This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MDU Resources Announces Preliminary First Quarter Results, Oil Production Grows 19% And Rig Count Reaches 10, Advance Determination Of Prudence Approved For Natural Gas Plant, Reaffirms 2012 Earnings Guidance

MDU Resources Group, Inc. (NYSE:MDU) today announced preliminary unaudited financial results for the first quarter of 2012. The company expects to report first quarter earnings of approximately 19 cents per share, at the upper end of the first quarter earnings guidance range provided in February.

“We are pushing the upper range of our guidance, even with some weather and pricing challenges, which is a good indication of the strength of our operations,” said Terry D. Hildestad, president and chief executive officer of MDU Resources.

“Our utility operations experienced weather that was generally warmer than normal throughout the eight-state service territory compared to colder than normal temperatures in 2011,” Hildestad said. “In addition, our exploration and production company was affected by low realized natural gas prices during the quarter along with a widening of Bakken wellhead oil pricing spreads in March, compared to WTI posted prices. However, the price spread for April has improved, and forecasts indicate continued improvement throughout 2012.

“Our businesses are making good progress in executing their 2012 business plans,” Hildestad said. “Our construction services group had a strong quarter and we are making changes we believe will improve results at our construction materials business. Our pipeline storage group continued to be affected by the narrow natural gas pricing differentials. However, we are finding opportunities to invest in this segment as it expands into the liquids side of the midstream business. Our utility recently received approval for advance determination of prudence for our estimated $85 million investment into an 88-megawatt natural gas generation facility. This is a significant investment included in our approximate $915 million five-year utility capital growth program.”

Hildestad noted that the company’s exploration and production business is on track to reach its 2012 targeted oil production increase of 20 percent to 30 percent over last year. Strong oil production growth during the latter part of the first quarter, primarily at Fidelity’s Bakken operations, helped drive the company’s overall oil production to approximately 10,500 barrels per day. This is an increase of approximately 19 percent from the same period a year earlier. The company has eight more oil rigs than a year ago, with a total of 10 rigs operating across its properties today. Five rigs are operating in the prolific Bakken, where the company holds approximately 124,000 net leasehold acres and has plans to invest approximately 40 percent of Fidelity’s capital this year.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs