Northern Oil and Gas Q4 2020 Earnings Report
Key Takeaways
Northern Oil and Gas announced strong Q4 2020 results, with a 23% increase in production from the previous quarter and a focus on return on capital employed. The company also reduced its total debt balance and completed significant common stock and senior notes offerings.
Q4 production increased by 23% compared to Q3.
Cash flow from operations increased by 19% compared to Q3.
Total debt reduced by $39.0 million in Q4 and $178.0 million in 2020.
Completed common stock and senior notes offerings in February 2021.
Northern Oil and Gas
Northern Oil and Gas
Forward Guidance
Northern provided estimated guidance for 2021, including annual production, net wells added, total capital expenditures, and operating expenses for both existing Williston and Permian properties, as well as Reliance assets (pending acquisition).
Positive Outlook
- Annual Production (Boe per day) 37,750 - 42,750
- Net Wells Added to Production 32 - 34
- Oil as a Percentage of Production Volumes 78 - 80%
- Annual Production (Mmcf per day) 75 - 85
- Net Wells Added to Production 3.5 - 3.8
Challenges Ahead
- Average Differential to NYMEX WTI $6.50 - $8.50
- Production Expenses (per Boe) $8.75 - $9.75
- Production Taxes 10% of Net Oil Revenues, $0.06 per Mcf for Natural Gas
- Total Capital Expenditures ($ in millions) $180 - $225
- Total Capital Expenditures ($ in millions) $20 - $25