NORTHERN OIL & GAS, INC. Q4 FY2024 earnings call

• Nick emphasized the non-operated strategy's diversification, noting recent disruptions affected Q4 and early 2025 volumes but capital program will catch up. Volumes grew 25% year over year in 2024, expected to grow high single digits in 2025. Focus on long-term capital allocation, with Uinta program optimizing laterals for future growth.
• Adam discussed Q4 operations, turning 25.8 net wells to sales, with Permian accounting for 60% of additions. D&C list finished at 50.4 net wells, with Permian, Uinta, Williston, and Appalachia split. 2025 cadence expected with Permian, Williston, Appalachia, and Uinta activity. Business development included 14 ground game deals in Q4, and $8 billion in assets across 13 processes under evaluation.
• Chad reviewed financial results, production, CapEx budget $1.05B-$1.2B, reserves grew 11% in 2024 to 378 million BOE, and discussed shareholder returns with share buybacks and dividends in 2024.

Fourth quarter average daily production was 131,800 BOE per day, with full-year production at 124,100 BOE per day, above the high end of the guided range. Oil production increased to 78,900 barrels per day in Q4, up 11% from Q3. Adjusted EBITDA in the fourth quarter was $407 million, and for the year was $1.6 billion. Free cash flow in Q4 was $96 million, and for the year was $461 million, both all-time highs. Oil differentials were $3.86 per barrel for the quarter, better than expectations, and natural gas realizations were 81% of benchmark prices.

• Anticipated annual production in the 130,000 to 105,000 BOE per day range, with annual oil production 75,000 to 79,000 barrels per day.
• CapEx budgeted at $1.05 billion to $1.2 billion, with ~25% for ground game acquisition and development capital, and ~10% for Appalachian drilling partnership.
• Cash taxes in 2025 expected to be immaterial, under $10 million mostly state income taxes.

• Disruptions such as forest fires, refinery outages, freeze-offs affected Q4 and early 2025 volumes.
• Weather and operator-specific factors could impact production timing.
• Steel tariffs potentially impacting AFE costs, though magnitude unclear.

Q: Neal Dingmann asked about production growth optimism and Uinta expectations.

A: Nick O'Grady said production growth is due to more wells spudded than completed, with Uinta asset needing time to prove, SM took over operations Jan 1, and it's an incredible resource.

Q: Scott Hanold asked about Appalachian partnership and business scaling.

A: Nick O'Grady said Appalachian partnership is one-year with option to extend, Adam Dirlam added development activity finishes in 2026. Adam discussed building infrastructure to scale business with $8B in assets under evaluation.

Q: Charles Meade asked about 2025 production shape.

A: Nick O'Grady said production is relatively flat with ramp at year-end, Adam Dirlam added Permian could see pull forward.

Q: John Freeman asked about workovers/refracs budget and AFE accrual.

A: Chad Allen said ~10%-15% of budget for workovers/refracs, similar to last year, and AFEs had ~15% benefit year over year.

Q: Noel Parks asked about hedging and Permian gas.

A: Nick O'Grady discussed hedging oil and gas, with oil hedging done quarter by quarter, and Permian gas facing infrastructure bottlenecks.

Q: Noah Hungness asked about steel tariffs and buybacks.

A: Nick O'Grady said steel tariffs impact unclear but AFE costs have wiggle room, and buybacks are board decisions reviewed quarterly.