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MDU Resources takes $7.2 million first-quarter loss on Dakota Prairie Refinery

BISMARCK -- MDU Resources Group Inc. said Tuesday in its first quarter earnings report that the low price of crude oil continues to challenge its investment in the Dakota Prairie Refinery west of Dickinson.

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Part of the Dakota Prairie Refinery plant, which is partially owned by MDU Resources Group, is seen east of Dickinson, N.D., in this file photo. (Press File Photo)

BISMARCK -- MDU Resources Group Inc. said Tuesday in its first quarter earnings report that the low price of crude oil continues to challenge its investment in the Dakota Prairie Refinery west of Dickinson.

According to the report, the refinery experienced a $7.2 million loss in the first quarter of 2016, though it is “operating satisfactorily.” The company said the low price of West Texas Intermediate oil increases the refinery’s cost for its crude oil feedstock and negatively impacts sales of products produced there.

The refinery -- which cost more than $400 million to construct -- began operations in May 2015, and has been impacted by the low price of oil ever since. It processes 20,000 barrels per day of Bakken crude oil into diesel fuel, naphtha and atmospheric bottoms.

“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,” the earnings report read.

MDU Resources has a 50 percent ownership stake in the refinery along with Calumet Specialty Products Partners.

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Overall, MDU Resources posted first-quarter earnings of $24.7 million, or 13 cents a share.

Related Topics: DICKINSONNORTH DAKOTA
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