MDU Earnings, 4Q15 -- February 3, 2016

Updates

Later, 10:03 p.m. Central Time: this is how SeekingAlpha saw the MDU press release:

• MDU Resources : Q4 EPS of $0.25 misses by $0.02.
• Revenue of $926.4M (-17.3% Y/Y) misses by $233.6M.
• FY16 Guidance: Adj. EPS $1.00-$1.15, GAAP EPS $0.85-$1.10

Original Post 

Finally, MDU earnings and guidance:

• 2015 consolidated adjusted earnings of $180.0 million, or 92 cents per share, compared to $205.5 million, or $1.07 per share in 2014
• consolidated adjusted earnings in the fourth quarter were $48.6 million, or 25 cents per share, compared to $67.8 million, or 35 cents per share in 2014
• guidance: $1.00 to $1.15/share in 2016; when the refinery is included, on a GAAP basis, the guidance drops to 85 cents to $1.10
• at 25 cents, misses analysts' consensus of 27 cents; but on GAAP basis, met estimates -- take your pick

On a Generally Accepted Accounting Principles (GAAP) basis, the company reported a loss for 2015 of $623.1 million, or $3.20 per share, compared to 2014 earnings of $297.5 million, or $1.55 per share. GAAP earnings for the fourth quarter of 2015 were $52.4 million, or 27 cents per share compared to $84.1 million, or 43 cents per share in the fourth quarter of 2014.

So many numbers. We will let the market Thursday morning tell us what shareholders think. 

But at least we hear this:

"I am not satisfied with our overall earnings performance," said David L. Goodin, president and CEO of MDU Resources Group. "However, we did have important successes such as record earnings at our construction materials business, good execution on a record capital budget at the utility and record throughput at our pipeline group.

"We also have nearly completed our strategic exit from the oil and gas exploration and production business. This will allow us to focus on above-average regulated growth with our capital expenditure forecast and construction opportunities at a lower business risk profile.

The refinery:

The Dakota Prairie Refinery, in which the company has a 50 percent ownership interest, began commercial operations in May. The company's share of 2015 refining results is an adjusted loss of $20.5 million, and a GAAP loss of $22.5 million, as a result of dramatic changes in the oil commodity market. 

Fidelity:

The company has nearly completed the sale of oil and natural gas assets held by its indirect subsidiary, Fidelity Exploration & Production Company. It has closed on four sale agreements and has signed a purchase and sale agreement for a fifth asset package; collectively these sales represent more than 93 percent of total production. The company continues to market one remaining asset package. Aggregate sale proceeds and related tax benefits are estimated to be approximately $450 million. Debt repayment is planned as the primary use of funds. 

When I looked at the previously published data regarding "the Fidelity sale" it looked like the vast amount of Fidelity was sold to one company. It will be interesting to see the pieces that were left for the others. It's possible that one buyer actually closed on four separate sale agreements. I don't know. Time will tell, I suppose.