Northern Oil and Gas says Q2 was one of its best
US-based Northern Oil and Gas said August 5 that it was raising its production guidance for the year after seeing gains in both oil and natural gas in Q2 2021.
Northern Oil and Gas, an inland shale producer, reported average crude oil production increased 83% from Q2 2020, while natural gas output soared 282%. Its combined average production of 54,623 barrels of oil equivalent/day marked a 129% increase over Q2 2020.
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In its quarterly report, the company said it increased its annual production guidance from a range of 47,167 - 53,424 boe/d to 49,500 – 54,250 boe/d.
Northern Oil and Gas reported total revenues for the second quarter of $24.8mn, compared with a $51.9mn loss during the same period last year, which reflected a $72.6mn loss on commodity derivatives.
The company added that its lease operational costs during the quarter of $42.7mn were 13% lower than during Q1 2021, though part of that was due to the sale of some of its assets. Oil and natural gas sales, meanwhile, came in at $225.7mn during Q2, a 43% improvement sequentially.
“This was one of the strongest operational and financial quarters on record for the company,” CEO Nick O’Grady said.
Shale drillers had practiced production restraint this year to focus on shareholder return, though rivals Pioneer Natural Resources and Continental Resources also raised their production forecasts for the year.