NOG Flags $300M+ Q3 Unrealized Hedge Losses as Oil Prices Rise
NOG sits 48% above its 52-week low of $17.18.
Summary
Northern Oil and Gas disclosed preliminary Q3 unrealized derivative losses of $300M–$320M, a large non-cash hit that will pressure GAAP earnings. Realized hedge losses of $51M–$52M represent actual cash outflows, reducing operating cash flow. Q3 capex of $250M–$253M came in at the high end of guidance, though Q4 spending is expected to decline absent non-budgeted activity. The company also repurchased 667,989 shares at $23.96, signaling continued capital returns despite the hedge drag. This follows a strong Q2 with record production and $159M free cash flow, but the hedge losses reflect exposure to rising oil prices against the company's hedge book. Final Q3 results with production and free cash flow details will be the next key update.
Updates
· SEC 8-K — NOG's 8-K attaches the October 12 press release with Q3 preliminary results, including $300M–$320M unrealized derivative losses, $51M–$52M realized hedge losses, $250M–$253M capex, and 667,989 shares repurchased for $16.0M.
At the time of this announcement, NOG was trading at $25.42 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $17.18 to $31.17. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.