BISMARCK, N.D.--(BUSINESS WIRE)--MDU Resources Group, Inc. (NYSE: MDU) through its wholly owned subsidiary, WBI Holdings, Inc. (WBI) and Calumet Refining, LLC, an entity owned by the existing owners of the general partner of Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (“Calumet”) today announced they have signed a nonbinding letter of intent to explore the feasibility of jointly building and operating a 20,000 barrel per day diesel refinery in southwestern North Dakota. The facility would process Bakken crude and market the diesel within the Bakken region.
Site selection, permitting, crude oil feed procurement, marketing and engineering studies are currently underway. Upon successful completion of the project, Calumet Refining, LLC expects to contribute its interest in the joint venture to Calumet in exchange for cash and/or partnership interests.
“This project will capitalize on the capabilities and expertise of two strong companies to develop a facility that will serve demand for diesel by agriculture and industry in the rapidly developing Bakken play,” said Terry D. Hildestad, president and chief executive officer of MDU Resources. “We believe this joint venture will add value to Bakken crude. It will provide value to southwestern North Dakota communities by providing steady, good-paying, long-term jobs and through the two companies’ longstanding commitment to the communities in which they operate and serve.”
“We are excited that the owners of our general partner are partnering with MDU Resources and WBI to explore refining opportunities in the Bakken,” said Jennifer G. Straumins, president and chief operating officer of Calumet’s general partner. “We believe that our refining capabilities and their operating experience in the Bakken would be a strong combination. Both companies provide operational expertise and capability vital to the success of a large industrial project similar to this planned facility.”
Hildestad said the project exemplifies the potential that exists for all of the major subsidiary companies within MDU Resources to participate in a value-added project in the Bakken region and elsewhere.
“Bakken crude is expected to be sourced, in part, by our oil and natural gas production company, Fidelity,” he said. “There may be opportunities for the facility’s natural gas and electric generation needs to be provided by Montana-Dakota Utilities. The company’s construction companies are also capable of providing materials and services required to build the facility.”
MDU Resources Group, Inc., 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, including regulated utilities and pipelines, exploration and production, and construction materials and services companies. 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.
Calumet Specialty Products Partners, L.P. is a master limited partnership and is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet Specialty Products Partners, L.P. processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet Specialty Products Partners, L.P. is based in Indianapolis, Indiana and has eight facilities located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeastern Texas and eastern Missouri.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from results anticipated in the forward-looking statements. These risks and uncertainties include, among other things, the ability of the parties to consummate the transaction; the future performance of developed assets or businesses; possible drop-down of any assets; and any other statements about future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the ability to consummate the proposed transaction; the ability to obtain the requisite regulatory, board and conflicts committee approvals and the satisfaction of other conditions to consummation of the transaction.