MDU RESOURCES GROUP INC

Index

Note 18 -Subsequent events

On July 4, 2025, the reconciliation bill commonly referred to as the One Big Beautiful Bill Act was enacted into law, extending key provisions of the 2017 Tax Cuts and Jobs Act while scaling back clean energy tax incentives of the IRA. Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities or the Company's effective tax rates in the future. The Company is currently evaluating the impacts of the new legislation, however, it does not expect a material impact to the consolidated financial statements or ongoing tax rate as a result of this legislation.

On July 15, 2025, Intermountain entered into a note purchase agreement to issue $50.0 million of senior notes, with a maturity date of July 15, 2055, at an interest rate of 6.39 percent. $25.0 million of these notes were issued on July 15, 2025, and the remaining $25.0 million is expected to be issued in October 2025. The agreement contains customary covenants and provisions, including a covenant of Intermountain not to permit, at any time, the ratio of debt to total capitalization to be greater than 65 percent. Other covenants include a minimum interest coverage ratio and restrictions on the sale of certain assets.