Northern Oil and Gas Discloses Up to $320M in Q3 Unrealized Hedge Losses
Northern Oil and Gas, Inc. (NOG) reported preliminary third-quarter results featuring estimated unrealized derivative losses of $300 million to $320 million alongside realized hedge losses of $51 million to $52 million. Third-quarter capital expenditures reached an estimated $250 million to $253 million, driven partly by $56.5 million in ground game investments concentrated heavily in oil basins.
The significant non-cash unrealized hedging losses reflect the gap between rising crude oil prices and the company's existing hedge contracts. Meanwhile, realized cash hedging losses weigh on operating cash margins. Capital spending ran near the higher end of expectations during the period, though the company repurchased 667,989 shares of its common stock at an average price of $23.96.
Looking ahead, management expects capital expenditures to trend lower in the fourth quarter, provided no non-budgeted activities arise. Investors will be watching for finalized third-quarter financial results, detailed production figures, free cash flow trends, and potential updates to long-term hedging strategies.
Key points
- Northern Oil and Gas expects Q3 unrealized derivative losses between $300 million and $320 million.
- Realized hedging losses for the third quarter are estimated at $51 million to $52 million.
- Third-quarter capital expenditures reached $250 million to $253 million, including $56.5 million in ground game spend.
- Capital spending is projected to trend lower in the fourth quarter absent non-budgeted projects.
- The company repurchased 667,989 common shares at an average price of $23.96 per share.
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What were Northern Oil and Gas Q3 hedge losses?
Northern Oil and Gas posted preliminary third-quarter unrealized derivative losses of $300 million to $320 million and realized hedge losses between $51 million and $52 million.
How much did Northern Oil and Gas spend on Q3 capex?
Estimated third-quarter capital expenditures were $250 million to $253 million, which included $56.5 million allocated to near-term ground game development.
Did Northern Oil and Gas buy back stock in Q3?
Yes, Northern Oil and Gas repurchased 667,989 shares of its common stock at a price of $23.96 per share during the third quarter.