NOG exceeds expectations with strong Permian production in first-quarter 2024

May 02, 2024

(WO) — Northern Oil and Gas Inc. (NOG) has announced its first quarter results, showcasing robust performance with a focus on its operations in the Permian basin.

With a record quarterly production of 119,436 boe per day (59% oil), marking increases of 4% from the fourth quarter of 2023 and 37% from the first quarter of 2023, NOG achieved significant milestones. The company reported GAAP net income of $11.6 million, Adjusted Net Income of $130.5 million, and Adjusted EBITDA of $387.0 million. Cash flow from operations stood at $392.1 million, with Free Cash Flow reaching $54.0 million.

NOG's production surge was largely driven by exceptional performance in the Permian basin, which saw a sequential quarterly increase of 6% and represented record volumes for the company in the basin. Permian production accounted for approximately 45% of total volumes, surpassing the Williston basin for the first time in the company's history.

Despite modest fluctuations in oil and natural gas prices, NOG maintained a strong financial position, with lease operating costs remaining flat on a per unit basis compared to the previous quarter. The company's strategic capital expenditures for the first quarter totaled $295.8 million, with the Permian basin accounting for 68% of the expenditure.

NOG also demonstrated its commitment to shareholder returns, repurchasing 549,356 shares in the first quarter and declaring a quarterly cash dividend of $0.40 per share, representing an 18% increase from the first quarter of 2023.

Looking ahead, NOG reiterated its annual guidance, expecting relatively flat production in the second quarter with approximately 22 - 25 wells turned in-line. The company remains flexible and return-driven amidst evolving commodity prices and activity levels, with a focus on maximizing shareholder value.

In summary, NOG's strong performance in the Permian basin underscores its resilience and strategic focus on capitalizing on high-growth opportunities in key producing regions.

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