HIGHLIGHTS
- First quarter production of 38,417 Boe per day, up 7.5%
sequentially from the fourth quarter of 2020
- First quarter GAAP cash flow from operations of $62.8 million
inclusive of changes in net working capital and Free Cash Flow
(non-GAAP) of $41.7 million. See “Non-GAAP Financial Measures”
below
- Total capital expenditures of $38.1 million, down 22% from the
fourth quarter of 2020
- The Board of Directors has authorized the payment of all
accrued and cash dividends on the Series A Preferred Stock in the
aggregate amount of $22.0 million to be paid on May 15, 2021
- The Board of Directors has also declared Northern’s first ever
quarterly common stock dividend of $0.03 per share payable July 30,
2021 to stockholders of record on June 30, 2021
- Closed Appalachian Basin acquisition from Reliance Marcellus,
LLC on April 1, 2021
- Liquidity and balance sheet strengthened through debt and
equity offerings with gross proceeds of $690 million in the first
quarter. On May 15, Northern will have retired all near term debt
maturities
Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”)
today announced the company’s first quarter results.
MANAGEMENT COMMENTS
“The first quarter performance was above our internal
expectations across all metrics as our core Williston & Permian
properties continued to deliver,” commented Nick O’Grady,
Northern’s Chief Executive Officer. “The Company generated $41.7
million of Free Cash Flow, approximately 6% of our total quarter
end market capitalization — in a single quarter. I am also very
excited that we were able to continue to improve our liquidity and
balance sheet with the completion of our financings in February.
These transactions along with the continued growth of our business
should provide us with sufficient cash flow to continue our
strategy of making additional accretive acquisitions, reducing debt
and providing returns to our stockholders. Our first ever quarterly
dividend is the culmination of a tireless multi-year effort to put
the Company in a position to return cash to its stockholders. As we
achieve our targets, we believe we can provide meaningful cash
returns to investors over the coming years.”
FIRST QUARTER FINANCIAL RESULTS
Oil and natural gas sales for the first quarter were $157.3
million. First quarter GAAP net loss, inclusive of a $128.6 million
non-cash net mark-to-market loss on derivatives, was $90.4 million
or $1.66 per diluted share. First quarter Adjusted Net Income was
$40.2 million or $0.62 per diluted share, up from $21.7 million or
$0.44 per diluted share in the prior year. Adjusted EBITDA in the
first quarter was $98.8 million. See “Non-GAAP Financial Measures”
below.
PRODUCTION
First quarter production was 38,417 Boe per day, a 7.5% increase
from the fourth quarter of 2020. Oil represented 76% of total
production in the first quarter. Northern estimates that
curtailments and shut-ins still reduced the Company’s average daily
production by an average of approximately 2,000 Boe per day in the
first quarter, but that was a significant improvement from the
fourth quarter of 2020. Northern had 6.7 net wells turned online
during the first quarter, compared to 6.9 net wells turned online
in the fourth quarter of 2020.
PRICING
During the first quarter, NYMEX West Texas Intermediate (“WTI”)
crude oil averaged $58.13 per Bbl, and NYMEX natural gas at Henry
Hub averaged $3.37 per million cubic feet (“Mcf”). Northern’s
unhedged net realized oil price in the first quarter was $51.57,
representing a $6.56 differential to WTI prices. Northern’s
unhedged net realized gas price in the first quarter was $4.37 per
Mcf, representing approximately 130% realizations compared with
Henry Hub pricing.
OPERATING COSTS
Lease operating costs were $34.3 million in the first quarter of
2021, or $9.92 per Boe, up 15.6% on a per unit basis compared to
the fourth quarter of 2020. This is consistent with Northern’s
prior commentary of extensive workover expense related to bringing
curtailed and shut-in production back to sales, and is expected to
be transitory in nature. First quarter general and administrative
(“G&A”) costs totaled $6.8 million or $1.96 per Boe. This
includes $2.5 million of legal and other transaction expenses in
connection with the Reliance acquisition and $0.8 million of
non-cash stock-based compensation. Northern’s G&A costs
excluding these amounts totaled $3.5 million or $1.01 per Boe in
the first quarter. Northern expects approximately $2.5 - $3.5
million in additional non-recurring advisory and other transaction
costs related to the Reliance acquisition to be incurred in the
second quarter of 2021.
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital spending for the first quarter was $38.1 million, made
up of $33.1 million of organic drilling and completion (“D&C”)
capital and $5.0 million of total acquisition spending and other
items, inclusive of ground game D&C spending. Northern added
6.7 net wells to production in the first quarter, and wells in
process decreased to 22.7 net wells, down 5.4 net wells from the
prior quarter as well completions accelerated. On the ground game
acquisition front, Northern closed on 6 transactions during the
first quarter totaling 1.3 net wells and 186 net mineral acres.
MARCELLUS SHALE ACQUISITION
On February 3, 2021, Northern announced a definitive agreement
to acquire assets from Reliance Marcellus, LLC, a subsidiary of
Reliance Industries, Ltd., for $175.0 million in cash plus 3.25
million common stock warrants. The acquisition has an effective
date of July 1, 2020 and closed on April 1, 2021. EQT Corporation,
the operator of substantially all the assets, elected to exercise
its preferential purchase right on a portion of the assets, which
(together with the exercise of other preferential purchase rights)
reduced the cash purchase price, net to Northern, by approximately
$48.6 million, or 28%. Northern retained approximately 99% of the
inventory on the assets. Northern has provided guidance for the
acquired assets in the guidance section below, identical to what
was provided in its fourth quarter 2020 earnings release.
LIQUIDITY AND CAPITAL RESOURCES
Northern had total liquidity of $417.2 million as of March 31,
2021, consisting of cash of $2.7 million, the Reliance acquisition
deposit of $17.5 million, and $397.0 million of borrowing
availability under the revolving credit facility.
On January 4, 2021, Northern retired $65 million, or 50% of its
VEN Bakken Note. In February 2021, Northern additionally
strengthened its balance sheet through common equity and debt
transactions alongside of its announcement of the Reliance
Marcellus acquisition. Northern issued 14.3 million shares of
common equity for gross proceeds of $140.3 million. Northern also
issued $550 million of 8.125% Senior Unsecured Notes due 2028. With
the net proceeds from these transactions, Northern retired the
remaining $65 million of its VEN Bakken Note and retired $272.1
million, or 95% of its remaining Senior Secured Notes due 2023 on
February 18, 2021. Northern will call the remaining $15.7 million
of 2023 Notes on or about May 15, 2021. Northern used the remainder
of the proceeds to retire debt under its revolving credit facility
and for cash on hand.
On April 1, 2021, upon closing of the Reliance acquisition,
Northern funded the adjusted cash purchase price of $120.9 million
with cash on hand, the $17.5 million deposit made during the first
quarter, and borrowings under its credit facility. The cash
purchase price included typical closing adjustments, including a
reduction for the net cash flows already received by Reliance from
the properties since the effective date, which was July 1, 2020.
Northern expects additional cash purchase price reductions to be
received over the next several months for net cash flows generated
after the effective date, but not received by Reliance prior to the
closing date.
STOCKHOLDER RETURNS
On April 23, 2021, Northern’s Board of Directors declared all
current and accrued cash dividends for Northern’s Series A
Preferred Stock, to be paid on May 15, 2021 in the total amount of
$22.0 million.
On May 6, 2021, Northern’s Board of Directors declared its first
ever regular quarterly cash dividend for Northern’s common stock of
$0.03 per share for stockholders of record as of June 30, 2021,
payable July 30, 2021.
2021 ESTIMATED GUIDANCE — WILLISTON AND PERMIAN
PROPERTIES
2021 Guidance Ranges:
Annual Production (Boe per day)
37,750 - 42,750
Net Wells Added to Production
32 - 34
Operating Expenses Guidance:
Production Expenses (per Boe)
$8.75 - $9.75
Production Taxes
10% of Net Oil Revenues, $0.06
per Mcf for Natural Gas
Oil as a Percentage of Sales Volumes
78 - 80%
Average Differential to NYMEX WTI
$6.50 - $8.50
2021 ESTIMATED GUIDANCE — RELIANCE MARCELLUS PROPERTIES (FULL
YEAR)
2021 Guidance Ranges:
Annual Production (Mmcf per day)
75 - 85
Net Wells Added to Production
3.5 - 3.8
Operating Expenses Guidance:
Production, Asset G&A and Marketing
Expenses (per Mcf)
$0.85 - $0.95
Average Differential to NYMEX Henry Hub
(per Mcf)
$0.55 - $0.65
2021 ESTIMATED GUIDANCE — CORPORATE
Full Year 2021
General and Administrative Expense (per
Boe):
Cash (excluding any one-time transaction
costs)
$0.80 - $0.90
Non-Cash
$0.20
Total Capital Expenditures (in
millions)
$200 - $250
FIRST QUARTER 2021 RESULTS
The following tables set forth selected operating and financial
data for the periods indicated.
Three Months Ended March
31,
2021
2020
% Change
Net Production:
Oil (Bbl)
2,630,178
3,138,380
(16)
%
Natural Gas and NGLs (Mcf)
4,964,263
5,049,120
(2)
%
Total (Boe)
3,457,555
3,979,900
(13)
%
Average Daily Production:
Oil (Bbl)
29,224
34,488
(15)
%
Natural Gas and NGLs (Mcf)
55,158
55,485
(1)
%
Total (Boe)
38,417
43,735
(12)
%
Average Sales Prices:
Oil (per Bbl)
$
51.57
$
37.07
39
%
Effect of Gain (Loss) on Settled Oil
Derivatives on Average Price (per Bbl)
(2.32)
10.04
Oil Net of Settled Oil Derivatives (per
Bbl)
49.25
47.11
5
%
Natural Gas and NGLs (per Mcf)
4.37
2.75
59
%
Effect of Gain (Loss) on Settled Natural
Gas Derivatives on Average Price (per Mcf)
(0.24)
—
Natural Gas and NGLs Net of Settled
Natural Gas Derivatives (per Mcf)
4.13
2.75
50
%
Realized Price on a Boe Basis Excluding
Settled Commodity Derivatives
45.50
32.71
39
%
Effect of Gain (Loss) on Settled Commodity
Derivatives on Average Price (per Boe)
(2.11)
7.92
Realized Price on a Boe Basis Including
Settled Commodity Derivatives
43.39
40.63
7
%
Costs and Expenses (per Boe):
Production Expenses
$
9.92
$
9.38
6
%
Production Taxes
3.89
2.99
30
%
General and Administrative Expenses
1.96
1.22
61
%
Depletion, Depreciation, Amortization and
Accretion
9.03
15.53
(42)
%
Net Producing Wells at Period
End
482.3
464.8
4
%
HEDGING
Northern hedges portions of its expected production volumes to
increase the predictability of its cash flow and to help maintain a
strong financial position. The following table summarizes
Northern’s open crude oil commodity derivative swap contracts
scheduled to settle after March 31, 2021.
Crude Oil Commodity Derivative
Swaps(1)
Contract Period
Volume (Bbls)
Volume (Bbls/Day)
Weighted Average Price (per
Bbl)
2021:
Q2
2,179,458
23,950
$56.38
Q3
2,154,410
23,418
$54.41
Q4
2,131,706
23,171
$53.93
2022:
Q1
1,447,000
16,078
$53.40
Q2
1,274,000
14,000
$53.75
Q3
1,058,000
11,500
$51.71
Q4
1,058,000
11,500
$51.63
2023:
Q1
112,500
1,250
$51.65
_____________
(1)
This table does not include
volumes subject to swaptions and call options, which could increase
the amount of volumes hedged at the option of Northern’s
counterparties. This table also does not include basis swaps. For
additional information, see Note 11 to our financial statements
included in our Form 10-Q filed with the SEC for the quarter ended
March 31, 2021.
The following table summarizes Northern’s open natural gas
commodity derivative swap contracts scheduled to settle after March
31, 2021.
Natural Gas Commodity
Derivative Swaps
Contract Period
Gas (MMBTU)
Volume (MMBTU/Day)
Weighted Average Price (per
Mcf)
2021:
Q2
5,924,507
65,104
$2.74
Q3
8,979,028
97,598
$2.82
Q4
8,784,210
95,481
$2.82
2022:
Q1
3,600,000
40,000
$3.00
Q2
910,000
10,000
$2.61
Q3
920,000
10,000
$2.61
Q4
920,000
10,000
$2.61
The following table presents Northern’s settlements on commodity
derivative instruments and unsettled gains and losses on open
commodity derivative instruments for the periods presented, which
is included in the revenue section of Northern’s statement of
operations:
Three Months Ended
March 31,
(In thousands)
2021
2020
Cash Received (Paid) on Derivatives:
$
(7,297)
$
31,506
Non-Cash Gain (Loss) on Derivatives:
(128,638)
345,075
Gain (Loss) on Derivative Instruments,
Net
$
(135,935)
$
376,581
CAPITAL EXPENDITURES & DRILLING ACTIVITY
(In millions, except for net well
data)
Three Months Ended March 31,
2021
Capital Expenditures Incurred:
Organic Drilling and Development Capital
Expenditures
$
33.1
Ground Game Drilling and Development
Capital Expenditures
$
1.8
Ground Game Acquisition Capital
Expenditures
$
2.6
Other
$
0.6
Net Wells Added to Production
6.7
Net Producing Wells (Period-End)
482.3
Net Wells in Process (Period-End)
22.7
Decrease in Wells in Process over Prior
Period
5.4
Weighted Average Gross AFE for Wells
Elected to
$6.9 million
FIRST QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL
In conjunction with Northern’s release of its financial and
operating results, investors, analysts and other interested parties
are invited to listen to a conference call with management on
Friday, May 7, 2021 at 10:00 a.m. Central Time.
Those wishing to listen to the conference call may do so via
webcast or phone as follows:
Webcast:
https://78449.themediaframe.com/dataconf/productusers/nog/mediaframe/44884/indexl.html
Dial-In Number: (866) 373-3407
(US/Canada) and (412) 902-1037 (International) Conference ID: 13719253 - Northern Oil and Gas,
Inc. First Quarter 2021 Earnings Call Replay
Dial-In Number: (877) 660-6853 (US/Canada) and (201)
612-7415 (International) Replay Access
Code: 13719253 - Replay will be available through May 14,
2021
UPCOMING CONFERENCE SCHEDULE
SPE A&D Symposium Houston, TX May 13, 2021
UBS Global Oil and Gas Conference May 26, 2021
Wells Fargo Energy Conference June 2-3, 2021
Stifel Cross Sector Insight Conference June 8, 2021
RBC Energy Conference June 9, 2021
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is a company with a primary strategy
of investing in non-operated minority working and mineral interests
in oil & gas properties, with a core area of focus in the
premier basins within the United States. More information about
Northern Oil and Gas, Inc. can be found at www.northernoil.com.
SAFE HARBOR
This press release contains forward-looking statements regarding
future events and future results that are subject to the safe
harbors created under the Securities Act of 1933 (the “Securities
Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
All statements other than statements of historical facts included
in this release regarding Northern’s financial position, operating
and financial performance, business strategy, plans and objectives
of management for future operations, industry conditions, and
indebtedness covenant compliance are forward-looking statements.
When used in this release, forward-looking statements are generally
accompanied by terms or phrases such as “estimate,” “project,”
“predict,” “believe,” “expect,” “continue,” “anticipate,” “target,”
“could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may”
or other words and similar expressions that convey the uncertainty
of future events or outcomes. Items contemplating or making
assumptions about actual or potential future production and sales,
market size, collaborations, and trends or operating results also
constitute such forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond
Northern’s control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the following: changes in crude oil and natural gas
prices; the pace of drilling and completions activity on Northern’s
properties and properties pending acquisition; Northern’s ability
to acquire additional development opportunities; potential or
pending acquisition transactions; Northern’s ability to consummate
pending acquisitions, and the anticipated timing of such
consummation; the projected capital efficiency savings and other
operating efficiencies and synergies resulting from Northern’s
acquisition transactions; integration and benefits of property
acquisitions, or the effects of such acquisitions on Northern’s
cash position and levels of indebtedness; changes in Northern’s
reserves estimates or the value thereof; disruptions to Northern’s
business due to acquisitions and other significant transactions;
infrastructure constraints and related factors affecting Northern’s
properties; ongoing legal disputes over and potential shutdown of
the Dakota Access Pipeline; the COVID-19 pandemic and its related
economic repercussions and effect on the oil and natural gas
industry; general economic or industry conditions, nationally
and/or in the communities in which Northern conducts business;
changes in the interest rate environment, legislation or regulatory
requirements; conditions of the securities markets; Northern’s
ability to raise or access capital; changes in accounting
principles, policies or guidelines; and financial or political
instability, health-related epidemics, acts of war or terrorism,
and other economic, competitive, governmental, regulatory and
technical factors affecting Northern’s operations, products and
prices.
Northern has based these forward-looking statements on its
current expectations and assumptions about future events. While
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond Northern’s control. Northern does not undertake
any duty to update or revise any forward-looking statements, except
as may be required by the federal securities laws.
CONDENSED STATEMENTS OF
OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
(In thousands, except share and per
share data)
2021
2020
Revenues
Oil and Gas Sales
$
157,331
$
130,196
Gain (Loss) on Commodity Derivatives,
Net
(135,935)
376,581
Other Revenue
1
8
Total Revenues
21,397
506,785
Operating Expenses
Production Expenses
34,312
37,335
Production Taxes
13,453
11,896
General and Administrative Expense
6,782
4,871
Depletion, Depreciation, Amortization and
Accretion
31,221
61,809
Total Operating Expenses
85,768
115,911
Income (Loss) From Operations
(64,371)
390,875
Other Income (Expense)
Interest Expense, Net of
Capitalization
(13,510)
(16,551)
Gain (Loss) on Unsettled Interest Rate
Derivatives, Net
240
(677)
Loss on Extinguishment of Debt, Net
(12,594)
(5,527)
Contingent Consideration Loss
(125)
—
Other Income (Expense)
3
—
Total Other Income (Expense)
(25,986)
(22,755)
Income (Loss) Before Income
Taxes
(90,357)
368,120
Income Tax Provision (Benefit)
—
(166)
Net Income (Loss)
$
(90,357)
$
368,286
Cumulative Preferred Stock Dividend
(3,830)
(3,729)
Net Income (Loss) Attributable to
Common Stockholders
$
(94,188)
$
364,557
Net Income (Loss) Per Common Share –
Basic*
$
(1.73)
$
9.03
Net Income (Loss) Per Common Share –
Diluted*
$
(1.73)
$
7.33
Weighted Average Common Shares Outstanding
– Basic*
54,538,099
40,366,253
Weighted Average Common Shares Outstanding
– Diluted*
54,538,099
49,721,264
___________
*Adjusted for the 1-for-10 reverse stock
split.
CONDENSED BALANCE
SHEETS
(In thousands, except par value and
share data)
March 31, 2021
December 31, 2020
Assets
(Unaudited)
Current Assets:
Cash and Cash Equivalents
$
2,729
$
1,428
Accounts Receivable, Net
94,804
71,015
Advances to Operators
431
476
Prepaid Expenses and Other
2,455
1,420
Derivative Instruments
2,005
51,290
Total Current Assets
102,424
125,629
Property and Equipment:
Oil and Natural Gas Properties, Full Cost
Method of Accounting
Proved
4,431,977
4,393,533
Unproved
9,621
10,031
Other Property and Equipment
2,502
2,451
Total Property and Equipment
4,444,100
4,406,015
Less – Accumulated Depreciation, Depletion
and Impairment
(3,701,715)
(3,670,811)
Total Property and Equipment, Net
742,385
735,204
Derivative Instruments
356
111
Acquisition Deposit
17,500
—
Other Noncurrent Assets, Net
10,578
11,145
Total Assets
$
873,243
$
872,089
Liabilities and Stockholders' Equity
(Deficit)
Current Liabilities:
Accounts Payable
$
40,788
$
35,803
Accrued Liabilities
72,667
68,673
Accrued Interest
5,769
8,341
Derivative Instruments
35,108
3,078
Contingent Consideration
618
493
Current Portion of Long-term Debt
—
65,000
Other Current Liabilities
1,018
1,087
Total Current Liabilities
155,968
182,475
Long-term Debt
817,061
879,843
Derivative Instruments
61,987
14,659
Asset Retirement Obligations
18,884
18,366
Other Noncurrent Liabilities
26
50
Total Liabilities
$
1,053,926
$
1,095,393
Commitments and Contingencies (Note
8)
Stockholders’ Equity (Deficit)
Preferred Stock, Par Value $.001;
5,000,000 Shares Authorized;
2,218,732 Series A Shares Outstanding at
3/31/2021
2,218,732 Series A Shares Outstanding at
12/31/2020
2
2
Common Stock, Par Value $.001;
135,000,000* Shares Authorized;
60,361,547* Shares Outstanding at
3/31/2021
45,908,779* Shares Outstanding at
12/31/2020
462
448
Additional Paid-In Capital
1,689,567
1,556,602
Retained Deficit
(1,870,714)
(1,780,356)
Total Stockholders’ Equity (Deficit)
(180,682)
(223,304)
Total Liabilities and Stockholders’
Equity (Deficit)
$
873,243
$
872,089
__________
*Adjusted for the 1-for-10 reverse stock
split.
Non-GAAP Financial Measures
Adjusted Net Income, Adjusted EBITDA and Free Cash Flow are
non-GAAP measures. Northern defines Adjusted Net Income (Loss) as
net income (loss) excluding (i) (gain) loss on unsettled commodity
derivatives, net of tax, (ii) loss on extinguishment of debt, net
of tax, (iii) contingent consideration loss, net of tax, (iv)
acquisition transaction costs, net of tax, and (v) gain on
unsettled interest rate derivatives, net of tax. Northern defines
Adjusted EBITDA as net income (loss) before (i) interest expense,
(ii) income taxes, (iii) depreciation, depletion, amortization and
accretion, (iv) non-cash stock-based compensation expense, (v) loss
on extinguishment of debt, (vi) contingent consideration loss,
(vii) acquisition transaction costs, (viii) (gain) loss on
unsettled commodity derivatives, and (ix) gain on unsettled
interest rate derivatives. Northern defines Free Cash Flow as cash
flows from operations before changes in working capital and other
items, less (i) capital expenditures, excluding non-budgeted
acquisitions and (ii) preferred stock dividends. A reconciliation
of each of these measures to the most directly comparable GAAP
measure is included below.
Management believes the use of these non-GAAP financial measures
provides useful information to investors to gain an overall
understanding of current financial performance. Management believes
Adjusted Net Income and Adjusted EBITDA provide useful information
to both management and investors by excluding certain expenses and
unrealized commodity gains and losses that management believes are
not indicative of Northern’s core operating results. Management
believes that Free Cash Flow is useful to investors as a measure of
a company’s ability to internally fund its budgeted capital
expenditures, to service or incur additional debt, and to measure
success in creating stockholder value. In addition, these non-GAAP
financial measures are used by management for budgeting and
forecasting as well as subsequently measuring Northern’s
performance, and management believes it is providing investors with
financial measures that most closely align to its internal
measurement processes. The non-GAAP financial measures included
herein may be defined differently than similar measures used by
other companies and should not be considered an alternative to, or
more meaningful than, the comparable GAAP measures. From time to
time Northern provides forward-looking Free Cash Flow estimates or
targets; however, Northern is unable to provide a quantitative
reconciliation of the forward looking non-GAAP measure to its most
directly comparable forward looking GAAP measure because management
cannot reliably quantify certain of the necessary components of
such forward looking GAAP measure. The reconciling items in future
periods could be significant.
Reconciliation of Adjusted Net
Income
Three Months Ended
March 31,
(In thousands, except share and per
share data)
2021
2020
Net Income (Loss)
$
(90,357)
$
368,286
Add:
Impact of Selected Items:
(Gain) Loss on Unsettled Commodity
Derivatives
128,638
(345,075)
Loss on Extinguishment of Debt
12,594
5,527
Contingent Consideration Loss
125
—
Acquisition Transaction Costs
2,511
—
Gain on Unsettled Interest Rate
Derivatives
(240)
—
Selected Items, Before Income Taxes
143,627
(339,549)
Income Tax of Selected Items(1)
(13,051)
(7,041)
Selected Items, Net of Income Taxes
130,576
(346,589)
Adjusted Net Income
$
40,219
$
21,696
Weighted Average Shares Outstanding –
Basic
54,538,099
40,366,253
Weighted Average Shares Outstanding –
Diluted
64,537,237
49,721,264
Net Income (Loss) Per Common Share –
Basic
$
(1.66)
$
9.12
Add:
Impact of Selected Items, Net of Income
Taxes
2.40
(8.58)
Adjusted Net Income Per Common Share –
Basic
$
0.74
$
0.54
Net Income (Loss) Per Common Share –
Diluted
$
(1.40)
$
7.41
Add:
Impact of Selected Items, Net of Income
Taxes
2.02
(6.97)
Adjusted Net Income Per Common Share –
Diluted
$
0.62
$
0.44
______________
(1)
For the three months ended
March 31, 2021, this represents a tax impact using an
estimated tax rate of 24.5%, which includes an adjustment of $22.1
million, for a change in valuation allowance. For the three
months ended March 31, 2020, this represents a tax impact
using an estimated tax rate of 24.5%, which includes an adjustment
of 90.2 million, for a change in valuation allowance.
Reconciliation of Adjusted
EBITDA
Three Months Ended
March 31,
(In thousands)
2021
2020
Net Income (Loss)
$
(90,357)
$
368,286
Add:
Interest Expense
13,510
16,551
Income Tax Provision (Benefit)
—
(166)
Depreciation, Depletion, Amortization and
Accretion
31,221
61,809
Non-Cash Stock-Based Compensation
769
1,079
Loss on Extinguishment of Debt
12,594
5,527
Contingent Consideration Loss
125
—
Acquisition Transaction Costs
2,511
—
Gain on Unsettled Interest Rate
Derivatives
(240)
—
(Gain) Loss on Unsettled Commodity
Derivatives
128,638
(345,075)
Adjusted EBITDA
$
98,770
$
108,010
Reconciliation of Free Cash
Flow
Three Months Ended
March 31,
(In thousands)
2021
Net Cash Provided by Operating
Activities
$
62,766
Exclude: Changes in Working Capital and
Other Items
20,814
Less: Capital Expenditures (1)
(38,085)
Less: Series A Preferred Dividends
(3,830)
Free Cash Flow
$
41,664
_______________
(1) Capital expenditures are calculated as
follows:
Three Months Ended
March 31,
(In thousands)
2021
Cash Paid for Capital Expenditures
$
52,672
Less: Non-Budgeted Acquisitions
(17,500)
Plus: Change in Accrued Capital
Expenditures and Other
2,913
Capital Expenditures
$
38,085
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210507005117/en/
Mike Kelly, CFA Chief Strategy Officer 952-476-9800
mkelly@northernoil.com
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