Northern Oil and Gas Q2 core profit hits record level
Overview
Northern Oil and Gas Q2 production up 9% yr/yr, oil volumes rise 10.5%
Adjusted EBITDA hits record $440.4 mln, reflecting strong operational performance
Co updates 2025 guidance, reducing capex and production expectations
Outlook
Northern Oil and Gas reduces 2025 capital spending by $125 - $150 mln
Company lowers oil production guidance to 74,000 - 76,000 Bbls per day
Northern Oil and Gas revises total production guidance to 130,000 - 133,000 Boe per day
Company expects 2025 capital expenditures between $925 mln and $1,050 mln
Result Drivers
APPALACHIAN AND UINTA GROWTH - Strong production growth from Appalachian and Uinta Basin properties, with Uinta volumes up over 18.5% sequentially
GROUND GAME TRANSACTIONS - Completed 22 transactions adding net acres and wells, contributing to production growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Oil & Gas Sales |
| $574.40 mln |
|
Q2 EPS |
| $1 |
|
Q2 Adjusted Net Income |
| $136.30 mln |
|
Q2 Net Income |
| $99.60 mln |
|
Q2 Adjusted EBITDA |
| $440.40 mln |
|
Q2 Adjusted Capex |
| $210 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Northern Oil and Gas Inc is $36.00, about 20.6% above its July 30 closing price of $28.60
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBw56g4Zya
