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Northern Oil and Gas (NOG): Q3 EPS of $0.27 beats by $0.01. Revenue of $60.1M (-13% Y/Y) misses...

Northern Oil and Gas (NOG): Q3 EPS of $0.27 beats by $0.01. Revenue of $60.1M (-13% Y/Y) misses by $20M. (PR)
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  • badbernanke
    , contributor
    Comments (263) | Send Message
     
    You gotta love how reporters don't understand how commodity hedging affects reported results.

     

    Here they tell you that NOG's reported revenue of $60 million missed projected revenue by $20 million. Horrible result, right? What they don't tell you is that cash normal revenue was $80.7 million and that realized cash hedge gains in the quarter were $1.7 million. So where does the $60 million revenue number come from? GAAP requires NOG to deduct from revenue in the quarter $22.3 million in unrealized losses (actually, a mark to market adjustment) for hedges that will expire in future quarters.

     

    So actually, NOG hit cash revenue. Indeed, apparently exceeded it.
    12 Nov 2012, 12:11 AM Reply Like
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