Northern Oil and Gas Earnings: Here’s Why the Stock is Falling Now

Northern Oil and Gas, Inc. (AMEX:NOG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.07%.

Northern Oil and Gas, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.55% to $0.23 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Decreased 19.34% to $96.16 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northern Oil and Gas, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.27. It beat the average revenue estimate of $85.89 million.

Quoting Management: “As we indicated on our conference call at the beginning of the year, we were expecting 2013 production growth to be weighted to the second half of the year. The number of wells added to our producing wells in the first half of the year was below our original expectations. However, we are encouraged by the build this quarter in the number of net wells we have drilling or awaiting completion and by the level of completion activity subsequent to the end of the quarter,” commented Northern’s Chairman and Chief Executive Officer, Michael Reger. “We also continue to expand our acreage position in the basin at very attractive prices and we have an outstanding liquidity position as we begin the second half of the year.”

Key Stats (on next page)…

Revenue increased 41.62% from $67.9 million in the previous quarter. EPS decreased 20.69% from $0.29 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.33 and has not changed. For the current year, the average estimate has moved down from a profit of $1.29 to a profit of $1.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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