Northern Oil and Gas, Inc. Announces Preliminary Third Quarter 2019 Production and Operations Update
October 30 2019 - 4:30PM
Business Wire
Northern Oil and Gas, Inc. (NYSE American: NOG) today announced
a preliminary third quarter 2019 production and operations
update.
PRODUCTION AND OPERATIONS UPDATE
Northern estimates that its third quarter 2019 production was
40,786 Boe per day, a 53% increase over the third quarter of 2018.
Strong well performance has continued to meet or exceed Northern’s
expectations. However, Northern estimates that curtailments,
shut-ins and completion delays negatively impacted Northern’s
production by a total of approximately 4,500 Boe per day in the
third quarter, as follows:
- Northern estimates that 3,500 Boe per day was curtailed or
shut-in primarily due to gas processing constraints in the
Williston Basin. This impact was significantly higher than the
2,500 Boe per day that Northern estimates it experienced in the
second quarter and the 1,900 Boe per day that Northern had been
forecasting for the third quarter. Gas processing constraints and
low NGL prices also contributed to a significant decline in
Northern’s average realized natural gas prices for the third
quarter.
- Northern estimates that production was negatively impacted by
another 1,000 Boe per day in the third quarter due to heavy rains
and flooding during September that led to production curtailments
and delayed completions, particularly on six units where Northern
holds above-average working interests.
Northern also estimates that the curtailments, shut-ins and
completion delays led to a modest increase in certain costs on a
unit basis for the third quarter. However, Northern does not
anticipate these issues affecting its previously issued full year
2019 operating expense guidance.
Northern anticipates that a significant portion of the
curtailments and shut-ins will be remedied by substantial gas
processing capacity that has or will come online in the fourth
quarter of 2019 and first quarter of 2020. In addition, the weather
related issues experienced in September have moderated in October.
Finally, Northern’s newly acquired VEN Bakken assets performed well
in the third quarter, producing an estimated 6,800 Boe per day,
exceeding Northern’s prior estimates. As a result, Northern expects
sequential production growth in the fourth quarter and is not
adjusting its previously provided fourth quarter 2019 production
guidance.
PRELIMINARY FINANCIAL INFORMATION
The foregoing preliminary unaudited financial and operating
information and estimates, including with respect to production and
other matters, is based on estimates and subject to completion of
Northern’s financial closing procedures and audit processes. Such
information has been prepared by management solely on the basis of
currently available information. The preliminary unaudited
information does not represent and is not a substitute for a
comprehensive statement of financial and operating results, and
Northern’s actual results may differ materially from these
estimates because of final adjustments, the completion of
Northern’s financial closing procedures, and other developments
after the date of this release.
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 and the Securities
Exchange Act of 1934. 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. These and other applicable
risks and uncertainties have been described more fully in
Northern’s Annual Report on Form 10-K filed with the SEC on March
18, 2019 and in Northern’s subsequent SEC filings. Northern does
not undertake any duty to update or revise any forward-looking
statements, except as may be required by the federal securities
laws.
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Source: Northern Oil and Gas, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20191030006084/en/
Nicholas O’Grady President and Chief Financial Officer (952)
476-9800 ir@northernoil.com
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