Northern Oil and Gas (NOG) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 production of 134,959–135,000 Boe/d (58% oil), up 13% year-over-year and 2.4% sequentially, with strong well performance and operational momentum rebounding from prior delays.

• Reported record adjusted EBITDA of $434.7M (up 12.3% YoY), net income of $139.0M, and free cash flow of $135.7M (up 151.4% YoY and 41% sequentially).

• Shareholder returns totaled ~$57M in Q1 via dividends and buybacks; quarterly dividend increased 12.5% YoY and 7% QoQ to $0.45/share.

• Closed Upton County, TX acquisition for $61.7M, adding 2,275 net acres; completed seven ground game deals, adding over 1,000 net acres and 1.1 net wells.

• Maintained robust hedging, covering 60–68% of 2025 production, and over $900M in liquidity with no debt maturities until 2027.

Financial highlights

• Oil and gas sales reached $577.0M–$589.0M; total revenues $602.1M; net income per diluted share was $1.39.

• Adjusted EBITDA: $434.7M; free cash flow: $135.7M; cash flow from operations: $407.4M.

• Net debt at quarter-end was $2.3B; net debt/LQA EBITDA improved to 1.3x; liquidity exceeded $900M.

• Production expenses were $114.0M ($9.39/Boe); adjusted cash G&A was $0.87/Boe.

• 21st consecutive quarter of positive free cash flow, totaling over $1.7B since 2020.

Outlook and guidance

• 2025 production guidance: 130,000–135,000 Boe/d, with oil at 75,000–79,000 Boe/d; capital spending of $1,050–$1,200M.

• CapEx guidance: 66% Permian, 20% Williston, 7% Appalachian, 7% Uinta; $200–$300M growth capital flexible based on market.

• Operating expense guidance: production expenses $9.15–$9.40/Boe, production taxes 8.5–9.0% of sales, G&A cash expense $0.85–$0.90/Boe.

• Guidance remains stable barring significant curtailments; management expects sufficient liquidity for at least twelve months.

• If commodity prices drop further, CapEx could contract, but production guidance remains stable absent major curtailments.