NOG Announces Second Quarter 2022 Results
Northern Oil and Gas reported a record quarterly production of 72,689 Boe per day in Q2 2022, a 33% increase from Q2 2021, with oil comprising 57% of total output. The company recorded GAAP cash flow from operations of $210.2 million and a notable increase in Free Cash Flow to $114.3 million. The firm announced a $170 million acquisition in the Williston Basin, set to close in mid-August. Shareholder returns included a 32% increase in dividends and $57.5 million in stock repurchases year-to-date.
- Record production of 72,689 Boe per day, a 33% increase from Q2 2021.
- GAAP cash flow from operations at $210.2 million.
- Free Cash Flow increased by 147% year-over-year to $114.3 million.
- Announced a $170 million acquisition in the Williston Basin.
- Declared a quarterly dividend of $0.25 per share, up 32% from the previous quarter.
- Repurchased and retired $57.5 million of Preferred Stock year-to-date.
- Oil production decreased slightly from Q1 2022, despite overall production increase.
SECOND QUARTER HIGHLIGHTS
-
Record quarterly production of 72,689 Boe per day (
57% oil), an increase of33% from the second quarter of 2021 -
Second quarter GAAP cash flow from operations of
. Excluding changes in net working capital, cash flow from operations was$210.2 million , an increase of$252.2 million 7% sequentially from the first quarter of 2022 -
Total capital expenditures of
during the second quarter, driven by accelerated activity and strong Ground Game execution$131.8 million -
Free Cash Flow of
during the second quarter, an increase of$114.3 million 147% from the second quarter of 2021. See “Non-GAAP Financial Measures” below -
Announced
core$170 million Williston Basin acquisition inJune 2022 , which is scheduled to close inmid-August 2022 - Reiterates 2022 production and capital expenditure guidance and adjusts operating cost and pricing differential guidance
SHAREHOLDER RETURN HIGHLIGHTS
-
Repurchased and retired
of Preferred Stock during the second quarter and$21.2 million year-to-date (approximately 2.6 million, or$57.5 million 3% , of total diluted common shares outstanding on an as-converted basis) -
Declared
per share common dividend for third quarter of 2022, an increase of$0.25 32% from the second quarter -
Repurchased
common shares in the second quarter, and an additional$12.8 million in July, for$7.2 million or 756,177 shares in total year-to-date (approximately$20.0 million 0.9% of total diluted shares outstanding) -
Retired
of Senior Unsecured Notes at a discount to par value, and reduced total debt by$13.4 million , during the second quarter$17.4 million
MANAGEMENT COMMENTS
“NOG delivered another strong quarter, as our diversified strategy is showing its strength,” commented Nick O’Grady, NOG’s Chief Executive Officer. “We reported record Adjusted EBITDA, growing production, accelerating shareholder returns, and declining leverage ratios, all of which make NOG an increasingly attractive investment opportunity.”
SECOND QUARTER FINANCIAL RESULTS
Oil and natural gas sales for the second quarter were
PRODUCTION
Second quarter production was 72,689 Boe per day, an increase of
PRICING
During the second quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged
OPERATING COSTS
Lease operating costs were
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital spending for the second quarter was
NOG’s
On
LIQUIDITY AND CAPITAL RESOURCES
NOG had total liquidity of
As of
As of
SHAREHOLDER RETURNS
On
On
In the second quarter of 2022, NOG repurchased approximately
In the second quarter of 2022, NOG repurchased and retired
In the second quarter of 2022, NOG repurchased and retired approximately
2022 FULL YEAR GUIDANCE
(all forecasts are provided on a 2-stream production basis)
NOG increased production and capital expenditure guidance on
|
First Quarter |
|
Current |
Annual Production (Boe per day) |
71,000 - 76,000 |
|
73,000 - 77,000 |
Oil as a Percentage of Sales Volumes |
59.5 - |
|
59.5 - |
Net Wells Added to Production |
48 - 52 |
|
52.5 - 56.5 |
Total Capital Expenditures (in millions) |
|
|
|
Operating Expenses and Differentials: |
First Quarter |
|
Current |
Production Expenses (per Boe) |
|
|
|
Production Taxes (as a percentage of Oil & Gas Sales) |
|
|
|
Average Differential to NYMEX WTI (per Bbl) |
( |
|
( |
Average Realization as a Percentage of NYMEX Henry Hub (per Mcf) |
|
|
|
|
First Quarter |
|
Current |
General and Administrative Expense (per Boe): |
|
|
|
Cash (excluding transaction costs on non-budgeted acquisitions) |
|
|
|
Non-Cash |
|
|
|
SECOND QUARTER 2022 RESULTS
The following tables set forth selected operating and financial data for the periods indicated.
|
Three Months Ended |
|||||||||
|
2022 |
|
2021 |
|
% Change |
|||||
Net Production: |
|
|
|
|
|
|||||
Oil (Bbl) |
|
3,801,663 |
|
|
|
3,034,442 |
|
|
25 |
% |
Natural Gas and NGLs (Mcf) |
|
16,878,481 |
|
|
|
11,617,308 |
|
|
45 |
% |
Total (Boe) |
|
6,614,743 |
|
|
|
4,970,660 |
|
|
33 |
% |
|
|
|
|
|
|
|||||
Average Daily Production: |
|
|
|
|
|
|||||
Oil (Bbl) |
|
41,777 |
|
|
|
33,346 |
|
|
25 |
% |
Natural Gas and NGLs (Mcf) |
|
185,478 |
|
|
|
127,663 |
|
|
45 |
% |
Total (Boe) |
|
72,689 |
|
|
|
54,623 |
|
|
33 |
% |
|
|
|
|
|
|
|||||
Average Sales Prices: |
|
|
|
|
|
|||||
Oil (per Bbl) |
$ |
106.26 |
|
|
$ |
60.73 |
|
|
75 |
% |
Effect Loss on Settled Oil Derivatives on Average Price (per Bbl) |
|
(32.53 |
) |
|
|
(8.16 |
) |
|
|
|
Oil Net of Settled Oil Derivatives (per Bbl) |
|
73.73 |
|
|
|
52.57 |
|
|
40 |
% |
|
|
|
|
|
|
|||||
Natural Gas and NGLs (per Mcf) |
|
8.63 |
|
|
|
3.57 |
|
|
142 |
% |
Effect of Loss on Settled Natural Gas Derivatives on Average Price (per Mcf) |
|
(2.29 |
) |
|
|
(0.27 |
) |
|
|
|
Natural Gas and NGLs Net of Settled Natural Gas Derivatives (per Mcf) |
|
6.34 |
|
|
|
3.30 |
|
|
92 |
% |
|
|
|
|
|
|
|||||
Realized Price on a Boe Basis Excluding Settled Commodity Derivatives |
|
83.09 |
|
|
|
45.41 |
|
|
83 |
% |
Effect of Loss on Settled Commodity Derivatives on Average Price (per Boe) |
|
(24.54 |
) |
|
|
(5.60 |
) |
|
|
|
Realized Price on a Boe Basis Including Settled Commodity Derivatives |
|
58.55 |
|
|
|
39.81 |
|
|
47 |
% |
|
|
|
|
|
|
|||||
Costs and Expenses (per Boe): |
|
|
|
|
|
|||||
Production Expenses |
$ |
9.77 |
|
|
$ |
8.59 |
|
|
14 |
% |
Production Taxes |
|
6.63 |
|
|
|
3.72 |
|
|
78 |
% |
General and Administrative Expenses |
|
1.22 |
|
|
|
1.53 |
|
|
(20 |
)% |
Depletion, Depreciation, Amortization and Accretion |
|
8.28 |
|
|
|
6.22 |
|
|
33 |
% |
|
|
|
|
|
|
|||||
Net Producing Wells at Period End |
|
735.0 |
|
|
|
588.6 |
|
|
25 |
% |
HEDGING
NOG hedges portions of its expected production volumes to increase the predictability of its cash flow and to help maintain a strong financial position. The following table summarizes NOG’s open crude oil commodity derivative swap contracts scheduled to settle after
|
|
Crude Oil Commodity Derivative Swaps(1) |
|
Crude Oil Commodity Derivative Collars |
||||
Contract Period |
|
Volume (Bbls/Day) |
|
Weighted Average
|
|
Volume (Bbls/Day) |
|
Weighted Average
|
2022: |
|
|
|
|
|
|
|
|
Q3 |
|
30,850 |
|
|
|
— |
|
— |
Q4 |
|
30,400 |
|
|
|
— |
|
— |
2023: |
|
|
|
|
|
|
|
|
Q1 |
|
20,525 |
|
|
|
3,000 |
|
|
Q2 |
|
20,000 |
|
|
|
3,000 |
|
|
Q3 |
|
15,625 |
|
|
|
3,000 |
|
|
Q4 |
|
15,000 |
|
|
|
3,000 |
|
|
2024: |
|
|
|
|
|
|
|
|
Q1 |
|
7,075 |
|
|
|
1,000 |
|
|
Q2 |
|
7,050 |
|
|
|
1,000 |
|
|
Q3 |
|
6,875 |
|
|
|
1,000 |
|
|
Q4 |
|
2,825 |
|
|
|
1,000 |
|
|
______________
(1) |
This table does not include volumes subject to swaptions and call options, which are crude oil derivative contracts NOG has entered into which may increase swapped volumes at the option of NOG’s counterparties. This table also does not include basis swaps. For additional information, see Note 11 to our financial statements included in our Form 10-Q filed with the |
The following table summarizes NOG’s open natural gas commodity derivative swap contracts scheduled to settle after
|
|
Natural Gas Commodity Derivative Swaps(1) |
|
Natural Gas Commodity Derivative Collars |
||||
Contract Period |
|
Volume
|
|
Weighted Average
|
|
Volume
|
|
Weighted Average
|
2022: |
|
|
|
|
|
|
|
|
Q3 |
|
105,000 |
|
|
|
10,000 |
|
|
Q4 |
|
99,891 |
|
|
|
10,000 |
|
|
2023: |
|
|
|
|
|
|
|
|
Q1 |
|
73,111 |
|
|
|
30,000 |
|
|
Q2 |
|
30,330 |
|
|
|
50,000 |
|
|
Q3 |
|
30,000 |
|
|
|
50,000 |
|
|
Q4 |
|
25,620 |
|
|
|
60,000 |
|
|
2024: |
|
|
|
|
|
|
|
|
Q1 |
|
16,813 |
|
|
|
10,000 |
|
|
Q2 |
|
17,187 |
|
|
|
— |
|
— |
Q3 |
|
17,000 |
|
|
|
— |
|
— |
Q4 |
|
11,272 |
|
|
|
— |
|
— |
______________
(1) |
This table does not include basis swaps. For additional information, see Note 11 to our financial statements included in our Form 10-Q filed with the |
The following table presents NOG’s settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented, which is included in the revenue section of NOG’s statement of operations:
|
Three Months Ended
|
||||||
(In thousands) |
2022 |
|
2021 |
||||
Cash Received (Paid) on Derivatives: |
$ |
(162,314 |
) |
|
$ |
(27,855 |
) |
Non-Cash Gain (Loss) on Derivatives: |
|
54,117 |
|
|
|
(173,057 |
) |
Loss on Derivative Instruments, Net |
$ |
(108,197 |
) |
|
$ |
(200,912 |
) |
CAPITAL EXPENDITURES & DRILLING ACTIVITY
(In millions, except for net well data) |
|
Three Months Ended
|
||
Capital Expenditures Incurred: |
|
|
||
Organic Drilling and Development Capital Expenditures |
|
$ |
104.2 |
|
Ground Game Drilling and Development Capital Expenditures |
|
$ |
14.9 |
|
Ground Game Acquisition Capital Expenditures |
|
$ |
13.3 |
|
Other |
|
$ |
1.5 |
|
Non-Budgeted Acquisitions |
|
$ |
(2.2 |
) |
|
|
|
||
Net Wells Added to Production |
|
|
10.1 |
|
|
|
|
||
Net Producing Wells (Period-End) |
|
|
735.0 |
|
|
|
|
||
|
|
|
57.0 |
|
Increase in Wells in Process over Prior Period |
|
|
8.0 |
|
|
|
|
||
Weighted Average Gross AFE for Wells Elected to |
|
$ |
7.2 |
|
SECOND QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL
In conjunction with NOG’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on
Those wishing to listen to the conference call may do so via webcast or phone as follows:
Webcast: https://themediaframe.com/mediaframe/webcast.html?webcastid=Fj2g4nWW
Dial-In Number: (866) 373-3407 (US/
Conference ID: 13731750 -
Replay Dial-In Number: (877) 660-6853 (US/
Replay Access Code: 13731750 - Replay will be available through
ABOUT
NOG is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the premier basins within
SAFE HARBOR
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this release regarding NOG’s dividend plans and practices, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond NOG’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in NOG’s capitalization, changes in crude oil and natural gas prices; the pace of drilling and completions activity on NOG’s properties and properties pending acquisition; NOG’s ability to acquire additional development opportunities; potential or pending acquisition transactions; NOG’s ability to consummate pending acquisitions, and the anticipated timing of such consummation; the projected capital efficiency savings and other operating efficiencies and synergies resulting from NOG’s acquisition transactions; integration and benefits of property acquisitions, or the effects of such acquisitions on NOG’s cash position and levels of indebtedness; changes in NOG’s reserves estimates or the value thereof; disruptions to NOG’s business due to acquisitions and other significant transactions; infrastructure constraints and related factors affecting NOG’s properties; ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline; the COVID-19 pandemic and its related economic repercussions and effect on the oil and natural gas industry; general economic or industry conditions, nationally and/or in the communities in which NOG conducts business; changes in the interest rate environment, legislation or regulatory requirements; conditions of the securities markets; NOG’s ability to raise or access capital; changes in accounting principles, policies or guidelines; and financial or political instability, health-related epidemics, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting NOG’s operations, products and prices.
NOG has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond NOG’s control. NOG does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
|
Three Months Ended
|
||||||
(In thousands, except share and per share data) |
2022 |
|
2021 |
||||
Revenues |
|
|
|
||||
Oil and Gas Sales |
$ |
549,643 |
|
|
$ |
225,717 |
|
Loss on Commodity Derivatives, Net |
|
(108,197 |
) |
|
|
(200,912 |
) |
Total Revenues |
|
441,446 |
|
|
|
24,805 |
|
|
|
|
|
||||
Operating Expenses |
|
|
|
||||
Production Expenses |
|
64,642 |
|
|
|
42,699 |
|
Production Taxes |
|
43,840 |
|
|
|
18,514 |
|
General and Administrative Expense |
|
8,064 |
|
|
|
7,604 |
|
Depletion, Depreciation, Amortization and Accretion |
|
54,796 |
|
|
|
30,908 |
|
Total Operating Expenses |
|
171,342 |
|
|
|
99,725 |
|
|
|
|
|
||||
Income (Loss) From Operations |
|
270,104 |
|
|
|
(74,920 |
) |
|
|
|
|
||||
Other Income (Expense) |
|
|
|
||||
Interest Expense, Net of Capitalization |
|
(18,410 |
) |
|
|
(15,024 |
) |
Gain on Unsettled Interest Rate Derivatives, Net |
|
524 |
|
|
|
121 |
|
Gain (Loss) on Extinguishment of Debt, Net |
|
236 |
|
|
|
(494 |
) |
Contingent Consideration Loss |
|
— |
|
|
|
(250 |
) |
Other Income (Expense) |
|
(185 |
) |
|
|
4 |
|
Total Other Income (Expense) |
|
(17,835 |
) |
|
|
(15,643 |
) |
|
|
|
|
||||
Income (Loss) Before Income Taxes |
|
252,269 |
|
|
|
(90,563 |
) |
|
|
|
|
||||
Income Tax Provision (Benefit) |
|
1,006 |
|
|
|
— |
|
|
|
|
|
||||
Net Income (Loss) |
$ |
251,264 |
|
|
$ |
(90,563 |
) |
|
|
|
|
||||
Cumulative Preferred Stock Dividend |
|
(2,810 |
) |
|
|
(3,719 |
) |
|
|
|
|
||||
Premium on Repurchase of Preferred Stock |
|
(10,363 |
) |
|
|
— |
|
|
|
|
|
||||
Net Income (Loss) Attributable to Common Stockholders |
$ |
238,091 |
|
|
$ |
(94,282 |
) |
|
|
|
|
||||
Net Income (Loss) Per Common Share – Basic |
$ |
3.08 |
|
|
$ |
(1.55 |
) |
Net Income (Loss) Per Common Share – Diluted |
$ |
2.74 |
|
|
$ |
(1.55 |
) |
Weighted Average Common Shares Outstanding – Basic |
|
77,366,704 |
|
|
|
60,694,795 |
|
Weighted Average Common Shares Outstanding – Diluted |
|
86,788,465 |
|
|
|
60,694,795 |
|
CONDENSED BALANCE SHEETS |
|||||||
(In thousands, except par value and share data) |
|
|
|
||||
Assets |
(Unaudited) |
|
|
||||
Current Assets: |
|
|
|
||||
Cash and Cash Equivalents |
$ |
1,471 |
|
|
$ |
9,519 |
|
Accounts Receivable, Net |
|
360,859 |
|
|
|
193,554 |
|
Advances to Operators |
|
13,868 |
|
|
|
6,319 |
|
Prepaid Expenses and Other |
|
2,987 |
|
|
|
3,417 |
|
Derivative Instruments |
|
3,610 |
|
|
|
2,519 |
|
Total Current Assets |
|
382,795 |
|
|
|
215,328 |
|
|
|
|
|
||||
Property and Equipment: |
|
|
|
||||
|
|
|
|
||||
Proved |
|
5,626,474 |
|
|
|
5,034,769 |
|
Unproved |
|
53,864 |
|
|
|
24,998 |
|
Other Property and Equipment |
|
6,833 |
|
|
|
2,616 |
|
Total Property and Equipment |
|
5,687,171 |
|
|
|
5,062,383 |
|
Less – Accumulated Depreciation, Depletion and Impairment |
|
(3,915,919 |
) |
|
|
(3,809,041 |
) |
Total Property and Equipment, Net |
|
1,771,252 |
|
|
|
1,253,342 |
|
|
|
|
|
||||
Derivative Instruments |
|
4,633 |
|
|
|
1,863 |
|
Acquisition Deposit |
|
17,000 |
|
|
|
40,650 |
|
Other Noncurrent Assets, Net |
|
16,555 |
|
|
|
11,683 |
|
|
|
|
|
||||
Total Assets |
$ |
2,192,235 |
|
|
$ |
1,522,866 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity (Deficit) |
|||||||
Current Liabilities: |
|
|
|
||||
Accounts Payable |
$ |
141,372 |
|
|
$ |
65,464 |
|
Accrued Liabilities |
|
127,613 |
|
|
|
105,590 |
|
Accrued Interest |
|
20,996 |
|
|
|
20,498 |
|
Derivative Instruments |
|
343,628 |
|
|
|
134,283 |
|
Other Current Liabilities |
|
2,323 |
|
|
|
1,722 |
|
Total Current Liabilities |
|
635,932 |
|
|
|
327,557 |
|
|
|
|
|
||||
Long-term Debt, Net |
|
1,102,214 |
|
|
|
803,437 |
|
Derivative Instruments |
|
270,575 |
|
|
|
147,762 |
|
Asset Retirement Obligations |
|
28,678 |
|
|
|
25,865 |
|
Other Noncurrent Liabilities |
|
2,186 |
|
|
|
3,110 |
|
|
|
|
|
||||
Total Liabilities |
$ |
2,039,585 |
|
|
$ |
1,307,731 |
|
|
|
|
|
||||
Commitments and Contingencies (Note 8) |
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity (Deficit) |
|
|
|
||||
Preferred Stock, Par Value
1,643,732 Series A Shares Outstanding at
2,218,732 Series A Shares Outstanding at |
|
2 |
|
|
|
2 |
|
Common Stock, Par Value
79,223,724 Shares Outstanding at
77,341,921 Shares Outstanding at |
|
481 |
|
|
|
479 |
|
|
|
1,881,459 |
|
|
|
1,988,649 |
|
Retained Deficit |
|
(1,729,292 |
) |
|
|
(1,773,996 |
) |
Total Stockholders’ Equity |
|
152,650 |
|
|
|
215,135 |
|
Total Liabilities and Stockholders’ Equity |
$ |
2,192,235 |
|
|
$ |
1,522,866 |
|
Non-GAAP Financial Measures
Adjusted Net Income, Adjusted EBITDA and Free Cash Flow are non-GAAP measures. NOG defines Adjusted Net Income (Loss) as net income (loss) excluding (i) (gain) loss on unsettled commodity derivatives, net of tax, (ii) (gain) loss on extinguishment of debt, net of tax, (iii) contingent consideration loss, net of tax, (iv) acquisition transaction costs, net of tax, and (v) (gain) on unsettled interest rate derivatives, net of tax. NOG defines Adjusted EBITDA as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, depletion, amortization and accretion, (iv) non-cash stock-based compensation expense, (v) (gain) loss on extinguishment of debt, (vi) contingent consideration loss, (vii) acquisition transaction costs, (viii) gain on unsettled interest rate derivatives, and (ix) (gain) loss on unsettled commodity derivatives. NOG defines Free Cash Flow as cash flows from operations before changes in working capital and other items, less (i) capital expenditures, excluding non-budgeted acquisitions and (ii) preferred stock dividends. A reconciliation of each of these measures to the most directly comparable GAAP measure is included below.
Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of current financial performance. Management believes Adjusted Net Income and Adjusted EBITDA provide useful information to both management and investors by excluding certain expenses and unrealized commodity gains and losses that management believes are not indicative of NOG’s core operating results. Management believes that Free Cash Flow is useful to investors as a measure of a company’s ability to internally fund its budgeted capital expenditures, to service or incur additional debt, and to measure success in creating stockholder value. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring NOG’s performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. The non-GAAP financial measures included herein may be defined differently than similar measures used by other companies and should not be considered an alternative to, or more meaningful than, the comparable GAAP measures. From time to time NOG provides forward-looking Free Cash Flow estimates or targets; however, NOG is unable to provide a quantitative reconciliation of the forward looking non-GAAP measure to its most directly comparable forward looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward looking GAAP measure. The reconciling items in future periods could be significant.
Reconciliation of Adjusted Net Income |
|||||||
|
Three Months Ended
|
||||||
(In thousands, except share and per share data) |
2022 |
|
2021 |
||||
Income (Loss) Before Taxes |
$ |
252,269 |
|
|
$ |
(90,563 |
) |
Add: |
|
|
|
||||
Impact of Selected Items: |
|
|
|
||||
(Gain) Loss on Unsettled Commodity Derivatives |
|
(54,117 |
) |
|
|
173,057 |
|
(Gain) Loss on Extinguishment of Debt |
|
(236 |
) |
|
|
494 |
|
Contingent Consideration Loss |
|
— |
|
|
|
250 |
|
Acquisition Transaction Costs |
|
514 |
|
|
|
3,016 |
|
(Gain) on Unsettled Interest Rate Derivatives |
|
(524 |
) |
|
|
(121 |
) |
Adjusted Income Before Adjusted Income Tax Expense |
|
197,907 |
|
|
|
86,133 |
|
|
|
|
|
||||
Adjusted Income Tax Expense |
|
(48,487 |
) |
|
|
(21,102 |
) |
|
|
|
|
||||
Adjusted Net Income (non-GAAP) |
$ |
149,420 |
|
|
$ |
65,030 |
|
|
|
|
|
||||
Weighted Average Shares Outstanding – Basic |
|
77,366,704 |
|
|
|
60,694,795 |
|
Weighted Average Shares Outstanding – Diluted |
|
86,788,465 |
|
|
|
70,526,168 |
|
|
|
|
|
||||
Income (Loss) Before Taxes Per Common Share – Basic |
$ |
3.26 |
|
|
$ |
(1.49 |
) |
Add: |
|
|
|
||||
Impact of Selected Items |
|
(0.70 |
) |
|
|
2.91 |
|
Impact of Income Tax |
|
(0.63 |
) |
|
|
(0.35 |
) |
Adjusted Net Income Per Common Share – Basic |
$ |
1.93 |
|
|
$ |
1.07 |
|
|
|
|
|
||||
Income (Loss) Before Taxes Per Common Share – Diluted |
$ |
2.91 |
|
|
$ |
(1.28 |
) |
Add: |
|
|
|
||||
Impact of Selected Items |
|
(0.63 |
) |
|
|
2.51 |
|
Impact of Income Tax |
|
(0.56 |
) |
|
|
(0.31 |
) |
Adjusted Net Income Per Common Share – Diluted |
$ |
1.72 |
|
|
$ |
0.92 |
|
______________
(1) |
For the three months ended |
Reconciliation of Adjusted EBITDA |
|||||||
|
Three Months Ended
|
||||||
(In thousands) |
2022 |
|
2021 |
||||
Net Income (Loss) |
$ |
251,264 |
|
|
$ |
(90,563 |
) |
Add: |
|
|
|
||||
Interest Expense |
|
18,410 |
|
|
|
15,024 |
|
Income Tax Provision (Benefit) |
|
1,006 |
|
|
|
— |
|
Depreciation, Depletion, Amortization and Accretion |
|
54,796 |
|
|
|
30,908 |
|
Non-Cash Stock-Based Compensation |
|
1,421 |
|
|
|
779 |
|
(Gain) Loss on Extinguishment of Debt |
|
(236 |
) |
|
|
494 |
|
Contingent Consideration Loss |
|
— |
|
|
|
250 |
|
Acquisition Transaction Costs |
|
514 |
|
|
|
3,016 |
|
Gain on Unsettled Interest Rate Derivatives |
|
(524 |
) |
|
|
(121 |
) |
(Gain) Loss on Unsettled Commodity Derivatives |
|
(54,117 |
) |
|
|
173,057 |
|
Adjusted EBITDA |
$ |
272,534 |
|
|
$ |
132,844 |
|
Reconciliation of Free Cash Flow |
|||
|
Three Months Ended
|
||
(In thousands) |
2022 |
||
Net Cash Provided by Operating Activities |
$ |
210,239 |
|
Exclude: Changes in Working Capital and Other Items |
|
41,948 |
|
Less: Capital Expenditures (1) |
|
(135,055 |
) |
Less: Series A Preferred Dividends |
|
(2,810 |
) |
Free Cash Flow |
$ |
114,322 |
|
_______________
(1) |
Capital expenditures are calculated as follows: |
|
Three Months Ended
|
|
(In thousands) |
2022 |
|
Cash Paid for Capital Expenditures |
$ |
106,740 |
Less: Non-Budgeted Acquisitions |
|
3,288 |
Plus: Change in Accrued Capital Expenditures and Other |
|
25,027 |
Capital Expenditures |
$ |
135,055 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005924/en/
Investor Relations
952-476-9800
ir@northernoil.com
Source:
FAQ
What were Northern Oil and Gas's production results in Q2 2022?
What was NOG's Free Cash Flow in Q2 2022?
What is the status of NOG's Williston Basin acquisition?
How much did NOG's dividends increase in Q2 2022?