2017 Q4 Form 10-Q Financial Statement

#000110448517000099 Filed on November 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q4
Revenue $37.00M $41.60M $35.94M
YoY Change 2.95% -7.78% -36.84%
Cost Of Revenue $20.00M $12.61M $16.20M
YoY Change 23.46% -15.96% 1.25%
Gross Profit $17.00M $28.99M $19.70M
YoY Change -13.71% -3.68% -51.83%
Gross Profit Margin 45.94% 69.7% 54.81%
Selling, General & Admin $3.100M $8.000M $3.700M
YoY Change -16.22% 280.95% -36.21%
% of Gross Profit 18.24% 27.59% 18.78%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $17.60M $15.40M $13.50M
YoY Change 30.37% 12.41% -44.21%
% of Gross Profit 103.53% 53.12% 68.53%
Operating Expenses $40.66M $41.01M $33.46M
YoY Change 21.53% -45.01% -84.3%
Operating Profit -$3.660M $585.0K $2.486M
YoY Change -247.21% -101.98% -101.59%
Interest Expense -$20.90M $16.67M -$16.20M
YoY Change 29.01% 3.27% 0.62%
% of Operating Profit 2850.12% -651.69%
Other Income/Expense, Net -$21.76M -$16.67M -$16.22M
YoY Change 34.16% 3.27% 0.65%
Pretax Income -$25.40M -$16.09M -$13.70M
YoY Change 85.4% -64.74% -92.05%
Income Tax -$1.570M $0.00 -$1.402M
% Of Pretax Income
Net Earnings -$23.85M -$16.09M -$12.33M
YoY Change 93.41% -64.74% -92.84%
Net Earnings / Revenue -64.45% -38.67% -34.3%
Basic Earnings Per Share -$0.37 -$0.26 -$0.20
Diluted Earnings Per Share -$0.37 -$0.26 -$0.20
COMMON SHARES
Basic Shares Outstanding 66.82M shares 61.84M shares 63.03M shares
Diluted Shares Outstanding 61.84M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $102.2M $6.800M $6.500M
YoY Change 1472.31% 106.06% 91.18%
Cash & Equivalents $102.2M $6.777M $6.486M
Short-Term Investments
Other Short-Term Assets $2.900M $6.100M $3.200M
YoY Change -9.38% -39.6% -95.24%
Inventory
Prepaid Expenses
Receivables $46.85M $39.18M $35.84M
Other Receivables $700.0K $1.400M $1.400M
Total Short-Term Assets $152.8M $53.47M $46.89M
YoY Change 225.75% 15.43% -61.57%
LONG-TERM ASSETS
Property, Plant & Equipment $473.2M $433.4M $376.2M
YoY Change 25.79% 21.96% -36.16%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.491M $6.669M $8.430M
YoY Change -34.87% -23.04% -16.37%
Total Long-Term Assets $479.5M $440.9M $384.6M
YoY Change 24.66% 21.11% -35.83%
TOTAL ASSETS
Total Short-Term Assets $152.8M $53.47M $46.89M
Total Long-Term Assets $479.5M $440.9M $384.6M
Total Assets $632.3M $494.4M $431.5M
YoY Change 46.51% 20.47% -40.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $93.15M $81.15M $56.15M
YoY Change 65.91% 69.92% -14.04%
Accrued Expenses $6.339M $10.04M $6.095M
YoY Change 4.01% 93.05% -22.79%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $155.0M $0.00
YoY Change
Total Short-Term Liabilities $123.6M $265.5M $77.44M
YoY Change 59.57% 265.74% -0.86%
LONG-TERM LIABILITIES
Long-Term Debt $979.3M $691.1M $832.6M
YoY Change 17.62% -14.44% -0.32%
Other Long-Term Liabilities $135.2K $8.400M $156.6K
YoY Change -13.67% 37.7%
Total Long-Term Liabilities $135.2K $691.1M $832.8M
YoY Change -99.98% -15.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $123.6M $265.5M $77.44M
Total Long-Term Liabilities $135.2K $691.1M $832.8M
Total Liabilities $1.123B $965.0M $919.0M
YoY Change 22.21% 8.86% -0.01%
SHAREHOLDERS EQUITY
Retained Earnings -$940.6M -$916.7M -$931.4M
YoY Change 0.99% -0.25% 46.01%
Common Stock $449.7M $446.1M $444.0M
YoY Change 1.3% 0.71% 0.83%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$490.8M -$470.6M -$487.4M
YoY Change
Total Liabilities & Shareholders Equity $632.3M $494.4M $431.5M
YoY Change 46.51% 20.47% -40.18%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q4
OPERATING ACTIVITIES
Net Income -$23.85M -$16.09M -$12.33M
YoY Change 93.41% -64.74% -92.84%
Depreciation, Depletion And Amortization $17.60M $15.40M $13.50M
YoY Change 30.37% 12.41% -44.21%
Cash From Operating Activities $7.400M $35.90M $4.200M
YoY Change 76.19% -8.42% -94.18%
INVESTING ACTIVITIES
Capital Expenditures -$43.80M -$32.90M -$26.20M
YoY Change 67.18% 15.03% -52.96%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $1.200M
YoY Change -100.0% -100.0%
Cash From Investing Activities -$43.80M -$32.80M -$25.00M
YoY Change 75.2% 18.84% -55.12%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 131.8M 0.000 24.00M
YoY Change 449.17% -100.0% -219.4%
NET CHANGE
Cash From Operating Activities 7.400M 35.90M 4.200M
Cash From Investing Activities -43.80M -32.80M -25.00M
Cash From Financing Activities 131.8M 0.000 24.00M
Net Change In Cash 95.40M 3.100M 3.200M
YoY Change 2881.25% -875.0% -188.89%
FREE CASH FLOW
Cash From Operating Activities $7.400M $35.90M $4.200M
Capital Expenditures -$43.80M -$32.90M -$26.20M
Free Cash Flow $51.20M $68.80M $30.40M
YoY Change 68.42% 1.47% -76.23%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Concentrations of Market and Credit Risk</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The future results of the Company&#8217;s crude oil and natural gas operations will be affected by the market prices of crude oil and natural gas.&#160;&#160;The availability of a ready market for crude oil and natural gas products in the future will depend on numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of crude oil and natural gas pipelines and other transportation facilities, any oversupply or undersupply of crude oil, natural gas and liquid products, the regulatory environment, the economic environment, and other regional and political events, none of which can be predicted with certainty.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company operates in the exploration, development and production sector of the crude oil and natural gas industry.&#160;&#160;The Company&#8217;s receivables include amounts due from purchasers of its crude oil and natural gas production.&#160;&#160;While certain of these customers are affected by periodic downturns in the economy in general or in their specific segment of the crude oil or natural gas industry, the Company believes that its level of credit-related losses due to such economic fluctuations has been and will continue to be immaterial to the Company&#8217;s results of operations over the long-term.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company manages and controls market and counterparty credit risk.&#160;&#160;In the normal course of business, collateral is not required for financial instruments with credit risk.&#160;&#160;Financial instruments which potentially subject the Company to credit risk consist principally of temporary cash balances and derivative financial instruments.&#160;&#160;The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits.&#160;&#160;The Company has not experienced any significant losses from such investments.&#160;&#160;The Company attempts to limit the amount of credit exposure to any one financial institution or company.&#160;&#160;The Company believes the credit quality of its counterparties is generally high.&#160;&#160;In the normal course of business, letters of credit or parent guarantees may be required for counterparties which management perceives to have a higher credit risk.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;ORGANIZATION AND NATURE OF BUSINESS</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Northern Oil and Gas, Inc. (the &#8220;Company,&#8221; &#8220;Northern,&#8221; &#8220;our&#8221; and words of similar import), a Minnesota corporation, is an independent energy company engaged in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties.&#160;&#160;The Company&#8217;s common stock trades on the NYSE MKT market under the symbol &#8220;NOG&#8221;.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Northern&#8217;s principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States.&#160;&#160;The Company acquires leasehold interests that comprise of non-operated working interests in wells and in drilling projects within its area of operations.&#160;&#160;As of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:inherit;font-size:10pt;">85%</font><font style="font-family:inherit;font-size:10pt;"> of Northern&#8217;s </font><font style="font-family:inherit;font-size:10pt;">145,749</font><font style="font-family:inherit;font-size:10pt;"> total net acres were developed.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements under GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&#160;&#160;The most significant estimates relate to proved crude oil and natural gas reserve volumes, future development costs, estimates relating to certain crude oil and natural gas revenues and expenses, fair value of derivative instruments, impairment of oil and natural gas properties, and deferred income taxes.&#160;&#160;Actual results may differ from those estimates.</font></div></div>

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