NOG posted $.23 for the June qtr, however they only recognized production revenues on $85 oil. Oil is now $105, If we use $105 oil, NOG would make another $.18 after tax, as the additonal revenues would go straight to the bottom line. That alone would be $.41 fully taxed for the Sept qtr, using the same exact production numbers as in the June qtr. However NOG said production will be 15%+ higher for the remainder of the year. Therefore assuming another $12M+ in revenues from that, and using a 40% profit before interest and taxes, that would get them aound another $.05(assuming 63M shares fully diluted and a 37% tax rate). So $.46 for the Sept qtr, assuming $105 oil, and 15% greater production. Even with $95 oil, they'de post $.37 after tax.
bonanza, most of their production is hedged, but about 2/3 of the hedges are collars that max out around 104. That means NOG is getting a great price for most of their oil. If they can increase production, they will really see revenues jump. I have not projected 3Q earnings yet, but for some of the other oilers I follow, the analysts are ridiculously low. The market is either expecting a sharp drop in oil prices or a big drop in the overall market. Meanwhile, NOG and others continue to pump oil and rake in the cash. Due to the differential in WTI and what NOG actually gets, I estimate they are currently getting mid to upper 90's for their oil. Not spectacular, but much better than Q2.