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Northern (NOG) Q4 Earnings Miss Estimates, Revenues Beat
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Northern Oil and Gas, Inc. (NOG - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of $1.43, lagging the Zacks Consensus Estimate of $1.65. This was primarily due to lower-than-expected production and a 57.4% increase in operating expenses.
However, the bottom line improved considerably from the year-ago profit of $1.06. The rise in the average sales price for crude oil primarily contributed to this improvement.
The company's oil and natural gas sales of $445.6 million beat the Zacks Consensus Estimate of $400 million. The top line also improved from the year-ago figure of $332 million.
In good news for investors, Northern Oil instituted a 13% dividend hike from the previous quarter. It declared a regular quarterly cash dividend of 34 cents per share for NOG’s common stock, payable on Apr 28, 2023, to stockholders of record as of the close of business on Mar 30, 2023. Its adjusted EBITDA rose about 51% year over year to $264.8 million.
Northern Oil and Gas, Inc. Price, Consensus and EPS Surprise
The fourth-quarter production (comprising 59.5% oil) surged about 23% from the year-ago level to 78,854 barrels of oil equivalent per day (Boe/d). However, it missed the Zacks Consensus Estimate of 80,7202 Boe/d. While the oil volume came in at 46,897 barrels per day (up 23.5% year over year), natural gas totaled 191,741 thousand cubic feet per day (up 22%).
The average sales price for crude oil in the fourth quarter was $80.23 per barrel, indicating a 12% hike from the prior-year realization of $71.67. The average natural gas price realization was $5.64 per thousand cubic feet compared with $5.68 in the year-ago period.
Financial Position
Cash flow from operations (excluding working capital) was $234.4 million, down about 48% from the last quarter’s figure. Northern Oil's organic drilling and development capital expenditure totaled $118.3 million. The company's free cash flow for the quarter was $87.1 million.
As of Dec 31, 2022, the owner of non-operating, minority interests in thousands of oil and gas wells had $2.5 million in cash and cash equivalents. The company had a long-term debt of around $1.52 billion with a debt-to-capitalization of 67.2% as of Dec 31, 2022.
Guidance
Northern Oil's output for 2023 is anticipated in the 91,000-96,000 Boe/d range.
NOG expects its total capital spending for 2023 in the $737-$778 million range.
While we have discussed NOG’s fourth-quarter results in detail, let’s take a look at some other key energy releases for the October-December period.
SLB (SLB - Free Report) , the largest oilfield contractor, announced fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 69 cents. SLB recorded total revenues of $7.9 billion, outpacing the consensus mark by 0.7%.
SLB’s strong quarterly earnings resulted from robust activities in land and offshore resources in North America and Latin America. The company’s board od directors approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid figure.
US energy powerhouse, Chevron (CVX) reported fourth-quarter earnings per share (EPS) of $4.09, missing the Zacks Consensus Estimate of $4.16. The underperformance could be attributed to lower-than-expected bottom line in both the company’s segments. CVX’s upstream segment’s profit of $5.5 billion came in 19.8% lower than the Zacks Consensus Estimate. The downstream business, too, missed the consensus mark by 3.4%.
The company recorded $12.5 billion in cash flow from operations, compared with $9.5 billion in the year-ago period. The increasing cash flow could be attributed to strong price realizations in the upstream business. Chevron’s free cash flow for the quarter was $8.7 billion. Chevron paid $2.7 billion in dividends and repurchased $3.8 billion worth of its shares.
Refining giant, Marathon Petroleum (MPC - Free Report) reported adjusted EPS of $6.65, which beat the Zacks Consensus Estimate of $5.54. It also beat a profit of merely $1.30 per share in the year-ago period. MPC’s bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment. The segment’s operating income totaled $3.9 billion, beating the Zacks Consensus Estimate by 38%.
In the reported quarter, Marathon Petroleum spent $849 million on capital programs (59% on Refining & Marketing and 35% on the Midstream segment) compared with $651 million in the year-ago period. As of Dec 31, 2022, MPC had cash and cash equivalents of $8.6 billion and total debt (including that of (MPLX - Free Report) of $26.7 billion. It had a debt-to-capitalization of 43.9%.
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Northern (NOG) Q4 Earnings Miss Estimates, Revenues Beat
Northern Oil and Gas, Inc. (NOG - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of $1.43, lagging the Zacks Consensus Estimate of $1.65. This was primarily due to lower-than-expected production and a 57.4% increase in operating expenses.
However, the bottom line improved considerably from the year-ago profit of $1.06. The rise in the average sales price for crude oil primarily contributed to this improvement.
The company's oil and natural gas sales of $445.6 million beat the Zacks Consensus Estimate of $400 million. The top line also improved from the year-ago figure of $332 million.
In good news for investors, Northern Oil instituted a 13% dividend hike from the previous quarter. It declared a regular quarterly cash dividend of 34 cents per share for NOG’s common stock, payable on Apr 28, 2023, to stockholders of record as of the close of business on Mar 30, 2023. Its adjusted EBITDA rose about 51% year over year to $264.8 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
The fourth-quarter production (comprising 59.5% oil) surged about 23% from the year-ago level to 78,854 barrels of oil equivalent per day (Boe/d). However, it missed the Zacks Consensus Estimate of 80,7202 Boe/d. While the oil volume came in at 46,897 barrels per day (up 23.5% year over year), natural gas totaled 191,741 thousand cubic feet per day (up 22%).
The average sales price for crude oil in the fourth quarter was $80.23 per barrel, indicating a 12% hike from the prior-year realization of $71.67. The average natural gas price realization was $5.64 per thousand cubic feet compared with $5.68 in the year-ago period.
Financial Position
Cash flow from operations (excluding working capital) was $234.4 million, down about 48% from the last quarter’s figure. Northern Oil's organic drilling and development capital expenditure totaled $118.3 million. The company's free cash flow for the quarter was $87.1 million.
As of Dec 31, 2022, the owner of non-operating, minority interests in thousands of oil and gas wells had $2.5 million in cash and cash equivalents. The company had a long-term debt of around $1.52 billion with a debt-to-capitalization of 67.2% as of Dec 31, 2022.
Guidance
Northern Oil's output for 2023 is anticipated in the 91,000-96,000 Boe/d range.
NOG expects its total capital spending for 2023 in the $737-$778 million range.
The Zacks Rank #3 (Hold) company also expects oil-mix guidance in the 62-64% range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Important Q4 Energy Releases
While we have discussed NOG’s fourth-quarter results in detail, let’s take a look at some other key energy releases for the October-December period.
SLB (SLB - Free Report) , the largest oilfield contractor, announced fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 69 cents. SLB recorded total revenues of $7.9 billion, outpacing the consensus mark by 0.7%.
SLB’s strong quarterly earnings resulted from robust activities in land and offshore resources in North America and Latin America. The company’s board od directors approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid figure.
US energy powerhouse, Chevron (CVX) reported fourth-quarter earnings per share (EPS) of $4.09, missing the Zacks Consensus Estimate of $4.16. The underperformance could be attributed to lower-than-expected bottom line in both the company’s segments. CVX’s upstream segment’s profit of $5.5 billion came in 19.8% lower than the Zacks Consensus Estimate. The downstream business, too, missed the consensus mark by 3.4%.
The company recorded $12.5 billion in cash flow from operations, compared with $9.5 billion in the year-ago period. The increasing cash flow could be attributed to strong price realizations in the upstream business. Chevron’s free cash flow for the quarter was $8.7 billion. Chevron paid $2.7 billion in dividends and repurchased $3.8 billion worth of its shares.
Refining giant, Marathon Petroleum (MPC - Free Report) reported adjusted EPS of $6.65, which beat the Zacks Consensus Estimate of $5.54. It also beat a profit of merely $1.30 per share in the year-ago period. MPC’s bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment. The segment’s operating income totaled $3.9 billion, beating the Zacks Consensus Estimate by 38%.
In the reported quarter, Marathon Petroleum spent $849 million on capital programs (59% on Refining & Marketing and 35% on the Midstream segment) compared with $651 million in the year-ago period. As of Dec 31, 2022, MPC had cash and cash equivalents of $8.6 billion and total debt (including that of (MPLX - Free Report) of $26.7 billion. It had a debt-to-capitalization of 43.9%.
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