Diversified utility company, MDU Resources Group, Inc.’s MDU subsidiary, Fidelity Exploration & Production Company, has finalized the sale of its oil and natural gas production property. Through this transaction, the company will effectively exit the oil and natural gas production market, in which Fidelity had been operating since Nov 2014.Fidelity, an indirect subsidiary of MDU Resources, has assets in the Bakken shale, Paradox Basin, Powder River Basin, Texas and Louisiana.Since late 2015, MDU Resources has been inking deals to sell its oil and natural gas production and lease assets, which includes its assets in the Bakken shale, ND; the Baker and Bowdoin, and Cedar Creek Anticline assets, MT; the Powder River Basin assets, WY; the Greater Gulf Coast assets, TX; the Montana and Paradox Basin assets, UT.The spin-off is expected to lower the company’s risk profile and allow it to explore opportunities for business expansion. The company has recognized proceeds and tax benefits of approximately $500 million from the oil and natural gas asset sales. These proceeds will be redeployed primarily to pay off debt associated with Fidelity. It has also planned to reinvest the remaining funds in its other business units as well as its five-year capital expenditure program worth $1.5 billion.The company is positive on its potential in the pipeline and energy services market. MDU Resources focuses on improving its existing midstream operations as well as on accelerating growth through business expansion.Zacks Rank & Key PicksMDU Resources currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the same space include Clean Energy Fuels Corporation CLNE, ONE Gas, Inc. OGS and UGI Corporation UGI, each carrying a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CLEAN EGY FUELS (CLNE): Free Stock Analysis Report MDU RESOURCES (MDU): Free Stock Analysis Report UGI CORP (UGI): Free Stock Analysis Report ONE GAS INC (OGS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research