Northern Oil and Gas(NOG) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter oil and natural gas sales reached $532.0 million, with GAAP net income of $11.6 million and Adjusted Net Income of $130.5 million, representing a 19% increase in Adjusted EBITDA to $387.0 million compared to Q1 2023[4][7] - Total revenues for Q1 2024 were $396,348,000, a decrease of 32% from $582,214,000 in Q1 2023[34] - Oil and gas sales increased to $532,041,000 in Q1 2024 from $426,234,000 in Q1 2023, representing a growth of 25%[34] - Net income for Q1 2024 was $11,606,000, a significant drop from $340,191,000 in Q1 2023[34] - Adjusted net income for Q1 2024 was $130,519,000, compared to $149,912,000 in Q1 2023, reflecting a decrease of 13%[41] - Adjusted EBITDA for Q1 2024 was $387,030,000, up from $325,472,000 in Q1 2023, indicating an increase of 19%[43] - Free cash flow for Q1 2024 was $53,975,000, after capital expenditures of $298,507,000[45] Production and Operations - Record quarterly production of 119,436 Boe per day, a 4% increase from Q4 2023 and a 37% increase from Q1 2023, with oil comprising 59% of total production[5][7] - NOG's net producing wells at the end of Q1 2024 totaled 985.3, with 25.3 net wells added to production during the period[26] - NOG expects second quarter production to be relatively flat with approximately 22 - 25 wells turned in-line, and anticipates capital expenditures of $240 - $260 million in Q2[16][17] - Annual production guidance remains at 115,000 - 120,000 Boe per day, with total capital expenditures projected between $825 - $900 million for 2024[15][17] Cash Flow and Liquidity - Cash flow from operations was $392.1 million, with Free Cash Flow generated at $54.0 million, marking a 19% increase from Q1 2023[7] - Total liquidity as of March 31, 2024, was $1.02 billion, with total debt amounting to $1,968.1 million[11][12] Capital Expenditures and Investments - Capital expenditures for Q1 totaled $295.8 million, with 68% allocated to the Permian Basin, 26% to the Williston, and 6% to the Appalachian[9][10] - In Q1 2024, NOG incurred capital expenditures of $290.8 million for organic drilling and development[26] - NOG closed on the acquisition of non-operated interests across 3,000 net acres in the Northern Delaware Basin, with a total cash settlement of $162.2 million[7][13] Derivatives and Pricing - Average realized oil price in Q1 was $72.92 per Bbl, with a $3.99 differential to WTI prices, while natural gas realized price was $2.47 per Mcf, representing 118% realization compared to Henry Hub pricing[6][19] - Cash received on settled derivatives in Q1 2024 was $19.1 million, compared to $13.7 million in Q1 2023[24] - NOG reported a non-cash mark-to-market loss on derivatives of $157.6 million in Q1 2024, contrasting with a gain of $140.0 million in Q1 2023[24] - The average price for natural gas commodity derivative swaps in Q2 2024 is projected at $3.45 per MMBTU, with a volume of 119,514 MMBTU/day[24] - For crude oil, the average price in Q2 2024 is expected to be $75.52 per barrel, with a volume of 27,173 Bbls/day[22] - NOG's derivative contracts include significant volumes that may increase due to swaptions and call options, which are not reflected in the current data[22] Shareholder Actions - The company repurchased 549,356 shares at an average price of $36.42 per share, with $67.5 million remaining on its share repurchase authorization[14] - The weighted average shares outstanding increased to 100,442,472 (basic) and 101,636,132 (diluted) in Q1 2024, compared to 84,915,729 (basic) and 85,407,197 (diluted) in Q1 2023[34] Financial Position - Total assets as of March 31, 2024, were $4,633,801,000, an increase from $4,484,255,000 at the end of 2023[36] - Long-term debt increased to $1,938,731,000 as of March 31, 2024, compared to $1,835,554,000 at the end of 2023[36] - Total stockholders' equity decreased to $2,001,980,000 from $2,047,676,000 at the end of 2023[37] Strategic Focus - NOG's strategy focuses on acquiring and investing in non-operated minority working and mineral interests in premier hydrocarbon producing basins[28] - The weighted average gross AFE for wells elected to drill is $9.4 million[26] Upcoming Events - The company plans to hold a conference call on April 30, 2024, to discuss its financial and operating results[27]