NYSE$NOG
Northern Oil and Gas Inc. · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Announced first quarter results and provided 2020 guidance.
Northern Oil and Gas reported a first quarter net income of $368.3 million, or $0.74 per diluted share, driven by a $345.1 million mark-to-market gain on unsettled commodity derivatives. Production increased 28% year-over-year, averaging 43,735 Boe per day, with oil production representing 79% of the total at 34,488 Bbls per day. The company also reduced its Senior Secured Notes by $90.2 million during the quarter and anticipates $175 to $200 million in total capital expenditures for 2020.
- First quarter production increased 28% over the prior year, averaging 43,735 barrels of oil equivalent (“Boe”) per day
- Cash flow from operations, excluding $7.1 million from changes in working capital, totaled $93.6 million, which was a 7% increase over the prior year and exceeded first quarter capital expenditures of $86.7 million
- Senior Secured Notes reduced by $90.2 million in the first quarter; signed agreements to retire an additional $6.1 million subsequent to quarter-end
- Over 27,000 barrels per day of remaining 2020 oil production hedged at over $58 per barrel (“Bbl”) average prices
Headline financials
Revenue & EPS history
Northern Oil and Gas · Revenue · Quarterly
$507M
Revenue by segment
Northern Oil and Gas · $130M total across 1 segment · Q1 2020
- Oil and Gas Sales$130M—100.0%
Forward guidance
Northern anticipates $350 to $410 million in Adjusted EBITDA for 2020 and expects $55 to $60 million of total book interest expense for 2020. Northern anticipates approximately $175 to $200 million in total capital expenditures for 2020.
Tailwinds
- Strong oil hedge position
- Significant free cash flow in 2020 and 2021
- $50 million of “reserve capital” for completions of its drilled but uncompleted inventory in the event of a substantial rise in commodity prices north of $40 WTI
- Board of Directors has elected to defer payment of the dividends on its Perpetual Preferred Stock and any potential common stock dividends until oil returns to economic levels
- This should save the Company approximately $15 million for 2020
Headwinds
- Rapid deterioration in oil prices during the COVID-19 pandemic
- Operators continue to curtail and shut-in production in response to low wellhead prices
- Plans are fluctuating and the timeframe for them is fluid
- Overall levels of production
- In-basin pricing differentials
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+2.9%
Avg return
Earnings day
+1.2%
Avg return
5 days after
+7.1%
Avg return
30 days after
58%
38 / 65 earnings
Positive
+34.4%
Q2 2010
Best reaction
-16.6%
Q3 2010
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.4% | -2.8% | -21.1% | |
| Q4 2025 | -0.6% | +6.1% | +16.4% | |
| Q3 2025 | +5.6% | +7.6% | +21.3% | |
| Q1 2025 | -1.9% | -1.9% | +7.4% | |
| Q4 2024 | -0.1% | -9.1% | -14.9% | |
| Q3 2024 | +13.4% | +13.0% | +14.6% | |
| Q2 2024 | +7.4% | -4.1% | +0.2% | |
| Q1 2024 | -8.9% | -7.6% | -8.0% | |
| Q4 2023 | -0.9% | +1.7% | +10.5% | |
| Q3 2023 | +0.9% | -1.9% | -1.1% | |
| Q2 2023 | +5.6% | +6.2% | +9.2% | |
| Q1 2023 | +2.7% | +0.7% | +1.3% | |
| Q4 2022 | +5.1% | +1.5% | -7.3% | |
| Q3 2022 | -3.2% | +5.2% | -11.5% | |
| Q2 2022 | -12.2% | -7.2% | +7.7% | |
| Q1 2022 | +4.6% | -6.4% | +20.8% | |
| Q4 2021 | +2.8% | +9.5% | +28.2% | |
| Q3 2021 | +3.4% | -0.8% | -20.9% | |
| Q2 2021 | +8.2% | +9.3% | +9.9% | |
| Q1 2021 | +4.1% | +4.8% | +23.7% | |
| Q4 2020 | -2.8% | -2.1% | -12.4% | |
| Q3 2020 | +19.7% | +27.7% | +124.6% | |
| Q2 2020 | -4.4% | -5.8% | -29.1% | |
| Q1 2020 | +13.8% | +14.5% | +48.7% | |
| Q4 2019 | -1.2% | -18.8% | -12.5% | |
| Q3 2019 | -1.9% | -3.4% | -8.2% | |
| Q2 2019 | -7.4% | +0.0% | +13.6% | |
| Q1 2019 | -1.3% | -4.8% | -12.2% | |
| Q4 2018 | +11.3% | +8.1% | +17.6% | |
| Q3 2018 | -3.5% | -16.5% | -23.5% | |
| Q2 2018 | -2.4% | -17.5% | -7.6% | |
| Q1 2018 | +14.9% | +28.6% | +42.9% | |
| Q4 2017 | +7.3% | +9.9% | -7.3% | |
| Q3 2017 | -7.7% | -9.2% | +24.6% | |
| Q2 2017 | -5.0% | +1.0% | -21.0% | |
| Q1 2017 | +5.1% | +0.0% | -12.8% | |
| Q4 2016 | +1.7% | -5.0% | -13.3% | |
| Q3 2016 | +8.6% | +2.9% | +85.7% | |
| Q2 2016 | +6.6% | +11.3% | -6.9% | |
| Q1 2016 | -4.8% | — | — | |
| Q4 2015 | +31.8% | — | — | |
| Q3 2015 | +8.0% | — | — | |
| Q2 2015 | +6.1% | — | — | |
| Q1 2015 | -10.8% | — | — | |
| Q4 2014 | +1.7% | — | — | |
| Q3 2014 | +7.5% | — | — | |
| Q2 2014 | +1.7% | — | — | |
| Q1 2014 | -6.3% | — | — | |
| Q4 2013 | -11.5% | — | — | |
| Q3 2013 | +0.8% | — | — | |
| Q2 2013 | +2.0% | — | — | |
| Q1 2013 | +0.4% | — | — | |
| Q4 2012 | +1.2% | — | — | |
| Q3 2012 | -3.5% | — | — | |
| Q2 2012 | +1.6% | — | — | |
| Q1 2011 | -0.3% | — | — | |
| Q1 2012 | +1.4% | — | — | |
| Q4 2009 | -2.6% | — | — | |
| Q4 2011 | -2.6% | — | — | |
| Q3 2011 | -16.6% | — | — | |
| Q3 2010 | -16.6% | — | — | |
| Q2 2011 | +34.4% | — | — | |
| Q4 2010 | +34.4% | — | — | |
| Q2 2010 | +34.4% | — | — | |
| Q1 2010 | +5.6% | — | — |
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