A Wayzata company with a major stake in the North Dakota's Williston Basin oil and gas fields on Thursday reported record oil production and an increase in adjusted net income.
Northern Oil and Gas Inc. said it earned $16.7 million in adjusted net income in the third quarter, or 27 cents per share, compared with 22 cents per share a year ago. Analysts had expected earnings of 26 cents.
Oil production from the company's share of 1,104 wells rose 94 percent during the three months, compared with the third quarter a year ago, and natural gas and production of related liquids more than doubled, the company said.
Northern buys minority interests in oil and gas fields, pays operators a share of drilling costs and gets a share of the sales.
Its adjusted earnings don't include two noncash items, a hedging loss and $4.3 million in share-based compensation to its former president. When they're included under generally approved accounting principles, the company had $300,161 in net income and no earnings per share.
CEO Michael Reger told analysts on a conference call that he expects to see lower drilling expenses in the future but did not offer earnings guidance for 2013.
The stock closed at $14.59, down 46 cents or 3 percent.