MINNEAPOLIS, Aug. 8, 2017 /PRNewswire/ -- Northern Oil
and Gas, Inc. (NYSE American: NOG) today announced 2017 second
quarter results.
HIGHLIGHTS
- Daily production increased 4% sequentially to average 13,794
barrels of oil equivalent ("Boe") per day in the second quarter,
for a total of 1,255,280 Boe.
- Northern added 4.3 net wells to production during the second
quarter of 2017.
- The 6.2 net wells that Northern elected to participate in
during the first half of 2017 have an estimated internal rate of
return of approximately 30% at a $50/Bbl flat pricing assumption.
- At June 30, 2017, Northern
maintained a strong list of wells in process totaling 16.1 net
wells that have an estimated internal rate of return of
approximately 30% at a $50/Bbl flat
pricing assumption.
Northern's GAAP net income for the second quarter of 2017 was
$13.8 million. Adjusted net
income for the quarter was a loss of $0.2
million. Adjusted EBITDA for the quarter was
$30.7 million. See "Non-GAAP
Financial Measures" below for additional information on these
measures.
MANAGEMENT COMMENT
"Strong second quarter net well additions drove our production
levels above internal expectations for the quarter," commented
Northern's Interim CEO and CFO, Tom
Stoelk. "Our growing list of high quality wells
awaiting completion and the further productivity improvements we
are seeing in 2017 gives us confidence that we'll meet or exceed
our original production goals for the year. Our goal is to
position ourselves to capitalize on the significant growth and
consolidation opportunities we expect to see going forward.
Our continued focus on capital allocation, growing reserves and
production is helping prepare us for future opportunities and
value creation as the industry environment improves."
GUIDANCE
Northern's prior guidance on annual production remains
unchanged. Management's current expectations for the second
half of 2017 operating metrics are as follows:
|
|
Second Half
2017
|
Operating
Expenses:
|
|
|
Production Expenses
(per Boe)
|
|
$9.25 -
$9.50
|
Production Taxes (%
of Oil & Gas Sales)
|
|
9.5%
|
General and
Administrative Expense (per Boe)
|
|
$3.25 -
$3.50
|
|
|
|
Average
Differential to NYMEX WTI
|
|
$6.50 -
$8.50
|
LIQUIDITY
At June 30, 2017, Northern had $155.0 million in outstanding borrowings under
its revolving credit facility. In May
2017, Northern completed the semi-annual redetermination
under its revolving credit facility with the borrowing base
established at $325.0 million.
Based on this new borrowing base, Northern had available liquidity
of $173.8 million as of June 30,
2017, composed of $3.8 million in
cash and $170.0 million of revolving
credit facility availability.
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 derivative contracts scheduled to settle
after June 30, 2017.
|
|
Swaps
|
|
Collars
|
Contract
Period
|
|
Volume
(Bbls)
|
|
Weighted Average
Price (per Bbl)
|
|
Volume
(Bbls)
|
|
Weighted Average
Floor - Ceiling Prices (per Bbl)
|
2017:
|
|
|
|
|
|
|
|
|
3Q
|
|
632,000
|
|
$53.36
|
|
75,000
|
|
$50.00 -
$60.06
|
4Q
|
|
632,000
|
|
$53.36
|
|
75,000
|
|
$50.00 -
$60.06
|
2018:
|
|
|
|
|
|
|
|
|
1Q
|
|
510,000
|
|
$53.24
|
|
90,000
|
|
$50.00 -
$60.25
|
2Q
|
|
511,000
|
|
$53.24
|
|
90,000
|
|
$50.00 -
$60.25
|
3Q
|
|
492,000
|
|
$53.38
|
|
90,000
|
|
$50.00 -
$60.25
|
4Q
|
|
364,000
|
|
$52.94
|
|
90,000
|
|
$50.00 -
$60.25
|
CAPITAL EXPENDITURES & DRILLING ACTIVITY
|
|
Three Months Ended
June 30, 2017
|
Capital
Expenditures Incurred:
|
|
|
Drilling, Completion
& Capitalized Workover Expense
|
|
$27.9
million
|
Acreage
|
|
$1.8
million
|
Other
|
|
$1.0
million
|
|
|
|
Net Wells Added to
Production
|
|
4.3
|
Net Producing
Wells (Period-End)
|
|
218.8
|
|
|
|
Net Wells in
Process (Period-End)
|
|
16.1
|
|
|
|
Weighted Average
AFE for In-Process Wells (Period-End)
|
|
$7.4
million
|
The weighted average authorization for expenditure (or AFE) cost
for wells that Northern elected to participate in (consented) was
$7.8 million for the second quarter
of 2017, and $7.1 million for the
first half of 2017.
ACREAGE
As of June 30, 2017, Northern has leased approximately
148,571 net acres targeting the Williston Basin Bakken and Three Forks formations. As of
June 30, 2017, approximately 86% of Northern's North Dakota acreage position, and
approximately 84% of Northern's total acreage position was
developed, held by production or held by operations.
SECOND QUARTER 2017 RESULTS
The following table sets forth selected operating and financial
data for the periods indicated.
|
Three Months Ended
June 30,
|
|
2017
|
|
2016
|
|
%
Change
|
Net
Production:
|
|
|
|
|
|
Oil (Bbl)
|
1,054,263
|
|
|
1,087,710
|
|
|
(3)
|
%
|
Natural Gas and NGLs
(Mcf)
|
1,206,103
|
|
|
1,080,897
|
|
|
12
|
%
|
Total
(Boe)
|
1,255,280
|
|
|
1,267,860
|
|
|
(1)
|
%
|
|
|
|
|
|
|
Average Daily
Production:
|
|
|
|
|
|
Oil (Bbl)
|
11,585
|
|
|
11,953
|
|
|
(3)
|
%
|
Natural Gas and NGLs
(Mcf)
|
13,254
|
|
|
11,878
|
|
|
12
|
%
|
Total
(Boe)
|
13,794
|
|
|
13,933
|
|
|
(1)
|
%
|
|
|
|
|
|
|
Net
Sales:
|
|
|
|
|
|
Oil Sales
|
$
|
43,531,170
|
|
|
$
|
40,851,527
|
|
|
7
|
%
|
Natural Gas and NGL
Sales
|
4,849,836
|
|
|
1,676,320
|
|
|
189
|
%
|
Gain (Loss) on
Derivative Instruments, Net
|
16,513,032
|
|
|
(10,522,948)
|
|
|
(257)
|
%
|
Other
Revenue
|
7,844
|
|
|
9,327
|
|
|
(16)
|
%
|
Total
Revenues
|
64,901,882
|
|
|
32,014,226
|
|
|
103
|
%
|
|
|
|
|
|
|
Average Sales
Prices:
|
|
|
|
|
|
Oil (per
Bbl)
|
$
|
41.29
|
|
|
$
|
37.56
|
|
|
10
|
%
|
Effect of (Loss) Gain
on Settled Derivatives on Average Price (per Bbl)
|
2.22
|
|
|
18.37
|
|
|
(88)
|
%
|
Oil Net of Settled
Derivatives (per Bbl)
|
43.51
|
|
|
55.93
|
|
|
(22)
|
%
|
Natural Gas and NGLs
(per Mcf)
|
4.02
|
|
|
1.55
|
|
|
159
|
%
|
Realized Price on a
Boe Basis Including all Realized Derivative Settlements
|
40.41
|
|
|
49.30
|
|
|
(18)
|
%
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Production
Expenses
|
$
|
12,137,540
|
|
|
$
|
11,081,973
|
|
|
10
|
%
|
Production
Taxes
|
4,439,774
|
|
|
4,220,712
|
|
|
5
|
%
|
General and
Administrative Expense
|
4,317,139
|
|
|
4,586,275
|
|
|
(6)
|
%
|
Depletion,
Depreciation, Amortization and Accretion
|
13,682,452
|
|
|
16,176,863
|
|
|
(15)
|
%
|
|
|
|
|
|
|
Costs and Expenses
(per Boe):
|
|
|
|
|
|
Production
Expenses
|
$
|
9.67
|
|
|
$
|
8.74
|
|
|
11
|
%
|
Production
Taxes
|
3.54
|
|
|
3.33
|
|
|
6
|
%
|
General and
Administrative Expense
|
3.44
|
|
|
3.62
|
|
|
(5)
|
%
|
Depletion,
Depreciation, Amortization and Accretion
|
10.90
|
|
|
12.76
|
|
|
(15)
|
%
|
Net Producing
Wells at Period End
|
218.8
|
|
|
208.1
|
|
|
5
|
%
|
Oil and Natural Gas Sales
In the second quarter of 2017, oil, natural gas and NGL sales,
excluding the effect of settled derivatives, increased 14% as
compared to the second quarter of 2016, driven by a 15% increase in
realized prices, excluding the effect of settled derivatives, which
was partially offset by a 1% decrease in production. The
higher average realized price in the second quarter of 2017 as
compared to the same period in 2016 was principally driven by
higher average NYMEX oil and natural gas prices and a lower oil
price differential. Oil price differential during the second
quarter of 2017 was $6.86 per barrel,
as compared to $8.08 per barrel in
the second quarter of 2016.
Derivative Instruments (Hedges)
Northern enters into derivative instruments to manage the price
risk attributable to future oil production. Gain (loss) on
derivative instruments, net was a gain of $16.5 million in the second quarter of 2017,
compared to a loss of $10.5 million
in the second quarter of 2016. Gain (loss) on derivative
instruments, net is comprised of (i) cash gains and losses
recognized on settled derivatives during the period, and (ii)
non-cash mark-to-market gains and losses incurred on derivative
instruments outstanding at period end.
|
Three Months
Ended
June
30,
|
|
2017
|
|
2016
|
Cash Received (Paid)
on Derivatives
|
$
|
2,341,030
|
|
|
$
|
19,983,750
|
|
Non-Cash Gain (Loss)
on Derivatives
|
14,172,002
|
|
|
(30,506,698)
|
|
Gain (Loss) on
Derivative Instruments, Net
|
$
|
16,513,032
|
|
|
$
|
(10,522,948)
|
|
The average NYMEX oil price for the second quarter of 2017 was
$48.15 compared to $45.64 for the second quarter of 2016.
Northern's average realized price (including all cash derivative
settlements) in the second quarter of 2017 was $40.41 per Boe compared to $49.30 per Boe in the second quarter of
2016. The gain (loss) on settled derivatives increased the
average realized price per Boe by $1.86 in the second quarter of 2017 and increased
the average realized price per Boe by $15.76 in the second quarter of 2016.
Production Expenses
Production expenses were $12.1
million in the second quarter of 2017 compared to
$11.1 million in the second quarter
of 2016. On a per unit basis, production expenses increased
to $9.67 per Boe in the second
quarter of 2017, compared to $8.74
per Boe in the second quarter of 2016. On an absolute dollar
basis, the increase in production expenses in the second quarter of
2017 as compared to the second quarter of 2016 was primarily due to
a $0.2 million increase in processing
costs and a $0.5 million increase in
workover and maintenance costs, as well as a 5% increase in the
total number of net producing wells. In an effort to increase
production, workover expenses have increased in 2017 compared to
2016 as new operators have assumed the operations of properties
previously managed by financially stressed companies.
Production Taxes
Production taxes were $4.4 million
in the second quarter of 2017 compared to $4.2 million in the second quarter of 2016.
The increase is due to higher commodity prices, which increased oil
and natural gas sales in the second quarter of 2017 as compared to
the second quarter of 2016. As a percentage of oil and
natural gas sales, production taxes were 9.2% and 9.9% in the
second quarter of 2017 and 2016, respectively. This decrease
in production tax rates as a percentage of oil and natural gas
sales is due to a change in sales mix. Production taxes on
natural gas and NGL sales are at a lower percentage than that of
crude oil sales. Crude oil sales represented 90% of oil and
natural gas sales in the second quarter of 2017 compared to 96% in
the second quarter of 2016.
General and Administrative Expense
General and administrative expenses were $4.3 million in the second quarter of 2017
compared to $4.6 million in the
second quarter of 2016. The decrease was due to a
$1.3 million reduction in
compensation expenses, primarily driven by a decrease in incentive
compensation and lower non-cash share-based compensation expense,
partially offset by a $1.0 million
increase in legal and other professional fees.
Depletion, Depreciation, Amortization and Accretion
Depletion, depreciation, amortization and accretion ("DD&A")
was $13.7 million in the second
quarter of 2017 compared to $16.2
million in the second quarter of 2016. Depletion
expense, the largest component of DD&A, decreased by
$2.5 million in the second quarter of
2017 compared to the second quarter of 2016. The aggregate
decrease in depletion expense was driven by a 15% decrease in the
depletion rate per Boe, as well as a 1% decrease in production
levels. On a per unit basis, depletion expense was $10.76 per Boe in the second quarter of 2017
compared to $12.64 per Boe in the
second quarter of 2016. The 2017 depletion rate per Boe was
lower due to the impairment of oil and natural gas properties in
2016, which lowered the depletable base. Depreciation,
amortization and accretion was $0.2
million and $0.2 million in
the second quarter of 2017 and 2016, respectively.
Impairment of Oil and Natural Gas Properties
No impairment of oil and natural gas properties was recorded in
the second quarter of 2017. As a result of low prevailing
commodity prices and their effect on the proved reserve values of
its properties, Northern recorded a non-cash ceiling test
impairment of $88.9 million for the
second quarter of 2016. The impairment charge affected
Northern's reported net income in 2016 but did not reduce cash
flow.
Interest Expense
Interest expense, net of capitalized interest, was $16.4 million for the second quarter of 2017
compared to $16.0 million in the
second quarter of 2016. The increase in interest expense for
the second quarter of 2017 compared to the second quarter of 2016
was primarily due to higher levels of debt between periods.
Income Tax Provision
During the second quarter of 2017 and 2016, no income tax
expense (benefit) was recorded on the income (loss) before income
taxes due to the valuation allowance placed on the net deferred tax
asset.
Non-GAAP Financial Measures
Adjusted Net Income (Loss) for the second quarter of 2017 was a
loss of $0.2 million (representing
approximately $0.00 per diluted
share), compared to income of $6.5
million (representing approximately $0.10 per diluted share) for the second quarter
of 2016. The decrease in Adjusted Net Income (Loss) is
primarily due to lower realized commodity prices (after the effect
of settled derivatives) and lower production levels. Northern
defines Adjusted Net Income (Loss) as net income (loss) excluding
(i) (gain) loss on the mark-to-market of derivative instruments,
net of tax, (ii) impairment of oil and natural gas properties, net
of tax, and (iii) write-off of debt issuance costs, net of tax.
Adjusted EBITDA for the second quarter of 2017 was $30.7 million, compared to Adjusted EBITDA of
$44.3 million for the second quarter
of 2016. The decrease in Adjusted EBITDA is primarily due to
lower realized commodity prices (after the effect of settled
derivatives) and lower production levels. Northern defines
Adjusted EBITDA as net income (loss) before (i) interest expense,
(ii) income taxes, (iii) depreciation, depletion, amortization and
accretion, (iv) (gain) loss on the mark-to-market of derivative
instruments, (v) non-cash share based compensation expense, (vi)
write-off of debt issuance costs and (vii) impairment of oil and
natural gas properties.
Adjusted Net Income and Adjusted EBITDA are non-GAAP
measures. A reconciliation of these measures to the most
directly comparable GAAP measure is included in the accompanying
financial tables found later in this release. Management
believes the use of these non-GAAP financial measures provides
useful information to investors to gain an overall understanding of
current financial performance. Specifically, management
believes the non-GAAP results included herein provide useful
information to both management and investors by excluding certain
expenses and unrealized derivatives gains and losses that
management believes are not indicative of Northern's core operating
results. 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.
SECOND QUARTER 2017 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
Wednesday, August 9, 2017 at
9:00 a.m. Central Time.
Those wishing to listen to the conference call may do so via the
company's website, www.northernoil.com, or by phone as follows:
Dial-In Number: (855) 638-5677 (US/Canada) and (262) 912-4762 (International)
Conference ID: 61127013 - Northern Oil and Gas, Inc. Second
Quarter 2017 Conference Call
Replay Dial-In Number: (855) 859-2056 (US/Canada) and (404) 537-3406 (International)
Replay Access Code: 61127013 - Replay will be available
through August 16, 2017
UPCOMING CONFERENCE SCHEDULE
EnerCom's The Oil & Gas Conference 22
August 13 - 17, 2017, Denver, CO
6th Annual Intellisight Conference
August 22 - 23, 2017, Minneapolis, MN
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production
company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana.
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, 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 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, Northern's ability to acquire additional development
opportunities, changes in Northern's reserves estimates or the
value thereof, 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, financial or political
instability, acts of war or terrorism, and other economic,
competitive, governmental, regulatory and technical factors
affecting Northern's operations, products, services 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.
CONTACT:
Brandon Elliott, CFA
Executive Vice President,
Corporate Development and Strategy
952-476-9800
belliott@northernoil.com
CONDENSED
STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2017 AND 2016
(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
REVENUES
|
|
|
|
|
|
|
|
Oil and Gas
Sales
|
$
|
48,381,006
|
|
|
$
|
42,527,847
|
|
|
$
|
97,229,228
|
|
|
$
|
70,895,188
|
|
Gain on Derivative
Instruments, Net
|
16,513,032
|
|
|
(10,522,948)
|
|
|
33,473,915
|
|
|
(7,059,066)
|
|
Other
Revenue
|
7,844
|
|
|
9,327
|
|
|
15,590
|
|
|
14,339
|
|
Total
Revenues
|
64,901,882
|
|
|
32,014,226
|
|
|
130,718,733
|
|
|
63,850,461
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Production
Expenses
|
12,137,540
|
|
|
11,081,973
|
|
|
23,811,889
|
|
|
23,041,232
|
|
Production
Taxes
|
4,439,774
|
|
|
4,220,712
|
|
|
8,901,040
|
|
|
6,987,612
|
|
General and
Administrative Expenses
|
4,317,139
|
|
|
4,586,275
|
|
|
7,926,083
|
|
|
8,923,677
|
|
Depletion,
Depreciation, Amortization and Accretion
|
13,682,452
|
|
|
16,176,863
|
|
|
26,510,595
|
|
|
34,022,952
|
|
Impairment of Oil and
Natural Gas Properties
|
—
|
|
|
88,880,921
|
|
|
—
|
|
|
193,192,043
|
|
Total
Expenses
|
34,576,905
|
|
|
124,946,744
|
|
|
67,149,607
|
|
|
266,167,516
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
30,324,977
|
|
|
(92,932,518)
|
|
|
63,569,126
|
|
|
(202,317,055)
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
Interest Expense, Net
of Capitalization
|
(16,428,164)
|
|
|
(16,046,325)
|
|
|
(32,731,970)
|
|
|
(32,145,007)
|
|
Write-off of Debt
Issuance Costs
|
(95,135)
|
|
|
—
|
|
|
(95,135)
|
|
|
(1,089,507)
|
|
Other
Income
|
181
|
|
|
181
|
|
|
361
|
|
|
7,154
|
|
Total Other Income
(Expense)
|
(16,523,118)
|
|
|
(16,046,144)
|
|
|
(32,826,744)
|
|
|
(33,227,360)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
13,801,859
|
|
|
(108,978,662)
|
|
|
30,742,382
|
|
|
(235,544,415)
|
|
|
|
|
|
|
|
|
|
INCOME TAX
BENEFIT
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
|
13,801,859
|
|
|
$
|
(108,978,662)
|
|
|
$
|
30,742,382
|
|
|
$
|
(235,544,415)
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Common Share – Basic
|
$
|
0.22
|
|
|
$
|
(1.78)
|
|
|
$
|
0.50
|
|
|
$
|
(3.86)
|
|
Net Income (Loss) Per
Common Share – Diluted
|
$
|
0.22
|
|
|
$
|
(1.78)
|
|
|
$
|
0.50
|
|
|
$
|
(3.86)
|
|
Weighted Average
Shares Outstanding – Basic
|
61,643,862
|
|
|
61,180,313
|
|
|
61,545,555
|
|
|
61,071,948
|
|
Weighted Average
Shares Outstanding – Diluted
|
61,885,952
|
|
|
61,180,313
|
|
|
61,928,799
|
|
|
61,071,948
|
|
CONDENSED BALANCE
SHEETS JUNE 30, 2017 AND DECEMBER 31,
2016
|
|
|
|
|
|
June 30, 2017
(unaudited)
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
|
3,808,829
|
|
|
$
|
6,486,098
|
|
Accounts Receivable,
Net
|
35,984,651
|
|
|
35,840,042
|
|
Advances to
Operators
|
1,631,987
|
|
|
1,577,204
|
|
Prepaid and Other
Expenses
|
2,905,975
|
|
|
1,584,129
|
|
Derivative
Instruments
|
14,935,836
|
|
|
4,517
|
|
Income Tax
Receivable
|
1,402,179
|
|
|
1,402,179
|
|
Total Current
Assets
|
60,669,457
|
|
|
46,894,169
|
|
|
|
|
|
Property and
Equipment:
|
|
|
|
Oil and Natural Gas
Properties, Full Cost Method of Accounting
|
|
|
|
Proved
|
2,487,266,816
|
|
|
2,428,595,048
|
|
Unproved
|
1,939,789
|
|
|
2,623,802
|
|
Other Property and
Equipment
|
977,349
|
|
|
977,349
|
|
Total Property and
Equipment
|
2,490,183,954
|
|
|
2,432,196,199
|
|
Less – Accumulated
Depreciation, Depletion and Impairment
|
(2,082,243,816)
|
|
|
(2,055,987,766)
|
|
Total Property and
Equipment, Net
|
407,940,138
|
|
|
376,208,433
|
|
|
|
|
|
Derivative
Instruments
|
4,557,331
|
|
|
—
|
|
Deferred Income Taxes
(Note 9)
|
—
|
|
|
—
|
|
Other Noncurrent
Assets, Net
|
8,138,977
|
|
|
8,430,359
|
|
|
|
|
|
Total
Assets
|
$
|
481,305,903
|
|
|
$
|
431,532,961
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
Current
Liabilities:
|
|
|
|
Accounts
Payable
|
$
|
72,396,006
|
|
|
$
|
56,146,847
|
|
Accrued
Expenses
|
5,772,668
|
|
|
6,094,938
|
|
Accrued
Interest
|
4,666,667
|
|
|
4,682,894
|
|
Derivative
Instruments
|
—
|
|
|
10,001,564
|
|
Asset Retirement
Obligations
|
507,943
|
|
|
517,423
|
|
Total Current
Liabilities
|
83,343,284
|
|
|
77,443,666
|
|
|
|
|
|
Long-term Debt,
Net
|
845,281,659
|
|
|
832,625,125
|
|
Derivative
Instruments
|
—
|
|
|
1,738,329
|
|
Asset Retirement
Obligations
|
8,005,619
|
|
|
6,990,877
|
|
Other Noncurrent
Liabilities
|
146,313
|
|
|
156,632
|
|
|
|
|
|
Total
Liabilities
|
$
|
936,776,875
|
|
|
$
|
918,954,629
|
|
|
|
|
|
Commitments and
Contingencies (Note 8)
|
|
|
|
|
|
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
Preferred Stock, Par
Value $.001; 5,000,000 Authorized, No Shares Outstanding
|
—
|
|
|
—
|
|
Common Stock, Par
Value $.001; 142,500,000 Authorized (6/30/2017 – 63,822,028
Shares Outstanding and 12/31/2016 – 63,259,781 Shares
Outstanding)
|
63,822
|
|
|
63,260
|
|
Additional Paid-In
Capital
|
445,102,784
|
|
|
443,895,032
|
|
Retained
Deficit
|
(900,637,578)
|
|
|
(931,379,960)
|
|
Total Stockholders'
Deficit
|
(455,470,972)
|
|
|
(487,421,668)
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
$
|
481,305,903
|
|
|
$
|
431,532,961
|
|
Reconciliation of
Adjusted Net Income
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Income
(Loss)
|
$
|
13,801,859
|
|
|
$
|
(108,978,662)
|
|
|
$
|
30,742,382
|
|
|
$
|
(235,544,415)
|
|
Add:
|
|
|
|
|
|
|
|
Impact of Selected
Items:
|
|
|
|
|
|
|
|
(Gain) Loss on the
Mark-to-Market of Derivative Instruments
|
(14,172,002)
|
|
|
30,506,698
|
|
|
(31,228,544)
|
|
|
52,489,716
|
|
Write-off of Debt
Issuance Costs
|
95,135
|
|
|
—
|
|
|
95,135
|
|
|
1,089,507
|
|
Impairment of Oil and
Natural Gas Properties
|
—
|
|
|
88,880,921
|
|
|
—
|
|
|
193,192,043
|
|
Selected Items,
Before Income Taxes
|
(14,076,867)
|
|
|
119,387,619
|
|
|
(31,133,409)
|
|
|
246,771,266
|
|
Income Tax of
Selected Items(1)
|
99,518
|
|
|
(3,899,825)
|
|
|
159,429
|
|
|
(4,112,781)
|
|
Selected Items, Net
of Income Taxes
|
(13,977,349)
|
|
|
115,487,794
|
|
|
(30,973,980)
|
|
|
242,658,485
|
|
Adjusted Net Income
(Loss)
|
$
|
(175,490)
|
|
|
$
|
6,509,132
|
|
|
$
|
(231,598)
|
|
|
$
|
7,114,070
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding – Basic
|
61,643,862
|
|
|
61,180,313
|
|
|
61,545,555
|
|
|
61,071,948
|
|
Weighted Average
Shares Outstanding – Diluted
|
61,885,952
|
|
|
62,079,083
|
|
|
61,928,799
|
|
|
61,361,831
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Common Share – Basic
|
$
|
0.22
|
|
|
$
|
(1.78)
|
|
|
$
|
0.50
|
|
|
$
|
(3.86)
|
|
Add:
|
|
|
|
|
|
|
|
Impact of Selected
Items, Net of Income Taxes
|
(0.22)
|
|
|
1.89
|
|
|
(0.50)
|
|
|
3.97
|
|
Adjusted Net Income
(Loss) Per Common Share – Basic
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Common Share – Diluted
|
$
|
0.22
|
|
|
$
|
(1.76)
|
|
|
$
|
0.50
|
|
|
$
|
(3.84)
|
|
Add:
|
|
|
|
|
|
|
|
Impact of Selected
Items, Net of Income Taxes
|
(0.22)
|
|
|
1.86
|
|
|
(0.50)
|
|
|
3.95
|
|
Adjusted Net Income
(Loss) Per Common Share – Diluted
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
______________
(1)
|
For the 2017 columns,
this represents a tax impact using an estimated tax rate of 37.1%
and 37.8% for the three and six months ended June 30, 2017,
respectively, which includes a $5.1 million and $11.6 million
adjustment for a reduction in valuation allowance for the three and
six months ended June 30, 2017, respectively. For the
2016 columns, this represents a tax impact using an estimated tax
rate of 37.5% and 36.6% for the three and six months ended
June 30, 2016, respectively, which includes a $40.8 million
and $86.3 million adjustment for a change in valuation allowance
for the three and six months ended June 30, 2016,
respectively.
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Income
(Loss)
|
$
|
13,801,859
|
|
|
$
|
(108,978,662)
|
|
|
$
|
30,742,382
|
|
|
$
|
(235,544,415)
|
|
Add:
|
|
|
|
|
|
|
|
Interest
Expense
|
16,428,164
|
|
|
16,046,325
|
|
|
32,731,970
|
|
|
32,145,007
|
|
Income Tax
Benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation,
Depletion, Amortization and Accretion
|
13,682,452
|
|
|
16,176,863
|
|
|
26,510,595
|
|
|
34,022,952
|
|
Impairment of Oil and
Natural Gas Properties
|
—
|
|
|
88,880,921
|
|
|
—
|
|
|
193,192,043
|
|
Non-Cash Share Based
Compensation
|
910,737
|
|
|
1,629,677
|
|
|
1,533,359
|
|
|
3,021,470
|
|
Write-off of Debt
Issuance Costs
|
95,135
|
|
|
—
|
|
|
95,135
|
|
|
1,089,507
|
|
(Gain) Loss on the
Mark-to-Market of Derivative Instruments
|
(14,172,002)
|
|
|
30,506,698
|
|
|
(31,228,544)
|
|
|
52,489,716
|
|
Adjusted
EBITDA
|
$
|
30,746,345
|
|
|
$
|
44,261,822
|
|
|
$
|
60,384,897
|
|
|
$
|
80,416,280
|
|
View original
content:http://www.prnewswire.com/news-releases/northern-oil-and-gas-inc-announces-2017-second-quarter-results-300501320.html
SOURCE Northern Oil and Gas, Inc.