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What: Shares of oil producer Northern Oil and Gas
So what: Management reported 34.8 million barrels of proven oil equivalent reserves, an increase of 121% from the beginning of the year. But the great news was an unexpected production bump of 30% to 40% in the third quarter.
Now what: To top it off, Global Hunter Securities upgraded Northern Oil to a buy rating this morning. Estimated future cash flows, discounted at 10%, have increased from $295.5 million at the end of 2010 to $870.5 million today showing the potential growth of production. Oil prices will impact potential earnings going forward, but today's news is definitely a great sign for the continued growth of this oil producer.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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