NOG Announces Third Quarter 2024 Results, Achieves Record Oil Production
Northern Oil and Gas (NOG) reported strong Q3 2024 results with record oil production of 70,913 Bbl per day, up 12% year-over-year. Total production reached 121,815 Boe per day, a 19% increase from Q3 2023. The company achieved GAAP net income of $298.4 million and generated record Free Cash Flow of $177.1 million, up 32% from Q2 2024. Capital expenditures were $198.0 million. NOG closed a joint acquisition with SM Energy Company of Uinta Basin properties from XCL Resources for $519.0 million net to NOG. The company maintained its 2024 production guidance of 120,000-124,000 Boe per day.
Northern Oil and Gas (NOG) ha riportato risultati solidi per il terzo trimestre del 2024, con una produzione record di 70.913 barili al giorno, in aumento del 12% rispetto all'anno precedente. La produzione totale ha raggiunto 121.815 Boe al giorno, con un incremento del 19% rispetto al terzo trimestre del 2023. L'azienda ha ottenuto un reddito netto GAAP di 298,4 milioni di dollari e ha generato un Free Cash Flow record di 177,1 milioni di dollari, in crescita del 32% rispetto al secondo trimestre del 2024. Le spese in conto capitale sono state di 198 milioni di dollari. NOG ha concluso un'acquisizione congiunta con SM Energy Company di proprietà della Uinta Basin da XCL Resources per 519 milioni di dollari netti a NOG. L'azienda ha mantenuto le sue previsioni di produzione per il 2024 di 120.000-124.000 Boe al giorno.
Northern Oil and Gas (NOG) reportó resultados sólidos para el tercer trimestre de 2024, con una producción récord de 70,913 barriles por día, un aumento del 12% interanual. La producción total alcanzó 121,815 Boe por día, un incremento del 19% en comparación con el tercer trimestre de 2023. La compañía logró un ingreso neto GAAP de 298.4 millones de dólares y generó un flujo de caja libre récord de 177.1 millones de dólares, un aumento del 32% desde el segundo trimestre de 2024. Los gastos de capital fueron de 198.0 millones de dólares. NOG cerró una adquisición conjunta con SM Energy Company de propiedades de Uinta Basin de XCL Resources por 519.0 millones de dólares netos para NOG. La empresa mantuvo su guía de producción para 2024 de 120,000-124,000 Boe por día.
노던 오일 앤 가스 (NOG)는 2024년 3분기 동안 하루 70,913배럴의 기록적인 석유 생산량을 보고하며 전년 대비 12% 증가했다고 발표했습니다. 전체 생산량은 하루 121,815BoE에 도달하며, 이는 2023년 3분기 대비 19% 증가한 수치입니다. 회사는 298.4백만 달러의 GAAP 순이익을 달성하였고, 2024년 2분기 대비 32% 상승한 177.1백만 달러의 기록적인 자유 현금 흐름을 생성했습니다. 자본 지출은 198.0백만 달러였습니다. NOG는 XCL Resources로부터 유인타 분지 자산을 SM Energy Company와 공동 인수하여 NOG에 순 519.0백만 달러에 거래를 종료했습니다. 회사는 2024년 위해 하루 120,000-124,000 BoE의 생산 목표를 유지했습니다.
Northern Oil and Gas (NOG) a rapporté des résultats solides pour le troisième trimestre 2024 avec une production record de 70.913 barils par jour, en hausse de 12 % par rapport à l'année précédente. La production totale a atteint 121.815 Boe par jour, soit une augmentation de 19 % par rapport au troisième trimestre 2023. L'entreprise a réalisé un revenu net GAAP de 298,4 millions de dollars et a généré un flux de trésorerie disponible record de 177,1 millions de dollars, en hausse de 32 % par rapport au deuxième trimestre 2024. Les dépenses en capital se sont élevées à 198 millions de dollars. NOG a conclu une acquisition conjointe avec SM Energy Company des propriétés du bassin de Uinta auprès de XCL Resources pour 519 millions de dollars nets à NOG. L'entreprise a maintenu ses prévisions de production pour 2024 de 120.000 à 124.000 Boe par jour.
Northern Oil and Gas (NOG) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit einer rekordverdächtigen Ölproduktion von 70.913 Barrel pro Tag, was einem Anstieg von 12% im Jahresvergleich entspricht. Die Gesamtproduktion erreichte 121.815 Boe pro Tag, ein Plus von 19% im Vergleich zum dritten Quartal 2023. Das Unternehmen erzielte einen GAAP-Nettoertrag von 298,4 Millionen US-Dollar und generierte einen rekordhohen freien Cashflow von 177,1 Millionen US-Dollar, was einem Anstieg von 32% gegenüber dem zweiten Quartal 2024 entspricht. Die Investitionsausgaben betrugen 198,0 Millionen US-Dollar. NOG schloss eine gemeinsame Akquisition mit SM Energy Company von Uinta Basin-Immobilien von XCL Resources für 519,0 Millionen US-Dollar netto an NOG ab. Das Unternehmen hielt seine Produktionsprognose für 2024 von 120.000-124.000 Boe pro Tag aufrecht.
- Record oil production of 70,913 Bbl per day, up 12% YoY
- Record Free Cash Flow of $177.1 million, up 32% QoQ
- GAAP net income of $298.4 million
- Cash flow from operations increased 9% YoY to $377.1 million
- D&C list increased by 11.1 net wells to 52.2 net wells
- Production decreased 1% from Q2 2024
- Natural gas realizations declined to 72% of Henry Hub pricing
- Lease operating costs increased 6% per unit QoQ
- Only 9.5 net wells turned in-line vs 30.1 in Q2 2024
Insights
NOG delivered a strong quarter with several notable achievements.
Key financial metrics remain healthy with
Production efficiency stands out with record oil volumes achieved despite only 9.5 net well completions, down from 30.1 in Q2. Strong well performance in both Williston and Permian basins offset natural gas volume declines in Appalachia. The
The increased D&C list of 52.2 net wells and strategic acquisitions in the Uinta Basin position NOG for continued growth. Cost control remains effective with adjusted cash G&A declining to
THIRD QUARTER HIGHLIGHTS
-
Production of 121,815 Boe per day (
58% oil), up19% from the third quarter of 2023 - Record oil volumes of 70,913 Bbl per day, despite only 9.5 net turn-in-lines during the quarter
-
GAAP net income of
$298.4 million $141.1 million $412.4 million -
Cash flow from operations of
$385.8 million $377.1 million 9% from the third quarter of 2023, up1% from the second quarter of 2024 -
Generated record
$177.1 million 32% from the second quarter of 2024. See “Non-GAAP Financial Measures” below -
Capital expenditures of
$198.0 million - D&C list increased to 52.2 net wells, up 11.1 net wells from the second quarter of 2024
-
Repurchased 397,301 shares of common stock at an average price of
$36.38
POST-QUARTER HIGHLIGHTS
-
Closed joint acquisition with SM Energy Company of Uinta Basin properties from XCL Resources for
$519.0 million
MANAGEMENT COMMENTS
“During the third quarter we generated record oil volumes and free cash flow despite limited completion activity and a period of weaker commodity prices. Importantly, we notched multiple achievements on the business front executing on acquisitions of two high-quality growth assets,” commented Nick O’Grady, NOG’s Chief Executive Officer. “We closed our
THIRD QUARTER FINANCIAL RESULTS
Oil and natural gas sales for the third quarter were
PRODUCTION
Third quarter production was 121,815 Boe per day, a decrease of
PRICING
During the third quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged
OPERATING COSTS
Lease operating costs were
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital expenditures for the third quarter were
NOG’s Permian Basin spending was
LIQUIDITY AND CAPITAL RESOURCES
NOG had total liquidity in excess of
SHAREHOLDER RETURNS
In the third quarter of 2024, the Company repurchased 397,301 shares of common stock at an average price, inclusive of commissions, of
In August 2024, NOG’s Board of Directors declared a regular quarterly cash dividend for NOG’s common stock of
2024 ANNUAL GUIDANCE(1)
NOG is reiterating capital expenditure and production guidance and adjusting certain line items. Production taxes are being adjusted to reflect current expectations for the remainder of the year. Natural gas realizations and oil differentials are being adjusted to reflect results experienced year-to-date. Per unit cash G&A is being lowered as the Company has reduced certain external expenses and continues to benefit from increasing production volumes.
|
|
Prior Guidance |
|
Revised Guidance |
Annual Production (Boe per day) |
|
120,000 - 124,000 |
|
120,000 - 124,000 |
Annual Oil Production (Bbls per day) |
|
73,000 - 76,000 |
|
73,000 - 76,000 |
Total Capital Expenditures ($ in millions) |
|
|
|
|
Net Wells Turned-in-Line (“TIL”) |
|
93.0 - 98.0 |
|
93.0 - 98.0 |
Net Wells Spud |
|
73.0 - 78.0 |
|
73.0 - 78.0 |
|
|
|
|
|
Operating Expenses and Differentials: |
|
|
|
|
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) |
|
|
|
|
DD&A Rate (per Boe) |
|
|
|
|
|
|
|
|
|
General and Administrative Expense (per Boe): |
|
|
|
|
Non-Cash |
|
|
|
|
Cash (excluding transaction costs on non-budgeted acquisitions) |
|
|
|
|
________________ |
||
(1) |
All forecasts are provided on a 2-stream production basis. |
|
(2) |
Represents expected fourth quarter rate. Actual annual production tax rate is expected to be lower, due to an out-of-period adjustment made in the third quarter. |
|
THIRD QUARTER 2024 RESULTS
The following tables set forth selected operating and financial data for the periods indicated.
|
Three Months Ended September 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
Net Production (in thousands): |
|
|
|
|
|
||||
Oil (MBbl) |
|
6,524 |
|
|
5,848 |
|
|
12 |
% |
Natural Gas (MMcf) |
|
28,098 |
|
|
21,397 |
|
|
31 |
% |
Total (MBoe) |
|
11,207 |
|
|
9,414 |
|
|
19 |
% |
|
|
|
|
|
|
||||
Average Daily Production: |
|
|
|
|
|
||||
Oil (Bbl) |
|
70,913 |
|
|
63,564 |
|
|
12 |
% |
Natural Gas (Mcf) |
|
305,413 |
|
|
232,576 |
|
|
31 |
% |
Total (Boe) |
|
121,815 |
|
|
102,327 |
|
|
19 |
% |
|
|
|
|
|
|
||||
Average Sales Prices: |
|
|
|
|
|
||||
Oil (per Bbl) |
$ |
71.82 |
|
$ |
79.48 |
|
|
(10 |
)% |
Effect of Gain (Loss) on Settled Oil Derivatives on Average Price (per Bbl) |
|
0.20 |
|
|
(2.58 |
) |
|
|
|
Oil Net of Settled Oil Derivatives (per Bbl) |
|
72.02 |
|
|
76.90 |
|
|
(6 |
)% |
|
|
|
|
|
|
||||
Natural Gas and NGLs (per Mcf) |
|
1.60 |
|
|
2.19 |
|
|
(27 |
)% |
Effect of Gain on Settled Natural Gas Derivatives on Average Price (per Mcf) |
|
1.01 |
|
|
0.95 |
|
|
|
|
Natural Gas and NGLs Net of Settled Natural Gas Derivatives (per Mcf) |
|
2.61 |
|
|
3.14 |
|
|
(17 |
)% |
|
|
|
|
|
|
||||
Realized Price on a Boe Basis Excluding Settled Commodity Derivatives |
|
45.82 |
|
|
54.35 |
|
|
(16 |
)% |
Effect of Gain on Settled Commodity Derivatives on Average Price (per Boe) |
|
2.65 |
|
|
0.55 |
|
|
|
|
Realized Price on a Boe Basis Including Settled Commodity Derivatives |
|
48.47 |
|
|
54.90 |
|
|
(12 |
)% |
|
|
|
|
|
|
||||
Costs and Expenses (per Boe): |
|
|
|
|
|
||||
Production Expenses |
$ |
9.54 |
|
$ |
8.76 |
|
|
9 |
% |
Production Taxes |
|
1.31 |
|
|
4.48 |
|
|
(71 |
)% |
General and Administrative Expenses |
|
0.89 |
|
|
1.26 |
|
|
(29 |
)% |
Depletion, Depreciation, Amortization and Accretion |
|
16.57 |
|
|
14.21 |
|
|
17 |
% |
|
|
|
|
|
|
||||
Net Producing Wells at Period End |
|
1,049.8 |
|
|
923.7 |
|
|
14 |
% |
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 September 30, 2024.
|
|
Crude Oil Commodity Derivative Swaps(1) |
|
Crude Oil Commodity Derivative Collars |
|||||||||||
Contract Period |
|
Volume (Bbls/Day) |
|
Weighted Average Price ($/Bbl) |
|
Collar Call Volume (Bbls) |
|
Collar Put Volume (Bbls) |
|
Weighted Average Ceiling Price ($/Bbl) |
|
Weighted Average Floor Price ($/Bbl) |
|||
2024: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q4 |
|
32,969 |
|
$ |
73.85 |
|
2,195,749 |
|
1,998,800 |
|
$ |
81.32 |
|
$ |
71.58 |
2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q1 |
|
32,791 |
|
$ |
74.82 |
|
2,303,286 |
|
1,889,849 |
|
$ |
78.25 |
|
$ |
69.68 |
Q2 |
|
27,123 |
|
|
74.54 |
|
2,502,671 |
|
2,019,233 |
|
|
77.45 |
|
|
69.41 |
Q3 |
|
19,413 |
|
|
73.57 |
|
2,304,994 |
|
1,817,970 |
|
|
77.43 |
|
|
69.15 |
Q4 |
|
18,933 |
|
|
73.29 |
|
2,278,511 |
|
1,791,487 |
|
|
77.55 |
|
|
69.15 |
2026: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q1 |
|
2,930 |
|
$ |
70.38 |
|
1,325,726 |
|
894,289 |
|
$ |
74.41 |
|
$ |
66.15 |
Q2 |
|
2,930 |
|
|
70.31 |
|
1,340,457 |
|
904,227 |
|
|
74.41 |
|
|
66.15 |
Q3 |
|
2,930 |
|
|
70.24 |
|
1,355,187 |
|
914,163 |
|
|
74.41 |
|
|
66.15 |
Q4 |
|
2,930 |
|
|
70.15 |
|
1,355,187 |
|
914,163 |
|
|
74.41 |
|
|
66.15 |
_____________ |
||
(1) |
Includes derivative contracts entered into as of November 5, 2024. 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 10 to our financial statements included in our Form 10-Q filed with the SEC for the quarter ended September 30, 2024. |
|
The following table summarizes NOG’s open natural gas commodity derivative swap contracts scheduled to settle after September 30, 2024.
|
|
Natural Gas Commodity Derivative Swaps(1) |
|
Natural Gas Commodity Derivative Collars |
|||||||||||
Contract Period |
|
Volume (MMBTU/Day) |
|
Weighted Average Price ($/MMBTU) |
|
Collar Call Volume (MMBTU) |
|
Collar Put Volume (MMBTU) |
|
Weighted Average Ceiling Price ($/MMBTU) |
|
Weighted Average Floor Price ($/MMBTU) |
|||
2024: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q4 |
|
100,738 |
|
$ |
3.48 |
|
9,406,586 |
|
9,406,586 |
|
$ |
4.60 |
|
$ |
3.07 |
2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q1 |
|
72,500 |
|
$ |
3.46 |
|
10,086,417 |
|
10,086,417 |
|
$ |
4.98 |
|
$ |
3.12 |
Q2 |
|
30,330 |
|
|
3.47 |
|
9,691,297 |
|
9,691,297 |
|
|
4.71 |
|
|
3.11 |
Q3 |
|
30,000 |
|
|
3.47 |
|
9,327,569 |
|
9,327,569 |
|
|
4.73 |
|
|
3.11 |
Q4 |
|
24,891 |
|
|
3.53 |
|
8,228,723 |
|
8,228,723 |
|
|
4.86 |
|
|
3.11 |
2026: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q1 |
|
14,889 |
|
$ |
3.74 |
|
5,828,249 |
|
5,828,249 |
|
$ |
5.06 |
|
$ |
3.09 |
Q2 |
|
15,165 |
|
|
3.74 |
|
6,024,706 |
|
6,024,706 |
|
|
5.06 |
|
|
3.09 |
Q3 |
|
15,000 |
|
|
3.74 |
|
6,024,706 |
|
6,024,706 |
|
|
5.06 |
|
|
3.09 |
Q4 |
|
11,576 |
|
|
3.66 |
|
4,304,642 |
|
4,304,642 |
|
|
4.97 |
|
|
3.09 |
2027: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Q1 |
|
1,722 |
|
$ |
3.20 |
|
890,000 |
|
890,000 |
|
$ |
3.83 |
|
$ |
3.00 |
Q2 |
|
— |
|
|
— |
|
920,000 |
|
920,000 |
|
|
3.83 |
|
|
3.00 |
Q3 |
|
— |
|
|
— |
|
920,000 |
|
920,000 |
|
|
3.83 |
|
|
3.00 |
Q4 |
|
— |
|
|
— |
|
610,000 |
|
610,000 |
|
|
3.83 |
|
|
3.00 |
____________ |
||
(2) |
Includes derivative contracts entered into as of November 5, 2024. This table does not include basis swaps. For additional information, see Note 10 to our financial statements included in our Form 10-Q filed with the SEC for the quarter ended September 30, 2024. |
|
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 September 30, |
|||||
(In thousands) |
|
2024 |
|
|
2023 |
|
Cash Received on Settled Derivatives |
$ |
29,709 |
|
$ |
5,164 |
|
Non-Cash Mark-to-Market Gain (Loss) on Derivatives |
|
208,441 |
|
|
(204,712 |
) |
Gain (Loss) on Commodity Derivatives, Net |
$ |
238,150 |
|
$ |
(199,548 |
) |
CAPITAL EXPENDITURES & DRILLING ACTIVITY |
|||
(In thousands, except for net well data) |
|
Three Months Ended
|
|
Capital Expenditures Incurred: |
|
|
|
Organic Drilling and Development Capital Expenditures |
|
$ |
161,945 |
Ground Game Drilling and Development Capital Expenditures |
|
$ |
25,010 |
Ground Game Acquisition Capital Expenditures inclusive of pre-closing development costs |
|
$ |
11,073 |
Other |
|
$ |
1,890 |
Non-Budgeted Acquisitions |
|
$ |
198,726 |
|
|
|
|
Net Wells Added to Production |
|
|
9.5 |
|
|
|
|
Net Producing Wells (Period-End) |
|
|
1,049.8 |
|
|
|
|
Net Wells in Process (Period-End) |
|
|
52.2 |
|
|
|
|
Weighted Average Gross AFE for Wells Elected to |
|
$ |
9,147 |
THIRD QUARTER 2024 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 Wednesday, November 6, 2024 at 8:00 a.m. Central Time.
Those wishing to listen to the conference call may do so via webcast or phone as follows:
Webcast: https://events.q4inc.com/attendee/395412196
Dial-In Number: (800) 715-9871 (US/
Conference ID: 4503139 - NOG Third Quarter 2024 Earnings Conference Call
Replay Dial-In Number: (800) 770-2030 (US/
Replay Access Code: 4503139 - Replay will be available through November 20, 2024
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
SAFE HARBOR
This press release contains forward-looking statements regarding future events and NOG’s future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release regarding NOG’s financial position, operating and financial performance, business strategy, dividend plans and practices, 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 crude oil and natural gas prices, the pace of drilling and completions activity on NOG’s current properties and properties pending acquisition; infrastructure constraints and related factors affecting NOG’s properties; cost inflation or supply chain disruptions; ongoing legal disputes over, and potential shutdown of, the Dakota Access Pipeline; NOG’s ability to acquire additional development opportunities, potential or pending acquisition transactions, 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; disruption to NOG’s business due to acquisitions and other significant transactions; 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; risks associated with NOG’s
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. Accordingly, results actually achieved may differ materially from expected results described in these statements. 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 September 30, |
||||||
(In thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
||||
Oil and Gas Sales |
$ |
513,541 |
|
|
$ |
511,651 |
|
Gain (Loss) on Commodity Derivatives, Net |
|
238,150 |
|
|
|
(199,548 |
) |
Other Revenues |
|
1,947 |
|
|
|
1,870 |
|
Total Revenues |
|
753,638 |
|
|
|
313,973 |
|
|
|
|
|
||||
Operating Expenses |
|
|
|
||||
Production Expenses |
|
106,902 |
|
|
|
82,506 |
|
Production Taxes |
|
14,671 |
|
|
|
42,158 |
|
General and Administrative Expenses |
|
10,005 |
|
|
|
11,846 |
|
Depletion, Depreciation, Amortization and Accretion |
|
185,657 |
|
|
|
133,791 |
|
Other Expenses |
|
2,463 |
|
|
|
1,234 |
|
Total Operating Expenses |
|
319,698 |
|
|
|
271,535 |
|
|
|
|
|
||||
Income From Operations |
|
433,940 |
|
|
|
42,438 |
|
|
|
|
|
||||
Other Income (Expense) |
|
|
|
||||
Interest Expense, Net of Capitalization |
|
(36,837 |
) |
|
|
(37,040 |
) |
Loss on Unsettled Interest Rate Derivatives, Net |
|
(20 |
) |
|
|
— |
|
Other Income |
|
140 |
|
|
|
21 |
|
Total Other Expense, Net |
|
(36,717 |
) |
|
|
(37,019 |
) |
|
|
|
|
||||
Income Before Income Taxes |
|
397,223 |
|
|
|
5,419 |
|
|
|
|
|
||||
Income Tax Expense (Benefit) |
|
98,777 |
|
|
|
(20,691 |
) |
|
|
|
|
||||
Net Income |
$ |
298,446 |
|
|
$ |
26,111 |
|
|
|
|
|
||||
Net Income Per Common Share – Basic |
$ |
3.00 |
|
|
$ |
0.28 |
|
Net Income Per Common Share – Diluted |
$ |
2.96 |
|
|
$ |
0.28 |
|
Weighted Average Common Shares Outstanding – Basic |
|
99,494,313 |
|
|
|
92,768,035 |
|
Weighted Average Common Shares Outstanding – Diluted |
|
100,724,784 |
|
|
|
93,742,407 |
|
CONDENSED BALANCE SHEETS |
|||||||
(In thousands, except par value and share data) |
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
(Unaudited) |
|
|
||||
Current Assets: |
|
|
|
||||
Cash and Cash Equivalents |
$ |
34,356 |
|
|
$ |
8,195 |
|
Accounts Receivable, Net |
|
316,933 |
|
|
|
370,531 |
|
Advances to Operators |
|
18,153 |
|
|
|
49,210 |
|
Prepaid Expenses and Other |
|
12,111 |
|
|
|
2,489 |
|
Derivative Instruments |
|
100,797 |
|
|
|
75,733 |
|
Income Tax Receivable |
|
36,573 |
|
|
|
3,249 |
|
Total Current Assets |
|
518,923 |
|
|
|
509,407 |
|
|
|
|
|
||||
Property and Equipment: |
|
|
|
||||
Oil and Natural Gas Properties, Full Cost Method of Accounting |
|
|
|
||||
Proved |
|
9,524,785 |
|
|
|
8,428,518 |
|
Unproved |
|
23,006 |
|
|
|
36,785 |
|
Other Property and Equipment |
|
8,182 |
|
|
|
8,069 |
|
Total Property and Equipment |
|
9,555,973 |
|
|
|
8,473,372 |
|
Less – Accumulated Depreciation, Depletion and Impairment |
|
(5,075,954 |
) |
|
|
(4,541,808 |
) |
Total Property and Equipment, Net |
|
4,480,019 |
|
|
|
3,931,563 |
|
|
|
|
|
||||
Derivative Instruments |
|
14,730 |
|
|
|
10,725 |
|
Acquisition Deposit |
|
25,500 |
|
|
|
17,094 |
|
Other Noncurrent Assets, Net |
|
16,155 |
|
|
|
15,466 |
|
|
|
|
|
||||
Total Assets |
$ |
5,055,327 |
|
|
$ |
4,484,255 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|||||||
Current Liabilities: |
|
|
|
||||
Accounts Payable |
$ |
152,455 |
|
|
$ |
192,672 |
|
Accrued Liabilities |
|
237,244 |
|
|
|
147,943 |
|
Accrued Interest |
|
28,034 |
|
|
|
26,219 |
|
Derivative Instruments |
|
804 |
|
|
|
16,797 |
|
Other Current Liabilities |
|
1,751 |
|
|
|
2,130 |
|
Total Current Liabilities |
|
420,288 |
|
|
|
385,761 |
|
|
|
|
|
||||
Long-term Debt, Net |
|
1,953,099 |
|
|
|
1,835,554 |
|
Deferred Tax Liability |
|
210,738 |
|
|
|
68,488 |
|
Derivative Instruments |
|
112,442 |
|
|
|
105,831 |
|
Asset Retirement Obligations |
|
42,867 |
|
|
|
38,203 |
|
Other Noncurrent Liabilities |
|
2,391 |
|
|
|
2,741 |
|
|
|
|
|
||||
Total Liabilities |
$ |
2,741,825 |
|
|
$ |
2,436,578 |
|
|
|
|
|
||||
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity |
|
|
|
||||
Common Stock, Par Value 99,825,164 Shares Outstanding at 9/30/2024 100,761,148 Shares Outstanding at 12/31/2023 |
|
502 |
|
|
|
503 |
|
Additional Paid-In Capital |
|
1,942,181 |
|
|
|
2,124,963 |
|
Retained Earnings (Deficit) |
|
370,819 |
|
|
|
(77,790 |
) |
Total Stockholders’ Equity |
|
2,313,502 |
|
|
|
2,047,676 |
|
Total Liabilities and Stockholders’ Equity |
$ |
5,055,327 |
|
|
$ |
4,484,255 |
|
Non-GAAP Financial Measures
Adjusted Net Income, Adjusted EBITDA and Free Cash Flow are non-GAAP measures. NOG defines Adjusted Net Income (Loss) as income (loss) before income taxes, excluding (i) (gain) loss on unsettled commodity derivatives, net of tax, (ii) (gain) loss on extinguishment of debt, net of tax, (iii) contingent consideration (gain) loss, net of tax, (iv) acquisition transaction costs, net of tax, and (v) (gain) loss 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 (gain) loss (vii) acquisition transaction costs, (viii) (gain) loss 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 changes in accrued capital expenditures and other items. 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 September 30, |
||||||
(In thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
Income Before Income Taxes |
$ |
397,223 |
|
|
$ |
5,419 |
|
Add: |
|
|
|
||||
Impact of Selected Items: |
|
|
|
||||
(Gain) Loss on Unsettled Commodity Derivatives |
|
(208,441 |
) |
|
|
204,712 |
|
Acquisition Transaction Costs |
|
(1,901 |
) |
|
|
3,385 |
|
Loss on Unsettled Interest Rate Derivatives |
|
20 |
|
|
|
— |
|
Adjusted Income Before Adjusted Income Tax Expense |
|
186,901 |
|
|
|
213,516 |
|
|
|
|
|
||||
Adjusted Income Tax Expense (1) |
|
(45,791 |
) |
|
|
(52,311 |
) |
|
|
|
|
||||
Adjusted Net Income (non-GAAP) |
$ |
141,110 |
|
|
$ |
161,205 |
|
|
|
|
|
||||
Weighted Average Shares Outstanding – Basic |
|
99,494,313 |
|
|
|
92,768,035 |
|
Weighted Average Shares Outstanding – Diluted |
|
100,724,784 |
|
|
|
93,742,407 |
|
Less: |
|
|
|
||||
Dilutive Effect of Convertible Notes (2) |
|
115,626 |
|
|
|
434,944 |
|
Weighted Average Shares Outstanding – Adjusted Diluted |
|
100,609,158 |
|
|
|
93,307,463 |
|
|
|
|
|
||||
Income Before Income Taxes Per Common Share – Basic |
$ |
3.99 |
|
|
$ |
0.06 |
|
Add: |
|
|
|
||||
Impact of Selected Items |
|
(2.11 |
) |
|
|
2.24 |
|
Impact of Income Tax |
|
(0.46 |
) |
|
|
(0.56 |
) |
Adjusted Net Income Per Common Share – Basic |
$ |
1.42 |
|
|
$ |
1.74 |
|
|
|
|
|
||||
Income Before Income Taxes Per Common Share – Adjusted Diluted |
$ |
3.95 |
|
|
$ |
0.06 |
|
Add: |
|
|
|
||||
Impact of Selected Items |
|
(2.09 |
) |
|
|
2.23 |
|
Impact of Income Tax |
|
(0.46 |
) |
|
|
(0.56 |
) |
Adjusted Net Income Per Common Share – Adjusted Diluted |
$ |
1.40 |
|
|
$ |
1.73 |
|
______________ |
||
(1) |
For the three months ended September 30, 2024 and September 30, 2023, this represents a tax impact using an estimated tax rate of |
|
(2) |
Weighted average shares outstanding - diluted, on a GAAP basis, includes diluted shares attributable to the Company’s Convertible Notes due 2029. However, the offsetting impact of the capped call transactions that the Company entered into in connection therewith is not recognized on a GAAP basis. As a result, for purposes of this calculation, the Company excludes the dilutive shares to the extent they would be offset by the capped calls. |
|
Reconciliation of Adjusted EBITDA |
|||||||
|
Three Months Ended September 30, |
||||||
(In thousands) |
|
2024 |
|
|
|
2023 |
|
Net Income |
$ |
298,446 |
|
|
$ |
26,111 |
|
Add: |
|
|
|
||||
Interest Expense |
|
36,837 |
|
|
|
37,040 |
|
Income Tax Expense |
|
98,777 |
|
|
|
(20,691 |
) |
Depreciation, Depletion, Amortization and Accretion |
|
185,657 |
|
|
|
133,791 |
|
Non-Cash Stock-Based Compensation |
|
3,018 |
|
|
|
1,178 |
|
Acquisition Transaction Costs |
|
(1,901 |
) |
|
|
3,385 |
|
Loss on Unsettled Interest Rate Derivatives |
|
20 |
|
|
|
— |
|
(Gain) Loss on Unsettled Commodity Derivatives |
|
(208,441 |
) |
|
|
204,712 |
|
Adjusted EBITDA |
$ |
412,413 |
|
|
$ |
385,525 |
|
Reconciliation of Free Cash Flow |
|||
|
Three Months Ended September 30, |
||
(In thousands) |
|
2024 |
|
Net Cash Provided by Operating Activities |
$ |
385,761 |
|
Exclude: Changes in Working Capital and Other Items |
|
(8,704 |
) |
Less: Capital Expenditures (1) |
|
(199,918 |
) |
Free Cash Flow |
$ |
177,139 |
|
_______________ |
|||
(1) Capital expenditures are calculated as follows: |
|||
|
Three Months Ended September 30, |
||
(In thousands) |
|
2024 |
|
Cash Paid for Capital Expenditures |
$ |
381,824 |
|
Less: Non-Budgeted Acquisitions |
|
(204,571 |
) |
Plus: Change in Accrued Capital Expenditures and Other |
|
22,665 |
|
Capital Expenditures |
$ |
199,918 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105233580/en/
Evelyn Infurna
Vice President of Investor Relations
952-476-9800
ir@northernoil.com
Source: Northern Oil and Gas, Inc.
FAQ
What was NOG's oil production in Q3 2024?
How much Free Cash Flow did NOG generate in Q3 2024?
What was NOG's capital expenditure in Q3 2024?
What major acquisition did NOG complete after Q3 2024?
