Yahoo Finance Northern (NOG) Updates Q4 Production Numbers, Hikes Dividend
Northern Oil & Gas, Inc. NOG recently reported a decrease of around 10,000 barrels of oil equivalent per day (boe/d) in its production due to severe weather in December, affecting its operations in the Williston and Permian Basins. Despite the impact, the company still expects its full-year 2022 output to meet its previous guidance of 75,250 to 75,550 boe/d.
Northern Oil and Gas forecasts that its overall production volume for the fourth quarter will be slightly lower when compared with the third-quarter figure. However, the company expects that the average daily oil production will be higher sequentially. This implies that while the overall quantity of production might be lower, the production efficiency has improved, leading to higher daily oil production.
Despite the adverse weather conditions, Northern Oil and Gas was able to successfully bring 19.9 net wells online during the fourth quarter of the year, with 5.9 net wells being brought online in late December. This strong performance has built significant momentum heading into 2023. The company reported that its operations have largely returned to normal in January, indicating that the effects of the severe weather are reversed and the production is back on track. This is positive news for the company and its stakeholders, as it suggests that NOG is well-positioned to continue delivering strong results in the future.
NOG predicts higher operating costs of $10.05-$10.10 per barrel of oil equivalent in Q4 due to production outages and lower levels of production. However, the company anticipates these costs to return to normal in the first quarter of 2023. Meanwhile, capital expenditures related to development and acquisition during the October-December period is projected to be $143-$145 million.
The company has announced a cash dividend of 34 cents per share, up 13% from the last quarter. NOG plans to pay the dividend on Apr 28, 2023 to stockholders of record as of Mar 30, 2023. It also plans to propose a 9% increase to the quarterly common stock dividend, bringing it to 37 cents per share for the second quarter of 2023.
Zacks Rank and Key Picks
Northern Oil and Gas is an upstream energy company based in Minnetonka, MN, specializing in the acquisition, exploration, development, and production of oil and natural gas properties in the Williston, Permian, and Appalachian basins in the United States.
Currently, Northern Oil & Gas carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like Patterson-UTI Energy PTEN sporting a Zacks Rank #1 (Strong Buy) and Calumet Specialty Products Partners (CLMT) and Halliburton (HAL) both holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.44 billion. Its shares have gained 47.2% in the past year.
Halliburton is valued at around $4.74 billion. In the past year, HAL stock has increased by 40.2%.
Houston, TX-based Halliburton is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 130.98 %. on average
Calumet Specialty Products Partners is worth approximately $1.36 billion. Its shares have gained 16.1% in the past year.
Calumet Specialty Products Partners is a leading independent producer of high-quality, specialty hydrocarbon products in North America.
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