MDU RESOURCES GROUP INC

Note 3 -Discontinued operations

Discontinued operations includes certain costs associated with legacy business activities other than certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the company's former businesses which do not meet the criteria for discontinued operations.

On October 31, 2024, the Company completed the separation of Everus, its former construction services segment, into a new independent, publicly-traded company. As a result of the separation, the Company provided to Everus and Everus provided to the Company transition services in accordance with the TSA entered into on October 31, 2024. For the three months ended March 31, 2026, the Company received $1.2 million for these related activities. For the three months ended March 31, 2025, the Company received $1.8 million and paid $13,000 for these related activities. All transition services were completed as of March 31, 2026.

Separation related costs of $130,000 and $502,000, net of tax, were incurred during the three months ended March 31, 2026 and 2025, respectively. Separation costs incurred are presented in Discontinued operations, net of tax in the Consolidated Statements of Income. These charges primarily relate to transaction and third-party support costs, one-time business separation fees and related tax charges.

The Company had no assets or liabilities related to the discontinued operations of Everus on its balance sheet as of March 31, 2026, March 31, 2025, or December 31, 2025.