Released August 01, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--After reporting an increase in quarterly production, mostly in oil, U.S. shale player Northern Oil & Gas Incorporated (NYSE:NOG) (NOG) (Minnetonka, Minnesota) revised most of its metrics, from capital expenditures to production, higher for the year.
NOG reported second quarter production of 123,342 barrels of oil equivalent per day (BOE/d), a 3% increase from first-quarter levels and 36% higher year-on-year. Net oil production accounted for 57% of the output and was 1% lower than first-quarter 2024 levels, but 27% higher than during the second quarter of 2023.
NOG drew mostly from the Permian and Appalachian shale basins. The Permian is the largest inland oil producer in the U.S., yielding some 6 million barrels per day (BBL/d). The Appalachian Basin, meanwhile, is the largest gas producer, with nearly 39 billion cubic feet per day on average in June.
Despite occasional reports of a slowdown in net U.S. production, overall trends are moving in the opposite direction. Oil production in the Permian is 7% higher than year-ago levels, while Appalachian gas output is 1% above levels from this time last year.
As such, NOG revised most of its metrics higher for the year. At the high end, net production was revised upward by 3.3% to 124,000 BOE/d. For just oil, guidance was revised higher by 4.1% to 76,000 BBL/d.
For spending, NOG had pegged as much as $900 million for the year, though that too has been revised higher to $970 million. The Permian accounted for 59% of NOG's spending over the three-month period ending June 30.
NOG during the second quarter realized an average sales price for oil of $77.11 per barrel, basically in line with current levels. Its average sales price for natural gas was 22% below year-ago levels, though markets last year were still adjusting to the loss of Russian products due to sanctions imposed in response to its invasion of Ukraine.
Henry Hub, the U.S. benchmark for the price of natural gas, is trading at about 26% below year-ago levels.
NOG during the quarter paid $510 million to acquire a 20% stake in assets held by XCL Resources (Houston, Texas). NOG said the assets acquired from XCL were averaging about 10,500 BOE/d, with 85% of that as oil.
On Tuesday, the company paid $220 million in cash to take on more acreage in the Delaware Basin, part of the broader Permian. Recent production from the assets was only 4,500 BOE/d, with 75% of that as oil.
"Overall, the impact of the acquisitions serves to increase annual production and to reduce per unit operating expenses," NOG said Wednesday.
NOG reported total revenue during the second quarter of $560 million, compared to $416 million during the same period last year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
NOG reported second quarter production of 123,342 barrels of oil equivalent per day (BOE/d), a 3% increase from first-quarter levels and 36% higher year-on-year. Net oil production accounted for 57% of the output and was 1% lower than first-quarter 2024 levels, but 27% higher than during the second quarter of 2023.
NOG drew mostly from the Permian and Appalachian shale basins. The Permian is the largest inland oil producer in the U.S., yielding some 6 million barrels per day (BBL/d). The Appalachian Basin, meanwhile, is the largest gas producer, with nearly 39 billion cubic feet per day on average in June.
Despite occasional reports of a slowdown in net U.S. production, overall trends are moving in the opposite direction. Oil production in the Permian is 7% higher than year-ago levels, while Appalachian gas output is 1% above levels from this time last year.
As such, NOG revised most of its metrics higher for the year. At the high end, net production was revised upward by 3.3% to 124,000 BOE/d. For just oil, guidance was revised higher by 4.1% to 76,000 BBL/d.
For spending, NOG had pegged as much as $900 million for the year, though that too has been revised higher to $970 million. The Permian accounted for 59% of NOG's spending over the three-month period ending June 30.
NOG during the second quarter realized an average sales price for oil of $77.11 per barrel, basically in line with current levels. Its average sales price for natural gas was 22% below year-ago levels, though markets last year were still adjusting to the loss of Russian products due to sanctions imposed in response to its invasion of Ukraine.
Henry Hub, the U.S. benchmark for the price of natural gas, is trading at about 26% below year-ago levels.
NOG during the quarter paid $510 million to acquire a 20% stake in assets held by XCL Resources (Houston, Texas). NOG said the assets acquired from XCL were averaging about 10,500 BOE/d, with 85% of that as oil.
On Tuesday, the company paid $220 million in cash to take on more acreage in the Delaware Basin, part of the broader Permian. Recent production from the assets was only 4,500 BOE/d, with 75% of that as oil.
"Overall, the impact of the acquisitions serves to increase annual production and to reduce per unit operating expenses," NOG said Wednesday.
NOG reported total revenue during the second quarter of $560 million, compared to $416 million during the same period last year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
