Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG” or the “Company”)
today announced the declaration of a dividend on the Company’s
common stock and provided an update on current hedging
positions.
DIVIDEND DECLARATION
NOG’s Board of Directors has declared a cash dividend in the
amount of $0.40 per share, the planned quarterly level for 2024 as
previously disclosed. The dividend is payable on April 30, 2024, to
stockholders of record as of the close of business on March 28,
2024.
MANAGEMENT COMMENTS
“We continue to deliver on our plan to generate strong free cash
flow that can be dynamically allocated to create value for our
investors,” commented Chad Allen, NOG’s Chief Financial Officer.
“At the same time, through our practice of systematic hedging, we
are protecting our underwritten returns. With an improved hedge
profile, strong balance sheet and significant free cash flow, we
have great options to deliver growth and value in multiple forms.
Given our attractive current dividend yield of approximately 5% and
a moderated commodity price environment, we plan to prioritize
further growth investments and potential share repurchases as we
seek to maximize total shareholder return in 2024.”
HEDGING UPDATE
NOG periodically enters into hedging agreements to protect the
underwritten returns on the capital it commits to acquisitions and
development on its properties. Since the third quarter of 2023, NOG
has added substantial additional oil and natural gas hedges for
2024 and beyond, as well as additional hedges to cover basis
differentials in the various regions in which the Company
operates.
The following table summarizes NOG’s open crude oil commodity
derivative swap contracts scheduled to settle after December 31,
2023.
Crude Oil Commodity Derivative
Swaps(1)
Crude Oil Commodity Derivative
Collars
Contract Period
Volume (BBL)
Weighted Average Price
($/BBL)
Collar Call Volume
(BBL)
Collar Put Volume
(BBL)
Weighted Average Ceiling
Price
($/BBL)
Weighted Average Floor
Price ($/BBL)
2024:
Q1
2,130,923
$75.31
2,423,147
1,908,428
$84.43
$70.65
Q2
2,229,737
$75.02
2,560,637
1,918,517
$83.84
$70.23
Q3
2,265,096
$74.09
1,725,056
1,573,256
$80.90
$71.23
Q4
2,067,109
$73.17
1,436,749
1,262,800
$81.58
$70.84
2025:
Q1
1,242,749
$73.65
413,286
314,849
$79.20
$67.84
Q2
1,236,633
$73.75
273,171
199,233
$75.49
$67.63
Q3
552,394
$71.75
234,994
161,970
$75.76
$67.88
Q4
548,911
$71.75
208,511
135,487
$76.87
$67.63
2026:
Q1
263,726
$69.05
43,226
39,289
$70.25
$62.50
Q2
266,657
$68.98
43,707
39,727
$70.25
$62.50
Q3
269,587
$68.91
44,187
40,163
$70.25
$62.50
Q4
269,587
$68.83
44,187
40,163
$70.25
$62.50
(1)
Includes derivative contracts entered into
through February 2, 2024. This table does not include volumes
subject to call options or swaptions, which are derivative
contracts NOG has entered into that may increase swapped volumes at
the option of NOG’s counterparties.
The following table summarizes NOG’s open natural gas commodity
derivative swap contracts scheduled to settle after December 31,
2023.
Natural Gas Commodity
Derivative Swaps(1)
Natural Gas Commodity
Derivative Collars
Contract Period
Volume (MMBTU)
Weighted Average Price
($/MMBTU)
Collar Call Volume
(MMBTU)
Collar Put Volume
(MMBTU)
Weighted Average Ceiling
Price
($/MMBTU)
Weighted Average Floor
Price
($/MMBTU)
2024:
Q1
10,661,616
$3.572
5,945,000
5,945,000
$4.901
$3.233
Q2
10,875,805
$3.454
6,902,500
6,902,500
$4.280
$3.039
Q3
10,860,457
$3.494
7,360,000
7,360,000
$4.479
$3.047
Q4
7,717,909
$3.492
8,176,586
8,176,586
$4.818
$3.079
2025:
Q1
1,485,000
$3.612
9,196,417
9,196,417
$5.184
$3.127
Q2
920,000
$3.600
8,771,297
8,771,297
$4.897
$3.126
Q3
920,000
$3.600
8,407,569
8,407,569
$4.935
$3.126
Q4
760,000
$3.521
7,618,723
7,618,723
$5.014
$3.115
2026:
Q1
450,000
$3.200
5,828,249
5,828,249
$5.055
$3.093
Q2
460,000
$3.200
6,024,706
6,024,706
$5.055
$3.093
Q3
460,000
$3.200
6,024,706
6,024,706
$5.055
$3.093
Q4
455,000
$3.200
4,304,642
4,304,642
$4.967
$3.086
(1)
Includes derivative contracts entered into
through February 2, 2024. This table does not include volumes
subject to call options or swaptions, which are derivative
contracts NOG has entered into that may increase swapped volumes at
the option of NOG’s counterparties.
ABOUT NOG
NOG is a real asset company with a primary strategy of acquiring
and investing in non-operated minority working and mineral
interests in the premier hydrocarbon producing basins within the
contiguous United States. More information about NOG can be found
at www.noginc.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, as amended (the
“Securities Act”), and the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). All statements other than statements
of historical facts included or referenced in this press release
regarding NOG’s plans and practices for capital allocation,
dividends and other shareholder returns (including timing, amounts
and relative performance), financial position, business strategy,
plans and objectives for future operations, industry conditions,
cash flow, and borrowings are forward-looking statements. When used
in this presentation, 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
NOG’s control) that could cause actual results to differ materially
from those set forth in the forward-looking statements, including
the following: changes in NOG’s capitalization, changes in crude
oil and natural gas prices; the pace of drilling and completions
activity on NOG’s properties and properties pending acquisition;
NOG’s ability to acquire additional development opportunities; the
projected capital efficiency savings and other operating
efficiencies and synergies resulting from NOG’s acquisition
transactions; integration and benefits of property acquisitions, or
the effects of such acquisitions on NOG’s cash position and levels
of indebtedness; changes in NOG’s reserves estimates or the value
thereof; general economic or industry conditions, nationally and/or
in the communities in which NOG conducts business; changes in the
interest rate environment or market dividend practices; legislation
or regulatory requirements; conditions of the securities markets;
NOG’s ability to consummate any pending acquisition transactions;
other risks and uncertainties related to the closing of pending
acquisition transactions; NOG’s ability to raise or access capital;
changes in accounting principles, policies or guidelines; and
financial or political instability, acts of war or terrorism, and
other economic, competitive, governmental, regulatory and technical
factors affecting NOG’s operations, products, services and prices.
Additional information concerning potential factors that could
affect future plans and results is included in the section entitled
“Item 1A. Risk Factors” and other sections of NOG’s most recent
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q, as updated from time to time in amendments and subsequent
reports filed with the SEC, which describe factors that could cause
NOG’s actual results to differ from those set forth in the
forward-looking statements.
NOG 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 NOG’s control. You are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date they are made. Except as may be required by applicable
law or regulation, NOG does not undertake, and specifically
disclaims, any obligation to update any forward-looking statements
to reflect events or circumstances occurring after the date of such
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240206687382/en/
Evelyn Leon Infurna Vice President of Investor Relations
952-476-9800 ir@northernoil.com
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