Northern Oil and Gas Shares Popped: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Northern Oil & Gas (ASE: NOG) exploded 28% higher today after the company released earnings.

So what: Sales of oil and gas increased to $35.5 million from $11.7 million a year ago as production volumes increased. Net income for the quarter was $20.4 million, or $0.33 per share. When adjusted for oil hedges, earnings per share were $0.12, below the $0.19 analysts expected.

Now what: Production is continuing to increase with a second quarter average of 4,400 barrels of oil equivalent, having jumped to 5,200 in June. But that being said, the company still missed expectations, and oil is now trading below $80 per barrel. I'm not buying into the jump today simply because I think there will be more pressure on the company if oil prices stay low for a prolonged period.

Interested in more info on Northern Oil & Gas? Add it to your watchlist.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, or check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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