Pritchard Capital Remains Neutral On Northern Oil & Gas

Pritchard Capital has a Neutral rating on shares of Northern Oil & Gas, Inc. NOG. In a note to clients, Pritchard Capital writes, "KOG announced yesterday that it was lowering its full year production guidance to 4,500-5,500 Boe/d from 5,500-6,500 Boe/d due to adverse weather conditions in the Williston Basin (WB). Despite the decrease in full year guidance the company reiterated its 2011 exit rate of 9,000 Boe/d and expects to grow production by approximately 35% in Q2 11 vs. Q1 11 sales volumes. We are lowering our Q2 and full year 2011 EPS/CFPS to $0.03/$0.07 and $0.33/$0.52 from $0.08/$0.13 and $0.44/$0.66 primarily driven by a decrease in our production estimates to 2,520 Boe/d and 4,620 Boe/d from 4,220 Boe/d and 5,580 Boe/d, respectively to reflect the inclement weather the company experienced during H1 11...."We are big fans of the play, but KOG's stock is relatively expensive to the group on an EV/acre basis, so we are maintaining our ‘Neutral' rating." Shares of NOG closed at $18.49 yesterday.