Back to top

Image: Bigstock

Northern (NOG) Stock Up 5.9% Since Q4 Earnings & Sales Beat

Read MoreHide Full Article

Northern Oil and Gas (NOG - Free Report) stock has risen 5.9% since the fourth-quarter 2021 earnings announcement on Feb 24.

This increase can be attributed to Northern’s fourth-quarter earnings and revenues beating the Zacks Consensus Estimate.

Inside Northern's Earnings

The independent oil and gas producer, Northern Oil, reported fourth-quarter 2021 adjusted earnings per share of $1.06, beating the Zacks Consensus Estimate of $1.02, due to much higher net and daily production as well as greater commodity prices compared with the last quarter.  Moreover, the bottom line improved from the year-ago profit of 64 cents.

The company's oil and natural gas sales of $332.37 million beat the Zacks Consensus Estimate of $270 million. The top line also skyrocketed from the year-ago figure of $99.5 million.

Northern instituted a 78% dividend hike compared with the previous quarter. It declared a regular quarterly cash dividend for NOG’s common stock of 8 cents per share for stockholders of record as of Dec 30, 2021, which was paid out on Jan 31. Its adjusted EBITDA rose 29% sequentially to $175.3 million.

Production & Price Realizations

The fourth-quarter production (comprising 59.2% oil) surged 79.5% from the year-ago level to 64,155 barrels of oil equivalent per day (Boe/d) and surpassed the Zacks Consensus Estimate of 62,080 Boe/d. While the oil volume came in at 37,963 barrels per day (up 39.2% year over year), natural gas totaled 157,153 thousand cubic feet per day (up 209.2%).

The average sales price for crude oil in the third quarter was $71.67 per barrel, reflecting about a 101% increase from the prior-year realization of $35.69. The average realized natural gas price was $5.68 per thousand cubic feet compared with $2.13 in the year-earlier period.

Northern Oil and Gas, Inc. Price, Consensus and EPS Surprise

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

Financial Position

Excluding working capital, cash flow from operations jumped 29% from the last quarter’s figure to $158 million, while Northern's organic drilling and development capital expenditure totaled $49.1 million. The company's free cash flow for the quarter was $70.7 million.

As of Dec 31, the owner of non-operating, minority interests in thousands of oil and gas wells had $9.52 million in cash and cash equivalents. The company had long-term debt of $803.4 million.

Guidance

Northern's output for 2022 is anticipated in the 70,000-75,000 Boe/d range, which is an increase of about 35% at the midpoint from 2021 levels. As of now, NOG expects total capital spending in the range of $350-$415 million for 2022 and anticipates about 45% of its 2022 budget to be spent on the Williston, 45% on the Permian and the remaining 10% on the Appalachian and other basins. The company expects this year's oil-mix guidance in the band of 59.5-61.5%.

Zacks Rank & Stocks to Consider

Northern Oil and Gas currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are PDC Energy (PDCE - Free Report) , SM Energy (SM - Free Report) and Enerplus Corporation (ERF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

PDC Energy’s stock price has increased 72.6% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 29% upward over the past 30 days from $10.33 per share to $13.32.

The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $13.32 per share, up 66.7% from the projected year-ago earnings of $7.99.

SM Energy stock has gone up 97.9% in a year. SM Energy beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 153.9%.

The Zacks Consensus Estimate for SM’s 2022 earnings is projected at $6.68 per share, up about 261% from the projected year-ago earnings of $1.85.

The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 37% upward over the past 60 days.

The Zacks Consensus Estimate for Enerplus’ 2022 earnings is pegged at $2.70 per share, up 178.3% from the projected year-ago earnings of 97 cents. ERF stock has rallied 113.4% in a year.