Northern Oil & Gas (NOG) Update - April 16

[dan_s]

Keep in mind that all of the companies that have a lot of their oil hedged will be reporting large mark-to-market non-cash losses in Q1 on their hedges. Those with a lot of natural gas hedged will be reporting MTM gains on those hedges. Those MTM gains or losses have no impact on my valuation since they are non-cash line items in the Income Statement.
General Rule: Realized gains and losses on hedges do impact Adjusted Operating Cash Flow, but the non-cash MTM adjustments do not.
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NOG Provides Update on First Quarter Hedging Results and Stock Repurchases
04/16/2024

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG” or the “Company”) today provided an update regarding first quarter hedging results and stock repurchases.

HEDGING UPDATE

The Company periodically enters into derivative agreements to hedge a portion of its commodity pricing exposure. For the first quarter of 2024, realized gains on derivatives are expected to be $19.1 million (a good thing). Unrealized mark-to-market losses on derivatives are expected to be $146.2 million for the quarter.

STOCK REPURCHASE UPDATE

The Company allocated capital in the first quarter of 2024 to common stock repurchases. NOG repurchased 549,356 shares of its common stock at a weighted average price of $36.42 per share, repurchased prior to the most recent dividend record date. For comparative purposes, the average closing price of NOG’s common stock during March 2024 was $37.71, and the final closing price at quarter end was $39.68. As of the end of the first quarter, the Company had $67.5 million of availability remaining on its existing common stock repurchase authorization.

MANAGEMENT COMMENTS

“Repurchases of NOG’s common stock offered a compelling option for our excess cash flow in the first quarter,” commented Nick O’Grady, NOG’s Chief Executive Officer. “With a positive growth outlook, and promising developments in our larger joint operated ventures, NOG is poised for a productive 2024 with a sightline to continued strength in 2025. Our dynamic approach to delivering a compelling total return for our shareholders provides us the flexibility to allocate capital where we see the most attractive value.”

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.
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My current valuation of NOG is $66.00 per share. It closed today at $42.76.