Northern Oil and Gas (NOG) Q3 earnings report preview: what to look for

What happened

Northern Oil and Gas, a non-operated oil producer, is scheduled to announce its third-quarter earnings this Thursday after market hours. Analysts expect revenue to grow 10.9% year on year; last quarter, revenue was $588.7 million, down 7.9% year on year.

Confirmed

Global impact / market context

The report will show whether revenue is recovering as analysts expect and how production trends compare with last quarter’s 11.3% year-on-year oil decline. Revenue and production results can influence expectations for the company’s sales and cash available to fund its operations.

Analyst inference

Analysts covering Northern Oil and Gas have generally reaffirmed their estimates over the past 30 days, indicating they expect the business to stay on course. Some peers have reported strong revenue growth, but their results do not establish how Northern will perform.

Confirmed

What to watch

1. Check reported revenue against the expected 10.9% year-on-year growth; a shortfall or stronger result would change the picture of the anticipated recovery. Analyst inference
2. Look for an update on oil production and whether the year-on-year decline reported last quarter continues, as output can affect the amount of oil sold. Analyst inference
3. Compare the earnings release with analysts’ reaffirmed estimates and the company’s prior record of exceeding expectations, while recognizing neither guarantees a beat this quarter. Analyst inference

Evidence

• stockstory.org