Yahoo Finance Northern Oil (NOG) Q1 Earnings & Revenues Outpace Estimates
Northern Oil and Gas, Inc. NOG reported first-quarter 2023 adjusted earnings per share (EPS) of $1.76, which beat the Zacks Consensus Estimate of $1.54. The bottom line also improved considerably from the year-ago quarter’s level of $1.58. This was primarily due to growth in Permian production, which accounted for approximately 35% of volumes.
Oil and natural gas sales of $426.23 million beat the Zacks Consensus Estimate of $406 million. The top line, however, reduced from the prior-year quarter’s figure of $456.46 million.
In good news for investors, the company announced a 9% dividend hike from the previous quarter’s level. It declared a regular quarterly cash dividend of 37 cents per share to stockholders of record as of Jun 29, 2023, payable as of the close of business on Jul 31, 2023. Adjusted EBITDA rose about 26.8% year over year to $325.5 million.
Northern Oil and Gas, Inc. Price, Consensus and EPS Surprise
Northern Oil and Gas, Inc. price-consensus-eps-surprise-chart | Northern Oil and Gas, Inc. Quote
Production & Price Realizations
NOG’s first-quarter production (comprising 62% oil) surged about 25.4% from the year-ago quarter’s level to 87,385 barrels of oil equivalent per day (Boe/d). The figure also surpassed the Zacks Consensus Estimate of 84,761 Boe/d. While the oil volume came in at53,864 barrels per day (up 29.6% year over year), natural gas totaled 201,125 thousand cubic feet per day (up 19.1% from the prior-year quarter’s figure).
The average sales price for crude oil was $73.31 per barrel, indicating a 19.6% decline from the prior-year period’s $91.19. The average realized natural gas price was $3.91 per thousand cubic feet compared with $6.94 a year ago.
Financial Position
Excluding working capital, cash flow from operations jumped 26% from the last quarter’s figure to $296.2 million. Organic drilling and development capital expenditure totaled $212.2 million. The company's free cash flow for the quarter amounted to $84 million.
As of Mar 31, NOG had $6.1 million in cash and cash equivalents. Its long-term debt amounted to $1.76 billion, with a debt-to-capitalization of 62.6%.
Guidance
Northern Oil's output for 2023 is now anticipated in the 91,000-96,000 Boe/d range.
The company maintained its total capital spending guidance in the band of $737-$778 million.
NOG has an oil-mix projection of 62-64% for the year.
Zacks Rank and Key Picks
Currently, Northern Oil carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM, sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC and Ranger Energy Services RNGR, both holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum: EPM is worth approximately $219.16 million. EPM currently pays investors $0.48 per share, or 7.38%, on an annual basis.
The company currently has a forward P/E ratio of 6.07. In comparison, its industry has an average forward P/E of 7.50, which means EPM is trading at a discount to the group.
Archrock: AROC is valued at around $1.55 billion. It delivered an average earnings surprise of 26.27% for the last four quarters and its current dividend yield is 6.06%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
Ranger Energy Services: RNGR is valued at around $183.61 million. In the past year, its shares have gained 13.8%.
Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.
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