Northern Oil and Gas, Inc.

What they do

NOG acquires non-operated minority working and mineral interests in oil and natural gas properties and participates alongside more than 100 experienced operating partners, electing on a well-by-well basis. As of December 31, 2025, it held 301,797 net acres and interests in 11,702 gross (1,195 net) producing wells with an average working interest of 10.2%. It reports a single reportable segment, with proved reserves of 384,068 MBoe (48% oil, 74% proved developed) audited by Cawley, Gillespie & Associates.

Revenue drivers

• Permian Basin oil and gas production — Largest production contributor at 58.5 MBoe per day and 42% of fourth-quarter 2025 production, with 146,008 MBoe of proved reserves, 56% oil.
• Williston Basin oil and gas production — Legacy core area producing 41.3 MBoe per day (30% of fourth-quarter 2025 production), with 104,403 MBoe of proved reserves, 68% oil, and 84% proved developed.
• Appalachian Basin natural gas production — Produces 29.6 MBoe per day (21% of fourth-quarter 2025 production) and holds 99,623 MBoe of proved reserves, but only 1% oil, making it heavily gas-weighted.
• Uinta Basin oil production — Smallest producing area at 10.7 MBoe per day (7% of fourth-quarter 2025 production) but the most oil-weighted at 90% oil, with 34,034 MBoe of proved reserves and only 40% proved developed.

Recent performance

Second-quarter 2026 production averaged 145,659 Boe per day (47% oil), up 9% year over year, with record natural gas production of 464,330 Mcf per day. Oil and natural gas sales were $670.8 million, GAAP net income was $236.6 million ($2.19 per diluted share), Adjusted EBITDA was $401.0 million and Adjusted Net Income was $122.5 million. Cash flow from operations was $321.6 million and free cash flow was $159.0 million, up 424% sequentially. Oil volumes were reduced by roughly 7,000 Boe per day from Permian well shut-ins and three deferred turn-in-lines; the shut-in wells are back online and the TILs are expected in the third quarter.

Strategy

NOG's stated strategy is to grow reserves, production and free cash flow while maintaining a strong balance sheet, using non-operated minority interests to diversify risk across many wells, operators and basins. It closed the Duvernay Light Oil Joint Development on June 1, 2026 for total consideration of $262.1 million, expanding its addressable market into a new basin. It also completed 30 ground game transactions adding over 2,300 net acres and 6.2 net wells for $44.7 million, inclusive of associated development costs. The company repurchased 2.95 million shares at an average price of $20.37 and increased its authorized share repurchase program to $243.0 million.

Risks

• Commodity price volatility — Oil and natural gas prices heavily influence NOG's revenue, cash flow, profitability and reserve bookings, and the company states it cannot predict future prices.
• Non-operated control — Because NOG does not operate its wells, it depends on more than 100 partners for drilling pace, completion timing and cost control, as shown by the second-quarter 2026 Permian shut-ins and deferred turn-in-lines.
• Indebtedness and Convertible Notes — NOG carried $2.72 billion of long-term debt against $2.00 billion of shareholder equity at June 30, 2026, and cites risks from its Convertible Notes including potential dilution and delayed takeover.
• Basin and infrastructure concentration — Production is concentrated in four basins and a single operator represented up to 11% of fourth-quarter 2025 sales, while the company specifically flags ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline.

Outlook

Management reiterated full-year production guidance despite the second-quarter operating disruptions and said it expects an acceleration of turn-in-lines through the second half of 2026. The company pointed to record Appalachian volumes, a full quarter of Utica joint development production and Uinta assets outperforming internal estimates. It describes its asset base as undervalued by the public market and says it will continue executing its business plan across the cycle.