Northern Oil & Gas Inc (NOG) Reports Record Quarterly Production and Increased Dividends in ...
NOG achieved a record quarterly production of 102,327 Boe per day, a 29% increase from Q3 2022.
GAAP net income stood at $26.1 million, with Adjusted Net Income at $161.2 million and Adjusted EBITDA at $385.5 million.
Cash flow from operations was $263.9 million, a 29% increase from Q3 2022.
The company declared and paid a $0.38 per share common dividend for Q3 2023, a 52% increase from Q3 2022.
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On November 1, 2023, Northern Oil & Gas Inc (NYSE:NOG) announced its third quarter results, revealing a record quarterly production and a significant increase in dividends. The company's strong performance was reflected in its financial achievements and key details from its income statement, balance sheet, and cash flow statement.
Financial Highlights
NOG's third quarter GAAP net income was $26.1 million, with Adjusted Net Income at $161.2 million and Adjusted EBITDA at $385.5 million. The company generated a cash flow from operations of $263.9 million, an increase of 29% from the third quarter of 2022. Additionally, NOG generated $127.8 million of Free Cash Flow.
Production and Sales
NOG achieved a record quarterly production of 102,327 Boe per day, an increase of 13% from the second quarter of 2023 and 29% from the third quarter of 2022. Oil and natural gas sales for the third quarter were $511.7 million. The company's recent capital raise accelerated the achievement of the company's leverage targets.
Dividends and Acquisitions
The company declared and paid a $0.38 per share common dividend for the third quarter of 2023, an increase of 52% from the third quarter of 2022, and declared $0.40 per share common dividend for the fourth quarter of 2023. NOG also closed on the acquisition of a 33.33% undivided stake in the Novo assets for $468.4 million.
Management Commentary
NOG's CEO, Nick OGrady, commented on the company's performance, stating,
NOG registered a banner third quarter reflecting continued strength in our operations, record organic growth and acquisition success. We have entered into harvest mode, generating increased free cash flow, but continue to pursue accretive acquisitions."
Outlook
NOG is updating its annual guidance, with an increase in budgeted capital expenditures driven by accelerated development activity and Ground Game success. The company expects its 2023 well spud count to increase to a range of 76 - 79 net wells, compared to expectations of 68 - 71 net wells implied in prior guidance.
Explore the complete 8-K earnings release (here) from Northern Oil & Gas Inc for further details.
This article first appeared on GuruFocus.
