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Northern Oil & Gas, Inc. (NYSEMKT:NOG) Bounces Back After Stellar Q1 Results

Gastar Exploration Inc (NYSEMKT:GST)

Northern Oil & Gas, Inc. (NYSEMKT:NOG)

Northern Oil & Gas, Inc. (NYSEMKT:NOG) stock was a big mover in the market after the company reported better than expected first-quarter results. For the first three months of the year, the oil and gas company says it posted a net income of $16.9 million – an improvement from the net loss posted in the last year same quarter.

Q1 Financial Results

The Minnesota-based company earning’s of $0.27 cents a share was  better the $0.02 cents a share that analysts were expecting. Revenues for the quarter came in at $65.8 million compared to analyst expectations of $47.8 million.

During the quarter Northern Oil & Gas, Inc. (NYSEMKT:NOG)’s production totaled 1,196,924 barrels of oil, averaging 13,299 Boe a day. Sales consequently were up by 72% in the quarter compared to last year, mostly helped by a 77% increase in realized prices. Production expenses, on the other hand, came in at $11.7 million compared to $12 million for the first three months of last year.

Production taxes nearly doubled to $4.5 million compared to $2.8 million in last year same quarter. The independent oil and gas company has attributed the increase to higher commodity prices.

Chief executive officer, Tom Stoelk has attributed increased production to efficiencies in capital expenditure allocation.

“Increased well productivity is being aided by the enhanced completion designs, which is improving returns as we execute on our capital allocation focused business plan. As the weather improves, an increase in completions is expected to drive production growth during the second half of 2017,” said Mr., Stoelk.

Guidance

Northern Oil & Gas, Inc. (NYSEMKT:NOG) expects its production for the year to exceed 2016 levels. The company is in the process of bringing 12 new wells online which should help further bolster production levels. Production levels should pick up in the third quarter with the weighting of new wells in the second half of the year.

Liquidity

As of March 31, 2017, Northern Oil & Gas, Inc. (NYSEMKT:NOG) says it had $134 million in outstanding borrowings representing a $10 million reduction from December 31, 2016. Available liquidity currently stands at $196.5 million made up $5.5 million in cash and $191 million as part of its revolving credit facility.

Northern Oil & Gas, Inc. (NYSEMKT:NOG) is slowly finding its footing in the market having rallied by more than 12% in Monday trading session to close at highs of $2.20 a share.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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