MDU Resources (MDU) 10-Q 5 Nov 09 2009 Q3 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating revenues:
Electric, natural gas distribution and pipeline and energy services	$206,867	$268,882	$1,065,061	$1,162,468
Construction services, natural gas and oil production, construction materials and contracting, and other	901,060	1,064,952	2,094,911	2,545,045
Total operating revenues	1,107,927	1,333,834	3,159,972	3,707,513
Operating expenses:
Fuel and purchased power	15,188	19,568	49,085	54,063
Purchased natural gas sold	57,598	65,626	520,495	487,310
Electric, natural gas distribution and pipeline and energy services	59,459	59,818	193,394	181,209
Construction services, natural gas and oil production, construction materials and contracting, and other	698,386	845,673	1,675,088	2,030,770
Depreciation, depletion and amortization	79,547	93,226	253,241	270,135
Taxes, other than income	37,476	46,626	129,250	154,666
Write-down of natural gas and oil properties	0	0	620,000	0
Total operating expenses	947,654	1,130,537	3,440,553	3,178,153
Operating Income (loss)	160,273	203,297	(280,581)	529,360
Earnings from equity method investments	2,290	1,867	6,154	5,731
Other income	2,923	395	7,076	1,922
Interest expense	20,945	19,921	62,700	57,762
Income (loss) before income taxes	144,541	185,638	(330,051)	479,251
Income taxes	51,957	67,256	(134,143)	174,311
Net income (loss)	92,584	118,382	(195,908)	304,940
Dividends on preferred stocks	171	171	514	514
Earnings (loss) on common stock	$92,413	$118,211	($196,422)	$304,426
Earnings (loss) per common share -- basic	0.5	0.65	-1.07	1.66
Earnings (loss) per common share -- diluted	0.5	0.64	-1.07	1.66
Dividends per common share	0.155	0.155	0.465	0.445
Weighted average common shares outstanding -- basic	185,160	183,219	184,309	182,931
Weighted average common shares outstanding -- diluted	185,425	184,081	184,309	183,774

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008	Sep. 30, 2008
Current assets:
Cash and cash equivalents	$61,449	$51,714	$57,126
Receivables, net	519,572	707,109	784,351
Inventories	268,677	261,524	276,138
Deferred income taxes	13,050	0	0
Short-term investments	1,644	2,467	13,271
Commodity derivative instruments	28,421	78,164	38,877
Prepayments and other current assets	77,736	171,314	150,347
Total current assets	970,549	1,272,292	1,320,110
Investments	137,340	114,290	118,865
Property, plant and equipment	6,698,227	7,062,237	6,665,008
Less accumulated depreciation, depletion and amortization	2,823,396	2,761,319	2,483,697
Net property, plant and equipment	3,874,831	4,300,918	4,181,311
Deferred charges and other assets:
Goodwill	629,036	615,735	442,702
Other intangible assets, net	30,184	28,392	30,730
Other	230,632	256,218	161,770
Total deferred charges and other assets	889,852	900,345	635,202
Total assets	5,872,572	6,587,845	6,255,488
Current Liabilities:
Short-term borrowings	0	105,100	89,030
Long-term debt due within one year	27,790	78,666	87,394
Accounts payable	267,320	432,358	391,188
Taxes payable	64,656	49,784	62,657
Deferred income taxes	0	20,344	8,225
Dividends payable	29,012	28,640	28,572
Accrued compensation	49,082	55,646	62,380
Commodity derivative instruments	44,903	56,529	35,944
Other accrued liabilities	162,200	140,408	129,128
Total current liabilities	644,963	967,475	894,518
Long-term debt	1,471,833	1,568,636	1,418,330
Deferred credits and other liabilities:
Deferred income taxes	547,538	727,857	722,413
Other liabilities	691,961	562,801	430,613
Total deferred credits and other liabilities	1,239,499	1,290,658	1,153,026
Stockholders' equity
Preferred stocks	15,000	15,000	15,000
Common stockholders' equity:
Shares issued - $1.00 par value, 187,673,037 at September 30, 2009, 183,770,147 at September 30, 2008 and 184,208,283 at December 31, 2008	187,673	184,208	183,770
Other paid-in capital	1,001,313	938,299	928,415
Retained earnings	1,334,255	1,616,830	1,656,767
Accumulated other comprehensive income (loss)	(18,338)	10,365	9,288
Treasury stock at cost - 538,921 shares	(3,626)	(3,626)	(3,626)
Total common stockholders' equity	2,501,277	2,746,076	2,774,614
Total stockholders' equity	2,516,277	2,761,076	2,789,614
Total liabilities and stockholders' equity	$5,872,572	$6,587,845	$6,255,488

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
	Sep. 30, 2009	Dec. 31, 2008	Sep. 30, 2008
Common stockholders' equity:
Common stock par value	$1	$1	$1
Common stock shares issued	187,673,037	184,208,283	183,770,147
Treasury shares	538,921	538,921	538,921

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating activities:
Net income (loss)	($195,908)	$304,940
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	253,241	270,135
Earnings, net of distributions, from equity method investments	(2,110)	(1,717)
Deferred income taxes	(200,240)	65,698
Write-down of natural gas and oil properties	620,000	0
Changes in current assets and liabilities, net of acquisitions:
Receivables	141,147	(56,931)
Inventories	(7,832)	(45,420)
Other current assets	67,143	(64,568)
Accounts payable	(73,984)	651
Other current liabilities	34,188	(23,610)
Other noncurrent changes	(6,423)	(341)
Net cash provided by operating activities	629,222	448,837
Investing activities:
Capital expenditures	(344,779)	(558,225)
Acquisitions, net of cash acquired	(6,452)	(276,335)
Net proceeds from sale or disposition of property	18,821	39,531
Investments	(560)	82,507
Net cash used in investing activities	(332,970)	(712,522)
Financing activities:
Issuance Of Short Term Borrowings	0	87,330
Repayment of short-term borrowings	(105,100)	0
Issuance of long-term debt	105,000	351,984
Repayment of long-term debt	(252,696)	(154,428)
Proceeds from issuance of common stock	51,440	5,851
Dividends paid	(86,011)	(80,019)
Tax benefit on stock-based compensation	195	4,349
Net cash provided by (used in) financing activities	(287,172)	215,067
Effect of exchange rate changes on cash and cash equivalents	655	(76)
Increase (decrease) in cash and cash equivalents	9,735	(48,694)
Cash and cash equivalents -- beginning of year	51,714	105,820
Cash and cash equivalents -- end of period	$61,449	$57,126

Basis of presentation

Basis of presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Basis of presentation	1.Basis of presentation The accompanying consolidated interim financial statements were prepared in conformity with the basis of presentation reflected in the consolidated financial statements included in the Company's 2008 Annual Report, and the standards of accounting measurement set forth in ASC270 and any amendments thereto adopted by the FASB. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2008 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses.

Seasonality of operations

Seasonality of operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Nature of operations	2.Seasonality of operations Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year.

Allowance for doubtfull account

Allowance for doubtfull accounts
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Allowance for doubtfull accounts	3.Allowance for doubtful accounts The Company's allowance for doubtful accounts as of September30, 2009 and 2008, and December31, 2008, was $16.7million, $13.0million and $13.7million, respectively.

Natural gas in storage

Natural gas in storage
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Natural gas in storage	4.Natural gas in storage Natural gas in storage for the Company's regulated operations is carried at average cost, or cost using the last-in, first-out method. The portion of the cost of natural gas in storage expected to be used within one year was included in inventories and was $48.5million, $41.1million and $27.6million at September30, 2009 and 2008, and December31, 2008, respectively. The remainder of natural gas in storage, which largely represents the cost of gas required to maintain pressure levels for normal operating purposes, was included in other assets and was $45.6million, $43.0million, and $43.4million at September30, 2009 and 2008, and December31, 2008, respectively.

Inventories

Inventories
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Inventories	5.Inventories Inventories, other than natural gas in storage for the Companys regulated operations, consisted primarily of aggregates held for resale of $88.1million, $101.1million and $89.1million; materials and supplies of $61.6million, $68.1million and $70.3million; asphalt oil of $21.2million, $23.3million and $22.1million; and other inventories of $49.3million, $42.5million and $52.4million, as of September30, 2009 and 2008, and December31, 2008, respectively. These inventories were stated at the lower of average cost or market value.

Natural gas and oil properties

Natural gas and oil properties
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Natural gas and oil properties	6.Natural gas and oil properties The Company uses the full-cost method of accounting for its natural gas and oil production activities. Under this method, all costs incurred in the acquisition, exploration and development of natural gas and oil properties are capitalized and amortized on the units-of-production method based on total proved reserves. Any conveyances of properties, including gains or losses on abandonments of properties, are treated as adjustments to the cost of the properties with no gain or loss recognized. Capitalized costs are subject to a ceiling test that limits such costs to the aggregate of the present value of future net cash flows from proved reserves based on spot market prices that exist at the end of the period discounted at 10percent, as mandated under the rules of the SEC, plus the cost of unproved properties less applicable income taxes. Future net revenue is estimated based on end-of-quarter spot market prices adjusted for contracted price changes. If capitalized costs exceed the full-cost ceiling at the end of any quarter, a permanent noncash write-down is required to be charged to earnings in that quarter unless subsequent price changes eliminate or reduce an indicated write-down. Due to low natural gas and oil prices that existed on March31, 2009, the Companys capitalized costs under the full-cost method of accounting exceeded the full-cost ceiling at March31, 2009. Accordingly, the Company was required to write down its natural gas and oil producing properties. The noncash write-down amounted to $620.0million ($384.4million after tax) for the three months ended March31, 2009. At September30, 2009, the Companys full-cost ceiling exceeded the Companys capitalized cost. However, sustained downward movements in natural gas and oil prices subsequent to September30, 2009, could result in future write-downs of the Companys natural gas and oil properties. The Company hedges a portion of its natural gas and oil production and the effects of the cash flow hedges were used in determining the full-cost ceiling. The Company would have recognized an additional write-down of its natural gas and oil properties of $107.9million ($66.9million after tax) as of March31, 2009, if the effects of cash flow hedges had not been considered in calculating the full-cost ceiling. For more information on the Companys cash flow hedges, see Note 13.

Earnings

Earnings (loss) per common share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Earnings (loss) per common share	7.Earnings (loss) per common share Basic earnings (loss) per common share were computed by dividing earnings (loss) on common stock by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per common share were computed by dividing earnings on common stock by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of outstanding stock options, restricted stock grants and performance share awards. For the three months ended September30, 2009 and 2008, and the nine months ended September30, 2008, there were no shares excluded from the calculation of diluted earnings per share. Diluted loss per common share for the nine months ended September30, 2009, was computed by dividing the loss on common stock by the weighted average number of shares of common stock outstanding during the applicable period. Due to the loss on common stock for the nine months ended September30, 2009, the effect of outstanding stock options, restricted stock grants and performance share awards was excluded from the computation of diluted loss per common share as their effect was antidilutive. Common stock outstanding includes issued shares less shares held in treasury.

Cash flow information

Cash flow information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Cash flow information	8.Cash flow information Cash expenditures for interest and income taxes were as follows: Nine Months Ended September30, 2009 2008 (In thousands) Interest, net of amount capitalized $ 65,421 $ 59,638 Income taxes $ 29,540 $ 117,506

New accounting standards

New accounting standards
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
New accounting standards	9.New accounting standards ASC105-10-05-1 ASC105-10-05-1 establishes the ASC as the source of authoritative generally accepted accounting principles recognized by the FASB. The ASC is a reorganization of GAAP into a topical format. It was effective for the Company in the third quarter of 2009. The adoption of ASC105-10-05-1 required the Company to revise its disclosures when referencing generally accepted accounting principles. ASC820 ASC820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard applies under other accounting pronouncements that require or permit fair value measurements with certain exceptions. ASC820 was effective for the Company on January1, 2008. ASC820-10-65-1 delayed the effective date of ASC820 for certain nonfinancial assets and nonfinancial liabilities to January1, 2009. The types of assets and liabilities that are recognized at fair value under the provisions of ASC820 effective January1, 2009, due to the delayed effective date, include nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination or new basis event, certain fair value measurements associated with goodwill impairment testing, indefinite-lived intangible assets and nonfinancial long-lived assets measured at fair value for impairment assessment, and asset retirement obligations initially measured at fair value. The adoption of ASC820, including the application to certain nonfinancial assets and nonfinancial liabilities with a delayed effective date of January1, 2009, did not have a material effect on the Company's financial position or results of operations. ASC805ASC805 requires an acquirer to recognize and measure the assets acquired, liabilities assumed and any noncontrolling interests in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exception. ASC805 requires that acquisition-related costs will be generally expensed as incurred. ASC805 also expands the disclosure requirements for business combinations. In addition, ASC805 was amended and clarified to address application issues raised in regard to initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. ASC805 and its amendments were effective for the Company on January1, 2009. The adoption of ASC805 and its amendments did not have a material effect on the Companys financial position or results of operations. ASC810-10 ASC810-10 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. ASC 810-10 was effective for the Company on January1, 2009. The adoption of ASC 810-10 did not have a material effect on the Companys financial position or results of operations. ASC815-10-50-1 ASC815-10-50-1 requires enhanced disclosures about an entitys derivative and hedging activities including how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for, and

Comprehensive income

Comprehensive income (loss)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Comprehensive income	10.Comprehensive income (loss) Comprehensive income (loss) is the sum of net income (loss) as reported and other comprehensive income (loss). The Company's other comprehensive income (loss) resulted from gains (losses) on derivative instruments qualifying as hedges and foreign currency translation adjustments. For more information on derivative instruments, see Note 13. Comprehensive income (loss), and the components of other comprehensive income (loss) and related tax effects, were as follows: Three Months Ended September30, 2009 2008 (In thousands) Net income $ 92,584 $ 118,382 Other comprehensive income (loss): Net unrealized gain (loss) on derivative instruments qualifying as hedges: Net unrealized gain (loss) on derivative instruments arising during the period, net of tax of $(4,632) and $56,940 in 2009 and 2008, respectively (7,557 ) 92,903 Less: Reclassification adjustment for gain (loss) on derivative instruments included in net income, net of tax of $10,022 and $(12,955) in 2009 and 2008, respectively 16,352 (21,137 ) Net unrealized gain (loss) on derivative instruments qualifying as hedges (23,909 ) 114,040 Foreign currency translation adjustment, net of tax of $2,538 and $(4,805) in 2009 and 2008, respectively 3,902 (7,461 ) (20,007 ) 106,579 Comprehensive income $ 72,577 $ 224,961 Nine Months Ended September30, 2009 2008 (In thousands) Net income (loss) $ (195,908 ) $ 304,940 Other comprehensive income (loss): Net unrealized gain (loss) on derivative instruments qualifying as hedges: Net unrealized gain (loss) on derivative instruments arising during the period, net of tax of $(1,758) and $16,811 in 2009 and 2008, respectively (2,869 ) 27,462 Less: Reclassification adjustment for gain on derivative instruments included in net income (loss), net of tax of $21,908 and $3,310 in 2009 and 2008, respectively 35,743 5,377 Net unrealized gain (loss) on derivative instruments qualifying as hedges (38,612 ) 22,085 Foreign currency translation adjustment, net of tax of $6,414 and $(1,928) in 2009 and 2008, respectively 9,909 (3,000 ) (28,703 ) 19,085 Comprehensive income (loss) $ (224,611 ) $ 324,025

Equity method investments

Equity method investments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Equity method investments	11.Equity method investments Investments in companies in which the Company has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. The Company's equity method investments at September30, 2009, include the Brazilian Transmission Lines. In August 2006, MDU Brasil acquired ownership interests in companies owning the Brazilian Transmission Lines. The interests involve the ENTE (13.3-percent ownership interest), ERTE (13.3-percent ownership interest) and ECTE (25-percent ownership interest) electric transmission lines, which are primarily in northeastern and southern Brazil. At September30, 2009 and 2008, and December31, 2008, the Company's equity method investments had total assets of $379.4million, $358.6million and $294.7million, respectively, and long-term debt of $180.9million, $179.0million and $158.0million, respectively. The Company's investment in its equity method investments was approximately $60.2million, $53.7million and $44.4million, including undistributed earnings of $8.7million, $8.6million and $6.8million, at September30, 2009 and 2008, and December31, 2008, respectively.

Goodwill and other intangible a

Goodwill and other intangible assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Goodwill and other intangible assets	12.Goodwill and other intangible assets The changes in the carrying amount of goodwill were as follows: Balance Goodwill Balance as of Acquired as of Nine Months Ended January1, During September30, September30, 2009 2009 the Year* 2009 (In thousands) Electric $ $ $ Natural gas distribution 344,952 784 345,736 Construction services 95,619 4,184 99,803 Pipeline and energy services 1,159 6,595 7,754 Natural gas and oil production Construction materials and contracting 174,005 1,738 175,743 Other Total $ 615,735 $ 13,301 $ 629,036 * Includes purchase price adjustments that were not material related to acquisitions in a prior period. Balance Goodwill Balance as of Acquired as of Nine Months Ended January1, During September30, September30, 2008 2008 the Year* 2008 (In thousands) Electric $ $ $ Natural gas distribution 171,129 (11 ) 171,118 Construction services 91,385 3,937 95,322 Pipeline and energy services 1,159 1,159 Natural gas and oil production Construction materials and contracting 162,025 13,078 175,103 Other Total $ 425,698 $ 17,004 $ 442,702 * Includes purchase price adjustments that were not material related to acquisitions in a prior period. Balance Goodwill Balance as of Acquired as of Year Ended January1, During the December31, December31, 2008 2008 Year* 2008 (In thousands) Electric $ $ $ Natural gas distribution 171,129 173,823 344,952 Construction services 91,385 4,234 95,619 Pipeline and energy services 1,159 1,159 Natural gas and oil production Construction materials and contracting 162,025 11,980 174,005 Other Total $ 425,698 $ 190,037 $ 615,735 * Includes purchase price adjustments that were not material related to acquisitions in a prior period. Other intangible assets were as follows: September30, 2009 September30, 2008 December31, 2008 (In thousands) Customer relationships $ 24,606 $ 22,719 $ 21,842 Accumulated amortization (8,754 ) (6,362 ) (6,985 ) 15,852 16,357 14,857 Noncompete agreements 12,227 9,737 10,080 Accumulated amortization (6,281 ) (4,714 ) (5,126 ) 5,946 5,023 4,954 Other 11,478 11,220 10,949 Accumulated amortization (3,092 ) (1,870 ) (2,368 ) 8,386 9,350 8,581 Total $ 30,184 $ 30,730 $ 28,392 Amortizati

Derivative instruments

Derivative instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Derivatives instruments	13. Derivative instruments The Company's policy allows the use of derivative instruments as part of an overall energy price, foreign currency and interest rate risk management program to efficiently manage and minimize commodity price, foreign currency and interest rate risk. As of September30, 2009, the Company had no outstanding foreign currency or interest rate hedges. The following information should be read in conjunction with Notes1 and 7 in the Company's Notes to Consolidated Financial Statements in the 2008 Annual Report. Cascade and Intermountain At September30, 2009, Cascade and Intermountain held natural gas swap agreements, with total forward notional volumes of 21.3million MMBtu, which were not designated as hedges. Cascade and Intermountain utilize natural gas swap agreements to manage a portion of their regulated natural gas supply portfolio in order to manage fluctuations in the price of natural gas related to core customers in accordance with authority granted by the IPUC, WUTC and OPUC. Core customers consist of residential, commercial and smaller industrial customers. The fair value of the derivative instrument must be estimated as of the end of each reporting period and is recorded on the Consolidated Balance Sheets as an asset or a liability. Cascade and Intermountain record periodic changes in the fair market value of the derivative instruments on the Consolidated Balance Sheets as a regulatory asset or a regulatory liability, and settlements of these arrangements are expected to be recovered through the purchased gas cost adjustment mechanism. Gains and losses on the settlements of these derivative instruments are recorded as a component of purchased natural gas sold on the Consolidated Statements of Income as they are recovered through the purchased gas cost adjustment mechanism. Under the terms of these arrangements, Cascade and Intermountain will either pay or receive settlement payments based on the difference between the fixed strike price and the monthly index price applicable to each contract. For the three and nine months ended September30, 2009, Cascade and Intermountain recorded the decrease in the fair market value of the derivative instruments of $21.8million and $43.7million, respectively, in regulatory assets. Certain of Cascade's derivative instruments contain credit-risk-related contingent features that permit the counterparties to require collateralization if Cascade's derivative liability positions exceed certain dollar thresholds. The dollar thresholds in certain of Cascade's agreements are determined and may fluctuate based on Cascade's credit rating on its debt. In addition, Cascade's and Intermountain's derivative instruments contain cross-default provisions that state if the entity fails to make payment with respect to certain of its indebtedness, in excess of specified amounts, the counterparties could require early settlement or termination of such entity's derivative instruments in liability positions. The aggregate fair value of Cascade and Intermountain's derivative instruments with credit-risk-related contingent features that are in a liability position at Septe

Fair value measurements

Fair value measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Fair value measurements	14.Fair value measurements The Company elected to measure its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. These investments had previously been accounted for as available-for-sale investments. The Company anticipates using these investments to satisfy its obligations under its unfunded, nonqualified benefit plans for executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $33.6million, $30.7million and $27.7million, as of September30, 2009 and 2008, and December31, 2008, respectively, are classified as Investments on the Consolidated Balance Sheets. The increase in the fair value of these investments for the three and nine months ended September30, 2009, was $4.1million (before tax) and $5.9million (before tax), respectively. The decrease in the fair value of these investments for the three and nine months ended September30, 2008, was $3.2million (before tax) and $5.5million (before tax), respectively. The change in fair value, which is considered part of the cost of the plan, is classified in operation and maintenance expense on the Consolidated Statements of Income. The Company did not elect the fair value option for its remaining available-for-sale securities, which are auction rate securities. The Companys auction rate securities, which totaled $11.4million at September30, 2009 and 2008, and December31, 2008, are accounted for as available-for-sale and are recorded at fair value. The fair value of the auction rate securities approximate cost and, as a result, there are no accumulated unrealized gains or losses recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets related to these investments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The statement establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The Companys assets and liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements at September30, 2009, Using Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level2) Significant Unobservable Inputs (Level3) Collateral Provided to Counterparties Balance at September30, 2009 (In thousands) Assets: Money market funds $ 50,608 $ $ $ $ 50,608 Available-for-sale securities 33,587 11,400 44,987 Commodity derivative instruments - current 28,421 28,421 Commodity derivative instruments - noncurrent 2,894 2,894 Total assets measured at fair value $ 84,195 $ 42,715 $ $ $ 126,910 Liabilities: Commodity de

Business segment data

Business segment data
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Business segment data	15.Business segment data The Companys reportable segments are those that are based on the Companys method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The vast majority of the Companys operations are located within the United States. The Company also has investments in foreign countries, which largely consist of Centennial Resources equity method investment in the Brazilian Transmission Lines. The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added products and services. The construction services segment specializes in constructing and maintaining electric and communication lines, gas pipelines, fire protection systems, and external lighting and traffic signalization equipment. This segment also provides utility excavation services and inside electrical wiring, cabling and mechanical services, sells and distributes electrical materials, and manufactures and distributes specialty equipment. The pipeline and energy services segment provides natural gas transportation, underground storage and gathering services through regulated and nonregulated pipeline systems primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides energy-related services. The natural gas and oil production segment is engaged in natural gas and oil acquisition, exploration, development and production activities in the Rocky Mountain and Mid-Continent regions of the United States and in and around the Gulf of Mexico. The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated contracting services. This segment operates in the central, southern and western United States and Alaska and Hawaii. The Other category includes the activities of Centennial Capital, which insures various types of risks as a captive insurer for certain of the Companys subsidiaries. The function of the captive insurer is to fund the deductible layers of the insured companies general liability and automobile liability coverages. Centennial Capital also owns certain real and personal property. The Other category also includes Centennial Resources' equity method investment in the Brazilian Transmission Lines. The information below follows the same accounting policies as described in Note1 of the Companys Notes to Consolidated Financial Statements in the 2008 Annual Report. Information on the Companys businesses was as follows: Inter- External segment Earnings Three Months Operating Operating on Common Ended September30, 2009 Revenues Revenues Stock (In thousands) Electric

Acquisitions

Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Acquisitions	16.Acquisitions During the first nine months of 2009, the Company acquired a pipeline and energy services business in Montana which was not material. The total purchase consideration for this business and purchase price adjustments with respect to certain other acquisitions made prior to 2009, consisting of the Company's common stock and cash, was $22.1 million. The above acquisition was accounted for under the purchase method of accounting and, accordingly, the acquired assets and liabilities assumed have been preliminarily recorded at their respective fair values as of the date of acquisition. Final fair market values are pending the completion of the review of the relevant assets and liabilities identified as of the acquisition date. The results of operations of the acquired business are included in the financial statements since the date of the acquisition. Pro forma financial amounts reflecting the effect of the above acquisition are not presented, as such acquisition was not material to the Company's financial position or results of operations.

Employee benefit plans

Employee benefit plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Employee benefit plans	17.Employee benefit plans The Company has noncontributory defined benefit pension plans and other postretirement benefit plans for certain eligible employees. Components of net periodic benefit cost for the Company's pension and other postretirement benefit plans were as follows: Other Postretirement Three Months Pension Benefits Benefits Ended September30, 2009 2008 2009 2008 (In thousands) Components of net periodic benefit cost: Service cost $ 2,032 $ 1,752 $ 564 $ 28 Interest cost 5,480 4,230 1,374 71 Expected return on assets (6,266 ) (5,272 ) (1,287 ) (81 ) Amortization of prior service cost (credit) 151 132 (689 ) (40 ) Amortization of net actuarial loss 397 209 73 9 Curtailment loss 1,650 Amortization of net transition obligation 531 30 Net periodic benefit cost, including amount capitalized 3,444 1,051 566 17 Less amount capitalized (7 ) 132 204 75 Net periodic benefit cost $ 3,451 $ 919 $ 362 $ (58 ) Other Postretirement Nine Months Pension Benefits Benefits Ended September30, 2009 2008 2009 2008 (In thousands) Components of net periodic benefit cost: Service cost $ 6,095 $ 6,572 $ 1,655 $ 1,178 Interest cost 16,439 15,859 4,099 3,053 Expected return on assets (18,796 ) (19,766 ) (4,104 ) (3,469 ) Amortization of prior service cost (credit) 453 496 (2,067 ) (1,717 ) Amortization of net actuarial loss 1,214 783 428 370 Curtailment loss 1,650 Amortization of net transition obligation 1,594 1,324 Net periodic benefit cost, including amount capitalized 7,055 3,944 1,605 739 Less amount capitalized 758 528 227 264 Net periodic benefit cost $ 6,297 $ 3,416 $ 1,378 $ 475 In 2009, the Company evaluated several provisions of its employee defined benefit plans for nonunion and certain union employees. As a result of this evaluation, the Company determined that, effective January 1, 2010, all benefit and service accruals of these plans will be frozen. These employees will be eligible to receive additional defined contribution plan benefits. Effective January 1, 2010, eligibility to receive retiree medical benefits will be modified at certain of the Companys businesses. Current employees who attain age 55 with 10 years of continuous service by December 31, 2010, will be provided the current retiree medical insurance benefits or can elect the new benefit, if desired, regardless of when they retire. All other current employees must meet the new eligibility criteria of age 60 and 10 years of continuou

Regulatory matters and revenues

Regulatory matters and revenues subject to refund
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Regulatory matters and revenues subject to refund	18.Regulatory matters and revenues subject to refund In November 2006, Montana-Dakota filed an application with the NDPSC requesting an advance determination of prudence of Montana-Dakota's ownership interest in Big Stone StationII. In August 2008, the NDPSC approved Montana-Dakotas request for advance determination of prudence for ownership in the proposed Big Stone Station II for a minimum of 121.8MW up to a maximum of 133MW and a proportionate ownership share of the associated transmission electric resources. In September 2008, the intervenors in the proceeding appealed the NDPSC order to the North Dakota District Court. The intervenors brief was filed January21, 2009, and Montana-Dakota filed its response brief on February17, 2009. On August19, 2009, the North Dakota District Court affirmed the NDPSCs order and denied the intervenors appeal. A decision has been made by the Big Stone Station II participants not to proceed with the project. On August17, 2009, Montana-Dakota filed an application with the WYPSC for an electric rate increase. Montana-Dakota requested a total increase of $6.2million annually or approximately 31percent above current rates. The rate increase request was necessitated by the Companys 25 MW ownership interest in the Wygen III power generation facility currently under construction near Gillette, Wyoming. The generation will replace a portion of the purchased power currently used to serve its Wyoming system. In December 1999, Williston Basin filed a general natural gas rate change application with the FERC. Williston Basin began collecting such rates effective June1, 2000, subject to refund. Currently, the only remaining issue outstanding related to this rate change application is in regard to certain service restrictions. In May 2004, the FERC remanded this issue to an ALJ for resolution. In November 2005, the FERC issued an Order on Initial Decision affirming the ALJ's Initial Decision regarding certain service and annual demand quantity restrictions. In April 2006, the FERC issued an Order on Rehearing denying Williston Basin's Request for Rehearing of the FERC's Order on Initial Decision. In April 2006, Williston Basin appealed to the D.C. Appeals Court certain issues addressed by the FERC's Order on Initial Decision and its Order on Rehearing. In March 2008, the D.C. Appeals Court issued its opinion in this matter concerning the service restrictions. The D.C. Appeals Court found that the FERC was correct to decide the case under the just and reasonable standard of section5(a) of the Natural Gas Act; however, it remanded the case back to the FERC as flaws in the FERCs reasoning render its orders arbitrary and capricious. In December 2008, the FERC issued its Order Requesting Data and Comment on this matter. Williston Basin and Northern States Power Company provided responses to FERCs requests in January 2009. In addition, initial comments addressing specific issues identified by the FERC were filed on February17, 2009, and reply comments were filed on March9, 2009. The initial and reply comments should contain all the arguments and supporting evidence the parties determine they need to provide to u

Contingencies

Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Contingencies	19.Contingencies Litigation Coalbed Natural Gas Operations Fidelitys CBNG operations are and have been the subject of numerous lawsuits in Montana and Wyoming. The current cases involve the permitting and use of water produced in connection with Fidelitys CBNG development in the Powder River Basin. Some of these cases challenge the issuance of discharge permits by the Montana DEQ and approval of other water management tools by the MBOGC. In April 2006, the Northern Cheyenne Tribe filed a complaint in Montana Twenty-Second Judicial District Court against the Montana DEQ seeking to set aside Fidelitys renewed direct discharge and treatment permits. The Northern Cheyenne Tribe claimed the Montana DEQ violated the Clean Water Act and the Montana Water Quality Act by failing to include in the permits conditions requiring application of the best practicable control technology currently available and by failing to impose a nondegradation policy like the one the BER adopted soon after the permit was issued. In addition, the Northern Cheyenne Tribe claimed that the actions of the Montana DEQ violated the Montana State Constitutions guarantee of a clean and healthful environment, that the Montana DEQs related environmental assessment was invalid, that the Montana DEQ was required, but failed, to prepare an EIS and that the Montana DEQ failed to consider other alternatives to the issuance of the permits. Fidelity, the NPRC, and the TRWUA were granted leave to intervene in this proceeding. On January12, 2009, the Montana Twenty-Second Judicial District Court decided the case in favor of Fidelity and the Montana DEQ in all respects, denying the motions of the Northern Cheyenne Tribe, TRWUA, and NPRC, and granting the cross-motions of the Montana DEQ and Fidelity in their entirety. As a result, Fidelity may continue to utilize its direct discharge and treatment permits. The NPRC, the TRWUA and the Northern Cheyenne Tribe appealed the decision to the Montana Supreme Court on March9, 11, and 13, 2009, respectively. Fidelitys discharge of water pursuant to its two permits is its primary means for managing CBNG-produced water. Fidelity believes that its discharge permits should, assuming normal operating conditions, allow Fidelity to continue its existing CBNG operations through the expiration of the permits in March 2011. If its permits are set aside, Fidelitys CBNG operations in Montana could be significantly and adversely affected. In October 2003, Tongue Yellowstone Irrigation District, NPRC and MEIC filed a lawsuit in Montana First Judicial District Court challenging the MBOGCs ROD adopting the 2003 Final EIS which analyzed CBNG development in the State of Montana. Through the amendment of the plaintiffs pleadings and as a result of discovery, the defendants have now determined that the primary legal issue before the Court is whether the ROD authorizes the wasting of ground water in violation of the Montana State Constitution and the public trust doctrine. Specifically, the plaintiffs contend that various water management tools, including Fidelitys direct discharge permits, allow for the waste of water. The parties are current

Subsequent events

Subsequent events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes To Financial Statements [Abstract]
Subsequent events	20.Subsequent events The Company evaluated for events or transactions between the balance sheet date and November5, 2009, the date of the issuance of the financial statements, that would require recognition or disclosure in the financial statements.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
Share data in Thousands	9 Months Ended Sep. 30, 2009	Oct. 29, 2009	Jun. 30, 2008
Entity Information Line Items
Entity Registrant Name	MDU RESOURCES GROUP INC
Entity Central Index Key	0000067716
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$6,385,212,601
Entity Common Stock Shares Outstanding		187,749,266