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Mar 31, 2023
Northern Oil and Gas Q1 2023 Earnings Report
Reported record quarterly production and Adjusted EBITDA, driven by successful growth efforts and strategic acquisitions.
Key Takeaways
Northern Oil and Gas announced strong Q1 2023 results, achieving record quarterly production of 87,385 Boe per day, a 23% increase year-over-year. The company reported a net income of $340.2 million and record Adjusted EBITDA of $325.5 million. They also closed on the acquisition of a working interest in the MPDC Mascot project and increased shareholder returns through dividends and share repurchases.
Record quarterly production of 87,385 Boe per day, a 23% increase from Q1 2022.
Net income of $340.2 million and record Adjusted EBITDA of $325.5 million.
Free Cash Flow of $83.9 million, despite increased development activity and commodity price volatility.
Closed on the acquisition of a 39.958% non-operated working interest in the MPDC Mascot project for $319.9 million.
Northern Oil and Gas
Northern Oil and Gas
Forward Guidance
NOG is reaffirming its 2023 full year guidance for production and capital expenditures. The Company is increasing its estimates for natural gas realizations. As a result of this increase, the Company is also adjusting production expenses for the associated processing costs from higher realizations.
Positive Outlook
- Annual Production (Boe per day): 91,000 - 96,000
- Oil as a Percentage of Sales Volumes: 62.0 - 64.0%
- Total Capital Expenditures ($ in millions): $737 - $778
- Net Wells Added to Production: 80 - 85
- Cash (excluding transaction costs on non-budgeted acquisitions) General and Administrative Expense (per Boe): $0.80 - $0.90
Challenges Ahead
- Production Expenses (per Boe): $9.35 - $9.60
- Production Taxes (as a percentage of Oil & Gas Sales): 8.0% - 9.0%
- Average Differential to NYMEX WTI (per Bbl): ($3.50) - ($4.50)
- Average Realization as a Percentage of NYMEX Henry Hub (per Mcf): 80% - 90%
- Non-Cash General and Administrative Expense (per Boe): $0.20 - $0.30