Northern Oil & Gas (NOG) Update - July 18

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NOG is one of the most Aggressive Growth companies in the Sweet 16. The Company's production increased by 62.4% in 2021, another 40.5% in 2022 and they are on pace to increase production by more than 30% this year. They have partnered with Earthstone Energy (ESTE) on the Permian Basin "Novo Acquisition" that will close in August, pushing NOG's production over 110,000 Boepd (63.5% crude oil). My valuation of $60/share is based on what now looks like very conservative production volumes.

Zacks Equity Research
Tue, July 18, 2023 at 8:45 AM CDT

Why This Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Northern Oil and Gas (NOG)

Northern Oil and Gas, Inc. is an independent upstream operator engaged in the acquisition, exploration, development and production of oil and natural gas properties. Headquartered in Minnetonka, MN, the firm is primarily focused on three leading basins of the United States — the Williston, Permian and the Appalachian.

NOG sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 27.9% and 3.8% year-over-year, respectively.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.04 to $8.35 per share. NOG also boasts an average earnings surprise of 4.1%.

On a historic basis, Northern Oil and Gas has generated cash flow growth of 62.4%, and is expected to report cash flow expansion of 104.7% this year.

Investors should take the time to consider NOG for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.