NOG increasing dividend to $0.42/Qrt for ~4.2% yield

[dan_s]

Stock Buybacks will also increase my stock valuation.

NOG Provides Shareholder Return Update; Plans Mid-Year Increase to Quarterly Dividend
07/29/2024
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HIGHLIGHTS

Repurchased 895,076 shares of common stock during Q2 2024
Repurchased 1,444,432 shares in total during Q1 and Q2 2024
Board of Directors approved new $150 million share repurchase authorization
Management will recommend that the Board of Directors approve a 5% mid-year increase to NOG’s quarterly common stock dividend, to $0.42 per share, for the third quarter of 2024

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE: NOG) (the “Company” or “NOG”) provided a shareholder return update.

SHAREHOLDER RETURN UPDATE

NOG repurchased 895,076 shares of common stock during the second quarter of 2024 at an average price, inclusive of commissions, of $38.96 per share. During the first half of 2024, the Company repurchased 1,444,432 shares at an average price, inclusive of commissions, of approximately $37.99 per share. In total, the Company has allocated approximately $55 million to share repurchases year-to-date. Additionally, the Company has declared common stock dividends totaling approximately $80 million year-to-date, bringing capital allocated to shareholder returns to approximately $135 million in the first half of 2024.

In July 2024, NOG’s Board of Directors approved a new $150 million common stock repurchase authorization, replacing its prior authorization which was substantially depleted. Under this program, shares may be repurchased periodically, including in the open market or privately negotiated transactions. The actual timing, manner, number, and value of shares repurchased, if any, will depend on a number of factors, including the availability of free cash flow, market price, general market and economic conditions, applicable legal and contractual requirements, and other business considerations.

Per Company policy, interim modifications to the dividend can be driven by material changes in realized commodity prices, significant corporate actions or other events, prior to the Company’s planned annual dividend review during the first quarter of a given fiscal year. Management intends to submit a request to the Board of Directors for a 5%, or $0.02, mid-year increase to NOG’s quarterly common stock dividend, to $0.42 per share, for the third quarter of 2024. The recommendation is driven by strong cash flow experienced year-to-date and a robust business outlook, combined with the confidence in the cash flows to be provided by NOG’s pending acquisitions, Under Delaware law, the Board may not approve dividends more than 60 days before the record date.

The Company continues to plan for its regularly scheduled annual review of dividend policy with the Board of Directors in the first quarter of 2025.

MANAGEMENT COMMENTS

“NOG continues with a multi-pronged approach to creating value,” commented Nick O’Grady, NOG’s Chief Executive Officer. “We see benefits to retiring our shares when attractive, increasing our cash returns to our shareholders when appropriate, and continuing to find organic and inorganic growth opportunities to drive the highest possible long term total return for our investors. Our share repurchases and recommendation for a mid-year increase to our dividend are a testament to the confidence we have in NOG’s future.”

“Per our policy, significant corporate actions can warrant interim increases to the dividend prior to our annual review,” commented Chad Allen, NOG’s Chief Financial Officer. “We believe our strong base business outlook and the significant cash flows associated with our pending acquisitions also provide capacity for additional shareholder returns over time.”

ABOUT NOG

NOG is a real asset company with a primary strategy of acquiring and investing in non-operated minority working and mineral interests in the premier hydrocarbon producing basins within the contiguous United States. More information about NOG can be found at www.noginc.com .