Last week Northern Oil & Gas (NYSE:NOG) reported their fourth quarter and 2011 results. Due to timing issues associated with tying in new wells (something previously talked about by numerous operators in the Williston Basin), production volumes were slightly light to Consensus levels but still notched record levels at 6,950 BOEpd, up 21% sequentially and up 87% from the year ago quarter. EBITDA too came in light to estimates at $39.1 mm (the Street was looking for $41 mm) and the stock has fallen nearly 9% since the day before the report.
Really that kind of move in E&P is generally what I'd call noise but I think in this case there are some misconceptions or lack of good data and I can't point to foolish stories on the web and comments on TV that show a lack of care with the facts.
The name has long been a favorite of the short side and while short interest has waned in recent months some die hard shorts and their more vocal on-air lap dogs tried to find something to complain about this quarter as well as making only grudging comments about the company's new auditors' clean bill of health statement and instead pointing to a comment made during the conference call about not providing quarterly guidance with the short mouthpiece saying that eliminating quarterly guidance is (insert super serious voice here) "ALWAYS A RED FLAG".
When I mentioned several other important aspects about the quarter and the call I was told by this voice of the shorts "don't blame me, I'm just pointing out the facts, it's what the company said that made the stock fall". Facts, eh? Since the commentator clearly wasn't on the conference call let me offer a few key points from the call and observations about the press release to help fill
