UPDATE - Global Hunter Securities Downgraded Northern Oil and Gas (NOG) to Accumulate; Good But Not Great

UPDATE - Global Hunter Securities downgraded Northern Oil and Gas (NYSE: NOG) from Buy to Accumulate, price target lowered $1 to $29.00.

Global analyst says, "Northern's 3Q11 was in line with our estimates, but deep down we had felt that given other Bakken operators' robust results, that Northern was positioned to surprise to the upside. Perhaps we were a bit too optimistic. Additionally, we are starting to see some cost creep and higher gas volumes, which could be attributed to more wells outside of the core areas of Mountrail and McKenzie Counties. Overall, Northern continues to benefit from the Bakken boom and its business model remains sound. It is now starting to face the same challenges as other Bakken operators; keeping up with the high initial production rates (IP) and swift decline curves associated with these wells. We still forecast y/y production growth of more than 80%; however, the ability to self fund capex has been pushed out until 2H13 indicating the company will likely be required to rely on debt or equity at some point to bridge the gap."

To See Ratings Summary & History on NOG, Click Here

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