Northern Oil & Gas Inc (NOG)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 680,816 | 1,040,592 | 648,788 | 674,311 | 1,000,742 | 698,170 | 1,277,549 | 1,322,992 | 776,338 | 806,256 | 234,012 | -108,820 | 6,594 | -310,489 | -556,047 | -1,364,684 | -906,207 | -872,023 | -544,638 | 398,961 |
| Revenue (ttm) | US$ in thousands | 2,129,538 | 1,925,152 | 1,723,637 | 1,578,228 | 1,471,907 | 1,606,963 | 1,827,040 | 1,957,898 | 1,985,798 | 1,872,524 | 1,598,144 | 1,274,218 | 975,092 | 742,234 | 556,247 | 351,197 | 324,069 | 385,263 | 469,572 | 598,754 |
| Pretax margin | 31.97% | 54.05% | 37.64% | 42.73% | 67.99% | 43.45% | 69.92% | 67.57% | 39.09% | 43.06% | 14.64% | -8.54% | 0.68% | -41.83% | -99.96% | -388.58% | -279.63% | -226.34% | -115.99% | 66.63% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $680,816K ÷ $2,129,538K
= 31.97%
The pretax margin of Northern Oil & Gas Inc has shown significant fluctuations over the past few years. The company experienced negative pretax margins from June 2020 to June 2022, indicating that its operating expenses and interest payments were higher than its pre-tax income during those periods. This could be attributed to various factors such as increased costs, lower revenue, or unfavorable market conditions.
However, starting from September 2022, Northern Oil & Gas Inc managed to improve its pretax margin, reaching positive values by December 2021. This positive trend continued into 2023 and 2024, with pretax margins ranging from 31.97% to 69.92%. These positive pretax margins indicate that the company's pre-tax income exceeded its operating expenses and interest payments during these periods, reflecting improved efficiency, cost management, or revenue growth.
The upward trend in pretax margin from 2022 onwards suggests that Northern Oil & Gas Inc may have implemented strategic measures to enhance profitability and financial performance. Investors and stakeholders may find this improvement in pretax margin favorable, as it indicates the company's ability to generate profits before accounting for taxes and demonstrates effective financial management.
Peer comparison
Dec 31, 2024