The Panic-Proof Portfolio (Stockchase Research) Northern Oil & Gas, Inc. NOG-N PAST TOP PICK Jan 07, 2025

NOG recently reported record cash flow and production of which 57% is oil based.   Management just announced it has exercised its option to increase Uinta basin holdings.  It trades at 7x earnings, under 2x book and supports a 32% ROE.  Its dividend is backed by a payout ratio under 30% of cash flow.  We recommend setting a stop-loss at $32, looking to achieve $50 -- upside potential of 30%.  Yield 4.2%  

Our PAST TOP PICK with NOG has triggered its stop at $32.  To remain disciplined, we recommend covering the position at this time.  

NOG recently reported its 21st consecutive quarter of positive cash flow -- allowing for a payout ratio of under 33% of cash flow to cover its robust dividend yield.  It trades at 7x earnings, 1.1x book and supports a ROE of 29%.  We recommend setting a stop-loss at $21, looking to achieve $36 -- upside potential of 30%.  Yield 6.1%

We reiterate this predominately oil producing company in the Bakken as a TOP PICK.   Recently reported earnings showed a 13% increase in production (a new corporate record) and a 41% increase in free cash flow.  It trades at 8x earnings, 1.2x book and supports a 29% ROE.  Its good dividend is backed by a payout ratio under 33% of cash flow.  We recommend trailing up the stop (from $21) to $23, looking to achieve $37 -- upside potential of 23%.  Yield 5.8%