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Northern Oil & Gas Gross Margin %

: 70.29% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Northern Oil & Gas's Gross Profit for the three months ended in Jun. 2022 was $386 Mil. Northern Oil & Gas's Revenue for the three months ended in Jun. 2022 was $550 Mil. Therefore, Northern Oil & Gas's Gross Margin % for the quarter that ended in Jun. 2022 was 70.29%.

Warning Sign:

Northern Oil & Gas Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.


The historical rank and industry rank for Northern Oil & Gas's Gross Margin % or its related term are showing as below:

NOG' s Gross Margin % Range Over the Past 10 Years
Min: -4.33   Med: 39.48   Max: 60.15
Current: 67.27


During the past 13 years, the highest Gross Margin % of Northern Oil & Gas was 60.15%. The lowest was -4.33%. And the median was 39.48%.

NOG's Gross Margin % is ranked better than
85.67% of 928 companies
in the Oil & Gas industry
Industry Median: 27.51 vs NOG: 67.27

Northern Oil & Gas had a gross margin of 70.29% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Northern Oil & Gas was -5.90% per year.


Northern Oil & Gas Gross Margin % Historical Data

The historical data trend for Northern Oil & Gas's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Northern Oil & Gas Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.03 53.08 35.65 4.88 60.15

Northern Oil & Gas Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.19 61.85 64.37 68.82 70.29

Competitive Comparison

For the Oil & Gas E&P subindustry, Northern Oil & Gas's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Northern Oil & Gas Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Northern Oil & Gas's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Northern Oil & Gas's Gross Margin % falls into.



Northern Oil & Gas Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Northern Oil & Gas's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=586.5 / 975.092
=(Revenue - Cost of Goods Sold) / Revenue
=(975.092 - 388.599) / 975.092
=60.15 %

Northern Oil & Gas's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=386.4 / 549.643
=(Revenue - Cost of Goods Sold) / Revenue
=(549.643 - 163.278) / 549.643
=70.29 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Northern Oil & Gas  (NYSE:NOG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Northern Oil & Gas had a gross margin of 70.29% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Northern Oil & Gas Gross Margin % Related Terms

Thank you for viewing the detailed overview of Northern Oil & Gas's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Northern Oil & Gas Business Description

Northern Oil & Gas logo
Traded in Other Exchanges
Address
4350 Baker Road, Suite 400, Minnetonka, MN, USA, 55343
Northern Oil & Gas Inc is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties. Its principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States.
Executives
Pomerantz Jennifer S. director 4350 BAKER ROAD SUITE 400 MINNETONKA MN 55343
Rowling Family 2012 Long Term Trust other: See Remarks 4001 MAPLE AVENUE, SUITE 600 DALLAS TX 75219
Evans James B. officer: Executive VP & Chief Engineer 601 CARLSON PARKWAY SUITE 990 MINNETONKA MN 55305
Rowling Foundation other: See Remarks 4001 MAPLE AVENUE, SUITE 600 DALLAS TX 75219
Lasher Stuart G. director 4931 NEW PROVIDENCE TAMPA FL 33629
Ttbr Investments Llc 10 percent owner 4001 MAPLE AVE SUITE 600 DALLAS TX 75219
Trbrjr Investments Llc 10 percent owner 4001 MAPLE AVE SUITE 600 DALLAS TX 75219
Kelly Michael D. officer: EVP of Finance 3762 INGOLD STREET HOUSTON TX 77005
Wr Operating Llc 10 percent owner 3811 TURTLE CREEK BLVD SUITE 550 DALLAS TX 75219
Crestview W2 Holdings, L.p. 10 percent owner 590 MADISON AVENUE 26TH FLOOR NEW YORK NY 10022
W Energy Partners Llc 10 percent owner 3811 TURTLE CREEK BLVD SUITE 550 DALLAS TX 75219
Crestview Partners Iii Gp, L.p. 10 percent owner C/O CRESTVIEW PARTNERS 590 MADISON AVENUE, 42ND FLOOR NEW YORK NY 10022
Lenz Joseph Z. director 601 CARLSON PARKWAY SUITE 990 MINNETONKA MN 55305
O'grady Nicholas L. officer: Chief Financial Officer 601 CARLSON PARKWAY SUITE 990 MINNETONKA MN 55305
Easley Roy Ernest director 1048 TEXAN TRAIL GRAPEVINE TX 76051

Northern Oil & Gas Headlines

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