MDU RESOURCES GROUP, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Years Ended December 31, 1999 1998 1997 1996 1995 (In thousands of dollars) Earnings Available for Fixed Charges: Net Income per Consolidated Statements of Income $ 84,080 $ 34,107 $ 54,617 $ 45,470 $ 41,633 Income Taxes 49,310 17,485 30,743 16,087 23,057 133,390 51,592 85,360 61,557 64,690 Rents (a) 2,018 1,749 1,249 1,031 894 Interest (b) 36,539 31,587 33,047 34,101 29,924 Total Earnings Available for Fixed Charges $171,947 $ 84,928 $119,656 $ 96,689 $ 95,508 Preferred Dividend Requirements $ 772 $ 777 $ 782 $ 787 $ 792 Ratio of Income Before Income Taxes to Net Income 159% 151% 156% 135% 155% Preferred Dividend Factor on Pretax Basis 1,227 1,173 1,220 1,062 1,228 Fixed Charges (c) 38,557 33,336 34,296 35,132 30,818 Combined Fixed Charges and Preferred Stock Dividends $ 39,784 $ 34,509 $ 35,516 $ 36,194 $ 32,046 Ratio of Earnings to Fixed Charges 4.5x 2.5x 3.5x 2.8x 3.1x Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends 4.3x 2.5x 3.4x 2.7x 3.0x (a) Represents portion (33 1/3%) of rents which is estimated to approximately constitute the return to the lessors on their investment in leased premises. (b) Represents interest and amortization of debt discount and expense on all indebtedness and excludes amortization of gains or losses on reacquired debt which, under the Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income. Also includes carrying costs associated with natural gas available under a repurchase agreement with Frontier Gas Storage Company. In May 1999, the company purchased the remaining natural gas subject to the repurchase commitment thereby extinguishing the repurchase commitment. (c) Represents rents and interest, both as defined above.