Our Stock of the Week is Northern Oil and Gas, Inc. (NOG). NOG is an independent energy company, that engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. The company primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. As of December 31, 2021, it owned working interests in 7,436 gross producing wells; and had proved reserves of 287,682 million barrels of oil equivalent. The company is based in Minnetonka, Minnesota.
In its most recent quarter, NOG saw revenues jump 537% to $319.2 million versus $50.1 million in the same quarter last year. EPS increased 66% to $1.06.
The company is expected to earn $5.61 in 2022 and grow that 23% to $6.90 in 2023. It trades with a trailing PE of 8x. It pays a dividend of $0.08 and plans to pay $0.19 in the second quarter. The company also plans to buy back shares.
There are six analysts with price targets in the last 3 months with an average target of $40. The high target is $50 and the low is $34. The most recent upgrade was from Johnson Rice.
Technically, the stock has tested breakout levels around the $28 level and may make another attempt depending on the overall market for oil. We are looking for a possible pullback before another attempt to the upside is made.
As always we will not chase strength on Monday but will be looking to trade the stock as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing No positions in NOG To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.