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Dec 31, 2022
Northern Oil and Gas Q4 2022 Earnings Report
Northern Oil and Gas reported strong Q4 2022 results, marked by increased production and profitability.
Key Takeaways
Northern Oil and Gas reported a 34% increase in oil and natural gas sales, reaching $445.6 million. GAAP net income was $133.3 million, or $1.63 per diluted share, and Adjusted EBITDA increased by 51% to $264.8 million.
Production increased to 78,854 Boe per day, a 23% increase year-over-year.
GAAP cash flow from operations was $287.4 million.
Capital expenditures totaled $142.9 million, excluding non-budgeted acquisitions.
Free Cash Flow increased by 23% to $87.1 million year-over-year.
Forward Guidance
NOG anticipates approximately 91,000 - 96,000 Boe per day of production in 2023 and total capital spending in the range of $737 - $778 million.
Positive Outlook
- Production is expected to increase by approximately 23% at the midpoint from 2022 levels.
- Approximately 46% of the 2023 budget will be spent on the Williston Basin.
- Approximately 53% of the 2023 budget will be spent on the Permian Basin.
- De minimis capital will be spent on the Appalachian and other basins.
- Net wells added to production are expected to be between 80 and 85.
Challenges Ahead
- Production expenses are expected to be $9.25 - $9.50 per Boe.
- Production taxes are estimated at 8.0 - 9.0% of Oil & Gas Sales.
- The average differential to NYMEX WTI is projected at ($3.50) - ($4.50) per Bbl.
- The average realization as a percentage of NYMEX Henry Hub is projected at 75% - 85%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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