MDU Resources Trims FY Earnings Guidance; Stock Down - Update

(RTTNews) - MDU Resources Group Inc (MDU), a diversified natural resources company, Monday slashed its earnings guidance for the full year, citing challenges with oil production in the Paradox Basin. Following the announcement, MDU shares slid 5 percent in morning trade on the New York Stock Exchange.

MDU, based in Bismarck, North Dakota, said it now expects full-year earnings of $1.40 to $1.50 per share, from a prior range of $1.50 to $1.65 per share.

Analysts polled by Thomson Reuters currently expect earnings of $1.59 per share for the year. Analysts' estimates typically exclude special items.

MDU said the Paradox Basin's unique characteristics are causing short-term operational issues. As a result, it expects oil-production growth of 3 to 7 percent this year, from a prior forecast range of 10 to 15 percent.

The updated guidance includes the effects of pending sales of South Texas and certain Mountrail County assets, the company said.

Efforts are apace to resolve the problems at Paradox Basin, the company said.

MDU said its pipeline, utility and construction businesses continue to perform strongly.

MDU said its planned $1.1 billion capital investments this year would propel long-term growth.

In Aug, MDU reported a higher second-quarter profit, led by an increase in revenue.

MDU stock is trading at $28.72, down $1.45 or 4.81%, on a volume of 1.2 million shares.