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Northern Oil and Gas
🇺🇸 NYSE:NOG
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Sep 30, 2023

Northern Oil and Gas Q3 2023 Earnings Report

Northern Oil and Gas reported record quarterly production and strong financial performance, driven by organic growth and strategic acquisitions.

Key Takeaways

Northern Oil and Gas announced a strong third quarter with record production of 102,327 Boe per day, a 29% increase year-over-year. The company reported GAAP net income of $26.1 million and Adjusted EBITDA of $385.5 million. Free cash flow was $127.8 million. NOG also completed the Novo acquisition and increased its dividend.

Achieved record quarterly production of 102,327 Boe per day, a 29% increase year-over-year.

Reported GAAP net income of $26.1 million and Adjusted EBITDA of $385.5 million.

Generated $127.8 million of Free Cash Flow.

Closed on the acquisition of a 33.33% undivided stake in the Novo assets for $468.4 million.

Total Revenue
$514M
Previous year: $534M
-3.8%
EPS
$1.73
Previous year: $1.8
-3.9%
Production (Boe per day)
102.33K
Previous year: 79.12K
+29.3%
Oil Production (Bbl per day)
63.56K
Previous year: 45.11K
+40.9%
Adjusted EBITDA
$386M
Previous year: $292M
+31.8%
Gross Profit
$55.5M
Previous year: $357M
-84.5%
Cash and Equivalents
$13M
Previous year: $9.13M
+41.9%
Free Cash Flow
$128M
Previous year: $111M
+15.6%
Total Assets
$4.3B
Previous year: $2.47B
+74.2%

Northern Oil and Gas

Northern Oil and Gas

Forward Guidance

NOG is updating its annual guidance. The increase in budgeted capital expenditures is being driven by accelerated development activity and Ground Game success, which are primarily focused on 2024 turn-in-line activity. Overall, the Company expects its 2023 well spud count to increase to a range of 76 - 79 net wells, compared to expectations of 68 - 71 net wells implied in prior guidance. The Company has also tightened production guidance, with the midpoint unchanged, and modestly improved oil differential and gas realization guidance to reflect year-to-date actuals.

Positive Outlook

  • Annual Production (Boe per day) is expected between 97,000 - 99,000
  • Oil as a Percentage of Production is expected between 62.0% - 63.0%
  • Total Budgeted Capital Expenditures (in millions) is expected between $790 - $820
  • Net Wells Turned-in-Line (“TIL”) is expected between 75 - 78
  • Average Realization as a Percentage of NYMEX Henry Hub (per Mcf) is expected between 95.0% - 105.0%

Challenges Ahead

  • Production Expenses (per Boe) is expected between $9.35 - $9.55
  • Production Taxes (as a percentage of Oil & Gas Sales) is expected between 8.0% - 9.0%
  • DD&A Rate (per Boe) is expected between $13.00 - $13.80
  • Average Differential to NYMEX WTI (per Bbl) is expected between ($3.00) - ($3.75)
  • General and Administrative Expense (per Boe): Non-Cash is expected between $0.20 - $0.25

Company Overview

Full financial data and analysis

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