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Northern Oil and Gas (NOG - Free Report) , the independent oil and gas producer, reported second-quarter 2022 adjusted earnings per share (EPS) of $1.72, beating the Zacks Consensus Estimate of $1.57, primarily attributable to greater net production and much higher commodity prices compared with the last quarter. Moreover, the bottom line improved considerably from the year-ago profit of 92 cents.
The company's oil and natural gas sales of $549.6 million beat the Zacks Consensus Estimate of $410 million. The top line also skyrocketed from the year-ago figure of $225.7 million.
In good news for investors, Northern instituted a 36% dividend hike compared with the previous quarter. It declared a regular quarterly cash dividend for NOG’s common stock of 19 cents per share for stockholders of record as of Jun 29, 2022. Its adjusted EBITDA rose about 6.2% sequentially to $272.5 million.
Production & Price Realizations
The second-quarter production (comprising 57.5% oil) surged about 33% from the year-ago level to 72,689 barrels of oil equivalent per day (Boe/d) and surpassed the Zacks Consensus Estimate of 71,133 Boe/d. While the oil volume came in at 41,777 barrels per day (up 25.3% year over year), natural gas totaled 185,478 thousand cubic feet per day (up 45.3%).
The average sales price for crude oil in the second quarter was $106.26 per barrel, reflecting a 75% hike from the prior-year realization of $60.73. The average realized natural gas price was $8.63 per thousand cubic feet compared with $3.57 in the year-earlier period.
Northern Oil and Gas, Inc. Price, Consensus and EPS Surprise
Excluding working capital, cash flow from operations jumped 7% from the last quarter’s figure to $252.2 million, while Northern's organic drilling and development capital expenditure totaled $119.1 million. The company's free cash flow for the quarter was $114.3 million.
As of Jun 30, the owner of non-operating, minority interests in thousands of oil and gas wells had $1.47 million in cash and cash equivalents. The company had long-term debt of $1.1 billion.
Guidance
Northern's output for 2022 is now anticipated in the 73,000-77,000 Boe/d range compared with the previous guidance in the band of 71,000-76,000 Boe/d.
NOG updated its total capital spending guidance for 2022 from the $350-$415 million range to the $405-$470 million band.
However, the company maintained this year's oil-mix guidance of 59.5-61.5%.
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and B for Momentum. SHEL is expected to see earnings growth of 126.5% in 2022.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter EPS of $5.82, beating the Zacks Consensus Estimate of $5.02. The outperformance was driven by robust commodity prices and product margins, which propelled both CVX’s segments to record a better-than-expected bottom line.
As of Jun 30, Chevron had $12 billion in cash and cash equivalents and total debt of $26.2 billion, with a debt-to-total capitalization of 14.6%. Further, Chevron paid out $2.8 billion in dividends and bought back $2.5 billion worth of its shares in the second quarter.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2022 operating earnings of $3.75 per share, meeting the Zacks Consensus Estimate. The improvement was due to an increase in commodity prices.
In the second quarter of 2022, TotalEnergies acquired $2,464 million worth of assets and sold assets valued at $388 million. TTE bought back shares worth $2 billion in the second quarter. TotalEnergies expects to invest $16 billion in 2022, out of which 25% will be allocated to further strengthen renewable operations and electricity.
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Northern Oil (NOG) Q2 Earnings & Sales Outperform Estimates
Northern Oil and Gas (NOG - Free Report) , the independent oil and gas producer, reported second-quarter 2022 adjusted earnings per share (EPS) of $1.72, beating the Zacks Consensus Estimate of $1.57, primarily attributable to greater net production and much higher commodity prices compared with the last quarter. Moreover, the bottom line improved considerably from the year-ago profit of 92 cents.
The company's oil and natural gas sales of $549.6 million beat the Zacks Consensus Estimate of $410 million. The top line also skyrocketed from the year-ago figure of $225.7 million.
In good news for investors, Northern instituted a 36% dividend hike compared with the previous quarter. It declared a regular quarterly cash dividend for NOG’s common stock of 19 cents per share for stockholders of record as of Jun 29, 2022. Its adjusted EBITDA rose about 6.2% sequentially to $272.5 million.
Production & Price Realizations
The second-quarter production (comprising 57.5% oil) surged about 33% from the year-ago level to 72,689 barrels of oil equivalent per day (Boe/d) and surpassed the Zacks Consensus Estimate of 71,133 Boe/d. While the oil volume came in at 41,777 barrels per day (up 25.3% year over year), natural gas totaled 185,478 thousand cubic feet per day (up 45.3%).
The average sales price for crude oil in the second quarter was $106.26 per barrel, reflecting a 75% hike from the prior-year realization of $60.73. The average realized natural gas price was $8.63 per thousand cubic feet compared with $3.57 in the year-earlier period.
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 7% from the last quarter’s figure to $252.2 million, while Northern's organic drilling and development capital expenditure totaled $119.1 million. The company's free cash flow for the quarter was $114.3 million.
As of Jun 30, the owner of non-operating, minority interests in thousands of oil and gas wells had $1.47 million in cash and cash equivalents. The company had long-term debt of $1.1 billion.
Guidance
Northern's output for 2022 is now anticipated in the 73,000-77,000 Boe/d range compared with the previous guidance in the band of 71,000-76,000 Boe/d.
NOG updated its total capital spending guidance for 2022 from the $350-$415 million range to the $405-$470 million band.
However, the company maintained this year's oil-mix guidance of 59.5-61.5%.
Zacks Rank
Northern Oil and Gas currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Other Energy Players
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and B for Momentum. SHEL is expected to see earnings growth of 126.5% in 2022.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter EPS of $5.82, beating the Zacks Consensus Estimate of $5.02. The outperformance was driven by robust commodity prices and product margins, which propelled both CVX’s segments to record a better-than-expected bottom line.
As of Jun 30, Chevron had $12 billion in cash and cash equivalents and total debt of $26.2 billion, with a debt-to-total capitalization of 14.6%. Further, Chevron paid out $2.8 billion in dividends and bought back $2.5 billion worth of its shares in the second quarter.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2022 operating earnings of $3.75 per share, meeting the Zacks Consensus Estimate. The improvement was due to an increase in commodity prices.
In the second quarter of 2022, TotalEnergies acquired $2,464 million worth of assets and sold assets valued at $388 million. TTE bought back shares worth $2 billion in the second quarter. TotalEnergies expects to invest $16 billion in 2022, out of which 25% will be allocated to further strengthen renewable operations and electricity.