NOG Raises Q3 Income on Higher Oil Volumes

Upstream energy asset owner Northern Oil and Gas Inc. (NOG) has posted a net income of $298.4 million for the third quarter of 2024, up from the $26.1 million reported for the corresponding quarter of 2023 as oil volumes rose.

In a media release, the company said its third-quarter production was 121,815 barrels of oil equivalent per day (boe/d), a decrease of one percent from the second quarter of 2024 but an increase of 19 percent from the third quarter of 2023.

Oil represented 58 percent of total production at 70,913 barrels per day, an increase of two percent from the second quarter of 2024 and an increase of 12 percent from the third quarter of 2023.

“During the third quarter, we generated record oil volumes and free cash flow despite limited completion activity and a period of weaker commodity prices. Importantly, we notched multiple achievements on the business front executing on acquisitions of two high-quality growth assets”, commented Nick O’Grady, NOG’s Chief Executive Officer. “We closed our $220 million Point transaction on time and schedule, yet our net debt changed by only approximately $50 million during the quarter, a testament to the power of our cash generation and the strength of our asset base. On October 1, we closed on XCL, our largest and most accretive acquisition to date. With these two assets now closed and drilling and completion activity building, we look forward to continuing to generate differentiated returns and growth for our investors”.

In the third quarter, NOG's unhedged realized oil price was $3.45 per barrel below WTI, a slight improvement from the previous quarter. However, NOG's unhedged realized gas price was 28 percent lower than Henry Hub prices, primarily due to lower benchmark prices, wider regional differentials, and lower natural gas liquid prices in the Appalachian, Permian, and Williston Basins, the company said.

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