Northern Oil & Gas (NOG) Q2 Results - Aug 3
Posted: Thu Aug 03, 2023 12:42 pm
SECOND QUARTER HIGHLIGHTS
Record quarterly production of 90,878 Boe per day (60% oil), increases of 4% from the first quarter of 2023 and 25% from the second quarter of 2022 < Compares to my Q2 forecast of 90,500 Boepd (62% oil).
Net income of $167.8 million and Adjusted EBITDA of $315.5 million. < My Adjusted Net Income forecast for Q2 was $138.6 million.
Cash flow from operations of $307.8 million. Excluding changes in net working capital, cash flow from operations was $280.4 million, an increase of 11% from the second quarter of 2022 < Compares to my Adjusted Operating Cash Flow forecast of $271.4 million.
Generated $47.6 million of Free Cash Flow. See "Non-GAAP Financial Measures" below.
Closed on the acquisition of a 30% undivided stake in the Forge assets for $167.9 million
Entered into a joint acquisition agreement for a 33.33% undivided stake in the Novo assets for $500.0 million with an anticipated closing date of August 15, 2023 < Joining forces with Earthstone on this deal is very good for both companies.
Issued $500 million of 8.75% Senior Notes with a maturity date of June 2031
Completed underwritten public offering of 7,647,500 shares of common stock raising $224.7 million in net proceeds
Paid $0.37 per share common dividend for the second quarter of 2023, an increase of 9% from the first quarter of 2023, and declared $0.38 per share common dividend for the third quarter of 2023
MANAGEMENT COMMENTS
"NOG made meaningful strides in expanding its exposure to high-quality, low-breakeven acreage in the second quarter by executing on two highly accretive large-scale acquisitions with Forge and Novo. It was also a banner quarter for the Ground Game, completing 13 transactions that are expected to add over 16 net wells to production over the next several years," commented Nick O’Grady, NOG’s Chief Executive Officer. "For the remainder of the year, we see potential for record levels of production and elevated cash flow from operations and free cash flow, as we begin to harvest our first half investments."
Record quarterly production of 90,878 Boe per day (60% oil), increases of 4% from the first quarter of 2023 and 25% from the second quarter of 2022 < Compares to my Q2 forecast of 90,500 Boepd (62% oil).
Net income of $167.8 million and Adjusted EBITDA of $315.5 million. < My Adjusted Net Income forecast for Q2 was $138.6 million.
Cash flow from operations of $307.8 million. Excluding changes in net working capital, cash flow from operations was $280.4 million, an increase of 11% from the second quarter of 2022 < Compares to my Adjusted Operating Cash Flow forecast of $271.4 million.
Generated $47.6 million of Free Cash Flow. See "Non-GAAP Financial Measures" below.
Closed on the acquisition of a 30% undivided stake in the Forge assets for $167.9 million
Entered into a joint acquisition agreement for a 33.33% undivided stake in the Novo assets for $500.0 million with an anticipated closing date of August 15, 2023 < Joining forces with Earthstone on this deal is very good for both companies.
Issued $500 million of 8.75% Senior Notes with a maturity date of June 2031
Completed underwritten public offering of 7,647,500 shares of common stock raising $224.7 million in net proceeds
Paid $0.37 per share common dividend for the second quarter of 2023, an increase of 9% from the first quarter of 2023, and declared $0.38 per share common dividend for the third quarter of 2023
MANAGEMENT COMMENTS
"NOG made meaningful strides in expanding its exposure to high-quality, low-breakeven acreage in the second quarter by executing on two highly accretive large-scale acquisitions with Forge and Novo. It was also a banner quarter for the Ground Game, completing 13 transactions that are expected to add over 16 net wells to production over the next several years," commented Nick O’Grady, NOG’s Chief Executive Officer. "For the remainder of the year, we see potential for record levels of production and elevated cash flow from operations and free cash flow, as we begin to harvest our first half investments."