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Northern Oil and Gas misses Q1 earnings, revenue estimates

EditorRachael Rajan
Published 30/04/2024, 11:40
© Reuters.
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MINNEAPOLIS - Northern Oil and Gas, Inc. (NYSE: NOG) has reported its financial results for the first quarter of 2024, revealing earnings and revenue that fell short of Wall Street analysts' expectations.

The company announced an EPS of $0.00, which was significantly below the consensus estimate of $1.28. Revenue for the quarter was $396.34 million, also missing the anticipated $540.25 million target.

Despite the earnings miss, the company's stock experienced a slight uptick, rising by 1.1% following the announcement.

The first quarter saw a record production of 119,436 barrels of oil equivalent (Boe) per day, marking a 4% increase from the previous quarter and a substantial 37% increase from the first quarter of the previous year. This growth was primarily driven by better-than-expected well performance and an uptick in production from the company's assets in the Permian Basin.

Northern Oil and Gas also reported a GAAP net income of $11.6 million, with adjusted net income reaching $130.5 million and adjusted EBITDA totaling $387.0 million, representing a 19% increase from the first quarter of the previous year. Cash flow from operations was strong at $392.1 million, and the company generated $54.0 million of free cash flow.

The company's CEO, Nick O'Grady, commented on the results, stating, "NOG has started 2024 in a powerful way, with strong well performance and better than expected cash flow and production." He emphasized the company's disciplined approach to value creation and focus on maximizing total return for investors.

In terms of future outlook, Northern Oil and Gas reiterated its annual guidance with modest adjustments, maintaining its production forecast at 115,000 to 120,000 Boe per day and capital expenditures guidance at $825 to $900 million for the full year.

As the company navigates the current market environment, it continues to focus on operational efficiency and strategic acquisitions. The first quarter saw the closing of the acquisition of non-operated interests in the Northern Delaware Basin, and the company also repurchased shares and paid down debt, demonstrating its commitment to shareholder returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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