Northern Oil and Gas, Inc. Announces Fourth Quarter and Full Year 2020 Results
Northern Oil and Gas reported its fourth quarter and full year 2020 results, highlighting a fourth quarter Adjusted Net Income of $35.7 million or $0.64 per diluted share, up from $21.5 million a year prior. However, the full year GAAP net loss was $921.3 million or $21.55 per diluted share. Production increased by 23% in Q4, averaging 35,738 Boe per day. The company announced a $175 million acquisition from Reliance Marcellus, expected to close in April 2021. Capital expenditures were $48.9 million in Q4, while liquidity stood at $129.8 million at year-end.
- Fourth quarter Adjusted Net Income increased to $35.7 million from $21.5 million YoY.
- Production rose by 23% in Q4, averaging 35,738 Boe per day.
- Successful acquisition of Reliance Marcellus assets for $175 million enhances asset base.
- GAAP net loss for full year 2020 was $921.3 million.
- Fourth quarter GAAP net loss was $146.2 million.
- Production curtailments and shut-ins reduced average daily production by 4,200 Boe in Q4.
Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”) today announced the company’s fourth quarter and full year 2020 results.
MANAGEMENT COMMENTS
“Northern enters 2021 in an enviable position,” commented Nick O’Grady, Northern’s Chief Executive Officer. “The fourth quarter showed the durability of our strategy, the cash generating power of our asset base, and our commitment to focusing on return on capital employed. The flexibility and dynamic nature of our non-operated business model have never been so clear. We enter 2021 as a multi-basin company, dedicated to the allocation of capital into the highest return projects, with a reinvigorated capital structure that should provide for growth opportunities and a clear path to our ultimate goal: to responsibly return capital to shareholders.”
FINANCIAL RESULTS
Fourth quarter Adjusted Net Income was
Full year 2020 Adjusted Net Income was
PRODUCTION
Fourth quarter production was 35,738 Boe per day, a
PRICING
During the fourth quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged
For full year 2020, Northern’s realized oil differential was
OPERATING COSTS
Lease operating costs were
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital spending for the fourth quarter was
RELIANCE ACQUISITION UPDATE
On February 3, 2021, Northern announced a definitive agreement to acquire assets from Reliance Marcellus, LLC, a subsidiary of Reliance Industries, Ltd., for
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2020, Northern had
On January 4, 2021, Northern retired
As of March 11, 2021, Northern had
In April 2021, upon closing of the Reliance acquisition, Northern will fund the unadjusted cash purchase price of
2021 ESTIMATED GUIDANCE — EXISTING WILLISTON AND PERMIAN PROPERTIES
2021 Guidance Ranges: |
|
Annual Production (Boe per day) |
37,750 - 42,750 |
Net Wells Added to Production |
32 - 34 |
Total Capital Expenditures ($ in millions) |
|
|
|
Operating Expenses Guidance: |
|
Production Expenses (per Boe) |
|
Production Taxes |
|
Oil as a Percentage of Production Volumes |
78 - |
Average Differential to NYMEX WTI |
|
2021 ESTIMATED GUIDANCE — RELIANCE ASSETS (PENDING ACQUISITION) — FULL YEAR
2021 Guidance Ranges: |
|
Annual Production (Mmcf per day) |
75 - 85 |
Net Wells Added to Production |
3.5 - 3.8 |
Total Capital Expenditures ($ in millions) |
|
|
|
Operating Expenses Guidance: |
|
Production, Asset G&A and Marketing Expenses (per Mcf) |
|
Average Differential to NYMEX Henry Hub (per Mcf) |
|
2021 ESTIMATED GUIDANCE — CORPORATE
|
Q1 Pre-Reliance
|
|
Q2-Q4 Post-Reliance
|
General and Administrative Expense (per Boe): |
|
|
|
Cash (excluding any one-time transaction costs) |
|
|
|
Non-Cash |
|
|
|
FOURTH QUARTER 2020 RESULTS
The following table sets forth selected operating and financial data for the periods indicated.
|
Three Months Ended
|
|||||||||
|
2020 |
|
2019 |
|
% Change |
|||||
Net Production: |
|
|
|
|
|
|||||
Oil (Bbl) |
2,508,618 |
|
|
3,218,885 |
|
|
(22) |
% |
||
Natural Gas and NGLs (Mcf) |
4,675,896 |
|
|
4,942,194 |
|
|
(5) |
% |
||
Total (Boe) |
3,287,934 |
|
|
4,042,584 |
|
|
(19) |
% |
||
|
|
|
|
|
|
|||||
Average Daily Production: |
|
|
|
|
|
|||||
Oil (Bbl) |
27,268 |
|
|
34,988 |
|
|
(22) |
% |
||
Natural Gas and NGL (Mcf) |
50,825 |
|
|
53,720 |
|
|
(5) |
% |
||
Total (Boe) |
35,738 |
|
|
43,941 |
|
|
(19) |
% |
||
|
|
|
|
|
|
|||||
Average Sales Prices: |
|
|
|
|
|
|||||
Oil (per Bbl) |
$ |
35.69 |
|
|
$ |
49.20 |
|
|
(27) |
% |
Effect of Gain on Settled Derivatives on Average Price (per Bbl) |
14.51 |
|
|
2.71 |
|
|
|
|||
Oil Net of Settled Derivatives (per Bbl) |
50.20 |
|
|
51.91 |
|
|
(3) |
% |
||
|
|
|
|
|
|
|||||
Natural Gas and NGLs (per Mcf) |
2.13 |
|
|
0.47 |
|
|
353 |
% |
||
Effect of Gain (Loss) on Settled Derivatives on Average Price (per Mcf) |
(0.20) |
|
|
— |
|
|
|
|||
Natural Gas Net of Settled Derivatives (per Mcf) |
1.93 |
|
|
0.47 |
|
|
311 |
% |
||
|
|
|
|
|
|
|||||
Realized Price on a Boe Basis Excluding Settled Commodity Derivatives |
30.27 |
|
39.75 |
|
(24) |
% |
||||
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FAQ
What were Northern Oil and Gas's fourth quarter 2020 results?
Northern reported a fourth quarter Adjusted Net Income of $35.7 million, with a GAAP net loss of $146.2 million.
How did Northern Oil and Gas's production change in the fourth quarter?
Production increased by 23% in Q4 2020, averaging 35,738 Boe per day.
What is the expected impact of the Reliance acquisition on Northern Oil and Gas?
The acquisition is expected to enhance Northern's asset base and contribute to future cash flows.
What was the full year GAAP net loss for Northern Oil and Gas in 2020?
The full year GAAP net loss was $921.3 million or $21.55 per diluted share.
What are the liquidity details for Northern Oil and Gas as of December 31, 2020?
Northern reported total liquidity of $129.8 million, including cash and borrowing availability.
Northern Oil and Gas, Inc.
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Oil & Gas E&P
Crude Petroleum & Natural Gas
United States of America
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