Knife River Corporation Acquires Texas Aggregate Deposits
BISMARCK, N.D., Feb. 28, 2019 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) announced today that subsidiary Knife River Corporation has acquired substantial additional aggregate deposits in Texas, which will augment existing company operations and enhance its ability to sell aggregates to third parties.
The 570 acres of land near Marble Falls, Texas, were purchased from Capitol Aggregates Inc. Financial details of the acquisition were not disclosed.
The "Honey Creek" property has access to a major rail line, and Knife River anticipates adding a rail loading facility to the site to transport aggregates to existing company locations in Waco, Bryan and Beaumont, Texas, as well as to third parties. Knife River is pursuing the necessary permits to harvest the aggregates. Once permitted, Knife River expects this source will provide an approximately 40-year supply of high-quality aggregates to Knife River's existing Texas markets.
"This acquisition supports our strategy of focusing on vertical integration," said David L. Goodin, president and CEO of MDU Resources. "High-quality construction materials are centrally important to Knife River, and we believe that growing our aggregates position in Texas and owning more of our source rock is a good business decision."
Forward-Looking Statements
The information in this release includes certain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release, including statements made by the president and CEO of MDU Resources, and statements relating to the aggregate deposits, third-party sales, and anticipated construction of a rail loading facility, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. For a discussion of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A - Risk Factors in MDU Resources' most recent Form 10-K and Form 10-Q.
About Knife River
Knife River Corporation mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated construction services. For more information about Knife River, visit the company's website at www.kniferiver.com.
About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index and the S&P High-Yield Dividend Aristocrats index, is Building a Strong America(®) by providing essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, see the company's website at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Financial Contact:
Jason Vollmer, vice president, chief financial officer and treasurer, 701-530-1755
Media Contacts:
Tony Spilde, Knife River communications, 541-693-5949
Laura Lueder, MDU Resources manager of communications and public relations, 701-530-1095
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SOURCE MDU Resources Group, Inc.
