Northern Oil & Gas Earnings: Falls Short of Street Estimates

Northern Oil & Gas, Inc (NYSEAMEX:NOG) reported its results for the first quarter. Northern Oil & Gas is an independent energy company engaged in the acquisition, exploration, exploitation, and development of oil and natural gas properties.

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Northern Oil & Gas, Inc Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $8.8 million (14 cents per diluted share) in the quarter. Northern Oil & Gas, Inc had a net loss of $7.1 million or a loss 11 cents per share in the year-earlier quarter.

Revenue: Rose 1899.5% to $50.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northern Oil & Gas, Inc reported adjusted net income of 23 cents per share. By that measure, the company fell short of mean estimate of 24 cents per share. It fell short of the average revenue estimate of $65.3 million.

Quoting Management: Michael Reger, CEO, commented: “The first quarter of 2012 was another breakthrough quarter for Northern Oil and included quarterly records for Production, Oil and Gas Sales and Adjusted EBITDA. The pace of drilling in the Bakken and Three Forks plays continues to accelerate, and our acreage position is turning to production at an increasing rate. Importantly, we are seeing a broader range of opportunities to acquire strategic, non-operated interests, which we believe will allow us to continue growing our acreage position in a careful and methodical manner. We are pleased to see the additional efficiencies that are embedded in future wells through the use of pad drilling, which also indicates operators’ intentions to capitalize on future downspacing in these plays. Our capital position remains secure and we believe we are well positioned to develop and grow our asset base.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 4 cents in the fourth quarter of the last fiscal year, by 3 cents in the third quarter of the last fiscal year, and by 7 cents in the second quarter of the last fiscal year.

The company reported a profit last quarter, following a quarter of being in the red. The company booked a net loss of $28.6 million, or 46 cents per share, in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 32 cents a share to 29 cents over the last ninety days. The average estimate for the fiscal year is $1.27 per share, down from $1.44 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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