FOURTH QUARTER HIGHLIGHTS

• Production of 131,777 Boe per day (59.9% oil), a 15% increase from the fourth quarter of the prior year
• GAAP cash flow from operations of $290.3 million. Excluding changes in net working capital, cash flow from operations was $358.9 million
• Capital expenditures of $258.9 million, excluding previously-announced non-budgeted acquisitions and other items
• Free Cash Flow (non-GAAP) was $96.4 million in the fourth quarter.
• Closed previously announced acquisition of Uinta Basin assets from XCL Resources, LLC (“XCL”) on October 1, 2024 for $511.3 million in cash
• Declared $0.45 per share common dividend for the first quarter of 2025, an increase of 12.5% from the first quarter of 2024
• Repurchased 693,658 shares of common stock at an average price of $36.28 per share

SUBSEQUENT EVENTS

In February 2025, signed definitive agreement to acquire 2,275 net acres in Upton County, TX in Midland Basin joint development with a private operating partner for an unadjusted purchase price of $40 million.

Northern Oil and Gas this week announced the company’s fourth quarter and full year 2024 results and provided 2025 guidance.

“NOG continues to raise the bar, delivering another year of cash flow, production and reserve growth, strategic investments in high-value assets, and the deliberate expansion of our internal infrastructure—all reinforcing our long-term ability to create shareholder value,” commented Nick O’Grady, NOG’s Chief Executive Officer.

Mr. O’Grady continued, “Building on the strong foundation laid in 2024, we have meticulously crafted a 2025 capital plan designed to drive growth in 2025, 2026 and beyond. We expect to execute a record number of SPUDs, building momentum throughout the year. Our diversified model positions NOG with substantial external opportunities to create additional value, further solidifying our commitment to delivering both top-tier relative and absolute returns.”

FINANCIAL RESULTS

Oil and natural gas sales for the fourth quarter were $545.5 million, as compared to $543.4 million for the prior year period. Fourth quarter GAAP net income was $71.7 million or $0.71 per diluted share. Fourth quarter Adjusted Net Income was $111.8 million or $1.11 per adjusted diluted share. Adjusted EBITDA in the fourth quarter was $406.6 million.

Oil and natural gas sales for full year 2024 were $2.2 billion. Full year 2024 GAAP net income was $520.3 million or $5.14 per diluted share. Full year 2024 Adjusted Net Income was $531.2 million or $5.26 per adjusted diluted share. Full year 2024 Adjusted EBITDA was $1.6 billion, an increase of 13% over the prior year. 

PRODUCTION

Fourth quarter production was 131,777 Boe per day, a 15% increase from the prior year period. Oil production was a record 78,939 Bbl per day, an 11% sequential increase over the third quarter, and represented 59.9% of production in the fourth quarter. NOG had 25.8 net wells turned in line during the fourth quarter, compared to 9.5 net wells turned in line in the third quarter of 2024. NOG’s fourth quarter benefited from a full contribution of the Point acquisition as well as the contribution from the XCL acquisition and an increase in turn-in-line activity, offset by shut-ins and disruptions from forest fires, curtailments and numerous deferrals on completed wells from price-sensitive private operators in the Williston Basin, as well as material downtime from third-party crude takeaway in the Uinta Basin. Full year 2024 production was 124,108 Boe per day, a 26% increase from the prior year.

PRICING

During the fourth quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged $70.32 per Bbl, and NYMEX natural gas at Henry Hub averaged $2.98 per Mcf. NOG’s unhedged net realized oil price in the fourth quarter was $65.40 per Bbl, representing a $3.86 differential to WTI prices (as adjusted). NOG’s fourth quarter unhedged net realized gas price was $2.42 per Mcf, representing approximately 81% realizations compared with Henry Hub pricing. In the fourth quarter, overall oil differentials were largely in-line with prior periods, with the higher average takeaway costs in the Uinta Basin increasing NOG’s corporate average modestly. Natural gas realizations benefited from a slight quarter-over-quarter improvement in pricing and a seasonal uplift in NGL prices due to winter demand. The Company also benefited from seasonally stronger natural gas differentials in Appalachia.

For full year 2024, NOG’s realized oil price differential was $3.88 per Bbl (as adjusted). NOG’s full year unhedged net realized gas price was $2.24 per Mcf, representing approximately 93% realizations compared with Henry Hub pricing.

OPERATING COSTS

Lease operating costs were $116.6 million in the fourth quarter of 2024, or $9.62 per Boe, a 1% increase on a per unit basis compared to the third quarter. The increase in unit costs was primarily driven by fixed cost absorption from the wildfires and deferrals in the Williston which was partially offset by lower operating costs from our Uinta Basin properties.

Fourth quarter general and administrative (“G&A”) costs totaled $15.5 million, which includes non-cash stock-based compensation. Cash G&A costs totaled $12.0 million or $0.99 per Boe in the fourth quarter. Excluding approximately $0.8 million of transaction costs, remaining cash G&A was $11.2 million, or $0.93 per Boe.

CAPITAL EXPENDITURES

Capital spending for the fourth quarter, excluding non-budgeted acquisitions and other items, was $258.9 million. This was comprised of $197.3 million of organic drilling and completion (“D&C”) capital and $61.6 million of total acquisition spending, inclusive of ground game D&C spending. NOG had 25.8 net wells turned in line in the fourth quarter. Wells in process totaled 50.4 net wells as of December 31, 2024. Total 2024 capital expenditures, excluding non-budgeted acquisitions were $990.1 million, above expectations driven by significant ground game opportunities executed and continued elevated workover activity.

LIQUIDITY, CAPITAL RESOURCES AND RECENT ACQUISITIONS

As of December 31, 2024, NOG had $8.9 million in cash and $690.0 million of borrowings outstanding on its revolving credit facility. NOG had total liquidity of $818.9 million as of December 31, 2024, consisting of cash and committed borrowing availability under the revolving credit facility.

On October 2, 2024, NOG announced the closing of its acquisition of Uinta Basin assets from XCL Resources, LLC (“XCL”) The closing included the assets previously owned by Altamont Energy, LLC (“Altamont”). These transactions provide NOG with over a decade of Tier 1 inventory across ~15,800 net acres in the Uinta Basin with ~116 net underwritten undeveloped locations and additional exploration upside potential. At closing, NOG paid $511.3 million in cash. The closing settlement included the purchase of the Altamont assets. NOG jointly acquired the assets with SM Energy, Inc. (“SM”), which will become the operator of substantially all the assets. In connection with the transaction, NOG and SM entered into cooperation and long-term joint development agreements.

On February 11, 2025, NOG entered into a definitive agreement to acquire assets in Upton County, TX with one of NOG’s existing private operating partners for an unadjusted purchase price of $40 million in cash, subject to customary closing adjustments. These assets include approximately 2,275 net acres in the Midland Basin. NOG has entered into a joint development agreement on the properties. The Company expects to close the transaction within 60 days. The obligations of the parties to complete the transactions contemplated by the purchase agreement are subject to the satisfaction or waiver of customary closing conditions. The associated 2025 development costs post-closing for these assets have been included in NOG’s initial capital expenditure guidance.

PROVED RESERVES AS OF DECEMBER 31, 2024

Total proved reserves at December 31, 2024, increased 11% from year-end 2023 to 378.5 million barrels of oil equivalent (73% proved developed) with an associated pre-tax PV-10 value of $5.1 billion (80% proved developed) at SEC Pricing.

KeyFacts Energy Industry Directory: Northern Oil and Gas