Northern Oil and Gas Q2 2023 Earnings Report
Key Takeaways
Northern Oil and Gas reported record quarterly production of 90,878 Boe per day, a 25% increase from the previous year. Net income was $167.8 million, and Adjusted EBITDA reached $315.5 million, a 16% increase year-over-year. The company also closed on the acquisition of a 30% stake in the Forge assets and entered into an agreement for a stake in the Novo assets.
Record quarterly production of 90,878 Boe per day, up 25% year-over-year.
Net income of $167.8 million and Adjusted EBITDA of $315.5 million.
Closed on the acquisition of a 30% stake in the Forge assets for $167.9 million.
Entered into a joint acquisition agreement for a 33.33% stake in the Novo assets for $500.0 million.
Northern Oil and Gas
Northern Oil and Gas
Forward Guidance
NOG issued updated 2023 guidance to reflect recent acquisitions and other matters.
Positive Outlook
- Annual Production (Boe per day) 96,000 - 100,000
- Q3 2023 Production (Boe per day) 99,000 - 103,000
- Oil as a Percentage of Production 62.0% - 63.0%
- Net Wells Turned-in-Line (“TIL”) 75 - 78
- Non-Cash General and Administrative Expense (per Boe) $0.20 - $0.25
Challenges Ahead
- Average Differential to NYMEX WTI (per Bbl) ($3.25) - ($4.25)
- Average Realization as a Percentage of NYMEX Henry Hub (per Mcf) 85.0% - 95.0%
- Total Budgeted Capital Expenditures (in millions) $764 - $800
- Production Expenses (per Boe) $9.35 - $9.55
- Production Taxes (as a percentage of Oil & Gas Sales) 8.0% - 9.0%