MDU Resources Cuts 2014 Profit View; Stock Down - Quick Facts

(RTTNews) - MDU Resources Group Inc. (MDU) said Monday that while its pipeline, utility and construction businesses are continuing the solid performance they reported at midyear, current challenges with oil production in the Paradox Basin have led the company to lower its 2014 earnings guidance.

Looking ahead for 2014, the company now expects adjusted earnings to be in the range of $1.40 - $1.50 per share. Prior guidance was in the range of $1.50 to $1.65 per share. GAAP earnings guidance is in the same range. Analysts polled by Thomson Reuters expect the company to report earnings of $1.59 per share for fiscal 2014. Analysts' estimates typically exclude special items.

"As we near the end of the third quarter, we are pleased with our performance across the majority of our businesses and are confident that our approximate $1.1 billion in planned gross capital investments this year will provide strong future long-term growth," said David Goodin, president and CEO of MDU Resources.

"However, as we noted during our last earnings conference call in August, the Paradox Basin is both very promising and at times very challenging. Its unique characteristics are causing operational issues that we believe are short term, but which will lower our expected growth in oil production to a range of 3 to 7 percent this year," Goodin said. This range includes the effects of the previously announced pending sales of South Texas and certain Mountrail County assets. The company's prior oil production growth guidance was a range of 10 to 15 percent.

MDU closed Friday's trading at $30.17. In Monday's pre-market trading, the company's shares are down $1.89 or 6.26% to $28.28.