Northern Oil and Gas (NOG) Q3 2024 earnings summary

Executive summary

• Achieved record free cash flow of $177.1 million and near-record adjusted EBITDA of $412.4 million, up 7% year-over-year, despite weaker oil and gas prices, with oil volumes and activity growing in the Permian and Williston basins.

• Q3 2024 net income was $298.4 million, up from $26.1 million in Q3 2023, reflecting higher production and derivative gains.

• Major acquisitions closed: Point ($220M), XCL ($519M), and Delaware ($147.8M), expanding presence in Uinta, Delaware, and other key U.S. basins.

• Returned over $230 million to shareholders year-to-date through dividends and share repurchases, including $120.2 million in dividends and $69.3 million in repurchases.

• Maintained a flexible, return-driven approach to capital allocation, balancing organic growth, acquisitions, and shareholder returns.

Financial highlights

• Q3 average daily production was 121,815–121,800 Boe/d, up 19% year-over-year, with record oil production of 70,913 Bbl/d, up 2% sequentially.

• Adjusted EBITDA was $412.4 million; free cash flow reached $177.1 million, up 32% sequentially and 39% year-over-year.

• Q3 2024 total revenues were $753.6 million, with oil, gas, and NGL sales at $513.5 million.

• CapEx for the quarter was $198 million, with 56% allocated to Permian, 41% to Williston, and 3% to Appalachia.

• Liquidity at quarter-end was over $1.3 billion, including $1.2 billion available on the revolving credit facility.

Outlook and guidance

• Reiterated annual production guidance of 120,000–124,000 Boe/d and 73,000–76,000 Bbl/d oil, with total capital expenditures guidance of $890–$970 million.

• Expect strong free cash flow in Q4 with over 25 net wells forecasted and full-quarter contributions from recent acquisitions.

• 2025 capital program expected to allocate 60% to Permian, 30% to Williston, 9% to Uinta, and 1% to Appalachian.

• No material changes to risk factors or critical accounting estimates since the last annual report.

• Ongoing robust hedging program, with 74% of crude oil and 62% of natural gas production hedged for the first nine months of 2024.