99) Press Release, dated October 1, 1996, issued by
MDU Resources Group, Inc.<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MDU RESOURCES GROUP, INC.
DATE: October 2, 1996 By /s/ WARREN L. ROBINSON
Warren L. Robinson
Vice President, Treasurer and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit No.
(99) MDU Resources Group, Inc. Press Release
For Further Information Contact:
Vernon A. Raile - Vice President,
Controller and Chief Accounting
Officer - (701) 222-7623
MDU RESOURCES
GROUP, INC
______________________________________________________________________________
400 North Fourth Street
Bismarck, ND 58501
(701)222-7900
FOR IMMEDIATE RELEASE
October 1, 1996
BISMARCK, NORTH DAKOTA -- MDU Resources Group, Inc. (NYSE:MDU)
announced that third quarter earnings will include a write down
to current market price of the natural gas available under a
repurchase commitment and the reversal of certain reserves for
tax and other contingencies. The net effect of these items will
result in a $3.7 million or 13 cents per common share net charge
to third quarter earnings. "After the effect of the charge, we
expect the strong earnings performance of the company this year
to largely mitigate the effects of the charge," stated H. J.
Mellen, Jr., president and chief executive officer of MDU
Resources Group, Inc.
Based on a number of factors, including differences in
regional natural gas prices and recent natural gas sales,
management believes the recognition of the current market value
of this natural gas which is located in the Rocky Mountain Region
will allow the company to market the gas on a sustained basis and
enable the company to liquidate this asset over the next four to
five years. Liquidating the asset will save the company's
natural gas transmission unit the annual financing costs
associated with this commitment, which in 1995 totaled
approximately $6 million. The company has been absorbing the
carrying costs on this natural gas repurchase commitment since
1985.
Mellen further stated that the company's Fidelity Oil unit
was continuing to experience excellent results. Increased oil
and natural gas production, increased reserves and improved
commodity prices are all significantly enhancing that unit's
performance over the comparable prior year period.
MDU Resources Group, Inc. is a multidimensional natural
resource company comprised of an electric and natural gas
utility, a natural gas transmission company, construction
materials and mining operations, an energy marketing firm and is
engaged in oil and natural gas acquisition, exploration and
production activities.
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