Northern Oil and Gas, Inc. Q3 FY2025 earnings call

• Business remains solid with stable activity and high-quality D&C list. - Disciplined capital allocation, focusing on return-driven approach. - Active business development with busy Q3, including large asset transactions and ground game activities. - Operational assets outperformed internal expectations, leading to increased production guidance and tightened CapEx. - Balance sheet management with enhanced liquidity, reduced interest rates, and hedging program to navigate market volatility.

Total average daily production in the third quarter was approximately 131,000 BOE per day, up 8% versus Q3 of 2024 and down 2% from Q2 2025. Oil production was approximately 73,000 barrels of oil per day, up 2% from Q3 2024 and down 6% sequentially. Gas production was a record 352 MMcf per day, up 15% from Q3 2024 and up 3% from Q2 2025. Adjusted EBITDA in the quarter was $387.1 million, and free cash flow was $118.9 million. CapEx in the quarter, excluding non-budgeted acquisitions and other, was $272 million, allocated with 49% to the Permian, 25% to the Williston, 5% to the Uinta, and 21% in the Appalachian Basin.

• Increased annual production guidance to a range of 132,500 to 134,000 BOE per day. - Revised LOE guidance upward due to higher run rate and workovers. - Revised production taxes guidance to a lower run rate. - Tightened full year CapEx guidance to a range of $950 million to $1.025 billion.

• Commodity market fluctuations that could impact production and financial results. - Interest rate changes and associated impacts on debt servicing. - Operational risks such as workovers and saltwater disposal costs.

Q: Could you elaborate on the outlook for 2026 and how NOG's activity might change?

A: Activity has been stable, and commodity outlook could change activity. Oil volumes may require lower budgets, while gas growth is expected next year. It depends on commodity outlook and return-driven approach.

Q: Scott Hanold asked about M&A and ground game funding. How does NOG fund transactions?

A: NOG will fund transactions beneficial to stakeholders in a risk-positive way, with ample liquidity and multiple funding avenues if needed.

Q: John Freeman inquired about AFE and wells in progress. What's the current well cost per foot?

A: It's slightly higher, with average at around $821, give or take. Wells in progress depend on activity and commodity prices.

Q: Noah Hungness asked about 4Q oil production and moving parts. How is 4Q oil production influenced?

A: Timing of completions is key, with well completions taking time to fully produce. Base production improvement and moderated declines set up a nice start to next year, driven by operator capital deployment and return-based decisions.