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Thursday, November 8, 2018

NOG: 3Q18 Earnings

NOG press release: Third quarter production averaged 26,708 Boe per day, an increase of 74% year-over-year and 27% sequentially.
  • increasing fourth quarter production guidance to a range of 35,000 - 36,000 boepd, an increase of over 100% year-over-year and 30% sequentially
  • Northern has reactivated its existing stock repurchase program, which had $108.3 million in remaining authority. Northern has agreed to repurchase 7.36 million shares from certain shareholders in the fourth quarter
  • third quarter net income was $19.0 million, and adjusted net income was $34.5 million
  • adjusted EBITDA increased 174% year-over-year and 39% sequentially to $97.9 million (non-GAAP)
  • 3Q18 production averaged 26,708 barrels of oil equivalent per day, totaling 2,457,119 boe, comprised of 84% crude oil
  • 3Q18 net income increased to $19.0 million, or $0.06 per diluted share, compared to a loss of $16.1 million, or ($0.26) per diluted share in the third quarter of 2017
  • 3Q18  adjusted net income increased to $34.5 million, or $0.11 per diluted share, from $2.2 million or $0.04 per diluted share in the third quarter of 2017
  • adjusted EBITDA increased to $97.9 million, compared to $35.7 million in the third quarter of 2017
  • Northern’s third quarter 2018 crude oil differential was $4.16 per barrel below the NYMEX daily average for the period, compared to $6.22 in the third quarter 2017, an improvement of $2.06 per barrel
  • lease operating expense of $7.39 per Boe for the quarter declined 17% year-over-year and 3% sequentially, bringing year-to-date LOE at the low end of the company’s 2018 guidance.General and administrative (“G&A”) expense of $1.90 per barrel increased 12% sequentially due primarily to costs associated with recent significant transactions
At 11 cents, I think "in-line." That appears to be what the "market" thinks also; down 5% before market closed and before results known. After-hour trading, and after results known, down another penny. Trading at $2.98.

2 comments:

  1. Phenomenol production yet when one considers overall daily ND production,the predicted 36,000 boe/d, this is only around 2.25% of total daily production. Testament to the massive volumes of oil being piped or railed out of the state. I think of oil volumes based on 400 barrel huge tanks sitting on nearby oil pads. Apparently, 400 barrel tanks are old school (Madison formation) tanks for storage. You have mentioned NOG for many years and first and foremost , they survived the downturn as opposed to a company like Voyager oil and gas (VOG-bankrupt, which became Emerald).

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    1. This is perhaps the most interesting thing about NOG. Because they are involved in so many wells across the Bakken and privy to much that would otherwise by confidential, they probably know as much about the Bakken as anyone. Perhaps only CLR knows more because they, too, are spread so widely across the Bakken. Most other companies operate in a relatively narrow area of the Bakken.

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