Skip . go back and look at last 2 yrs of the Titanic, ( I mean MDU ) forget the price of oil,, here are the decisions Management and BOD made.. Sold Good Bakken wells ( can you say in there home state ) bought the spent that same amount of Money on powder river Basin on BLM acerage and less production..Paid the E+P dud over $ 2 Million per yr , to hold down a chair, cause he did not know how to profitably find oil.. Stopped drilling in bakken of MT acreage, till they figured it out ( which they never did ) Hit 1 huge well in Utah, and could not get rest of picture together..
Built a Refinery with a Partner ( who was supposed to Know how to manage/run refinerys) Sold ithis white elephant for pennies on the Dollar..
Let OKE /oneok develop 6 or 7 NG processing plants right in back yard ( they own 50 % of the belfield plant) so they should know how to build and Run NG plants..
I think they should have Kept E+P unit and ran it like Northern Oil and gas ( NOG ) let some one like Slawson or CLR,or hess,do the drilling and received a % of the oil as payment.. Then they could have let go of the $ 2 Million per yr E+P dude who could not find oil, get rid of CEO, and 50 % of Management staff..
All I can say is Thank God for the MDU shareholders is that Elec and NG rates are guaranteed by PSC or they would give that Away..
Now they want to spend over 1 Billion $$$$$ in next 5 years on what... ( buggy whips ) cause horse and buggies get better mileage then cars..who is going to guarantee a return for the share holders????
if I missed anything please add.. don
I see the collective Target Price of MDU was lowered today to $23.50, after it had been raised to $ 24.00 on 6.12.16.. The announcement of the sale to Tesoro of the DPR yesterday , for the ridiculous price MDU received will /could trigger more Target price down grades..
if the 10 Yr Treasury was trading at a historical interest instead of the 0bama depression rate MDU stock would be $ 15.00.. don
MDU Resources Group Inc., will only run its Dakota Prairie Refinery in Dickinson at 75 percent capacity following continued losses of $7.2 million in the first quarter.
MDU Resources CEO Dave Goodin said the company is assessing its options regarding its partial ownership in the refinery, which started operations a year ago. With a low local demand for diesel and higher costs of production, the refinery is currently only processing 15,000 to 16,000 barrels of Bakken crude daily. The lowest the capacity can be sustainably reduced at the refinery is 14,000 to 15,000 barrels per day.
MDU’s partner in the refinery, Calumet Specialty Products Partners, LP, also said in its quarterly earnings report that it may divest of some of its assets including Dakota Prairie.
Despite the continued struggle of the refinery, other MDU Resources business sectors experienced growth in the first quarter and company earnings are on the rise.
“The other businesses for the most part doing very well; I think that’s why shares are at their highest since last summer,” said Edward Jones analyst Brian Youngberg.
He said many investors likely assume MDU will try to exit the refining industry.
“The trick may be finding a buyer … especially when their partner is struggling even more,” he said. “There are plenty of good refiners out there but how many want to buy into a depressed North Dakota market.”
In addition to a countywide moratorium, a controversy over the removal of trees for a Minnesota solar project has prompted an amendment in the state legislature.
The amendment, offered by state Rep. Marion O’Neill, would prohibit solar projects if more than 75 percent of the trees in an area larger than three acres would have to be cut down. The bill to which her amendment was attached cleared the Minnesota House on April 27, though the Senate has yet to take it up.
The proposed legislation only applies to solar projects, and does not restrict other land-intensive uses, such as real estate development or mining. Rep. O’Neill did not return calls for comment on the distinction.
Local officials, however, insist they’re not singling out solar for criticism, and that the unique circumstances of the project caught them off guard.
The controversy erupted in Wright County in early April, when Enel Green Power North America (EGP-NA) workers clear-cut some 11 acres of mature hardwood trees – an area roughly the size of 8 football fields – for the 80 acre solar array.
The location is part of a planned $250 million, 150-megawatt Aurora Solar Project, scattered over 21 sites in 16 Minnesota counties, that is expected to go online at year’s end. The project received approval from the state Public Utilities Commission (PUC) in May 2015.
The tree clearing took place near the town of Buffalo, an exurban community about 40 minutes from downtown Minneapolis, where farm fields and natural areas are interlaced with suburban housing and commercial projects.
Locals, no strangers to development, were incensed that they received no warning that the roughly 1,000 trees were coming down.
“They just came through and cut them all down – they’re gone,” said Buffalo Township clerk and treasurer Tom Kleist. “We questioned afterwards why they did that. We really haven’t gotten a good response.”
So MDU bought the other half of DPR from Calumet, then sold it to Tesoro and Guess what.. the refinery that cost $ 420 Million , had 4 quarters of losses was only worth $76 Million $$$$.. but Hurray for the Shareholder they get to Write off $ 160 Million, And the MDU execs get another Bonus...From the 8 K filed today. ( note that is AFTER TAX charge..) Yes $ 1.00 per share... Well I guess they can go to work for Hillary if she gets elected...don
Item 2.06. Material Impairments.
The Board of Directors of MDU met on June 24, 2016, to evaluate the potential sale of DPR to Tesoro. In connection with the board's decision to proceed with the sale, MDU concluded that the fair value of DPR based on the proposed sale transaction to Tesoro was less than the current recorded book value of DPR and that a material charge for impairment is required under generally accepted accounting principles. Coinciding with this process, management concluded that DPR's financial results qualified for presentation as assets held for sale and discontinued operations. MDU anticipates an after-tax impairment charge from these discontinued operations in the range of $150 million-$160 million, subject to customary closing adjustments, to be recorded in the second quarter. No ongoing future cash expenditures are expected in connection with the recording of this impairment charge.
was changed twice the week of april 21st.. the Previous was $ 19.20 from Feb 6th of this yr.. the new projected TP is $21.00 .. based on a $ 1.08 earnings in 2016 that is a astonishing PE of 19.44 for a 3rd rated utility stock.. Tues also is Market day in Bismarck as the company has its Annual meeting .. don
Stearns County commissioners will hear from the public on Tuesday whether they should temporarily ban new solar farms.
The county board has scheduled a public hearing at 10:10 a.m. on a proposed moratorium on solar projects to allow time to review and change the county's land-use regulations.
Minnesota is seeing a flood of proposed solar projects, largely because of a 2013 state law that required utilities to get at least 1.5 percent of their electricity from solar by 2020. The plunging price of solar technology also is making the projects more lucrative for developers. Congress recently extended a federal tax credit for renewable energy projects until 2019.
Stearns was the first county in the state to enact standards for solar farms in 2009 in response to a request from St. John's University.
Some recently proposed solar projects in Stearns County have drawn opposition from residents who don't want to see a solar farm in their neighborhoods. Neighboring residents objected to rezoning property in Wakefield Township earlier this month planned for a SunEdison solar project.
The board could decide against enacting a moratorium and instead create a working group to review the county's regulations with an outside consultant.
Bismarck tribune article. don
North Dakota coal plans to ask the state for financial help — billions of dollars of financial help over time.
Despite a stay on the federal rule, the coal industry potentially faces large carbon dioxide emission reduction requirements from the U.S. Environmental Protection Agency’s Clean Power Plan.
“This is no longer a vague threat out there in the future,” Lignite Energy Council President Jason Bohrer told members at the organization’s annual meeting this week in Bismarck.
Bohrer said North Dakota policy makers will need to answer the question: Will the state set a priority to help the lignite industry remain viable?
The coal industry asked the state for a direct appropriation for the first time during the past legislative session — $5 million from the general fund for the Lignite Research Council. The council, which makes recommendations to the North Dakota Industrial Commission on funding lignite coal-related research projects, was typically funded with extraction taxes collected from the coal industry.
Over the next several legislative sessions, the industry plans to ask for more.
"Because of the challenges facing the industry, it will be at magnitudes larger than what people have thought about historically,” said Mac McLennan, CEO of Minnkota Power Cooperative.
McLennan said the LEC is working on a package that will likely include requests for a multitude of tax incentives, including incentivizing oil companies who use carbon dioxide for enhanced oil recovery, potential financing from the Bank of North Dakota and more research and development funding.
“I can’t do it on my own as a utility because of the risk,” McLennan said of investments. “If it doesn’t work, you’re in trouble.”
This funding request would be the state’s way of sharing in the risk and making it more viable for the industry, according to McLennan.
this excerpt from todays Bismarck trib. lots of additional info on size of airport and usage numbers in article..use subject as search .. don
Officials in Williston have begun acquiring land for a new airport, which is increasingly drawing concerns from county commissioners over a potential eminent domain process if landowners aren’t willing to sell.
Williston's airport saw a 10-fold increase in passengers from 2008 to 2014, in large part due to record oil activity. Supporters are calling the estimated $265 million project a substantial long-term upgrade to the city.
Sloulin Field International Airport Director Steven Kjergaard said the city plans to follow the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, which outlines the land acquisition process for public airports
Williams County Commissioner Martin Hanson has long opposed the project, saying the current facility is adequate if runway upgrades are made to meet Federal Aviation Administration requirements.
“There’s nothing that’s changed in my point of view,” Hanson said. “Maybe I’m Don Quixote and maybe I’m just tilting at windmills, but I figured someone has to say something about this.”
BISMARCK, N.D. - April 5, 2016 - MDU Resources Group, Inc. (NYSE: MDU) announced today that it has finalized the sale of its last marketed oil and natural gas production property. This completes the sale of the oil and natural gas assets marketed by subsidiary Fidelity Exploration & Production Company. Fidelity’s offices, headquartered in Denver, are expected to be closed by mid-year.
Since late 2015, MDU Resources has sold its oil and natural gas production and lease assets under several agreements, including its Bakken assets in North Dakota; its Baker and Bowdoin assets, primarily in Montana; its Powder River Basin assets in Wyoming; its Greater Gulf Coast assets, primarily in Texas; its Cedar Creek Anticline assets in Montana; and its Paradox Basin assets in Utah.
“This completes the final sale of our Fidelity properties,” said David L. Goodin, president and CEO of MDU Resources. “Exiting the E&P business lowers our risk profile, and it allows us to focus more on growing our other business operations.”
The company, in aggregate, recognized proceeds and tax benefits of approximately $500 million from the oil and natural gas asset sales. MDU Resources is using the proceeds primarily to repay debt associated with Fidelity. The company expects to reinvest proceeds in excess of debt repayments into its other business units, including the utility operations’ $1.5 billion, five-year capital expenditure program.
Bohrer said the industry knows it will be a challenge securing the funding because budgets are tight but LEC aims to make lawmakers understand the rule’s magnitude.
“The Clean Power Plan changes the world we live in today,” McLennan said. “It’s the biggest problem facing the industry today
Bohrer said the industry has been able to deal with regulatory issues on its own in the past so state lawmakers assume: “You guys are going to be able to fix this right? … They have a hard time visualizing plants will shut down.”
Carbon restrictions are not likely to go away no matter what the U.S. Supreme Court decides regarding the Clean Power Plans’ constitutionality, said Wade Boeshans, president of BNI Coal. The High Court could decide to leave the rule as it is.
If nothing else about the rule is changed, what the lignite industry hopes to see is a better timeline, Bohrer said. Instead of having to reach an interim benchmark, utilities are aiming to have until the final 2030 deadline to meet the changes
“If you give us until 2025, we think we could make it happen,” Bohrer said.
A technology the lignite industry is pinning high hopes on to solve its carbon woes is the Allam Cycle.
The Allam Cycle, invented by 8 Rivers, uses pressurized carbon dioxide rather than steam to generate power more efficiently, at a lower cost and cleanly. It is being tested on a $140 million, 50-megawatt natural gas-fired power plant in Texas. After completing engineering and design work, North Dakota’s Energy & Environmental Research Center and industry partners decided the technology had potential for use with gasified lignite coal.
Part of the $5 million general fund appropriation to the Lignite Research Council went to lab test the Allam Cycle carbon capture and utilization system against the properties in lignite coal to determine what materials would be necessary to make the technology w
Use subject for search .. don
•U.S. wind energy generation rose to 191 TWh in 2015, accounting for 4.7% of the country’s electricity. That was an increase on the 4.4% wind contributed to U.S. power in 2014 but, due to weaker winds, it was only a 5.1% increase on 2014’s total TWh, the smallest increase in wind’s output since 1999.
•Weather patterns in the Western U.S. caused lower wind speeds and decreased wind production in the first half of 2015, though the same weather patterns caused the stronger winds in the central U.S. that were the basis for major wind output growth in that region.
•U.S. wind’s cumulative installed capacity reached 73 GW in 2015. New wind capacity grew by 8.1 GW, a 12.9% gain, and wind led all resources in new installed capacity for the year, accounting for 41% of new U.S. megawatts. Wind was second only to hydropower in TWh of generation from renewable sources.
Wind productivity is regularly affected by seasonal wind patterns, regional factors, and climate variations. But the absolute amount of wind generation and wind's share of total U.S. electricity generation have increased every year since at least 1999.
While natural gas prices are near historic lows today, most analysts believe prices will rise, and utilities in some regions of the country are realizing gas plants may not be the best cost bet over the long term.
The extension of wind’s $23/MWh federal production tax credit (PTC) late last year and the 66% drop since 2009 of wind’s installed cost make new investments in wind appealing to many utilities, especially those in the center of the country, like Xcel Energy.
“With the full $23/MWh PTC, wind produces energy at below the cost of a combined cycle turbine with the forward gas curve we see. That is in-the-money,” Xcel Energy Colorado President David Eves recently told Utility Dive
This weeks Jobless Numbers on top of last weeks disappointing Numbers looks like the country is SO Close to Recession that the Current Inept administration in DC will not raise Interest Rates in Fiscal yr 2016 .
This should allow MDU and other similar stocks a constant base , unless the screw something else up..
Dickinson press article.. to what extent will this slowdown effect MDU and earnings..??
WILLISTON -- Though thousands of hotel rooms and apartments sit empty and a major big-box store is about to close, those who work there say they're still optimistic about North Dakota's Oil Patch.
"I do say we are busier than you would think we would be," said Tom Rolfstad, Williston's former economic development director.
Still, as drilling rigs went from more than 200 during the boom to below 30, development has dried up. A Home Depot store that opened just three years ago will close next week.
Shane Roers came from the family business in Fargo to Dickinson, where Roers West has made a mark developing new projects for businesses, apartments and homes.
"I think that there's definitely not a fear factor like there was in the past, but I can tell you there's people not pulling the trigger on stuff," Roers said. "As oil gets up to 40 bucks, maybe that will start easing. If we can get up to 50 bucks -- it's going to take some time. If it jumped up to 60 bucks tomorrow, it's not going to happen right away. It's going to have to level off and get some stability until people feel comfortable with it."
In Williston, hotels have the biggest challenges. Twenty-two were built during the boom, and even that wasn't enough back then. Now they have 1,800 open rooms and are running at just 20 to 25 percent capacity, Rolfstad said.
"They're actually more on the bleeding edge than anybody," he said.
That's one reason some in Williston want to shut down the remaining crew camps for oil workers, allowing hotels to benefit from workers still here.
With about 3,200 vacant apartments in Williston, Rolfstad figures about 6,400 bedrooms are vacant. And rents are down by "half at least," he said.
At the height of the boom, tenants were paying $2,500 a month. Now, occupancy is so low property managers are offering deals and incentives to incentives to renters who often are paying something close to $750 a month.
the So-called Execs get their bonus, and more and the Shareholders get a sample size Jar of KY..
From MDU press release..
The refining segment experienced a $7.2 million loss, which includes the results of the company's 50 percent ownership interest in the Dakota Prairie Refinery. The refinery, which began commercial operation in May 2015, is operating satisfactorily. However, market conditions for diesel and naphtha have deteriorated greatly. The Bakken basis differential from West Texas Intermediate (WTI) pricing remains narrow, which increases the refinery's cost for its crude oil feedstock. The company continues to focus on operational improvements and cost-cutting measures at the plant to improve profitability.
In light of current market conditions, the company is assessing various options with respect to its ownership interest in the refinery, is assessing the potential for an impairment charge at some future time if current market conditions persist, and continues to assess potential impairment indicators.
AP is reporting. don
CHEYENNE, Wyo. (AP) — A judge ruled Tuesday that federal regulators lack the authority to set rules for hydraulic fracturing, dealing another setback to the Obama administration's efforts to tighten how fossil fuels are mined.
U.S. District Judge Scott Skavdahl said the Bureau of Land Management can't set the rules because Congress has not authorized it to do so. The judge, who was nominated by Obama in 2011, wrote that the court's role is not to decide whether hydraulic fracturing is good or bad for the environment, but to interpret whether Congress has given the Department of Interior legal authority to regulate the practice.
"It has not," wrote Skavdahl, who last year blocked implementation of rules drafted by the agency.
The states of Colorado, North Dakota, Utah and Wyoming oppose the rules involving hydraulic fracturing, which involves injecting substances including water, sand and chemicals underground to increase production from oil and gas wells
The Bureau of Land Management and a coalition of environmental groups say the rules are necessary to protect the environment. The bureau's rules would have required petroleum developers to disclose to regulators the ingredients in the chemical products they use to improve the results of hydraulic fracturing, also known as fracking.
Attempts to reach the Bureau of Land Management and Wyoming Attorney General Peter Michael for comment about the ruling late Tuesday were unsuccessful.
Neal Kirby, a spokesman for the Independent Petroleum Association of America, said Tuesday he is pleased with Skavdahl's decision.
"BLM did not have the authority to issue its rule in the first place," Kirby said. "Today's decision demonstrates BLM's efforts are not needed and that states are — and have for over 60 years been — in the best position to safely regulate hydraulic fracturing."
Meanwhile, U.S. Rep. Cynthia Lummis of Wyoming called the ruling a victory for states' rights.
"This rule undermined the
Article from todays Bismarck trib. don
Unemployment claims at Job Service North Dakota have subsided from a seasonal high — an average of 708 claims per week in April compared to 1,624 claims per week four months ago — and job openings are on the rise.
“We’re pleased to see that job opportunities continue to grow across North Dakota at a steady pace,” said Cheri Giesen, executive director of Job Service North Dakota, in a statement. “We also anticipated that unemployment claims would decline as the seasonal slowdown for several occupation types comes to an end.”
North Dakota has more than 15,000 online job openings, up from about 13,500 in December, January and February, and the state continues to have one of the lowest unemployment rates in the nation — 3.9 percent in March in North Dakota compared to 5 percent nationally.
The western North Dakota region has had more than 180 employers participate in Job Service job fairs and the eastern North Dakota region is expecting to have over more than 150 employers participate in upcoming events.
The largest number of job openings in March was for health care practitioners, which includes occupations such as doctors, dentists, pharmacists, registered nurses, paramedics and chiropractors. This sector had 1,696 openings. Agriculture had 1,344 openings, office support had 1,179 openings, sales had 1,162 opening, and transportation had 873 openings.
Ward County, Cass County, Burleigh County and Grand Forks County, which house the state’s largest metropolitan areas, had the largest number of job openings. There were 835 job openings in Williams County and 681 openings in Stark County.
If MDU is in a 36 % federal Tax bracket that means it takes a $ 250 Million $$ pre tax loss to equal $ 160 Million in after tax write off.. I you were planning on a Dividend increase this year , DO NOT hold your breath..
Jerry says a sale by Year end, possible , I wonder how much Bonus the Management will get for selling MDU,
The only positive thing going is the temp in MT and ND is hot so they should sell Elec for the air conditioners...