NOG

Northern Oil and Gas, Inc. NOG reported second-quarter 2026 adjusted earnings per share of $1.13, which beat the Zacks Consensus Estimate of $1.02. The outperformance reflects strong natural gas production. However, the bottom line declined from the year-ago adjusted profit of $1.37 due to weaker natural gas prices. The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $671 million, beating the Zacks Consensus Estimate of $546 million. Moreover, the top line increased from the year-ago figure of $574 million, driven by higher oil price realization. Northern Oil and Gas, Inc. price-consensus-eps-surprise-chart | Northern Oil and Gas, Inc. Quote On June 1, the company closed the Duvernay Light Oil Joint Development for total consideration of $262.1 million. During the quarter, NOG completed 30 ground game transactions, adding over 2,300 net acres and an additional 6.2 net wells for $44.7 million, which was inclusive of associated development costs. During the second quarter, Northern Oil and Gas repurchased 2.95 million shares of common stock at an average price of $20.37, including commissions and increased the share repurchase authorization program to about $243 million. The second-quarter production increased 9% year over year to 145,659 barrels of oil equivalent per day (Boe/d). Additionally, the figure beat our estimate of 143,105 Boe/d. While oil volume totaled 68,275 Bopd (an 11% decrease year over year), natural gas (and natural gas liquids) amounted to 464,330 thousand cubic feet per day (a 35% increase). Our model estimate for oil volume and natural gas production was pegged at 71,300 Bopd and 415,800 thousand cubic feet per day, respectively. The average sales price for crude was $90.02 per barrel, indicating a 54% increase from the prior-year quarter’s level of $58.37. Moreover, the figure beat our expectation of $69.40 per barrel. The average realized natural gas price was $2.64 per thousand cubic feet compared with $2.89 in the year-earlier period. Our model estimate for the same was pinned at $2.32 per thousand cubic feet. Total operating expenses in the quarter decreased to $392.7 million from $530.6 million in the year-ago period. This was mainly on account of a reduction in production expenses, legal settlement expense, depletion, depreciation, amortization and accretion expenses, impairment of oil and gas assets expenses, and other expenses. The metric was below our estimate of $400.1 million. The company reported capital expenditures of $195.8 million for the second quarter, excluding non-budgeted acquisitions and other unplanned items. Of this total, $151 million was dedicated to drilling and completion activities on organic assets, while $44.7 million was allocated to Ground Game efforts, including associated development costs. During the second quarter, NOG placed 12.7 net wells into production. This Zacks Rank #3 (Hold) company’s free cash flow for the quarter totaled $159 million. As of June 30, 2026, Northern Oil and Gas had $47.6 million in cash and cash equivalents. The company had a long-term debt of $2.7 billion, with a debt-to-capitalization of 57.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed NOG’s second-quarter results in detail, let us take a look at three other key reports in the energy space. U.S. energy operator APA Corporation APA reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses. Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues. As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%. Magnolia Oil & Gas Corporation MGY reported a second-quarter 2026 net profit of 99 cents per share, which beat the Zacks Consensus Estimate of 90 cents. The bottom line more than doubled from the year-ago quarter’s 43 cents. This outperformance can be attributed to higher oil and NGL prices and growth in overall production volumes. The oil and gas exploration and production company’s total revenues were $479 million, which beat the Zacks Consensus Estimate of $440 million. The top line also increased 50.2% from $319 million recorded in the year-ago period, driven by higher revenues from oil and natural gas liquids (NGL). As of June 30, 2026, Magnolia had cash and cash equivalents of $295.9 million. The company had long-term debt of $393.6 million, reflecting a debt-to-capitalization of 15.5%. Permian Resources Corporation PR reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter’s adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations. The company’s oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter’s $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter. As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Permian Resources Corporation (PR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Northern Oil and Gas delivered Q2 results that were met with a positive market reaction, driven largely by strong execution of its diversified asset strategy. Management attributed the quarter’s performance to resilience in its non-operated model, which allowed other basins to offset production curtailments in the Permian. CEO Nick O’Grady emphasized that, despite short-term fluctuations in certain regions, overall production benefited from record natural gas volumes and improved unhedged realized oil prices. The company also highlighted disciplined cost control, noting a 4% year-over-year reduction in production expenses per barrel. Additionally, management underscored the impact of recent acquisitions, such as the Duvernay joint development, as a key contributor to expanding the company’s addressable market and operational flexibility. Is now the time to buy NOG? Find out in our full research report (it’s free). Revenue: $745.2 million vs analyst estimates of $578.8 million (16.6% year-on-year growth, 28.7% beat) Adjusted EPS: $1.13 vs analyst estimates of $1.12 (in line) Adjusted EBITDA: $545.4 million vs analyst estimates of $387.9 million (73.2% margin, 40.6% beat) Operating Margin: 47.3%, up from 27.6% in the same quarter last year Oil production: down -11.3% year on year Market Capitalization: $2.56 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Neal Dingmann (William Blair) asked about the company’s ability to maintain capital efficiency while keeping production and capital spend steady. CEO Nick O’Grady explained that production efficiencies and delayed cost realization from previous periods are contributing tailwinds, allowing for capital stability even as industry peers raise budgets. Charles Meade (Johnson Rice) questioned how management weighs debt reduction versus acquisitions or buybacks. O’Grady stated that asset value is the main lever, and deleveraging can be achieved through either cash flow growth or asset sales if necessary, emphasizing their focus on the most accretive capital allocation. Phillips Johnston (Capital One) inquired about the potential for production upside relative to guidance given strong operator activity and new assets. O’Grady acknowledged upside possibilities due to improving Permian operations and earlier-than-expected development activity, but cautioned that oil price volatility makes the outlook fluid. Noel Parks (Tuohy Brothers) asked about the value of basin diversification and the integration of infrastructure assets. O’Grady described how owning infrastructure in key regions like the Uinta and Utica lowers breakeven costs and enhances control, with management open to monetizing assets if value can be realized. Paul Diamond (Citi) asked about operational risks from weather and diversification strategy across basins. O’Grady said that recent investments in infrastructure have improved resilience, and the company’s flexible capital allocation allows it to respond dynamically to changing opportunities across basins. Looking ahead, the StockStory team will be watching (1) execution of drilling programs and integration of Duvernay and other recent acquisitions, (2) the impact of capital allocation between organic growth, new deals, and share repurchases, and (3) trends in production costs, especially as the company continues to diversify its asset base. How Northern Oil and Gas navigates commodity price fluctuations and operational risks will also be key in assessing future performance. Northern Oil and Gas currently trades at $23.86, up from $20.28 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 9:00 a.m. ET Vice President, Investor Relations - Evelyn Infurna Chief Executive Officer - Nick O'Grady President - Adam Dirlam Chief Financial Officer - Chad Allen Chief Technical Officer - Jim Evans Operator: Greetings, and welcome to NOG's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Evelyn Infurna, Vice President, Investor Relations. Thank you. You may begin. Evelyn Infurna: Good morning. Welcome to NOG's Second Quarter 2026 Earnings Conference Call. Yesterday after the close, we released our financial results. You can access our earnings release and presentation in the Investor Relations section of our website at noginc.com. We will be filing our June 30, 2026 10-Q with the SEC within the next few days. I'm joined this morning by our Chief Executive Officer, Nick O'Grady; our President, Adam Dirlam; and our Chief Financial Officer, Chad Allen; as well as our Chief Technical Officer, Jim Evans. Our agenda for today's call will be as follows: Chad will provide an overview of our financial performance, followed by Adam, who will share an overview of NOG's operations and business development activities. Nick will close with a remark about NOG's positioning and value proposition. After our prepared remarks, the team will be available to answer any questions. Before we begin, let me remind you of our safe harbor language. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by our forward-looking statements. Those risks include, among others, matters that we've described in our earnings release as well as in our filings with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update those forward-looking statements. During today's call, we may discuss certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and free cash flow. Reconciliations of these measures to the closest GAAP measures can be found in our earnings release. With that, I will turn the call over to Chad. Chad Allen: Thanks, Evelyn. Q2 was a clear demonstration of our diversified portfolio business model. When one region hits turbulence, other aspects of our platform pick up the slack. And this quarter, that showed up directly in the numbers. Adjusted EBITDA was up 17% sequentially and free cash flow is up over 400% from the first quarter. That's the model working as designed. Total production was up 9% year-over-year with record natural gas volumes up 35% year-over-year and 5% sequentially. As previously disclosed, we saw significant curtailments in the second quarter as a result of challenging Waha economics. In a volatile environment, our operating partners in the Permian made prudent decisions to generate excess cash flows. And with improving economic conditions, we've seen volumes come back online including 3 net turn in lines that will contribute to the third quarter. Outside of that Waha-driven curtailment, the underlying assets performed well. The Williston and Uinta both topped our internal expectations and our Appalachian volumes set another record with a full quarter of contribution of our Utica joint development, where early well results have been strong. On pricing, our unhedged net realized oil price improved 36% from the first quarter. Gas realizations were 90% of Henry Hub and with our hedges, Waha base included reached 123%. Strong NGL prices contributed as well. Waha pressures has receded, and we're seeing that trend continue thus far into Q3. On costs, production expenses per BOE were down 4% year-over-year. Budgeted capital expenditures were $196 million, comprised of $151 million of organic D&C and $45 million of ground game activity. Normalized well costs were $761 per lateral foot, essentially in line with the first quarter. Spending this quarter skewed more towards oil weighted. Permian at 37%, Williston at 33%. Appalachia and Uinta to each at 14% and our newly acquired Duvernay position beginning to contribute at 2%. We ended the quarter with over $1 billion of total liquidity. Our balance sheet remains well positioned to fund our development program and continue executing on inorganic opportunities as they arise. Turning to capital allocation and shareholder returns. This is where the free cash flow generation translates directly into returns. We repurchased 2.95 million shares, roughly 3% of shares outstanding at an average price of $20.37 with about 81% of that activity completed before the dividend record date in late June. That repurchase largely offset the shares issued to the Duvernay seller, so we effectively funded a scaled acquisition, while holding share count roughly flat. Subsequent to quarter end, the Board increased our stock repurchase authorization, bringing total capacity to approximately $243 million, a clear signal of how we view the value in our stock at current levels. On the dividend, our Board declared $0.45 per share for the quarter or approximately $48 million paid on July 31. Against the $159 million of free cash flow this quarter alone, the dividend is covered several times over. We view the dividend as a floor, not a ceiling on the capital we return to shareholders. With that, I'll turn the call over to Adam. Adam Dirlam: Thank you, Chad. We remain as confident as ever in the strength of our assets confirmed through recent results and leading indicators. Looking ahead, we are seeing multiple positive catalysts as drilling activity materially outperformed internal expectations and the D&C list built to almost 52 net wells as operators modestly pull forward activity in the Permian and Williston. Additionally, we elected to do approximately 17 net wells, which is up almost 20% relative to the trailing 12-month run rate 90% of those elections were weighted towards our oily basins with normalized AFE costs down 5% from our 2025 average. Moving to business development. Our M&A engine has been firing on all cylinders. We continue to build on our track record of finding premier assets, including our latest with the Duvernay joint development deal that we closed in early June. The Parallax acquisition is a self-funding asset with 20 years' worth of inventory at an average breakeven below $50 and with a price tag of less than $600,000 per location highly competitive with the basins in the Lower 48. With it, we have strategically and meaningfully expanded our addressable market into Canada, and we will continue to screen for other complementary assets. Our ground game has maintained strong momentum and the barbell approach of sourcing near-term drilling opportunities as well as long-dated inventory continues to be underappreciated. Since we have made a concerted effort to build out our inventory in Appalachia, we've amassed roughly 80 locations through our leasing efforts excluding the acreage that has already converted to development. We believe that NOG is one of the few companies, if not the only that budgets for the acquisition of new locations on an annual basis, which allows us to build duration and optionality for the future with core locations that would compete in any portfolio. This overstates the reinvestment rate that is needed and also means NOG is one of the few who is actively replacing its inventory year after year. That said, we can and will adjust how capital is deployed based on dislocations in the market. Capital can be shifted to buybacks or other near-term drilling opportunities or both, as you saw us do in Q2. In the second quarter, we pivoted to more drilling opportunities acquiring over 6 net wells weighted to the Permian and Bakken that are currently in process. To further put this into perspective, through the first half of '26, our ground game has already capitalized on the same number of drilling opportunities than we did in all of 2025. NOG's opportunity set continues to expand and will remain dynamic capital allocators. Directing capital to wherever it creates the most value as the market presents it. Nick? Nicholas O'Grady: Thanks, Adam. Thanks for joining us this morning and your continued interest in our company. I'll cover 3 pillars that reinforce the strength of our business and build on Chad and Adam's comments. Number one, unrecognized value. We have created an incredible business, and this has fostered a fantastic industry reputation as a partner, acquirer and asset manager and owner. We've built state-of-the-art custom AI-powered management and evaluation tools that are light years ahead of the competition. Most importantly, we have built a high-quality platform with tremendous value that is not being recognized by the public market today. By our conservative internal estimate, the assets we own are worth $7 billion plus, trapped in $4.6 billion enterprise value. Fortunately, we have multiple avenues for this value to be recognized. In the meantime, we'll continue to generate significant free cash flow, pay our dividend and allocate capital to strong forward returns. We will make decisions that allocate capital in a way that will maximize value for our investors long term, whether that's acquiring assets, selling assets or returning cash to shareholders in the form of dividends or share repurchases or a combination of these actions. Number two, cash flow strength. Based on current strip pricing, our assets should generate $1.4 billion to over $1.5 billion of adjusted EBITDA this year. We believe $850 million to $900 million of D&C capital will sustain these production volumes, generating approximately $375 million to over $500 million of free cash flow. Across that range, our dividend remains multiple times covered, leaving free cash flow available to reduce debt, acquire inventory and assets or repurchase shares. A modest spending increase could also grow oil or total volumes, generating more cash flow while ultimately producing a similar free cash flow profile. Number three, acquisition track record. We are a proven disciplined acquirer. Using our advanced tracking systems, we consistently analyze successful acquisitions, opportunities we passed on and bids we did not win. Our acquisitions have performed exceptionally well with our systematic approach generating north of 20% annualized returns on a standard 1x levered basis net of hedging. Monetizing selected assets could accelerate these returns further by bringing value forward. As we remind investors quarter after quarter, our value creation is grounded in long-term strategic thinking. That will never change but a long-term focus does not prevent us from adapting or capitalizing on short-term opportunities, including the fundamental disconnect in our equity today. Our largest quarterly open market repurchase ever demonstrates that approach. Our dividend is solidly covered. Our assets are materially undervalued, and we are capital allocators. When the market presents opportunities, we will act. Over the past 7 years, we identified irreplaceable assets at compelling values and the returns have validated that strategy, whether the market recognizes it today or not. Our job is to ensure those successes are recognized and we will work around the clock and analyze every avenue to do so. That's what a company run by investors for investors does. With that, we can turn it over to questions. Operator: [Operator Instructions] Our first question comes from Neal Dingmann from William Blair. Neal Dingmann: Nick, my first question is on your capital efficiency. Specifically, it seems like most E&Ps now that we're towards the end of the second quarter reporting. The trend I seem to see out there is most -- many E&Ps, I should say, talked about higher expected '26 CapEx yet you all were able to reiterate your capital spend and your production, which we view should ramp up nicely going forward. So my question is could you discuss a bit your confidence in to be able to reiterate the CapEx and remind us what some of the primary drivers are there? Nicholas O'Grady: Yes. Thanks, Neal. I'll talk about a couple of things. One, recall that our guidance all along has sort of made the assumption that we would see a steady pickup in activity throughout the year. Obviously, it's probably happening a little bit faster, but the total quantum isn't changing. The second thing I'd point out is that if you look when we revised guidance when we announced the Duvernay acquisition, we implicitly cut our capital by about $50 million. That's a combination of production efficiency and just the fact that, we talked about this in the past, but when costs came down last year, you noticed that we said, look, we're an accrual shop, which means we accrue for the cost of those wells, and it takes 180 to 365 days for those reduction in costs to be realized. So if a well cost $10 million, we accrue the full amount at the AFE. If the actual comes in at $9 million, it can take 6 to 12 months before that money is credited back to us. We are seeing the benefits of that really starting this past quarter. And even if costs do increase some, you'll probably see the tailwinds from that for us for some time. Neal Dingmann: Great point. And Nick, one more, I don't think I've ever asked you this on the call, but I want to ask, I'd just love to hear your thoughts on what I would call your value disconnect? I mean, it's certainly evident that, again, I think we all see Northern stock being relatively flat year-to-date versus some of the others have followed oil and now are up 40% to 50%. I'd just love to hear you or any of the team's thoughts on what do you think the cost behind this? Nicholas O'Grady: Yes. Now, you're going to get me monologuing I mean I think, look, at the end of the day, our cash flows and profits are up several hundred million dollars since the beginning of the year, and the stock obviously is not. But I'll be candid about the perception challenge we face we are a non-op, which means at the end of the day, we buy and invest in oil and gas properties. In the public markets, we are rightfully or wrongfully compared against E&P operators. Their job is to manage production and spending and are judged accordingly. We ultimately should be managed by the investments we make and their value over time. That's tough admittedly when we typically buy and hold assets to life, but managing guidance is not the same thing as creating value. And I think there's a fundamental disconnect in the analyst community today. As many of you know, I spent 15 years on the buy side, and most of that time, the idea was to look at the company's asset value as a driver for ultimate equity value. This did get out of control during the pre-2014 kind of oil armageddon period when companies were valued for acreage without regard to the capital required to keep it, not to mention the fact that much of it wasn't worth what was assumed at the time. And look, I have a ton of respect for the analyst community and the market is at any moment what it is. But today, people rightfully or wrongfully are focused almost solely on quarterly guidance and free cash flow yields as they see them. 8 years ago, on my first call as the CFO, I literally discussed as one of the first people in the space openly to move the company to a self-generating cash position and to pay shareholders a fair and reasonable return. Don't get me wrong, free cash flow is really important. But the definition of it is very tricky and often misrepresented in a depleting business. I'll add that even those that do still attempt at NAV may not understand the differences between how we book reserves and inventory as a non-op compared to an operator, which are inherently different in the sense that we can't simply book inventory that we don't control the timing of, and we can't count locations before operators ultimately decide where they're spacing it. As Adam mentioned, we're one of the only E&P companies that actually budget for acquisitions in our regular budget every year. Most public E&Ps are not replacing their inventory. So what you call free cash flow is actually in reality of depleting annuity. And I don't think that's a fair comparison, which is why NAV should be an important part of the equation, what is in the end, effectively a depleting real estate business. So if you look at our reinvestment rate, of course, it's less immediately productive by design, but we continue to stack on assets. That's not capital efficiency as the market views it for the record. Over the last year, we spent over $100 million acquiring potentially north of 80 locations in the Utica. This does nothing but make us screen worse in the "capital efficiency" and "free cash flow metric", yet definitively adding asset value to the enterprise, albeit nonproductive at the moment. You can tell the -- and I can tell you the bonuses paid for that land are up, in some cases, 50-plus percent since we began that campaign. So no cash flow, just CapEx, but did we add value likely the answer is a resounding yes. As I stated in my prepared comments, screening leverage is another example. If we borrow money and buy an asset, the market has focused on the leverage as a negative when comping, but they don't recognize that now we have an asset that's worth a heck of a lot of money. And I can say with a lot of certainty that the current future values of our Uinta and Utica assets, which were funded with leverage are greater today than when we purchased them and likely grow further over time as the operators improve and delineate. Again, this is a business model viewpoint, we struggle to reconcile at times. We could be unlevered and screen better. We could only spend money on D&C capital and look better by these metrics. But at the end of the day, now we have these assets. And in virtually all the cases scarcity and quality has proven that the assets that we purchased are now appreciably more valuable. If we need to monetize them to prove to the market as a mechanism that the value since only cash yields are being used, we're fine with that. At the end of the day, our job is to maximize value. But it's a shame they're not analyzed for what they would be in virtually any private setting. Put it to you this way, if our assets were at the lowest end of our expectations, and we sold half, we'd take in roughly half our float and have 0 debt. That implies a stock value more than triple the current levels. So if the market wants to be singularly focused on production volume cadence versus expectations, a leverage multiple and a free cash flow yield, where 75% of the competing stocks are not replacing any inventory, but just depleting away. That's incredibly shortsighted when in reality, we're about owning and harvesting assets at good values. At the same time, we need to ensure the market understands how valuable all the assets we purchased have become. You have an insane dichotomy going on at the moment where people are paying north of $330,000 per acre and assets have never been so sought after at significant premiums to even a few years ago, and yet a public market that wants to give it away. But to be fair, when that happens, the [ onus ] is on us to prove it and make no mistake, we will. Back to you. Neal Dingmann: Thanks for the quick comment. Nicholas O'Grady: I told you. You got me monologuing. Operator: Our next question comes from Charles Meade from Johnson Rice. Charles Meade: Nick that was a wonderful monologue. In all candor, I appreciate you sharing that point of view. And it's I like the -- it's a fashion in the market right now to be lower leverage and maybe you guys aren't there. But the question I want to ask actually touches on this leverage point. And when you talk about -- you and Adam also talked about allocating capital and putting it in the best -- at the best places, whether it's the ground game or D&C or things like that, it's easy for me to imagine how you stack up, say, a ground game acquisition versus buying back your own shares. It's a little harder for me to imagine how you consider paying down debt kind of there seem to be more intangibles, benefits or maybe cost related to paying down debt versus looking at an acquisition or buying your own shares. So can you talk about how you view the desirability or the framework for debt reduction or debt additions? Nicholas O'Grady: Sure. I mean, I think -- look, I would say that, number one, there are a couple of ways to delever, right? So obviously, highly efficient capital, which grows your cash flow can lower your leverage metrics, and that's important. And that's a big part of the capital allocation. But to be candid, what I'd tell you about our shares, as an example, is that's a clear and present opportunity, right, that may or may not be there tomorrow, and we're extremely focused on that as you see. Leverage is the easy part because ultimately, I'd tell you that, as I mentioned just before, in my long-winded monologue, which is that we have incredibly desirable assets. So if we want to solve for leverage, we can do that almost immediately, right? I don't know, Chad, do you want to add to that? Chad Allen: No, I think you're right. I mean, obviously, our stock right now where it's trading at close yesterday, it's up 9% yield. So I mean it's certainly massively accretive for us to continue to attack that. And we'll kind of be -- we'll be prudent about it, and it's a fluid and dynamic situation for us. Nicholas O'Grady: Yes. But I mean I think you have to weigh in the fact that your asset value, your leverage is a function of the fact that we've acquired all these assets, right? So we didn't have to do it the way we did it, but we did it because we knew that they would be more valuable. They are today. And so to the extent that the market wants to discount the value because the leverage you used to acquire them, that's an easy answer. Charles Meade: Okay. Okay. And then, Adam, I want to go back to something you said in your prepared comments. I believe I heard you say that you've -- you have a lot of recent wells that are outperforming your internal expectations, your type curves. And I wonder if you could just give a little bit more detail on where that's happening across your asset base? Adam Dirlam: Yes, absolutely. I mean I think we look to Appalachia, we just finished up our West Virginia joint development agreement. We've seen significant outperformance relative to internal expectations there. That was a driver in the gas volumes that you saw this quarter. And we're also seeing it in the Uinta notably both on kind of the legacy production from the XCL assets as well as the 2026 campaign. Jim, I don't know if there's anything else that is notable that... Jim Evans: Yes, I think you kind of -- we're really seeing it across all of our basins, right? Even in the Williston, we continue to see outperformance across operators, as they drill longer laterals getting more efficient. We're not seeing the decline rates that you might expect as you go from a 2- to a 3- to 4-mile lateral. So really, it's across all of our basins that we're kind of outperforming internal expectations. Nicholas O'Grady: Yes. And I'd say it's early, but even on our new Ohio program where we really started to just put on our first pads, we've seen really, really strong performance. So kudos to the Infinity guys. Operator: Our next question comes from Phillips Johnston from Capital One. Phillips Johnston: I have to say that I'm also a fan of the monologue. And I'm actually going to be the guy that asked about the short-term production trends. So my apologies in advance. Your implied oil production guidance for the second half of the year is around $74,000 a day on average, I guess. If we adjust your second quarter volumes upward to account for the shut-ins. It sort of implies your second half production is going to grow by a couple of thousand barrels a day relative to Q2. Obviously, there's a lot of positive momentum given your strong wells in process figure at the end of June, and you talked about the accelerated AFE and election activity. I realize it's still a pretty uncertain operating environment, but it seems like the guidance could be a little conservative with some upside potential. So I just wanted to get your take on that. Nicholas O'Grady: Yes, it's definitely possible. I mean, I think, look, to your point, it's very fluid. Oil prices are all over the place. And so it's too early to declare victory, but obviously, you have really just the base assets returning to trend. You also have the addition of the Duvernay assets on top of that. And I'd say, as we stand today, one of the things that has been difficult for both you and investors in general, which is that you -- we got a lot of questions when oil prices spiked, why weren't you seeing the reaction? And the answer was really that one of our biggest growth engines is the Permian, and it's really been hampered by the logistical problems. And we tried to be really forthright about that, that it was going to take a little bit of time. Obviously, I think what I would tell you is, as it stands today, some of those challenges have resolved themselves faster than I would have thought. And we had really pushed and we had frankly had those conversations with the operators so there was a good reason for it. We had really pushed a lot of that development that had been delayed, really starting in the end of the fourth quarter of last year. And even in the third quarter, we started seeing things being moved towards the end of this year. We're actually seeing that trend invert, and we're seeing a lot of that stuff being brought forward. So it really bodes well for the remainder of this year. Again, I think it's too early to declare total victory and we want to make sure we see it before we really come out and brag about it, but I'd say your thoughts in general are correct. Adam Dirlam: Yes. I mean I think, Phillips, we've seen some operators jockeying kind of figuring out kind of 2027 plans as well, maybe picking up a rig sooner than otherwise kind of expected, seeing some drilling efficiencies there. And so depending on how that all kind of shakes out next to Northern that would be another thing to kind of keep an eye on. Phillips Johnston: Okay. Sounds good. On the LOE guidance, you did reduce the full year guidance a little bit. As we look at Slide 4, which is really great disclosure, by the way, there's a pretty wide range of operating costs across your basins. So my question is how you're evolving production mix and the addition of the Duvernay volumes, which obviously have the lowest LOE on the slide, influence, I guess, your LOE trajectory over the next 4 to 6 quarters or so? Nicholas O'Grady: Yes, yes. So number one, like I want to -- I'm not trying to be pithy or make a pithy comment, but our LOE is not LOE, as you would say. It includes LOE, but it also -- we don't have a separate GP&T line. So it carries a bunch of gathering transportation costs, some other portion of the GP&T is in our differential, which we really look at as from wellhead to sales. So we report a little bit different than other people. But what I would tell you is that if your production remains flat and this is not this is for any company, your LOE will rise over time, right? And so to your point, our goal in general is as we add growth areas such as the Duvernay and I think potentially the Uinta over time those areas should offset the fact that LOE, I mean, if you look at our Williston total production costs, those -- and our Williston volumes have stayed relatively flat for the last 4 or 5 years. Those used to be $10, right? Now some of that is just inflation of -- and workover costs have increased over time. but some of it is just the aging of the wells, right, which is that you've got, call it, in your LOE, I think about 60% of the costs generally are fixed. And so as the wells decline over time, that LOE naturally goes up. But obviously, the maintenance capital associated with it goes down as well. So your cash flow stay here. While you're operating cost go up, your capital costs go down. So a long-winded way of saying, I think our goal is to try to keep LOE flat to down. Obviously, as our gas volumes grow, that also helps lower that because they're advantaged. And I'd say our joint development program, which was extremely liquids which as that declines, and you see an increase in and you see an increase in our Ohio volumes over time, that should actually offset that trend a little bit and get LOE to go down some over time. And so in general, I think we feel very good that we can kind of maintain the current levels for some time. I do think you have to keep in mind fuel prices and other things that can flow through LOE right, and workover expenses, which we really saw a huge increase on as the wells have aged in both the Permian and the Williston over the last few years, but that's generally stabilized at this point. Operator: Our next question comes from Noel Parks from Tuohy Brothers. Noel Parks: I was wondering, I did appreciate your comments on valuation and in particular, I sort of keyed on your mention that what -- I think it's what others call free cash flow is actually on -- is actually a depleting annuity. And so it sort of got me thinking as you've expanded into different basins and with sort of the realities of valuation what you do and don't get credit for. I'm just wondering, I think of the story as being one largely a basin arbitrage, you're recognizing opportunities and from that perspective, being able to get them at a good price that other people would overlook. So I mean doesn't basin arbitrage alone, if you continue on that path, doesn't that sort of naturally kind of help you build value more or less regardless of kind of what the public markets are saying? Nicholas O'Grady: Yes. I mean I think there's a public and a private view, but I think we recognize our job is to make sure that, that value is recognized, right? So that is part of our job, [indiscernible] and that's one of the hardest things to do to be candid, Noel, Slide 4 in our earnings deck, we really one of the comments we got was people wanted more visibility and we're happy to provide it. And we really show a basin-by-basin look at the company. And what I'd tell you about that is when we acquired the Uinta assets, we had spent a significant sum of time, a year plus prior evaluating and reviewing the Uinta, and we understood that this was a basin that had economics that could compete or even exceed the Permian. When we evaluated Canada, which we've been doing for several years, and we found the light oil part of the Duvernay, we were incredibly encouraged by both the length of inventory on it. I mean you're talking about a 20-plus year asset as well as the incredible margins it generates. And Slide 4 really underscores that you can, when I say those things, I sometimes get blank stares, but when your margin in Uinta is $20 higher than in the Permian and people ask you about differentials, you can sit there and say, I don't care like the proof is in the pudding. In the case of the Duvernay, similar, which is that we talked about it when we acquired it, which is it had very unique properties and we really found. So we are -- we are truly seeking the best assets, and we'll allocate our capital accordingly. We're not someone who just does 1 thing and does it well. And I think sometimes that does have value in a public market that wants surety and clarity, but I think we're trying to provide that here and people should recognize it. I don't know, Adam or Chad if you don't want to add to that. Noel Parks: Okay. Great. And I was just wondering, thinking about the gas side of the equation, the move towards some of the larger players towards sort of an integrated gas model, bringing back in-house infrastructure or acquiring infrastructure that they had at one time spun out. I'm just wondering what your thoughts are? Does it have an effect on your model? Or is it compatible that trend sort of with your own model? And I guess it just makes you think about those sorts of players as opposed to for gas exposure in the Permian, for example, there's a ton of associated gas. So you have plenty there. So I just wondered what that sort of change in the landscape is telling you. Nicholas O'Grady: Yes. So we own significant infrastructure in the Uinta in the Permian and in the -- both the Duvernay and the Uinta -- sorry, the Utica, excuse me. And what I would say about that is that, obviously, the most notable thing is that when we acquired the Utica, it implies a higher upfront multiple. But you're talking about something that with the fully integrated model drops your breakeven costs $1.20 versus the prior operator. And so you make a more resilient asset, importantly as well, you also have control. And control is really important, which is look no further than the Permian, where the bulk of it is through third-party gathering and processing systems. And you run through periods of time in which quite frankly, you just can't get your gas out, right? And some of that stuff is not stuff that E&Ps would own like long-haul pipes. But at the end of the day, controlling the infrastructure is really critical. It also builds a moat in which once that system is built, you will ultimately become -- the acreage and the surrounding acreage becomes by de facto, really only valuable to you. That being said, and we would never -- we would consider anything. People are knocking on our door every day trying to buy that infrastructure at significant value. And so it's always an option, but I would tell you that there's extreme value to having that infrastructure and being integrated. I think you've seen one of our top operators is EQT. You've seen them do that in Appalachia. It's a great success. And I think at first when people saw it, they might not have fully understood it, but a couple of years later, it proves its value. Operator: Our last question comes from Paul Diamond from Citi. Paul Diamond: Just a quick one for you. So last quarter, we obviously saw some Appalachia curtailments some reactivity to invasive pricing. U.S. diversification. I guess, as you see the winter approaching or any other operational efficiencies, do you see that occurring anywhere else across your basins? Or is it any warning lights for you? Nicholas O'Grady: Not at the moment. I mean, I think one of the interesting things about the gas market right now is there's been a lot of discussion and research around potential super El Nino and the strip really reflects that. My experience over time has been most people are wrong about the weather all the time. And so I think that the fact that, that sort of baked into the gas market today is pretty interesting to me, right? So usually, they bake in a normal winter. They think it's going to be a cold winter, and then things wind up disappointing. I think frankly, the situation today is probably the opposite. Several years ago, as you remember, we had some significant storms in both the South and around the country, and it caused huge disruptions in areas because of extreme weather. Over that time, you've seen a lot of investment in infrastructure to make it more resilient. So I expect operational disruptions. Similar to what you saw in the Gulf of Mexico years ago where there were huge disruptions from Katrina and Rita and then people built the system stronger as it came back. And so I see the same scenario here. Quite frankly, as it pertains to winter and gas, we generally become a huge beneficiary should something happen. So I think in general, even if it lasts as much as 1.5 months or whatever. And using last winter as an example, that incredible strength happened right after we acquired our Ohio assets, and we were able to actually take really advantage hedges, which are on the book today and take advantage of that scenario. And so I would hope we see similar volatility can be bad, but it can also be very good. Paul Diamond: Got it. Makes perfect sense. And then one more, last larger strategic one quickly. You guys have worked pretty strongly to diversify across basins about 30, 30, 30 across Williston, Permian, Appalachia and the [ Nada ] and Uinta and Duvernay. I guess how do you see that on a long-term basis? Is the idea to be like split evenly amongst those 5? Or do you see, I guess, more opportunity sets in one versus the other? I guess how should we think about those knobs turning over time? Nicholas O'Grady: Yes. I think it's hard to say in some cases and easier in others. I mean I think the Williston is very mature and I think episodically, we may see opportunities to come up in the Williston. But in general, it is a very, very mature basin. The Permian comes and goes. So obviously several years ago that were enormous numbers of assets coming to market. We took advantage of that. The last year or so, it's probably been less exciting to us, but that can invert on itself over time. I think -- what I would tell you is we are a management company at the end of the day, and we're really focused on economics. So the diversity is certainly part of the business model, but it's also going where the opportunities are, and those can change and are very dynamic over time. I don't think there's a desire to be more diversified or less diversified but similarly, when assets are sought after, it could be a scenario in which we take advantage of that and monetize a portion of it over time. I think we're we -- everything is for sale every day, everything is both for us to buy and for us to sell. And I think we'll do whatever makes the most economic sense. I don't know if you want to add to that. Adam Dirlam: Yes. I think that's the competitive advantage of the business model, right? We can expand in basins in a relatively cost-efficient way. You saw that with the entry into Canada. We've been looking at Canada for the last 2 years, both in the Montney as well as the Duvernay. And this quarter, we're fortunate to find an asset that checks the box. And so even looking at our ground game, we had activity in every single basin and the competition ebbs and flows depending on what you're looking at in what period of time and our ability to move quickly and leverage the proprietary information that we have with the evergreen models that we have enables us to make those decisions on a real-time basis. And so we'll continue to look at the opportunities that are within the basins in our own backyard in Sandbox now. But that's not to say that we're not looking at a number of other different basins at any given moment in time. I think we've got 15 different large asset transactions that we're looking at right now. A lot of the stuff that was in market was formal auctions, but a lot of the stuff that we're having conversations around in the third quarter has really been bilateral conversations. So we'll continue to stay dynamic in terms of how we're sourcing and looking at opportunities. Nicholas O'Grady: Yes. I mean I use the example, obviously, we've grown our Utica position probably in excess of what we would have thought the opportunity was when we entered the basin. We've made a significant investment in acreage and our phone is ringing off the hook now of things to do with it, right? And so from operators all over the map. But I do think it's a really important distinction about our business model versus, say, an operator, right? And I think the market spoke long ago, which is that too much diversity as an operator can be challenging. And there are some specific reasons for that, which is, one, do one thing, do it well. Can you be really good at lots of different things? Secondly, allocation of capital for operators in which they have to maintain a team and rig activity and all these things can get a little bit squirrely. For nonoperator, it's very, very different, right, which is that for us, it's truly just capital allocation, so it's just dollars in and dollars out. And so the diversity, while it might be a little bit harder to model and annoying for you at times, at the end of the day, it doesn't have the same inherent challenges that it can be when you're trying to maintain multiple business lines for an operated business. Operator: And we have no further questions. I would like to turn the call back to Nick O'Grady for closing remarks. Nicholas O'Grady: Thanks, everyone, for joining the call today. We'd like to remind investors to view our new earnings presentation slide supplement, which contains new enhanced disclosures, which highlights our asset value. and the incredible investment opportunity. As always, reach out to Investor Relations with questions, and we look forward to continuing the mission. Thanks again. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Northern Oil and Gas (NOG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Non-operated oil producer Northern Oil and Gas (NYSE:NOG) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 16.6% year on year to $745.2 million. Its non-GAAP profit of $1.13 per share was in line with analysts’ consensus estimates. Is now the time to buy NOG? Find out in our full research report (it’s free). Revenue: $745.2 million vs analyst estimates of $578.8 million (16.6% year-on-year growth, 28.7% beat) Adjusted EPS: $1.13 vs analyst estimates of $1.12 (in line) Adjusted EBITDA: $545.4 million vs analyst estimates of $387.9 million (73.2% margin, 40.6% beat) Operating Margin: 47.3%, up from 27.6% in the same quarter last year Oil production: down -11.3% year on year Market Capitalization: $2.20 billion Northern Oil and Gas delivered Q2 results that were met with a positive market reaction, driven largely by strong execution of its diversified asset strategy. Management attributed the quarter’s performance to resilience in its non-operated model, which allowed other basins to offset production curtailments in the Permian. CEO Nick O’Grady emphasized that, despite short-term fluctuations in certain regions, overall production benefited from record natural gas volumes and improved unhedged realized oil prices. The company also highlighted disciplined cost control, noting a 4% year-over-year reduction in production expenses per barrel. Additionally, management underscored the impact of recent acquisitions, such as the Duvernay joint development, as a key contributor to expanding the company’s addressable market and operational flexibility. Looking ahead, management believes Northern Oil and Gas is positioned for continued growth, pointing to a robust pipeline of drilling activity and further expansion through acquisitions. President Adam Dirlam discussed how increased operator activity and a growing inventory of wells are expected to drive production gains in the coming quarters. CFO Chad Allen stated, “Our balance sheet remains well positioned to fund our development program and continue executing on inorganic opportunities.” The company plans to direct capital toward the most value-accretive projects, balancing organic growth with opportunistic share repurchases and dividends. Management also sees potential upside from improving economic conditions in the Permian and further integration of recently acquired assets, while remaining attentive to risks such as commodity price volatility and operational costs. Management attributed the quarter’s results to strong natural gas volumes, cost discipline, and the strategic allocation of capital into high-return assets and shareholder returns. Resilient non-operated model: Northern Oil and Gas’s diversified approach allowed it to mitigate challenges in the Permian due to Waha economics, as increased production from Appalachia and Uinta offset temporary curtailments. Record natural gas volumes: The company achieved a 35% year-over-year increase in natural gas output, driven by successful joint development in the Utica and strong results from the Uinta and Williston basins. Management highlighted how early well results in these areas exceeded internal expectations. Strategic acquisitions and expansion: The completion of the Duvernay joint development in early June expanded Northern’s geographic reach into Canada, adding a 20-year inventory of low-breakeven assets. Management described the Parallax acquisition as highly competitive and self-funding, enhancing the company’s long-term asset base. Disciplined capital allocation: Management emphasized a flexible approach to deploying capital, shifting between drilling, acquisitions, and share repurchases as market conditions dictate. This quarter, capital was directed toward acquiring new wells and repurchasing shares, effectively funding acquisitions while keeping share count stable. Shareholder returns and capital efficiency: Northern repurchased 3% of its outstanding shares and increased its repurchase authorization post-quarter, while maintaining a dividend that remains well covered by free cash flow. Management described the dividend as a “floor, not a ceiling” for capital returns. Northern Oil and Gas expects future performance to be shaped by increased drilling activity, integration of new assets, and disciplined capital deployment across its diversified asset base. Growth from expanded drilling: Management anticipates that accelerated drilling activity—particularly in the Permian, Williston, and newly acquired Duvernay assets—will drive production growth. The company’s growing well inventory and operators pulling forward activity are expected to contribute to volume gains in the next few quarters. Dynamic capital allocation: The company plans to remain flexible by allocating capital to the highest-return opportunities, shifting between organic growth, acquisitions, and share buybacks depending on market dynamics. This approach aims to optimize shareholder value while sustaining production and cash flow. Operational and market risks: Management acknowledged headwinds such as commodity price volatility, rising operating expenses in mature basins, and potential weather-related disruptions. However, the integration of lower-cost assets like the Duvernay and ongoing focus on cost control are expected to help offset these risks over time. Looking ahead, the StockStory team will be watching (1) execution of drilling programs and integration of Duvernay and other recent acquisitions, (2) the impact of capital allocation between organic growth, new deals, and share repurchases, and (3) trends in production costs, especially as the company continues to diversify its asset base. How Northern Oil and Gas navigates commodity price fluctuations and operational risks will also be key in assessing future performance. Northern Oil and Gas currently trades at $21.50, up from $20.28 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. 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Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Northern Oil and Gas (NOG) drew investor attention on 6 August 2026 after reporting second quarter results that combined higher revenue and net income with mixed production trends across its oil and natural gas portfolio. See our latest analysis for Northern Oil and Gas. The latest results and reiterated 2026 production guidance came alongside a 6.51% one day share price gain and an 11.57% 30 day share price return for Northern Oil and Gas, although the year to date share price return is still slightly negative and the 3 year total shareholder return has declined 39.04%. This suggests that near term momentum has improved while longer term performance remains under pressure. If this earnings reaction has you looking beyond a single stock, it could be a good moment to see which other energy linked plays stand out in the power transition and grid upgrade theme through the 36 power grid technology and infrastructure stocks Northern Oil and Gas now appears to be a stronger business than recent years suggest, supported by higher quarterly earnings and cash generation. After the latest jump in the share price, the question for investors is whether that strength is already fully reflected in the valuation. The most followed narrative on Northern Oil and Gas compares a fair value of $30.89 to the last close at $21.60. This frames the stock as materially discounted and ties that gap to future cash generation and acquisition driven growth potential. Read the complete narrative. Want to understand why this narrative points to a higher fair value for Northern Oil and Gas? The case leans on rising revenue, a sharp swing from current losses to future profits, and a projected earnings multiple that assumes investors will pay more for that cash flow. The key is how growth, margins, and valuation all connect. Result: Fair Value of $30.89 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Northern Oil and Gas still faces meaningful risks, including dependence on acquisitions for growth and exposure to commodity price swings that could pressure future cash flow expectations. Find out about the key risks to this Northern Oil and Gas narrative. With Northern Oil and Gas showing both pressure points and brighter spots, it makes sense to check the underlying data yourself. You can then move quickly to form an independent view using the 4 key rewards and 2 important warning signs. If you stop with Northern Oil and Gas, you could miss other stocks that fit your style. Spend a few minutes with these tools and sharpen your watchlist. Target potentially mispriced opportunities early by scanning 51 high quality undervalued stocks before the crowd catches on. Strengthen your downside protection by focusing on companies in the 79 resilient stocks with low risk scores that score well on resilience. Get ahead of the market by reviewing the screener containing 19 high quality undiscovered gems where quality fundamentals have not yet attracted broad attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NOG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Northern Oil and Gas, Inc.? Here are five stocks we like better. Strong second-quarter financial performance: Adjusted EBITDA rose 17% sequentially, while free cash flow increased more than 400% to $159 million. Production grew 9% year over year, despite temporary Permian curtailments caused by weak Waha natural-gas prices. Capital returns remain a priority: Northern Oil and Gas repurchased 2.95 million shares during the quarter and increased its buyback authorization to approximately $243 million. It also paid a $0.45 quarterly dividend, which management said was covered multiple times by free cash flow. Expansion and outlook: The company is integrating its Duvernay acquisition in Canada and continues to add drilling opportunities through acquisitions and leasing. Management projects 2026 adjusted EBITDA of $1.4 billion to more than $1.5 billion, with estimated free cash flow of roughly $375 million to over $500 million. 3 Mid-Cap Energy Firms Analysts See Moving Up to the Big Leagues Northern Oil and Gas (NYSE:NOG) reported higher second-quarter cash flow and production, citing the benefits of its diversified non-operated portfolio despite Permian Basin curtailments tied to weak Waha natural gas economics. Chief Financial Officer Chad Allen said adjusted EBITDA increased 17% sequentially, while free cash flow rose more than 400% from the first quarter. The company generated $159 million of free cash flow during the quarter, according to Allen. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Oil Exploration Stocks To Cushion WTI Swings Total production increased 9% from a year earlier, supported by record natural gas volumes that rose 35% year over year and 5% sequentially. Allen said the company experienced significant production curtailments in the Permian during the quarter because of challenging Waha pricing, but volumes have begun returning as market conditions improved. Three net wells brought online are expected to contribute during the third quarter. Outside of the Waha-driven curtailments, Northern Oil and Gas said its assets performed ahead of internal expectations in several regions. The Williston and Uinta basins exceeded internal expectations, while Appalachian production reached a record with a full quarter of contributions from the company’s Utica joint development. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High President Adam Dirlam said early results from the Utica development have been strong. During the question-and-answer session, Chief Technical Officer Jim Evans said the company was seeing performance above internal expectations across its basins, including the Williston, where longer lateral wells have become more efficient. Allen said Northern Oil and Gas’ unhedged net realized oil price improved 36% from the first quarter. Natural gas realizations were 90% of Henry Hub, while realized prices including hedges and Waha basis effects reached 123% of Henry Hub. Strong natural gas liquids pricing also contributed to results. → No Hangover: Revisiting Microsoft One Week After Earnings Production expenses per barrel of oil equivalent declined 4% from the prior-year period. The company reported budgeted capital expenditures of $196 million, including $151 million for organic drilling and completion activity and $45 million for its “ground game” acquisition efforts. Normalized well costs were $761 per lateral foot, largely unchanged from the first quarter. Second-quarter spending was weighted toward oil-producing areas, with the Permian accounting for 37% and the Williston 33%. Appalachia and the Uinta each represented 14% of spending, while the recently acquired Duvernay position contributed 2%. Northern Oil and Gas ended the quarter with more than $1 billion in total liquidity. During the quarter, it repurchased 2.95 million shares, or about 3% of shares outstanding, at an average price of $20.37 per share. Allen said approximately 81% of those purchases occurred before the late-June dividend record date. The repurchases largely offset shares issued to the seller of the company’s Duvernay acquisition, leaving the share count roughly flat, according to Allen. After quarter-end, the board increased the company’s repurchase authorization to approximately $243 million. The board also declared a quarterly dividend of $0.45 per share, representing roughly $48 million that was paid July 31. Allen said the dividend was covered multiple times by second-quarter free cash flow and described it as a floor rather than a ceiling for shareholder returns. Looking ahead, Chief Executive Officer Nick O’Grady said that, based on current commodity-price strip assumptions, the company expects its assets to generate $1.4 billion to more than $1.5 billion of adjusted EBITDA in 2026. He said sustaining current production volumes would require approximately $850 million to $900 million of drilling and completion capital, resulting in estimated free cash flow of about $375 million to more than $500 million. Dirlam highlighted the company’s June closing of its Parallax acquisition, a Duvernay joint development transaction that expanded Northern Oil and Gas into Canada. He characterized the asset as self-funding, with roughly 20 years of inventory and an average breakeven below $50. The acquisition cost was less than $600,000 per location, he said. The company continued to build its acreage and well inventory through its ground-game efforts. In Appalachia, Northern Oil and Gas has amassed roughly 80 locations through leasing activities, excluding acreage already converted into development, Dirlam said. During the second quarter, the company acquired more than six net wells that were in process, weighted toward the Permian and Bakken. Through the first half of 2026, its ground-game activities had captured the same number of drilling opportunities as in all of 2025, according to Dirlam. The drilling and completion list grew to nearly 52 net wells as operators pulled forward some Permian and Williston activity. Northern Oil and Gas elected to participate in about 17 net wells, nearly 20% above its trailing 12-month run rate. About 90% of those elections were directed toward oil-focused basins, with normalized authorization-for-expenditure costs down 5% from the company’s 2025 average. O’Grady said management believes the public market is not fully recognizing the company’s asset value. He estimated that Northern Oil and Gas’ assets were worth more than $7 billion, compared with an enterprise value of $4.6 billion. He said the company would continue evaluating acquisitions, asset sales, dividends, share repurchases and debt reduction as potential capital-allocation tools. In response to questions about leverage, O’Grady said debt reduction could be achieved through cash-flow growth or asset monetizations, while Allen said the company viewed share repurchases as attractive at current trading levels. O’Grady also said the company’s diversified non-operated model allows it to allocate capital among regions based on economics rather than maintain operating teams and drilling programs in each basin. Management said activity in the Permian had begun to recover faster than previously expected as logistical constraints eased and operators pulled some development activity forward. O’Grady said the company was not yet prepared to declare a full recovery, but said the trend could support the remainder of the year. Northern Oil and Gas, Inc is a publicly traded independent energy company focused on the acquisition, exploration and development of oil and natural gas resources in the United States. The company's primary operations are concentrated in the Williston Basin, where it secures acreage positions and partners with drilling operators to advance upstream projects. Through strategic leasehold acquisitions and joint ventures, Northern Oil and Gas seeks to expand its footprint in both conventional and unconventional reservoirs. Northern Oil and Gas employs horizontal drilling and hydraulic fracturing technologies to develop unconventional resource plays, particularly in the Bakken, Three Forks and Red River formations of North Dakota and Montana. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Northern Oil and Gas Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

For the quarter ended June 2026, Northern Oil and Gas (NOG) reported revenue of $670.8 million, up 16.8% over the same period last year. EPS came in at $1.13, compared to $1.37 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $545.76 million, representing a surprise of +22.91%. The company delivered an EPS surprise of +10.78%, with the consensus EPS estimate being $1.02. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Northern Oil and Gas performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average Daily Production - Total: 145,659.00 BOE/D versus the five-analyst average estimate of 143,105.40 BOE/D. Average Daily Production - Oil: 68,275.00 BBL/D versus 68,651.69 BBL/D estimated by five analysts on average. Average Daily Production - Natural Gas and NGLs: 464,330.00 Mcf/D versus 446,662.30 Mcf/D estimated by five analysts on average. Average Sales Prices - Natural Gas and NGLs Net of Settled Natural Gas Derivatives: $3.63 compared to the $3.02 average estimate based on four analysts. Average Sales Prices - Oil Net of Settled Oil Derivatives: $69.37 compared to the $69.74 average estimate based on four analysts. Net Production - Natural Gas and NGLs: 42,254.00 Mcf compared to the 40,323.96 Mcf average estimate based on three analysts. Net Production - Oil: 6,213.00 KBBL versus 6,286.20 KBBL estimated by three analysts on average. Net Production - Total: 13,255.00 KBOE versus 13,006.76 KBOE estimated by three analysts on average. Average Sales Prices - Oil: $90.02 compared to the $78.46 average estimate based on two analysts. Net Sales- Oil and Gas Sales: $670.8 million versus $546.43 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change. Net Sales- Oil Sales: $559.26 million versus the two-analyst average estimate of $443.59 million. The reported number represents a year-over-year change of +38.9%. Net Sales- Natural Gas and NGL Sales: $111.53 million versus $100.35 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -35% change. View all Key Company Metrics for Northern Oil and Gas here>>> Shares of Northern Oil and Gas have returned +7.9% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 17% sequential EBITDA growth to a diversified portfolio model where outperformance in the Williston, Uinta, and Appalachia offset Permian curtailments caused by Waha pricing economics. The company emphasizes a 'buy and hold to life' investment philosophy, arguing that their systematic approach generates north of 20% annualized returns on a standard 1x levered basis. Management highlights a fundamental disconnect between their internal asset valuation of $7 billion plus and the current enterprise value of $4.6 billion, suggesting the market is failing to recognize the value of non-operated assets. Operational efficiency is being driven by custom AI-powered management tools and a shift toward longer laterals, which have resulted in production outperforming internal expectations across all core basins. The company differentiates itself from peers by explicitly budgeting for new inventory acquisitions annually, viewing traditional free cash flow metrics as misleading for 'depleting annuities' that do not replace reserves. Strategic positioning in the Duvernay through the Parallax acquisition provides a 20-year inventory runway with breakevens below $50, making it highly competitive with Lower 48 basins. Guidance assumes a steady pickup in activity through the second half of 2026, supported by a D&C list that has grown to approximately 52 net wells as operators pull forward Permian and Williston activity. Management expects to generate $375 million to over $500 million in free cash flow for the year, assuming $850 million to $900 million in D&C capital is required to sustain current volumes. Capital expenditure guidance remains stable despite industry-wide inflation, as the company anticipates a 6 to 12-month tailwind from realized cost reductions and production efficiencies. Future capital allocation will remain dynamic, with management prepared to pivot between asset acquisitions, debt reduction, and share repurchases based on where the market presents the most value. The company views its current dividend as a 'floor' and expects free cash flow to remain multiple times the dividend obligation even under varying price scenarios. Significant Q2 production curtailments occurred in the Permian due to challenging Waha economics, though management notes these pressures have receded and volumes are returning in Q3. The company utilized a large share repurchase program to effectively offset dilution from the Duvernay acquisition, maintaining a roughly flat share count while scaling the asset base. Management explicitly flagged the 'onus' on the company to prove asset value through potential selective monetizations if the public market continues to undervalue the enterprise relative to private market premiums. Leverage is characterized as a strategic tool used to acquire high-quality assets like Uinta and Utica, which management claims are now worth significantly more than their purchase prices. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that their guidance already factored in a steady activity pickup and that they are now seeing the benefits of cost reductions from 180 to 365 days ago. They noted an implicit $50 million capital cut during the Duvernay acquisition due to improved production efficiencies and delayed accrual realizations. Management views share repurchases as a 'clear and present opportunity' given the current 9% yield, which they consider massively accretive. They argued that leverage is easily solvable through asset monetizations because their properties are highly desirable in the private market. Outperformance is being seen across all basins, particularly in West Virginia and the Uinta, where wells are exceeding internal type curves. Technical teams noted that longer laterals (3 to 4 miles) are not showing the steep decline rates previously expected, enhancing overall capital efficiency. The fully integrated infrastructure model in the Utica has dropped breakeven costs by approximately $1.20 compared to the prior operator. Management emphasized that controlling infrastructure creates a 'moat' and protects against the logistical bottlenecks seen by third-party dependent operators in the Permian.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Northern Oil & Gas Inc (NYSE:NOG) reported a 17% sequential increase in adjusted EBITDA and a 400%+ increase in free cash flow from the first quarter. The company achieved record natural gas volumes, up 35% year-over-year, and total production increased 9% year-over-year. Northern Oil & Gas Inc (NYSE:NOG) repurchased roughly 3% of shares outstanding at an average price of $20.37, signaling confidence in the stock's value. The company's M&A engine remains active, closing the DuVernay Joint Development deal, which adds 20 years of inventory at a break-even below $50 per location. Northern Oil & Gas Inc (NYSE:NOG) is seeing drilling activity materially outperform internal expectations across multiple basins, including the Permian, Williston, and Appalachia. The company's ground game gained strong momentum, capitalizing on the same number of drilling opportunities in the first half of 2026 as it did in all of 2025. Northern Oil & Gas Inc (NYSE:NOG) experienced significant natural gas curtailments in the second quarter due to challenging Waha economics. The company's stock has remained relatively flat year-to-date, underperforming other solid oil and gas companies that have seen gains of 40-50%. Northern Oil & Gas Inc (NYSE:NOG) faces a perception challenge in the public markets, being compared against E&P operators and judged on metrics like free cash flow yield, which may not fully capture its asset value. The company's reinvestment rate is less immediately productive by design, as it budgets for acquisitions, which can make it screen worse on capital efficiency metrics. Northern Oil & Gas Inc (NYSE:NOG) has taken on leverage to fund acquisitions, which the market focuses on negatively, despite the assets acquired being worth significantly more over time. Warning! GuruFocus has detected 7 Warning Signs with NOG. Is NOG fairly valued? Test your thesis with our free DCF calculator. Q: Nick, could you discuss your confidence in reiterating the 2026 capital spend and production guidance, and what the primary drivers are behind that confidence? A: Nick O'Grady (CEO): Our guidance assumed a steady pick-up in activity throughout the year, which is happening faster than expected, but the total quantum is unchanged. When we revised guidance for the DuVernay acquisition, we implicitly cut capital by about $50 million due to production efficiency. We are an accrual shop, so cost reductions from last year are just now flowing through our financials. Even if costs increase, we should see tailwinds from these lower accrued costs for some time. Q: What do you think is behind Northern Oil & Gas's stock being relatively flat year-to-date compared to other solid oil and gas names that are up 40-50%? A: Nick O'Grady (CEO): Our cash flows and profits are up significantly, but the stock hasn't followed. We face a perception challenge as a non-op compared to E&P operators. The market focuses on quarterly guidance and free cash flow yield, but our model is about owning and harvesting assets. We budget for acquisitions to replace inventory, which makes our "free cash flow" look worse but adds asset value. Our NAV is significantly higher than our enterprise value, and we have avenues to unlock that value, including potential asset sales. Q: How do you view the desirability or framework for debt reduction versus acquisitions or share buybacks? A: Nick O'Grady (CEO): There are multiple ways to delever, including growing cash flow, which lowers leverage. However, our shares represent a clear and present opportunity, so we are extremely focused on buybacks. Our leverage is a function of acquiring valuable assets, and if the market discounts that, we can solve for leverage almost immediately by monetizing assets. Chad Allen (CFO) added that with the stock trading at a high free cash flow yield, it's massively creative to continue buying back shares. Q: You mentioned recent wells are outperforming internal expectations. Could you provide more detail on where that's happening across your asset base? A: Adam Durham (President): We're seeing outperformance across all our basins. In Appalachia, our West Virginia joint development agreement has driven significant gas volume outperformance. We're also seeing it in the Permian, both on legacy XCL assets and 2026 wells. In the Williston, operators are drilling longer laterals with better efficiency, and we're not seeing the expected decline rates. Even our new Ohio program is showing strong early performance. Q: Your implied oil production guidance for the second half of the year seems conservative given the strong well count and accelerated AFEs. Could there be upside? A: Nick O'Grady (CEO): It's definitely possible. The base assets are returning to trend, and we have the addition of DuVernay. The Permian, which was hampered by logistical problems, is resolving faster than expected, and operators are pulling development forward. It's too early to declare victory, but your thoughts are generally correct. Adam Durham added that some operators are jockeying for 2027 plans, which could bring more activity forward. Q: How will your evolving production mix and the addition of DuVernay volumes, which have the lowest LOE, influence your LOE trajectory over the next 4-6 quarters? A: Nick O'Grady (CEO): Our LOE includes gathering and transportation costs, so it's not a pure LOE metric. If production remains flat, LOE will rise over time due to aging wells and fixed costs. However, growth areas like DuVernay and Utica should offset that trend. Our goal is to keep LOE flat or down, and as gas volumes grow, that helps lower it. We feel good about maintaining current levels, though fuel prices and workover costs can fluctuate. Q: Given the realities of valuation, how does your arbitrage-based model help build value relative to what the public markets are saying? A: Nick O'Grady (CEO): We recognize our job is to ensure value is recognized. We provide basin-by-basin disclosure to highlight asset quality. For example, Uinta and DuVernay have economics that compete with or exceed the Permian, with higher margins. We are truly seeking the best assets and allocating capital accordingly. While the public market may not fully appreciate this, we are confident in the value we've created and will work to unlock it. Q: What are your thoughts on the trend of larger players moving towards an integrated gas model, and how does it affect your model? A: Nick O'Grady (CEO): We own significant infrastructure in the Uinta, Permian, and Utica. Integration implies a higher upfront multiple but drops break-even costs and provides control, which is critical. In the Permian, third-party gathering systems can cause bottlenecks, but owning infrastructure builds a moat. We constantly receive offers to buy our infrastructure at significant values, but we see extreme value in being integrated. EQT's success in Appalachia proves the value of this approach. Q: As winter approaches, do you see any operational efficiencies or curtailments occurring across your basins? A: Nick O'Grady (CEO): Not at the moment. There's been discussion of a potential super El Nino, and the gas strip reflects that, but weather predictions are often wrong. We've seen significant investment in infrastructure resilience since past storms. If extreme weather occurs, we could be a huge beneficiary, as we were last winter with our Ohio assets. Volatility can be bad, but it can also be very good for us. Q: How do you see the long-term balance across your five basins, and do you see more opportunity in one versus another? A: Nick O'Grady (CEO): The Williston is very mature, and opportunities there are episodic. The Permian comes and goes. We are a management company focused on economics, so diversity is part of the model, but we go where the opportunities are. Everything is for sale every day, and we'll do what makes the most economic sense. Adam Durham added that we can expand in basins cost-efficiently, as seen with our entry into Canada, and we're currently looking at 15 different large asset transactions, many bilateral. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Northern Oil and Gas (NOG) reported $670.8 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 16.8%. EPS of $1.13 for the same period compares to $1.37 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $545.76 million, representing a surprise of +22.91%. The company delivered an EPS surprise of +10.78%, with the consensus EPS estimate being $1.02. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Northern Oil and Gas performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average Daily Production - Total: 145,659.00 BOE/D compared to the 143,105.40 BOE/D average estimate based on five analysts. Average Daily Production - Oil: 68,275.00 BBL/D versus the five-analyst average estimate of 68,651.69 BBL/D. Average Daily Production - Natural Gas and NGLs: 464,330.00 Mcf/D versus 446,662.30 Mcf/D estimated by five analysts on average. Average Sales Prices - Natural Gas and NGLs Net of Settled Natural Gas Derivatives: $3.63 versus $3.02 estimated by four analysts on average. Average Sales Prices - Oil Net of Settled Oil Derivatives: $69.37 versus the four-analyst average estimate of $69.74. Net Production - Natural Gas and NGLs: 42,254.00 Mcf compared to the 40,323.96 Mcf average estimate based on three analysts. Net Production - Oil: 6,213.00 KBBL versus 6,286.20 KBBL estimated by three analysts on average. Net Production - Total: 13,255.00 KBOE compared to the 13,006.76 KBOE average estimate based on three analysts. Average Sales Prices - Oil: $90.02 versus $78.46 estimated by two analysts on average. Average Sales Prices - Natural Gas and NGLs: $2.64 versus $2.47 estimated by two analysts on average. Net Sales- Oil and Gas Sales: $670.8 million versus $546.43 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change. View all Key Company Metrics for Northern Oil and Gas here>>> Shares of Northern Oil and Gas have returned +2.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research