Fidelity acquires south Texas properties for $145 million in cash

Fidelity Exploration & Production has agreed to purchase south Texas properties from an undisclosed independent producer for $145 million in cash, Fidelity parent company MDU Resources Group said April 25. The acquisition is expected to close in May.

Production from the properties comes primarily from the Frio and Vicksburg formations, Fidelity said, adding that the seller would continue to operate one of the production fields and Fidelity would operate the remaining properties.

Fidelity said it would finance the acquisition with a combination of cash and oarrowing. Upon closing, the company said it anticipates the acquisition will be accretive to earnings per share and cash flow.

MDU Resources is engaged in natural gas and oil production, construction materials and mining, domestic and international power production, electric and natural gas utilities, natural gas pipelines and energy services, and utility services.

—Ray Tyson