1801 California Street
Suite #2500
Denver, CO 80202-2638
(303) 893-3166 phone
(800) 986-3133 toll-free
info@fidelityepco.com
Call 1-855-FEPC-OIL (1-855-337-2645) to report an EMERGENCY at any of our well sites or production facilities.
©2014 MDU Resources Group, Inc. Legal Notice | Disclosure Statement

Our team members are all actively engaged in the various components of oil and natural gas acquisition, exploration, development and production. We focus our activities in the Rocky Mountain and Mid-Continent/Gulf States regions of the United States. In recent years, we have successfully transitioned from a natural gas-centric business to a more balanced portfolio that can capitalize on higher-return oil production.

Mike Keller

“At Fidelity we recognize the environmental sensitivity of the areas we operate in. None more so than the Paradox Basin asset near Moab, Utah.”​

Mike Keller, EHS Manager

Kent Wells

“Fidelity is a well-established oil and gas company; we’ve been in business for decades. We are very excited to be a part of the renaissance that’s going on inside of the United States now in the oil and gas business.”​

Kent Wells, CEO of Fidelity and Vice Chairman of MDU Resources Group

Special Report:
Paradox Basin of Utah

Fidelity began operations in the area in 2007. Energy development in the Paradox Basin is not new. There have been more than 1,600 wells drilled in Grand County over the past 100 years. Currently, Fidelity is the largest energy producer in Grand and San Juan counties.The company recognizes the very unique nature of the lands around its development areas and is incorporating a customized drilling program that includes a very selective well location strategy. ...more>>

 

Geographic Profile

Rocky Mountain
Bakken and Three Forks areas
Baker field in the Cedar Creek Anticline
Bowdoin area
Heath Shale area
Big Horn Basin
Powder River Basin
Niobrara area
Paradox Basin
Mid-continent/Gulf States
Rusk County
Non-operated property
 

Our oil production has grown significantly and there are three principal drivers of this growth. The first is our Bakken oil fields in western North Dakota. This state has become our country’s second-largest oil-producing state, behind only Texas. The majority of Fidelity’s production comes from the Bakken. The company is also ramping up production in the Paradox Basin in Utah. Although in an earlier stage of development than the Bakken, production from the Paradox Basin is on the rise. In 2014, we acquired a new position in the Powder River Basin in Wyoming and it figures to be a part of our ongoing growth.

Fidelity is part of the MDU Resources Group family of companies.  MDU Resources is a member of the S&P MidCap 400 index and 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. For more information about MDU Resources, see the company's website at www.mdu.com.

Corporate Profile

A legacy company of MDU Resources, Fidelity has roots that date back to the 1930s. First known as Fidelity Gas Company, its first responsibility was to find and develop natural gas reserves to feed a pipeline that ran from Baker to Glendive, Montana.

Vision Statement

Become a top quartile onshore North America oil and gas company with profitable and sustainable growth.

Mission Statement

Achieve our vision by hiring the best talent, using the most appropriate technology, and performing all of our operations in a safe and responsible manner. Do this in a way that earns the respect of our shareholders, competitors and stakeholders and brings great pride to our employees.

Core Values

We will achieve our vision and accomplish our mission by always doing what’s RIGHT:

Respect …your business associates, customers, co-workers and yourself.
Integrity .. in the way we do business.
Golden Rule … treat others as you wish to be treated.
Honesty … above all else.
Trust … build lasting relationships worthy of mutual confidence.

Executive Team

Kent Wells, Chief Executive Officer
Pat O’Bryan, President
Darwin Subart, Chief Financial Officer
Randy Rickford, Vice President - Growth Business Unit
Dennis Zander, Vice President - Production Business Unit
 

MDU Resources provides value-added natural resource products and related services that are essential to energy and transportation infrastructure including regulated utilities and pipelines, oil and natural gas exploration and production, and construction materials and services companies. MDU Resources has been traded on the New York Stock Exchange since 1948.

Statistical Profile

MDU Resources Earnings by Business Segment as a Percentage

Fidelity is a company with a unique combination of assets. Since the origins of the company date back to the 1930s, Fidelity has a strong foundation in long-lived properties producing a stable cash flow. Recent property acquisitions and development provide exciting, new potential.

Total Proved Reserves

Energy Diversity of Proved Reserves Pie Chart

80.7 million barrels of oil equivalent (MMBOE)
at Dec. 31, 2013


Total Annual Production
Energy Diversity Of Production Pie Chart
10.3 million barrels of oil equivalent (MMBOE)
at Dec. 31, 2013

Environment

Efficient and responsible energy development plays a key role in the life of each and every American. In continuing our mission to responsibly develop energy resources, we rely on sound science and fact-based decision-making.

From office recycling and supporting “green” community initiatives, to minimizing environmental impacts during drilling, hydraulic fracturing, and production operations, environmental stewardship is important to us. Fidelity and the family of companies within MDU Resources have three primary environmental goals:

  • Minimize waste while maximizing the responsible development of resources.
  • Promote the prevention and minimization of environmental impacts inherent in our field operations.
  • Support and comply with environmental laws and regulations.

The companies of MDU Resources endeavor to minimize land disturbances while maximizing resource extraction by engaging in the following:

  • Coordinate with wildlife regulatory agencies to protect wildlife.
  • Promote emission reduction and fuel conservation
  • Develop responsible water use practices
  • Ensure ground water and surface water quality protection
  • Control and prevent the spread of noxious weeds
  • Promote noise reduction
  • Implement programs to develop and enhance public spaces in the communities they serve
Sustainability Reporting

Sustainability means the corporation should manage its business with a long-term view, instead of focusing only on the next fiscal quarter. At Fidelity, that’s not a new concept. It comes naturally because, when you boil it down to the simplest form, the corporation is in the business of sustaining the lifestyle Americans have come to expect and demand. View the 2013 MDU Resources Sustainability Report.

Mike Keller

“At Fidelity we recognize the environmental sensitivity of the areas we operate in. None more so than the Paradox Basin asset near Moab, Utah.”​

Mike Keller, EHS Manager

Hydraulic Fracturing

The first commercial application of hydraulic fracturing occurred on March 17, 1949, on a well in southwestern Oklahoma. Since that first stimulation treatment, hydraulic fracturing has done more to increase recoverable reserves than any other technique in the energy industry. In addition, it has done so without harmful effects to the environment. ...learn more>>

Regulatory

Every step of oil and natural gas development is highly regulated. Comprehensive and robust regulations already exist for nearly every aspect of oil and natural gas development, including hydraulic fracturing. ...learn more>>

Safety by choice...not by chance

Safety by choice. Not by Chance

Our commitment to safety runs deep. It's more than a program, it's part of our company's culture and core values.

We carry out this commitment by providing a safe and healthy workplace through sound and safe work practices, policies, and procedures. We strive to protect employees by eliminating foreseeable hazards and by supporting local safety committees. We also promote employee involvement in safety and provide effective safety training opportunities.

Contractor Safety

We expect the service companies and vendors that work with us to share this culture of safety not only for themselves but for the people that live and work around our operations. Our commitment requires both employees and contractors to work together to identify and correct hazards and to effectively communicate with each other throughout the scope of work.

Contractors and their subcontractors must pursue the highest standard of health, safety and environmental (HSE) practices while operating on our work locations including lease access roads, well sites, non-well-site lease property, and production facilities.

Awarding Safety

Employee involvement in safety and safety training is recognized in a formal safety award program. To win the award, employees must be seen as a visible leader of safety initiatives and provide solutions to issues rather than just problems. In addition, the individual must react quickly to safety issues and concerns as they are raised. Fidelity’s “Safety Leader of the Year” also is someone who looks for a better and safer way to accomplish a task. Our safety leader award winner also anticipates issues by being constantly proactive.

Our “Safety Leader of the Year” for 2013 was Ben Briggs.

Ben Briggs accepts the Safety Award from Fidelity leadership.

Community

We live in the communities where we work. For this reason, we take our commitment to community service seriously. We have an obligation to give back to the communities and counties where we operate. We give of our time and talents and are encouraged by a company policy that allows employees to take time off of work for a volunteer service activity of their choice.

Recent Projects

Heart Walk

Fidelity's Cancer Walk Team

Fidelity’s employees participated in the “Heart Walk” on June 7. This 5K walk through downtown Denver raised funds to support the American Heart Association’s goal “to improve the cardiovascular health of all American’s by 20 percent in the year 2020.” The company group was named “Fidelity: A Team with a Big Heart.”

University of Utah

U of Utah

Fidelity’s drilling and operations personnel hosted a group of graduate students and faculty from the University of Utah in early May 2014. The group visited company operations in the Paradox Basin near Moab, Utah. The director of the university’s program said that the tour was a great illustration to the students that you can be in a National Park in the morning and drive a few miles and have a viable oil and gas project across the road.

Dead Horse Point State Park

Dead Horse State Park Donation

Visitors to the Dead Horse Point State Park near Moab, Utah, can expect to see some dramatic upgrades to the park’s Visitor Center in coming years thanks to a charitable donation made possible by Fidelity through the MDU Resources Foundation. A check for $50,000 was presented to the Friends of Utah State Parks for a two-phase overhaull of the entrance exhibits and displays.

Photo caption: Janet Bunger, Friends of Utah State Parks treasurer, Kevin Mathews, senior environmental engineer for Fidelity, Megan Blackwelder, Dead Horse Point State Park manager, and Crystal Carpenter, Dead Horse Point State Park assistant manager.

MDU Resources Foundation

Fidelity, through the corporation’s philanthropic arm – the MDU Resources Foundation – has given back to the communities it serves through contributions to worthwhile charities and organizations. Fidelity is proud to support qualified organizations that enhance quality of life.

For more information regarding community volunteer services and charitable activities contact us at:

Fidelity Exploration & Production Company
1801 California Street
Suite 2500
Denver, Colo. 80202
(303) 893-3133
(800) 986-3133

E-mail: info@fidelityepco.com

Review information and eligibility requirements for MDU Resources Foundation grants and donations and download and print a grant application from the corporate website.

Hydraulic Fracturing (Fracking)

The first commercial application of hydraulic fracturing occurred on March 17, 1949, on a well in southwestern Oklahoma. Since that first stimulation treatment, hydraulic fracturing has done more to increase recoverable reserves than any other technique in the energy industry. In addition, it has done so without harmful effects to the environment.

Fidelity Exploration & Production Company has used hydraulic fracturing in most of its production areas for decades. With fracturing, combined with sophisticated horizontal drilling, new supplies of oil and natural gas resources are being safely produced by Fidelity and other energy producers across the country.

MDU Resources Group has prepared a report discussing our safe management of the hydraulic fracturing process, which plays an important role in the successful production of oil and natural gas in the United States. Review our report (PDF).

Learn more about Hydraulic Fracturing

American Petroleum Institute This site contains useful information, including a “Hydraulic Fracturing Primer.”
Department of Energy The DOE has a primer called “Energy Modern Shale Primer,” with a section on hydraulic fracturing.
Energy in Depth (EID) was launched by the Independent Petroleum Association of America (IPAA) in 2009, to help get the facts out about our industry.
Environmental Protection Agency The EPA study showing there were no incidents of fracking polluting drinking water.
Fracfocus This is the national hydraulic fracturing chemical registry, and it has other helpful information on hydraulic fracturing.
Halliburton This site features an informative introduction to hydraulic fracturing, with an in-depth explanation and video.
Studyfracking.com This site answers many frequently asked questions and has a 45-second video showing how fracking works.

Regulatory Information

Every step of oil and natural gas development is highly regulated. Comprehensive and robust regulations already exist for nearly every aspect of oil and natural gas development, including hydraulic fracturing. Many other regulations address land use, wildlife, traffic and occupational safety. In each operating area, regulations governing oil and natural gas development can be enforced by numerous levels of government, making strong working relationships and open communication with area leadership and regulators essential for operators.

Federal Oversight

Oil and natural gas activity is subject to federal, state and local regulations that govern every aspect of industry operations, from initial permits to worker safety to wastewater disposal. Federal rules governing industry activity include:

  • The Clean Water Act - Regulates surface water discharges and storm-water runoff, spill prevention, wetlands protection, and underground injection.
  • The Clean Air Act - Sets rules for air emissions from engines, gas-processing equipment and other sources associated with drilling and production activities.
  • The Safe Drinking Water Act - Regulates the disposal of fluid waste deep underground (far below fresh water supplies and separated by approximately one mile of impermeable rock).
  • Endangered Species Act - Regulates land use for the protection of threatened or endangered plant and animal species.
  • The National Environmental Policy Act - Requires permits and environmental impact assessments for drilling on federal lands.
  • The Occupational Safety and Health Act - Sets standards to help keep workers safe. These include requiring Material Safety Data Sheets to be maintained and readily available onsite for any chemicals used by workers at that location.
  • The Emergency Planning and Community Right-to-Know Act - Requires storage of regulated chemicals in certain quantities to be reported annually to local and state emergency responders.
  • Resource Conservation And Recovery Act/Comprehensive Environmental Response, Compensation, and LiabilityAct - Regulates waste disposal and cleanup.

State-based regulation

States currently lead the day-to-day oversight of oil and natural gas development because they have on-the-ground personnel and expertise to safeguard local air, land and water. State-level enforcement is considered essential because development varies and is customized according to local geology, populations, available resources and conditions. Here is a listing of the state regulatory agencies in the areas where Fidelity operates.

  • Montana - Board of Oil and Gas Conservation
  • North Dakota - North Dakota Industrial Commission
  • Texas - Railroad Commission of Texas
  • Utah - Utah Department of Natural Resources
  • Wyoming - Wyoming Oil and Gas Conservation Commission
  • Nebraska - Nebraska Oil and Gas Conservation Commission

Owner Relations

To build and maintain relationships with all key stakeholders in Fidelity’s oil and natural gas development program, the company implements a four-step plan:

  • Plan…to be a good neighbor by working with landowners

  • Implement…do what you say you’re going to do

  • Monitor…continually watch field operations and impacts

  • Adapt…apply new ideas and methods to make things better

Because we live and work where we do business, environmental stewardship and responsible land management is more than just a casual idea – it’s a deeply held value among all our employees. Oil and natural gas development is not without impact and diligent care is required. All extractive industries have an impact on the land, and energy companies, landowners and regulatory agencies need to focus on the details.

Contact Information

If you are a property owner or landowner with questions or concerns about Fidelity’s operations on or near your property, contact us at: (800) 986-3133 or e-mail info@fidelityepco.com. Based on your question or concern, you will be placed in contact with the person who can answer your question.

Change of Ownership

This list is general information; your specific case may vary. Further documentation may be required based on your circumstances. Each situation is unique and requirements may vary.

Owner Died with a Will (Testate)

Probate proceedings must be performed in the state where the property is located. The documents below are required in order to transfer the interest of the decedent.

  • Copy of the Death Certificate
  • Copy of the Last Will & Testament
  • Order Admitting the Will to Probate
  • Letters Testamentary
  • A copy of the Deed of Distribution recorded in the county in which the interest is located from the Estate and/or recorded copy of the Assignment of interest from the Estate.
Owner Died without a Will (Intestate)

Probate proceedings must be performed in the state where the property is located in order for the heirs to obtain record title. The documents below are required in order to transfer the interest of the decedent.

  • Copy of the Death Certificate
  • Administration Documentation
  • A copy of the Deed of Distribution recorded in the county in which the interest is located from the Estate and/or recorded copy of the Assignment of interest from the Estate.
    **NOTE: If the deceased owner lived in a different state than their interest was located, we will require ancillary probate to be completed in the state of which they held their interest. Each state has their own laws of Descent and Distribution and these laws can vary from state to state.

No probate performed. The documents below are required in order to transfer the interest of the decedent.

  • Copy of the Death Certificate
  • A copy of the Affidavit of Heirship recorded in the county in which the interest is located, properly completed and notarized. The Affidavit of Heirship must be completed by a disinterested party. If the deceased owner received royalty payments exceeding $5000 annually, Fidelity requires that the Estate be probated in the state in which the revenue interest is located.
Owner Having Life Estate Dies

Probate proceedings must be performed in the state where the property is located. The documents below are required in order to transfer the interest of the decedent.

  • Copy of the Death Certificate
  • Current remaindermen information
Interest Owned by Joint Tenancy

Probate proceedings must be performed in the state where the property is located. The documents below are required in order to transfer the interest of the decedent.

  • Copy of the Death Certificate of the deceased joint tenant.

Name Changes

The following documentation is necessary in order to facilitate a name change on your account record.

Marriage?

Copy of the Marriage Certificate.

Divorce

Copy of the Divorce Decree reinstating maiden name or other documents indicating name change and any changes in ownership.

Name Change

Copy of the court documents indicating a legal name change.

Company corporation name change

Certification of Name Change from State of Incorporation.

Company merger

Merger Agreement.

Changes in Trustee

A copy of the Resignation of current Trustee and/or recorded copy of Successor Trustee appointment.

Sale of Interest and/or Transfer of Ownership

Copy of recorded documents recorded in the county in which the interest is located transferring ownership.

Attorney-in-Fact

Copy of Power of Attorney.

Frequent Questions

What are Royalties?

Royalties are the monies paid based on ownership of interest in a lease and/or lands.

What are the different interest types?

Royalty Interest – Payments related to the minerals owned.

Overriding Royalty Interest – Payments related to an override burdening a working interest owner on a specific lease or several leases.

Non-Participating Royalty Interest – Burdens the mineral interest owner.

Net Profits – Burdens the working interest owner and receives payments from the net profit

Working Interest – A percentage of ownership in an oil and gas lease which grants the right to drill and produce oil and gas from the mineral interest.

How is my royalty interest calculated?

Your royalty times your mineral interest times your acreage within a tract of land divided by the spacing area and/or unit acreage. i.e. 16% (royalty rate) X 50% (mineral interest) X 40 (acres in the tract) / 640 (acres in the spacing area/unit) = .5% (.005 decimal)

What is a Division Order?

A Division Order is a document used to confirm ownership information in a particular well and/or unit. Fidelity uses the NADOA 1995 approved model which is based on state statutes established in producing states. A Division Order cannot change the terms of your lease. When you sign and return the Division Order, you are confirming the information provided. **Please note, we do not accept altered Division Orders; if we receive an altered Division Order, we will place your account into pay status based on state statutes and not on the Division Order received.

Why didn’t I receive a Division Order?

Division Orders may not be sent to you if

  • Your new well is located in a spacing area and/or unit in which you already receive royalties from a producing well and your decimal interest has not changed.
  • You do not own an interest in the lands from which a well is producing.
  • We have been unable to locate you.
How do I get my interests valuated?

We are unable to establish a value for your minerals; you will need to contact an outside company to assist you. (i.e. an independent engineering firm and/or an independent landman)

What is an Owner Number/Payee Number/Account Number/Vendor Number?

You have been assigned a unique owner number for your account. Please include your owner number on all correspondence with Fidelity Exploration & Production Company. Your royalty check stub will list the Owner Number as “Payee Number”.

How do I change my address?
What documentation is required for a name change?
How do I add someone to my account?

You must provide a copy of the recorded documentation used in changing ownership to your account (Deed, Assignment and etc.). We are unable to add your spouse to your account without legal documentation.

How do I sign up for direct deposit?

We do not offer direct deposit at this time.

When are royalty checks issued?

Checks are issued and mailed by the last day of each month. If either of these days falls on a weekend and/or holiday, checks will be mailed the preceding business day. Oil is generally paid 30 days following the sales month and gas products are generally paid 60 days following the sales month. If you believe that your check is lost, please notify us. We do not re-issue checks until the check has been lost for a minimum of 30 days.

What is minimum pay amount?

Once an owner accumulates $50 in their account, a check is issued. The minimum balance can be lowered to $25 upon written request from the interest owner. Accounts that do not reach $50 throughout the year will be released for payment once annually.

Why does my monthly royalty payment vary?

There are many factors that can cause your royalty payments to fluctuate. Example of some factors include - but are not limited to - market conditions, commodity pricing, adjustments (overpayment or underpayment), seasonal conditions, sales, maintenance or operating issues which can affect volumes, marketing contracts etc.

Why is my check amount different than my family members'?

Ownership between family members may not be equal, individuals may hold interests in lands that others may not have an interest in, individuals may be in suspense for various reasons and timing of received Division Orders may also have a role. Please contact us with any questions as each situation is unique.

What do I do if I don’t receive my royalty check?

Your revenue check may not always arrive at the same time each month. If you do not receive your check by the 15th of the month following the date of issue, please contact our owner relations group to let us know. If your check is determined to be lost, we require a minimum of 30 days before re-issue of a check. Link to Lost Check Affidavit

How do I get proof of income?

Contact the Owner Relations group either by e-mail or phone. The information provided is not a guarantee of future payments; it is only proof of income for the previous three years, if applicable. We cannot guarantee or estimate that royalty payments will continue or improve in the future.

What is Escheat and/or Unclaimed Property?

If we are unable to make contact with or locate an owner, we are required by state statues to forward the funds we are holding in suspense for that owner to the state of the last known address. For owners in Montana, their funds are forwarded to the county Trust in which their interest is located. If there is no last known address, the funds are forwarded to the state of incorporation for Fidelity.

How do I research Escheated and/or Unclaimed Property?

If you believe that we are holding funds for you or a family member, please contact our Owner Relations group by e-mail or phone. You can also go to the website missingmoney.com and search for you or a family member.

How do I get my interest out of Escheat and/or Unclaimed Property?

Once your funds have been submitted to Unclaimed Property, you must contact that entity to file a claim. Once your claim has been processed by the state and appropriate documentation is provided to us, we will place your account back into pay status and pay you directly. Please notify our owner relations department immediately so that we can place your account back into a pay status.

Why haven’t I been paid royalties but the state website shows that the well is producing?

Production is any product extracted from the well. Sales do not occur until there is sufficient product for the purchaser to remove and buy. Royalties are based on sales not production. You may see that a well status is producing on the state website but you will not receive royalties until there are actual sales from a well. This can take some time based on the production volume of a well.

Who do I contact for questions on my check detail?
Why are royalty payments suspended?

There are several reasons why your account can be suspended; reasons can include title defects, insufficient address, death, lack of documentation, interest disputes and voluntary suspense. All suspended amounts are released upon satisfaction of required documentation. Each situation is unique and requirements may vary.

How do I change my ownership?

Recorded documentation is required to make changes in ownership, through Deeds, Assignments and any other necessary legal documentation. Please consult with your attorney regarding transfer of ownership. You may also contact our Owner Relations department to determine our requirement for your specific request.

What do I do when an interest owner dies?
What information do I need to provide when the Trustee of a Trust changes?
What information do I need to provide when an interest owner who had a Life Estate dies?
How long will it take to process documentation I sent in?

You will be contacted within 30 days of receipt of documentation. It may take longer than 30 days to process your documentation depending on the complexity of the transfer. All transfers are processed in the order they are received.

When are 1099 Misc Tax Forms mailed out?
No later than January 31. If the 31st falls on a Saturday or Sunday, the IRS allows for mailing the following Monday.

Owner Relations Contact Information

Fidelity Exploration & Production Company
ATTN: Owner Relations (or the analyst for your area)
1801 California Street #2500
Denver, CO 80202-2638

OwnerRelations@Fidelityepco.com
(303) 893-3133 main phone
(303) 893-1964 fax

Forms

Change of Address

All address updates must be submitted in writing. Please fill out the Fidelity Change of Address Form.

  • Fax to the attention of Owner Relations 303-893-1964.
  • Email OwnerRelations@Fidelityepco.com.
  • Postal service
        Fidelity Exploration & Production Company
        Attn: Owner Relations
        1801 California St. #2500
        Denver, CO 80202-2638
Affadavit of Heirship

This document is a statement providing information for a deceased owner regarding their marital history, children and any possible heirs to their interest and is sworn by the person completing the form. The Affidavit of Heirship must be completed by a dis-interested party. This form will be provided by Fidelity Exploration & Production Company and we require that the Affidavit of Heirship be recorded in the county in which the deceased held an interest. We require that all accounts paid over $5000 in royalties annually be probated in the state in which the deceased held an interest; otherwise the Affidavit of Heirship may be used. Please contact us for the form and for further information regarding a deceased owner.

EFT/Direct Deposit

Is not available at this time.

W9

The form used to request a taxpayers’ social security number and/or EIN.

Lost Check Affidavit

The form is used to verify that an uncashed check has been lost and/or misplaced. Please contact us for further information regarding a lost check.

Owner Relations Contacts

Big Horn County, MT
Lana Thompson, Division Order Supervisor
720-931-6456

Fallon County, MT

Lauren Gerlitz, Division Order Analyst
720-917-3041

Phillips County, MT
Lauren Gerlitz, Division Order Analyst
720-917-3041

Richland County, MT
Lana Thompson, Division Order Supervisor
720-931-6456

Valley County, MT

Lauren Gerlitz, Division Order Analyst
720-917-3041
Bowman County, ND
Lauren Gerlitz, Division Order Analyst
720-917-3041

Mountrail County, ND

Jennifer Collins, Sr. Division Order Analyst
720-931-6445

Stark County, ND

Jennifer Collins, Sr. Division Order Analyst
720-917-3008
Hidalgo County, TX
Leslie McFadden, Division Order Analyst
720-956-5754

Rusk County, TX

David Peterson, Sr. Division Order Analyst
720-917-3010
Grand County, UT
Lauren Gerlitz, Division Order Analyst
720-917-3041

San Juan County, UT

Lauren Gerlitz, Division Order Analyst
720-917-3041
Converse County, WY
Leslie McFadden, Division Order Analyst
720-956-5754

Sheridan County, WY
Lana Thompson, Division Order Supervisor
720-931-6456

JIB Information

To obtain JIBLink User ID and Password information call: 1-888-573-3364

Billing Questions: (303) 893-3133 (ask for the JIB department)

Revenue Questions:  Contact the appropriate Division Order analyst for your area.

or email: OwnerRelations@Fidelityepco.com

Careers

Fidelity Exploration & Production Company is a top technical performer, with a commitment to being at the forefront of the industry. We focus on attracting the best talent who are looking for a collaborative and dynamic work environment. As a subsidiary of MDU Resources, Fidelity produces the energy that is the lifeblood of the nation’s economy. With operations up and down the Rockies, we offer many opportunities for a rewarding professional career.

Fidelity employs professionals within the following disciplines:

  • Geology
  • Geophysics
  • Engineering
  • Land Management
  • Environmental Affairs
  • Field Operations
  • Oil and Natural Gas Accounting
  • Business Management
  • Financial Analysis
  • Information Technology
  • Human Resources
  • Internships
  • And, much more…

Apply Today

View our exciting career opportunities at jobs.mdu.com and come reach your full potential.

Associations

Fidelity is actively engaged in a number of service organizations and industry trade groups throughout the Rocky Mountain region. Here is just a sample of the groups where our employees and management are active.

  • Colorado School of Mines
  • Montana Tech
  • Women In Energy
  • Society of Petroleum Engineers
  • American Association of Drilling Engineers
  • American Association of Petroleum Geologists
  • Women’s Energy Network
  • Society of Women Engineers
  • Association for Women Geoscientists
  • Council of Petroleum Accountants Societies
  • Desk & Derrick
  • North Dakota Petroleum Council
  • Montana Petroleum Association
  • Petroleum Association of Wyoming
  • Western Energy Alliance

Benefits to being Fidelity

Employee Programs

Fidelity provides numerous opportunities to qualified individuals for growth and advancement, both professionally and personally.

Employee Development

Based on a formalized approach to career development planning, Fidelity may provide financial support for conferences, education and training that is beneficial to both employees and the company.

Internships

Fidelity’s internship programs offer students an opportunity to explore their chosen major and career with professionals working in the industry, as well as gain on-the-job experience by applying what they have learned in the classroom.

Corporate Employee Programs

Award Programs

Each year MDU Resources and its subsidiary companies recognize efforts that go beyond the call of duty, protect the environment or showcase ingenuity. The various awards carry cash and/or MDU Resources common stock prizes. Employee efforts are recognized and appreciated.

Safety Awards

MDU Resources places employee safety at the highest priority. Recognition is given throughout the year to employees and teams helping create safe work environments and safe practices for their co-workers.

Community Service Awards

With operations spread throughout a wide region, MDU Resources’ employees serve their communities in a variety of ways. The community service awards help the company recognize employee dedication to their communities and organizations.

Our comprehensive and competitive benefits package includes:

  • Comprehensive Health Insurance Plans
  • Performance-Based Reward Culture
  • Competitive Base Salary with Bonus Opportunities
  • Relocation packages for qualifying positions
  • Flexible Work Schedule, including 9/80
  • Immediate 401K vesting, including company match
  • Paid Parking/Eco Pass
  • Health Reimbursement Program
  • Company sponsored community outreach
  • Charitable Gift Matching Program
  • Paid Volunteer Time
  • Vacation
  • 10 paid holidays
  • Company paid life insurance
  • Company paid sick time & Long-Term Disability
  • Employee discount programs

News

MDU Resources to Delay Marketing E&P business, Provides Update for Refinery Project

January 9, 2015 - MDU Resources Group, Inc. (NYSE:MDU) today said that it will delay plans to market its Fidelity Exploration & Production business because of the sharp decline in oil prices.

MDU Resources Reports Third Quarter Earnings; Announces Evaluating Second Diesel Refinery and Marketing Its Fidelity Exploration & Production Company

Nov 03, 2014 - MDU Resources Group, Inc. (NYSE:MDU) today reported third quarter consolidated adjusted earnings of $84.9 million, or 44 cents per common share, compared to $92.3 million, or 49 cents per common share for the third quarter of 2013. Consolidated GAAP earnings were $103.0 million, or 53 cents per common share, compared to $84.3 million, or 44 cents per common share for the third quarter of 2013. For an explanation of non-GAAP earnings adjustments, see the Reconciliation of GAAP to Adjusted Earnings and the Use of Non-GAAP Financial Measures sections later in this press release.

MDU Resources Announces Sale of Certain Mountrail County, North Dakota, Production Assets

July 21, 2014 - MDU Resources Group, Inc. (NYSE:MDU) announced today that its indirect wholly owned subsidiary, Fidelity Exploration & Production Company, signed a Purchase and Sale Agreement for the sale of certain oil and natural gas production assets in Mountrail County, North Dakota

MDU Resources Announces Executive Promotions at Fidelity Exploration & Production Company

July 8, 2104 - MDU Resources Group, Inc. (NYSE:MDU) announced today that Pat O’Bryan will become president of its indirect wholly owned subsidiary, Fidelity Exploration & Production Company.

MDU Resources Closes on Powder River Basin Acquisition

March 13, 2014 - MDU Resources Group, Inc. (NYSE:MDU) announced today its indirect wholly owned subsidiary, Fidelity Exploration & Production Company, closed on the purchase of oil and natural gas production assets in Converse County, Wyo., in the southern Powder River Basin

Media Inquiries

A 24-hour contact is available for media inquiries. Call: 888-530-MDUR (888-530-6387).
During business hours (8 a.m. to 5 p.m. Central Time), we also can be reached at (701) 530-1064.

media@mduresources.com

Note: E-mail is not monitored outside of normal business hours.

Paradox Basin Report

Energy Development in the Paradox Basin of Utah

Fidelity began operations in the area in 2007. Energy development in the Paradox Basin is not new. There have been more than 1,600 wells drilled in Grand County over the past 100 years. Currently, Fidelity is the largest energy producer in Grand and San Juan counties.The company recognizes the very unique nature of the lands around its development areas and is incorporating a customized drilling program that includes a very selective well location strategy.

For more information, see these resources:

Presentation to Moab Chamber of Commerce – This presentation includes an overview of the company's energy development activity including the pipeline project that is now being constructed to minimize flaring of natural gas in the area. Updated August 2014.

Contact Us

Contact Fidelity by email:
 

Emergency? 1-855-FEPC-OIL (1-855-337-2645) IMMEDIATELY

Fidelity Exploration & Production Company
1801 California Street
Suite 2500 Denver, Colo. 80202

Phone: (303) 893-3133
Toll-free: (800) 986-3133
Fax: (303) 893-1964

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Media Inquiries

A 24-hour contact is available for media inquiries. Call: 888-530-MDUR (888-530-6387).
During business hours (8 a.m. to 5 p.m. Central Time), we also can be reached at (701) 530-1064.

media@mduresources.com

Note: E-mail is not monitored outside of normal business hours.

Legal Statement


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, 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.

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This Web site is offered to you conditioned on your acceptance, without modification, of the terms, conditions, and notices contained herein. This page contains important notices and copyright information that must be observed. Please read them carefully. Your use of this Web site constitutes your agreement to all such terms, conditions, and notices. Any rights not expressly granted herein are reserved.

As a condition of your use of this Web site, you warrant to MDU Resources that you will not use this Web site for any purpose that is unlawful or that is prohibited by these terms, conditions, and notices.

MDU Resources makes no representations about the suitability for any purpose of the information contained in the documents and related graphics on this Web site. The contents of this Web site are only for general information or use. All such documents and related graphics are provided "as is," without warranty of any kind. The contents do not constitute advice and should not be relied upon in making, or refraining from making, any decision.

This Web site may contain references to products, programs, and services that are not announced or available in your geographic area. Such references do not imply that MDU Resources intends to announce such products, programs, or services in your geographic area.

Information on this Web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. MDU Resources may also make improvements and/or changes in the products, programs, or services described in this information at any time without notice.

Furthermore, information on this web site is current only on the date which the information is issued. The company undertakes no obligation to update this information to reflect events or circumstances that occur after the date on which such information is issued.

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MDU RESOURCES SHALL NOT BE LIABLE FOR ANY DAMAGES SUFFERED AS A RESULT OF USING, MODIFYING, COPYING, DISTRIBUTING, REFERENCING, ACCESSING, OR DOWNLOADING MATERIALS OR HYPERLINKS ON THIS WEB SITE. IN NO EVENT SHALL MDU RESOURCES BE LIABLE FOR ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGE. MDU RESOURCES SHALL NOT BE LIABLE FOR DAMAGES INCLUDING, WITHOUT LIMITATION, LOSS OF PROGRAMS OR DATA ON YOUR INFORMATION-HANDLING OR LIKE SYSTEMS; AND LOSS OF BUSINESS, REVENUE, PROFITS, USE, OR OTHER ECONOMIC ADVANTAGE. MDU RESOURCES SHALL NOT BE LIABLE FOR SUCH DAMAGE HOWEVER IT ARISES, WHETHER FOR BREACH OR IN TORT, EVEN IF MDU RESOURCES, ITS AGENTS, DIRECTORS, AFFILIATES, SUBSIDIARIES, OR ASSIGNS HAD BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. IF YOU ARE DISSATISFIED WITH ANY PORTION OF THIS WEB SITE, OR WITH ANY OF THESE TERMS OF USE, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE USING THIS WEB SITE.

Intellectual property, copyright & trademark

All images, graphs, text, or other content in this Web site are, to the extent permitted by law, copyrighted and otherwise proprietary. No reproduction, transmission, or other use of this information is permitted without the prior written permission of MDU Resources; MDU Resources hereby grants you permission to copy and distribute the material found on the Web site for personal, non-commercial use only. You may not copy or redistribute this material without including the copyright notice immediately following.

Copyright ©2010 MDU Resources Group, Inc. All rights reserved.

MDU Resources Group, Inc., MDU, and other marks and names of MDU Resources products and/or services referenced herein are trademarks or registered trademarks of MDU Resources Group.

All rights in such trademarks are expressly reserved.

Confidential and proprietary information

MDU Resources does not want to receive confidential or proprietary information from you through our Web site. Please note that any information or material sent to MDU Resources will be deemed NOT to be confidential. Unless otherwise explicitly stated, any materials provided by you in connection with this Web site shall be deemed to be provided on a non-proprietary and non-confidential basis. MDU Resources shall have no obligation of any kind with respect to such materials and shall be free to use or disseminate such materials on an unrestricted basis for any purpose. By sending MDU Resources any information or material, you grant MDU Resources an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit, and distribute those materials or information, and you also agree that MDU Resources is free to use for any purposes any ideas, concepts, know-how, or techniques that you send us. You acknowledge that you are responsible for the materials and disclosures that you submit, and you, not MDU Resources, have full responsibility for the materials, including their legality, reliability, appropriateness, originality, and copyright.

We will, however, not release your name or otherwise publicize the fact that you submitted materials or other information to us unless: (a) we obtain your permission to use your name; or (b) we first notify you that the materials or other information you submit to a particular part of this site will be published or otherwise used with your name on it; or (c) we are required to do so by law.

Privacy statement

Introduction

MDU Resources recognizes the importance of protecting the privacy of all information provided by visitors to this Web Site. We created the following policy guidelines to guide our relationships with our users based on a fundamental respect for your right to privacy.

Collection and Security of Personal Information

MDU Resources collects some information voluntarily offered by users of this Web Site. MDU Resources uses reasonable precautions to maintain the security of the personal information of users and to disclose such information only to third parties after permission from the user. However, no security system is perfect. Therefore, MDU Resources is not responsible if someone manages to circumvent our security measurers and gain access to the database, including information pertaining to individual users, nor can we be responsible for any use, reproduction, or disclosure they may make of it.

Disclosure to Third Parties

MDU Resources may disclose specific user information (such as identity and contact information) if we believe that such disclosure is necessary or desirable to: (i) fulfill legal or regulatory requirements, (ii) protect our rights or those of others, (iii) prevent or mitigate harm or damage of any kind or nature, or (iv) address or seek redress for a violation of these Terms of Use or other obligations to MDU Resources or any third party, including our partners, advertisers, and other users.

Additionally, MDU Resources may collect, analyze, and disclose to others aggregated information (which includes users’ specific information but only as an unidentifiable part of the aggregate) gathered from overall use of the Web Site or particular features or areas of the Web Site. Among other purposes, this information allows us to analyze usage trends so that we can maintain an effective, responsive site.

Finally, if MDU Resources, or one of our lines of business, is sold, merged with, or otherwise acquired by a third party, your information may be (i) disclosed, under duty of confidentiality, to a potential purchaser or merger partner as part of the pre-closing due diligence process, or (ii) included among the transferred assets.

Contact by MDU Resources

Through the use of e-mail addresses provided at registration or otherwise, MDU Resources periodically sends out e-mail newsletters and promotional e-mail to our users about services and products offered by MDU Resources. Upon request, we will remove you (and your information) from our database or permit you to otherwise "opt-out" of any further e-mail newsletters or contact.

Partners, Linked Sites, and Advertisers

In addition to the information we collect, our partners or advertisers may collect information that you provide in connection with a co-branded page, such as partner-sponsored contest on the Web Site. In such cases, the information is the property of the sponsoring partner, as well as MDU Resources. Additionally, if you provide information to a web site that is linked to this Web Site, the information is the property of the linked site’s owner – and may be used as outlined in that site’s privacy policy, MDU Resources is not responsible for the content terms of use, privacy policies, or acts or omissions of web sites to which we may provide links or the web sites of our business partners or advertisers. We do not necessarily recommend or endorse the services or goods offered by any co-branding partner, advertiser, or linked site.

Changes to the Terms of Use and Privacy Policy

MDU Resources may revise the Terms of Use or Privacy Policy from time to time. Unless stated otherwise, changes will become effective immediately upon their posting. MDU Resources will usually post a notice on the home page of the Web Site if we have revised the Terms of Use or Privacy Policy in the past seven days; however, you should check the applicable areas of the Web Site regularly to ensure you are apprised of any new changes.

Questions

If you have any questions or concerns about the Terms of Use or Privacy Policy, please feel free to email us at legal@mduresources.com.

Local Laws

MDU Resources controls and operates this Web site from its headquarters in North Dakota and makes no representation that these materials are appropriate or available for use in other locations. If you use this Web site from other locations, you are responsible for compliance with all applicable laws.

Other

The contents of these Legal Notices represent the entire understanding relating to the use of the Web site and prevail over any prior or contemporaneous, conflicting, or additional communications. MDU Resources may from time to time revise these Legal Notices without notice by updating this posting.

Any action related to these Legal Notices will be governed by the laws of North Dakota and controlling U.S. federal law. No choice of law rules of any jurisdiction will apply. All disputes related to these Legal Notices regarding the use of this Web site shall be adjudicated in the State or Federal courts located in North Dakota.

Disclosure Notice


Definitions
The following abbreviations and acronyms used in this disclosure statement are defined below:

BLM - Bureau of Land Management
Company - MDU Resources Group, Inc.
Dakota Prairie Refinery - 20,000 barrel per day diesel topping plant being built by Dakota Prairie Refining in southwestern North Dakota
Dakota Prairie Refining - Dakota Prairie Refining, LLC, a limited liability company jointly owned by WBI Energy and Calumet
EPA - U.S. Environmental Protection Agency
ERISA - Employee Retirement Income Security Act of 1974
Fidelity – Fidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings
FIP - Funding Improvement Plan
GHG - Greenhouse gas
Knife River - Knife River Corporation, a direct wholly owned subsidiary of Centennial Energy Holdings, Inc.
Montana-Dakota - Montana-Dakota Utilities Co., a public utility division of the Company
MPPAA - Multiemployer Pension Plan Amendments Act of 1980
MW - Megawatt
NDPSC - North Dakota Public Service Commission
NGL - Natural Gas Liquids
NSPS - New Source Performance Standards
RCRA - Resource Conservation and Recovery Act
RP - Rehabilitation Plan
SEC - U.S. Securities and Exchange Commission
SEC Defined Prices - The average price of oil and natural gas during the applicable 12-month period, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions

Risk Factors

The Company is including the following factors and cautionary statements to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions (many of which are based, in turn, upon further assumptions) and other statements that are other than statements of historical facts. From time to time, the Company may publish or otherwise make available forward-looking statements of this nature. All these subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the Company, also are expressly qualified by these factors and cautionary statements.

Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Nonetheless, the Company's expectations, beliefs or projections may not be achieved or accomplished.

Any forward-looking statement speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of the factors, nor can it assess the effect of each factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

Following are some specific factors that should be considered for a better understanding of the Company's financial condition. These factors and the other matters discussed herein are important factors that could cause actual results or outcomes for the Company to differ materially from those discussed in the forward-looking statements.

Economic Risks

The Company's exploration and production and pipeline and energy services businesses are dependent on factors, including commodity prices and commodity price basis differentials, that are subject to various external influences that cannot be controlled.

These factors include: fluctuations in oil, NGL and natural gas production and prices; fluctuations in commodity price basis differentials; availability of economic supplies of natural gas; drilling successes in oil and natural gas operations; the timely receipt of necessary permits and approvals; the ability to contract for or to secure necessary drilling rig and service contracts and to retain employees to identify, drill for and develop reserves; the ability to acquire oil and natural gas properties; and other risks incidental to the development and operations of oil and natural gas wells, processing plants and pipeline systems. Volatility in oil, NGL and natural gas prices could negatively affect the results of operations, cash flows and asset values of the Company's exploration and production and pipeline and energy services businesses.

The regulatory approval, permitting, construction, startup and/or operation of power generation facilities and Dakota Prairie Refinery may involve unanticipated events or delays that could negatively impact the Company's business and its results of operations and cash flows.

The construction, startup and operation of power generation facilities and Dakota Prairie Refinery involve many risks, which may include: delays; breakdown or failure of equipment; inability to obtain required governmental permits and approvals; inability to complete financing; inability to negotiate acceptable equipment acquisition, construction, fuel and crude oil supply, off-take, transmission, transportation or other material agreements; changes in markets and market prices for power, crude oil and refined products; cost increases; as well as the risk of performance below expected levels of output or efficiency. Such unanticipated events could negatively impact the Company's business, its results of operations and cash flows.

Economic volatility affects the Company's operations, as well as the demand for its products and services and the value of its investments and investment returns including its pension and other postretirement benefit plans, and may have a negative impact on the Company's future revenues and cash flows.

The global demand for natural resources, interest rate changes, governmental budget constraints and the ongoing threat of terrorism can create volatility in the financial markets. Unfavorable economic conditions can negatively affect the level of public and private expenditures on projects and the timing of these projects which, in turn, can negatively affect the demand for the Company's products and services, primarily at the Company's construction businesses. The level of demand for construction products and services could be adversely impacted by the economic conditions in the industries the Company serves, as well as in the economy in general. State and federal budget issues may negatively affect the funding available for infrastructure spending. This economic volatility could have a material adverse effect on the Company's results of operations, cash flows and asset values.

Changing market conditions could negatively affect the market value of assets held in the Company's pension and other postretirement benefit plans and may increase the amount and accelerate the timing of required funding contributions.

The Company relies on financing sources and capital markets. Access to these markets may be adversely affected by factors beyond the Company's control. If the Company is unable to obtain economic financing in the future, the Company's ability to execute its business plans, make capital expenditures or pursue acquisitions that the Company may otherwise rely on for future growth could be impaired. As a result, the market value of the Company's common stock may be adversely affected. If the Company issues a substantial amount of common stock it could have a dilutive effect on its existing shareholders.

The Company relies on access to both short-term borrowings, including the issuance of commercial paper, and long-term capital markets as sources of liquidity for capital requirements not satisfied by its cash flow from operations. If the Company is not able to access capital at competitive rates, the ability to implement its business plans may be adversely affected. Market disruptions or a downgrade of the Company's credit ratings may increase the cost of borrowing or adversely affect its ability to access one or more financial markets. Such disruptions could include:

  • A severe prolonged economic downturn
  • The bankruptcy of unrelated industry leaders in the same line of business
  • Deterioration in capital market conditions
  • Turmoil in the financial services industry
  • Volatility in commodity prices
  • Terrorist attacks
  • Cyber attacks

Economic turmoil, market disruptions and volatility in the securities trading markets, as well as other factors including changes in the Company's results of operations, financial position and prospects, may adversely affect the market price of the Company's common stock.

The Company currently has a shelf registration statement on file with the SEC, under which the Company may issue and sell any combination of common stock and debt securities. The issuance of a substantial amount of the Company's common stock, whether sold pursuant to the registration statement, issued in connection with an acquisition or otherwise issued, or the perception that such an issuance could occur, may adversely affect the market price of the Company's common stock.

The Company is exposed to credit risk and the risk of loss resulting from the nonpayment and/or nonperformance by the Company's customers and counterparties.

If the Company's customers or counterparties were to experience financial difficulties or file for bankruptcy, the Company could experience difficulty in collecting receivables. The nonpayment and/or nonperformance by the Company's customers and counterparties could have a negative impact on the Company's results of operations and cash flows.

The backlogs at the Company's construction materials and contracting and construction services businesses are subject to delay or cancellation and may not be realized.

Backlog consists of the uncompleted portion of services to be performed under job-specific contracts. Contracts are subject to delay, default or cancellation and the contracts in the Company's backlog are subject to changes in the scope of services to be provided as well as adjustments to the costs relating to the applicable contracts. Backlog may also be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond the Company's control, including the current economic slowdown. Accordingly, there is no assurance that backlog will be realized.

Actual quantities of recoverable oil, NGL and natural gas reserves and discounted future net cash flows from those reserves may vary significantly from estimated amounts. There is a risk that changes in estimates of proved reserve quantities or other factors including downward movements in prices, could result in additional future noncash write-downs of the Company's oil and natural gas properties.

The process of estimating oil, NGL and natural gas reserves is complex. Reserve estimates are based on assumptions relating to oil, NGL and natural gas pricing, drilling and operating expenses, capital expenditures, taxes, timing of operations, and the percentage of interest owned by the Company in the properties. The proved reserve estimates are prepared for each of the Company's properties by internal engineers assigned to an asset team by geographic area. The internal engineers analyze available geological, geophysical, engineering and economic data for each geographic area. The internal engineers make various assumptions regarding this data. The extent, quality and reliability of this data can vary. Although the Company has prepared its proved reserve estimates in accordance with guidelines established by the industry and the SEC, significant changes to the proved reserve estimates may occur based on actual results of production, drilling, costs and pricing.

The Company bases the estimated discounted future net cash flows from proved reserves on prices and current costs in accordance with SEC requirements. Actual future prices and costs may be significantly different. There is risk that lower SEC Defined Prices, market differentials, changes in estimates of proved reserve quantities, unsuccessful results of exploration and development efforts or changes in operating and development costs could result in additional future noncash write-downs of the Company's oil and natural gas properties.

The Company’s exploration and production and pipeline and energy services businesses are dependent on factors, including commodity prices and commodity price basis differentials, that are subject to various external influences that cannot be controlled.

These factors include: fluctuations in oil, NGL and natural gas production and prices; fluctuations in commodity price basis differentials; availability of economic supplies of natural gas; drilling successes in oil and natural gas operations; the timely receipt of necessary permits and approvals; the ability to contract for or to secure necessary drilling rig and service contracts and to retain employees to identify, drill for and develop reserves; utilizing appropriate technologies; irregularities in geological formations; and other risks incidental to the development and operations of oil and natural gas wells, processing plants and pipeline systems. Volatility in oil, NGL and natural gas prices could negatively affect the results of operations, cash flows and asset values of the Company’s exploration and production and pipeline and energy services businesses.

Environmental and Regulatory Risks

The Company's operations are subject to environmental laws and regulations that may increase costs of operations, impact or limit business plans, or expose the Company to environmental liabilities.

The Company is subject to environmental laws and regulations affecting many aspects of its operations, including air quality, water quality, waste management and other environmental considerations. These laws and regulations can increase capital, operating and other costs, cause delays as a result of litigation and administrative proceedings, and create compliance, remediation, containment, monitoring and reporting obligations, particularly relating to electric generation operations and oil and natural gas development and processing. These laws and regulations generally require the Company to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals. Although the Company strives to comply with all applicable environmental laws and regulations, public and private entities and private individuals may interpret the Company's legal or regulatory requirements differently and seek injunctive relief or other remedies against the Company. The Company cannot predict the outcome (financial or operational) of any such litigation or administrative proceedings.

Existing environmental laws and regulations may be revised and new laws and regulations seeking to protect the environment may be adopted or become applicable to the Company. These laws and regulations could require the Company to limit the use or output of certain facilities, restrict the use of certain fuels, install pollution controls, remediate environmental contamination, remove or reduce environmental hazards, or prevent or limit the development of resources. Revised or additional laws and regulations that increase compliance costs or restrict operations, particularly if costs are not fully recoverable from customers, could have a material adverse effect on the Company's results of operations and cash flows.

The EPA issued draft regulations that outline several possible approaches for coal combustion residuals management under the RCRA. One approach, designating coal ash as a hazardous waste, if adopted would significantly change the manner and increase the costs of managing coal ash at five plants that supply electricity to customers of Montana-Dakota. This designation also could significantly increase costs for Knife River, which beneficially uses fly ash as a cement replacement in ready-mixed concrete and road base applications.

In December 2011, the EPA finalized the Mercury and Air Toxics Standards rules that will require reductions in mercury and other air emissions from coal- and oil-fired electric utility steam generating units. Montana-Dakota evaluated the pollution control technologies needed at its electric generation resources to comply with this rule and determined that the Lewis & Clark Station near Sidney, Montana, will require additional particulate matter control for non-mercury metal emissions. Montana-Dakota intends to comply with the rule by co-firing the plant with natural gas and lignite; however, scrubber modifications may also be needed for compliance. Controls must be in place by April 16, 2015, or April 16, 2016, if a one-year extension is granted for completion of the pollution control project.

Hydraulic fracturing is an important common practice used by Fidelity that involves injecting water, sand, a water-thickening agent called guar, and trace amounts of chemicals, under pressure, into rock formations to stimulate oil, NGL and natural gas production. Fidelity follows state regulations for well drilling and completion, including regulations for hydraulic fracturing and recovered fluids disposal. Fracturing fluid constituents are reported on state or national websites. The EPA is developing a study to review potential effects of hydraulic fracturing on underground sources of drinking water; the results of that study could impact future legislation or regulation. The BLM has released draft well stimulation regulations for hydraulic fracturing operations. If implemented, the BLM regulations would affect only Fidelity's operations on BLM-administered lands. If adopted as proposed, the BLM regulations, along with other legislative initiatives and regulatory studies, proceedings or initiatives at federal or state agencies that focus on the hydraulic fracturing process, could result in additional compliance, reporting and disclosure requirements. Future legislation or regulation could increase compliance and operating costs, as well as delay or inhibit the Company's ability to develop its oil, NGL and natural gas reserves.

On August 16, 2012, the EPA published a final NSPS rule for the oil and natural gas industry. The NSPS rule phases in over two years. The first phase was effective October 15, 2012, and primarily covers natural gas wells that are hydraulically fractured. Under the new rule, gas vapors or emissions from the natural gas wells must be captured or combusted utilizing a high-efficiency device. Additional reporting requirements and control devices covering oil and natural gas production equipment will be phased in for certain new oil and gas facilities with a final effective date of January 1, 2015. This new rule's impacts on Fidelity, WBI Energy Transmission and WBI Energy Midstream are not expected to be material and are likely to include implementing recordkeeping, reporting and testing requirements and purchasing and installing required equipment.

Initiatives to reduce GHG emissions could adversely impact the Company's operations.

Concern that GHG emissions are contributing to global climate change has led to international, federal and state legislative and regulatory proposals to reduce or mitigate the effects of GHG emissions. On June 25, 2013, President Obama released his Climate Action Plan for the U.S. in which he stated his goal to reduce GHG emissions "in the range of 17 percent" below 2005 levels by 2020. The president issued a memorandum to the EPA on the same day, instructing the EPA to re-propose the GHG NSPS rule for new electric generation units. The EPA released the re-proposed rule on January 8, 2014, in the Federal Register, which takes the place of the rule proposed in 2012 for new electric generation units that the EPA did not finalize. This rule applies to new fossil fuel-fired electric generation units, including coal-fired units, natural gas-fired combined-cycle units and natural gas-fired simple-cycle peaking units. The EPA's 1,100 pounds of carbon dioxide per MW hour emissions standard for coal-fired units does not allow any new coal-fired electric generation to be constructed unless carbon dioxide is captured and sequestered.

President Obama also directed the EPA to develop a GHG NSPS standard for existing fossil fuel-fired electric generation units by June 1, 2014, with finalization by June 1, 2015. On June 18, 2014, the EPA published in the Federal Register a proposed rule limiting carbon dioxide emissions from existing fossil fuel-fired electric generating units and a separate proposed rule limiting carbon dioxide emissions from existing units that are modified or reconstructed.

In the proposed rule for existing source, the EPA requires carbon dioxide emission reductions from each state and instructs each state, or group of states that work together, to submit a plan to the EPA by June 30, 2016, that demonstrates how the state will achieve the targeted emission reductions by 2030. The state plans could include performance standards, emissions reductions or limits on generation for each existing fossil fuel-fired generating unit. It is unknown at this time what each state will require for emissions reductions from each Montana-Dakota owned and jointly owned fossil fuel-fired electric generating unit. In the EPA’s proposed GHG rule for modified or reconstructed fossil fuel-fired sources, the EPA proposes emissions limits that could potentially be unachievable. Montana-Dakota does not plan to modify or reconstruct any fossil fuel-fired units at this time, but may modify or reconstruct units in the future which must comply with the rule limitations.

The Company’s primary GHG emission is carbon dioxide from fossil fuels combustion at Montana-Dakota's electric generating facilities, particularly its coal-fired facilities. Approximately 70 percent of Montana-Dakota's owned generating capacity and more than 90 percent of the electricity it generates is from coal-fired facilities.

There may also be new treaties, legislation or regulations to reduce GHG emissions that could affect Montana-Dakota's electric utility operations by requiring additional energy conservation efforts or renewable energy sources, as well as other mandates that could significantly increase capital expenditures and operating costs. If Montana-Dakota does not receive timely and full recovery of GHG emission compliance costs from its customers, then such costs could adversely impact the results of its operations.

In addition to Montana-Dakota's electric generation operations, the GHG emissions from the Company's other operations are monitored, analyzed and reported as required by applicable laws and regulations. The Company monitors GHG regulations and the potential for GHG regulations to impact operations.

Due to the uncertain availability of technologies to control GHG emissions and the unknown obligations that potential GHG emission legislation or regulations may create, the Company cannot determine the potential financial impact on its operations.

The Company is subject to government regulations that may delay and/or have a negative impact on its business and its results of operations and cash flows. Statutory and regulatory requirements also may limit another party's ability to acquire the Company.

The Company is subject to regulation or governmental actions by federal, state and local regulatory agencies with respect to, among other things, allowed rates of return, and recovery of investment and cost, financing, industry rate structures, health care legislation, tax legislation and recovery of purchased power and purchased gas costs. These governmental regulations significantly influence the Company's operating environment and may affect its ability to recover costs from its customers. The Company is unable to predict the impact on operating results from the future regulatory activities of any of these agencies. Changes in regulations or the imposition of additional regulations could have an adverse impact on the Company's results of operations and cash flows. Approval from a number of federal and state regulatory agencies would need to be obtained by any potential acquirer of the Company. The approval process could be lengthy and the outcome uncertain.

Other Risks

Weather conditions can adversely affect the Company's operations and revenues and cash flows.

The Company's results of operations can be affected by changes in the weather. Weather conditions influence the demand for electricity and natural gas, affect the price of energy commodities, affect the ability to perform services at the construction materials and contracting and construction services businesses and affect ongoing operation and maintenance and construction and drilling activities for the pipeline and energy services and exploration and production businesses. In addition, severe weather can be destructive, causing outages, reduced oil and natural gas production, and/or property damage, which could require additional costs to be incurred. As a result, adverse weather conditions could negatively affect the Company's results of operations, financial position and cash flows.

Competition is increasing in all of the Company's businesses.

All of the Company's businesses are subject to increased competition. Construction services' competition is based primarily on price and reputation for quality, safety and reliability. Construction materials products are marketed under highly competitive conditions and are subject to such competitive forces as price, service, delivery time and proximity to the customer. The electric utility and natural gas industries also are experiencing increased competitive pressures as a result of consumer demands, technological advances, volatility in natural gas prices and other factors. The pipeline and energy services business competes with several pipelines for access to natural gas supplies and gathering, transportation and storage business. The exploration and production business is subject to competition in the acquisition and development of oil and natural gas properties. The increase in competition could negatively affect the Company's results of operations, financial position and cash flows.

The Company could be subject to limitations on its ability to pay dividends.

The Company depends on earnings from its divisions and dividends from its subsidiaries to pay dividends on its common stock. Regulatory, contractual and legal limitations, as well as capital requirements and the Company's financial performance or cash flows, could limit the earnings of the Company's divisions and subsidiaries which, in turn, could restrict the Company's ability to pay dividends on its common stock and adversely affect the Company's stock price.

An increase in costs related to obligations under multiemployer pension plans could have a material negative effect on the Company's results of operations and cash flows.

Various operating subsidiaries of the Company participate in approximately 80 multiemployer pension plans for employees represented by certain unions. The Company is required to make contributions to these plans in amounts established under numerous collective bargaining agreements between the operating subsidiaries and those unions.

The Company may be obligated to increase its contributions to underfunded plans that are classified as being in endangered, seriously endangered, or critical status as defined by the Pension Protection Act of 2006. Plans classified as being in one of these statuses are required to adopt RPs or FIPs to improve their funded status through increased contributions, reduced benefits or a combination of the two. Based on available information, the Company believes that approximately 40 percent of the multiemployer plans to which it contributes are currently in endangered, seriously endangered, or critical status.

The Company may also be required to increase its contributions to multiemployer plans where the other participating employers in such plans withdraw from the plan and are not able to contribute an amount sufficient to fund the unfunded liabilities associated with their participants in the plans. The amount and timing of any increase in the Company's required contributions to multiemployer pension plans may also depend upon one or more of the following factors including the outcome of collective bargaining, actions taken by trustees who manage the plans, actions taken by the plans' other participating employers, the industry for which contributions are made, future determinations that additional plans reach endangered, seriously endangered or critical status, government regulations and the actual return on assets held in the plans, among others. The Company may experience increased operating expenses as a result of the required contributions to multiemployer pension plans, which may have a material adverse effect on the Company's results of operations, financial position or cash flows.

In addition, pursuant to ERISA, as amended by MPPAA, the Company could incur a partial or complete withdrawal liability upon withdrawing from a plan, exiting a market in which it does business with a union workforce or upon termination of a plan to the extent these plans are underfunded.

On September 24, 2014, Knife River provided notice to the plan administrator under one of the multiemployer pension plans to which Knife River is a party that it was withdrawing from the plan effective October 26, 2014. The plan administrator will determine Knife River’s withdrawal liability, which the Company currently estimates at approximately $14 million (approximately $8.4 million after tax). Actual withdrawal liability costs may be significantly different.

The Company's operations may be negatively impacted by cyber attacks or acts of terrorism.

The Company operates in industries that require continual operation of sophisticated information technology systems and network infrastructure. While the Company has developed procedures and processes that are designed to protect these systems, they may be vulnerable to failures or unauthorized access due to hacking, viruses, acts of terrorism or other causes. If the technology systems were to fail or be breached and these systems were not recovered in a timely manner, the Company's operational systems and infrastructure, such as the Company's electric generation, transmission and distribution facilities and its oil and natural gas production, storage and pipeline systems, may be unable to fulfill critical business functions. Any such disruption could result in a decrease in the Company's revenues and/or significant remediation costs which could have a material adverse effect on the Company's results of operations, financial position and cash flows. Additionally, because generation, transmission systems and gas pipelines are part of an interconnected system, a disruption elsewhere in the system could negatively impact the Company's business.

The Company's business requires access to sensitive customer data in the ordinary course of business. Despite the Company's implementation of security measures, a failure or breach of a security system could compromise sensitive and confidential information and data. Such an event could result in negative publicity, remediation costs and possible legal claims and fines which could adversely affect the Company's financial results. The Company's third party service providers that perform critical business functions or have access to sensitive and confidential information and data may also be vulnerable to security breaches and other risks that could have an adverse effect on the Company.

While the Company plans to market and potentially sell its exploration and production business, there is no assurance that it will be successful.

As part of the Company’s corporate strategy, it plans to market and potentially sell its exploration and production assets and exit that line of business. Such a disposition and exit is subject to various risks, including: suitable purchasers may not be available or willing to purchase the assets on terms and conditions acceptable to the Company or may only be interested in acquiring a portion of the assets; the agreements pursuant to which the Company divests the assets may contain continuing indemnification obligations; the inability to obtain waivers from applicable covenants under debt agreements; the company may incur substantial costs in connection with the marketing and sale of the assets; the marketing and sale of the assets could distract management, divert resources, disrupt the Company’s ongoing business and make it difficult for the Company to maintain its current business standards, controls and procedures; uncertainties associated with the sale may cause a loss of key management personnel at Fidelity which could make it more difficult to sell the assets or operate the business in the event that the Company is unable to sell it; sale of the assets could result in substantial tax liability; if the Company is unable to sell the assets it may be required to record an impaired asset charge that could have an adverse effect on the Company’s financial condition; and the Company may not be able to redeploy the proceeds from any sale of the assets in a manner that produces similar revenues and growth rates or enhances shareholder value.

Other factors that could impact the Company's businesses.

The following are other factors that should be considered for a better understanding of the financial condition of the Company. These other factors may impact the Company's financial results in future periods.

  • Acquisition, disposal and impairments of assets or facilities
  • Changes in operation, performance and construction of plant facilities or other assets
  • Changes in present or prospective generation
  • The ability to obtain adequate and timely cost recovery for the Company's regulated operations through regulatory proceedings
  • The availability of economic expansion or development opportunities
  • Population growth rates and demographic patterns
  • Market demand for, available supplies of, and/or costs of, energy- and construction-related products and services
  • The cyclical nature of large construction projects at certain operations
  • Changes in tax rates or policies
  • Unanticipated project delays or changes in project costs, including related energy costs
  • Unanticipated changes in operating expenses or capital expenditures
  • Labor negotiations or disputes
  • Inability of the various contract counterparties to meet their contractual obligations
  • Changes in accounting principles and/or the application of such principles to the Company
  • Changes in technology
  • Changes in legal or regulatory proceedings
  • The ability to effectively integrate the operations and the internal controls of acquired companies
  • The ability to attract and retain skilled labor and key personnel
  • Increases in employee and retiree benefit costs and funding requirements