"We had a very good third quarter, particularly when you consider the fact that natural gas and oil prices were substantially lower than a year ago," said Terry D. Hildestad, president and chief executive officer of MDU Resources.

Consolidated earnings for the nine months ended Sept.30, excluding a first quarter noncash charge related to low natural gas and oil prices, were $188.0million or $1.02per share, compared to $304.4million or $1.66per share for the first nine months of 2008. Results for the nine months ended Sept. 30, 2009 including the noncash charge were a loss of $196.4million or $1.07per share.

"Based on our first three quarters, we are increasing our 2009 earnings guidance," Hildestad said. "Our businesses are providing us with record levels of operating cash flow and a healthy balance sheet. Like most businesses, we see the effects of a weak economy. However, with our diversified business strategy and aggressive cost management, we are well positioned for growth as the economy recovers."

Highlights for Third Quarter 2009

Consolidated earnings of 50 cents per common share.

Record cash flows from operations of $629 million year-to-date.

Solid balance sheet with equity of 63% of total capital.

Increases earnings guidance for 2009 to $1.25 to $1.40 per common share, excluding a first quarter noncash charge of $384.4 million after-tax. (Including the noncash charge, guidance for 2009 is a loss of 67 cents to 82 cents per common share.)

The construction materials and contracting business increased earnings by 42 percent to $47.5million for the quarter compared to last year. The growth reflects higher volumes and margins for asphalt and liquid asphalt oil, higher margins for aggregates, and realization of continued cost reduction strategies. This business also benefited from work funded by federal stimulus money.

The natural gas and oil production business reported earnings of $24.4million. This reflects average realized natural gas prices that were 34 percent lower than during the same period in 2008, and average realized oil prices that were 47percent lower. The decrease also reflects lower natural gas production, which was anticipated as a result of the company's reduced drilling activity. Oil production, primarily in North Dakota's Bakken play, was up 11percent.

Earnings at the pipeline and energy services business increased to $10.6million, an increase of $4.9million over last year. The increase was largely driven by higher storage service revenues and increased volumes transported to storage. In August, the company completed a 75million cubic feet per day expansion of the Grasslands Pipeline, and acquired the assets of Total Corrosion Solutions, a full-service cathodic protection company.

Earnings at the utility business were $800,000. The natural gas operation's third quarter normal seasonal loss included Intermountain Gas Company, which was acquired in October 2008. Reductions in ongoing operation and maintenance expenses have more than offset costs incurred in the company's efforts to fully integrate the operations of its four utility companies.

The construction services business reported earnings of $7.3million. The results reflect lower construction workloads, partially offset by cost-control measures. The company's Rocky Mountain Contractors unit, which has been selected as EPC (Engineering, Procurement and Construction) contractor for the Montana Alberta Tie Line (MATL), expects shortly to receive an authorization to start work on the design phase of the 214-mile 230 kV transmission line that will interconnect the electricity markets of Alberta, Canada and Montana.

The company will host a webcast at 1p.m. EDT today to discuss earnings results and guidance. The event can be accessed at www.mdu.com. A webcast replay and audio replay will be available. The dial-in number for audio replay is (800)642-1687 or for international callers, (706)645-9291, conference ID32816963.

MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: utility resources, energy and construction materials. MDU Resources includes electric and natural gas utilities, construction services, natural gas and oil production, natural gas pipelines and energy services, and construction materials and contracting. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.

Performance Summary and Future Outlook

The following information highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company's businesses. Many of these highlighted points are "forward-looking statements." There is no assurance that the company's projections, including estimates for growth and changes in earnings, will in fact be achieved. Please refer to assumptions contained in this section, as well as the various important factors listed at the end of this document under the heading "Risk Factors and Cautionary Statements that May Affect Future Results." Changes in such assumptions and factors could cause actual future results to differ materially from growth and earnings projections.

                                                                          
                                          Earnings Third   Earnings Third 
                                          Quarter 2009     Quarter 2008   
 Business Line                            (In Millions)    (In Millions)  
 Construction Materials and Contracting   $  47.5          $  33.6        
 Energy                                                                   
 Natural gas and oil production              24.4             57.5        
 Pipeline and energy services                10.6             5.7         
 Utility Resources                                                        
 Electric and natural gas utilities          .8               3.4         
 Construction services                       7.3              16.3        
 Other                                       1.8              1.7         
 Earnings on common stock                 $  92.4          $  118.2       


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On a consolidated basis, the following information highlights the key growth strategies, projections and certain assumptions for the company:

Earnings per common share for 2009, diluted, are projected in the range of $1.25 to $1.40 excluding a $384.4million after-tax noncash charge related to low natural gas and oil prices. (Including the first quarter noncash charge, guidance for 2009 is a loss of 67 cents to 82 centsper common share.)

The company has issued a total of approximately $63 million of common stock year-to-date through an equity distribution program. No additional equity issuances are planned for 2009.

While 2009 earnings per share are projected to decline compared to 2008 earnings, long-term compound annual growth goals on earnings per share from operations are in the range of 7percent to 10percent.

Estimated capital expenditures for 2009 are approximately $460million.

The company intends to participate with ITC Holdings Corp. in developing the Green Power Express project, a 3,000-mile transmission line that would transport renewable energy from wind-rich Plains states to major metropolitan markets.

 Construction Materials and Contracting                                                    
                                                                                           
                                            Three Months Ended     Nine Months Ended       
                                            September 30,          September 30,           
                                            2009       2008        2009         2008       
                                            (Dollars in millions)                          
 Operating revenues                         $  622.0   $  620.0    $  1,194.9   $  1,248.7 
 Operating expenses:                                                                       
 Operation and maintenance                     506.6      524.0       1,004.6      1,085.3 
 Depreciation, depletion and amortization      23.4       25.8        71.2         76.7    
 Taxes, other than income                      11.5       11.6        28.8         31.1    
                                               541.5      561.4       1,104.6      1,193.1 
 Operating income                              80.5       58.6        90.3         55.6    
 Earnings                                   $  47.5    $  33.6     $  47.8      $  25.2    
                                                                                           
 Sales (000's):                                                                            
 Aggregates (tons)                             9,345      11,100      19,016       24,060  
 Asphalt (tons)                                3,443      2,890       5,161        4,538   
 Ready-mixed concrete (cubic yards)            1,021      1,244       2,322        2,907   


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The construction materials and contracting segment reported third quarter earnings of $47.5million, compared to $33.6million for the same period in 2008. The increase reflects higher liquid asphalt oil volumes and margins, higher asphalt volumes and margins and higher aggregate margins. Lower selling, general and administrative costs, largely related to cost-reduction measures, also contributed to the earnings increase. Partially offsetting the increases were lower aggregate and ready-mixed concrete volumes.

The following information highlights the key growth strategies, projections and certain assumptions for this segment:

The company expects 2009 earnings to be higher than 2008 as it continues a strong emphasis on cost containment. In addition, the company is well positioned to take advantage of government stimulus spending on transportation infrastructure.

Work backlog as of Sept.30 was approximately $494million, compared to $557million at Sept.30,2008. The backlog includes several public works projects.