Northern Oil and Gas, the largest, publicly traded, non-operated, upstream energy asset owner in the United States that engages in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Williston, Uinta, Permian, and Appalachian basins, has announced fourth quarter and full year 2025 results.
FOURTH QUARTER HIGHLIGHTS
- Production of 140,064 Boe per day (53% oil), a 6% increase from the fourth quarter of the prior year
- Record natural gas production of 392,163 Mcf per day, a 24% increase from the fourth quarter of the prior year
- GAAP cash flow from operations of $312.6 million. Excluding changes in net working capital, cash flow from operations was $316.6 million
- Capital expenditures of $270.2 million, excluding previously-announced non-budgeted acquisitions and other items
- Free Cash Flow (non-GAAP) was $43.2 million in the fourth quarter. See “Non-GAAP Financial Measures” below
- Declared $0.45 per share common dividend for the first quarter of 2026
- Repurchased 326,301 shares of common stock at an average price of $21.47 per share
SUBSEQUENT EVENTS
- In February 2026, closed Joint Utica Acquisition for $464.6 million cash closing payment, which reflects preliminary purchase price adjustments and is subject to post-closing settlements with the seller
- In February 2026, expanded availability under revolving credit facility by $200.0 million, with borrowing base increased to $1.975 billion and elected commitment amount increased to $1.8 billion
- In February 2026, the Company gave notice to the holders of its Senior Notes due 2028 that it would redeem all remaining outstanding notes on March 4, 2026
Northern Oil and Gas has announced the company’s fourth quarter and full year 2025 results and provided 2026 guidance.
MANAGEMENT COMMENTS
'Despite a challenging commodity price environment, NOG delivered growth in Adjusted EBITDA and production while further strengthening our balance sheet,' said Nick O’Grady, Chief Executive Officer. 'Production increased 9% year over year, supported by increased investment in our natural gas portfolio and continued disciplined capital allocation. We expanded our asset base through approximately $340.0 million of value-accretive acquisitions, including a record level of Ground Game activity in 2025, and our recently closed marquee Joint Ohio Utica transaction will add substantial scale to our Appalachian position. In tandem with a rigorous business development focus, we also strengthened our balance sheet by extending maturities and enhancing our liquidity.'
'While we expect commodity price volatility to persist, our 2026 capital plan is designed to perform across a range of market conditions,' continued O’Grady. 'Our diversified asset base provides meaningful upside exposure to changes in operator activity, while also ensuring that NOG is positioned to generate value in either a lower-price or recovery scenario.'
FINANCIAL RESULTS
Oil and natural gas sales for the fourth quarter were $447.7 million, as compared to $545.5 million for the prior year period; the year over year decline in sales reflects weaker oil pricing despite a 6% increase in aggregate production. Fourth quarter GAAP net loss was $70.7 million or $0.73 per diluted share. Fourth quarter Adjusted Net Income was $82.0 million or $0.83 per adjusted diluted share. Adjusted EBITDA in the fourth quarter was $366.5 million.
Oil and natural gas sales for full year 2025 were $2.1 billion. Full year 2025 GAAP net income was $38.8 million or $0.39 per diluted share. Full year 2025 Adjusted Net Income was $453.4 million or $4.57 per adjusted diluted share. Full year 2025 Adjusted EBITDA was $1.6 billion, an increase of 1% over the prior year. (See 'Non-GAAP Financial Measures' below.)
PRODUCTION
Fourth quarter production was 140,064 Boe per day, a 6% increase from the prior year period. Oil production was 74,703 Bbl per day, a 3% sequential increase over the third quarter, and represented 53.3% of total production in the fourth quarter. Gas production set a record for the third consecutive quarter with an average 392,163 Mcf per day, up 11% compared to the third quarter and up 24% compared to the fourth quarter of 2024.
NOG had 24.2 net wells turned in line during the fourth quarter, compared to 16.5 net wells turned in line in the third quarter of 2025. NOG’s fourth quarter marked the highest number of net wells turned in line for the year even with approximately 3 net wells being subject to deferrals due to price sensitivity or weather. Full year 2025 production was 135,045 Boe per day, a 9% increase from the prior year.
PRICING
During the fourth quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged $59.14 per Bbl, and NYMEX natural gas at Henry Hub averaged $4.04 per Mcf. NOG’s unhedged net realized oil price in the fourth quarter was $54.09 per Bbl, representing a $5.05 differential to WTI prices (as adjusted). NOG’s fourth quarter unhedged net realized gas price was $2.35 per Mcf, representing approximately 58% realizations compared with Henry Hub pricing. In the fourth quarter, crude oil differentials widened from the third quarter of 2025 due to constrained takeaway capacity in the Williston, partially offset by improvement in the Permian. Natural gas realizations in the fourth quarter were lower than prior periods, driven primarily by lower absolute NGL prices, a lower NGL to natural gas ratio and extremely low pricing for Waha natural gas.
For full year 2025, NOG’s realized oil price differential was $5.53 per Bbl (as adjusted) as compared to $3.88 per Bbl in 2024, reflecting higher year-over-year differentials in the Williston and Permian and a full year of impact from the Uinta Basin, which carries a higher differential to WTI. NOG’s full year unhedged net realized gas price was $2.87 per Mcf, representing approximately 79% realizations compared with Henry Hub pricing versus 93% realizations in 2024. The difference in gas realizations was primarily due to lower NGL prices, a lower NGL to natural gas ratio and persistent weakness at the Waha Hub reflecting infrastructure bottlenecks in the wake of record-high associated gas production.
OPERATING COSTS
Lease operating costs were $119.9 million in the fourth quarter of 2025, or $9.30 per Boe, a 5% decrease on a per unit basis compared to the third quarter and a 3% improvement over the fourth quarter of 2024.
Fourth quarter general and administrative ('G&A') costs totaled $17.1 million, which includes non-cash stock-based compensation. Cash G&A costs totaled $13.0 million or $1.01 per Boe in the fourth quarter. Excluding approximately $1.4 million of transaction costs, remaining cash G&A was $11.7 million, or $0.91 per Boe.
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital spending for the fourth quarter, excluding non-budgeted acquisitions and other items, was $270.2 million. This was comprised of $192.5 million of organic drilling and completion (“D&C”) capital and $77.7 million of total acquisition spending, inclusive of ground game D&C spending. NOG had 24.2 net wells turned in line in the fourth quarter. Wells in process totaled 45.6 net wells as of December 31, 2025. Total 2025 capital expenditures, excluding non-budgeted acquisitions were $1.0 billion, reflecting $173.5 million in elective ground game opportunities executed.
LIQUIDITY, CAPITAL RESOURCES AND RECENT ACQUISITIONS
As of December 31, 2025, NOG had $14.3 million in cash, $58.8 million of restricted cash and $478.0 million of borrowings outstanding on its revolving credit facility. NOG had total liquidity of $1.1 billion as of December 31, 2025, consisting of cash and committed borrowing availability under the revolving credit facility.
In October 2025, NOG issued $725.0 million of 7.875% Senior Notes due 2033 in a significantly oversubscribed offering. Proceeds from the offering were used to fund the repurchase of approximately 97.14%, or $684.9 million, of NOG’s 8.125% Senior Notes due 2028. The issuance of the 2033 Senior Notes and concurrent tender offer for the 2028 Senior Notes at the time of issuance extended the Company’s weighted average debt maturity from 3.3 years to 5.4 years.
In November 2025, the Company entered into an amended and restated revolving credit facility. The size of the revolving credit facility was unchanged, with the borrowing base at $1.8 billion and an elected commitment amount of $1.6 billion. The maturity date was extended from June 2027 to November 2030, further enhancing NOG’s weighted average debt maturity to 5.4 years. In addition, the cost of borrowing on the facility was substantially improved with a reduction of 60 basis points.
In February 2026, the Company further amended its revolving credit facility reflecting the addition of its Joint Utica Acquisition to its asset base. The Company’s borrowing base was increased from $1.8 billion to $1.975 billion and the elected commitment amount was increased from $1.6 billion to $1.8 billion. All other terms and conditions remain substantially unchanged.
In February 2026, the Company gave notice to the holders of the Senior Notes due 2028 (the “Notice of Full Redemption”) that it elected to redeem all of the outstanding Senior Notes due 2028, in accordance with the terms of the 2028 Notes Indenture. Pursuant to the Notice of Full Redemption, the Redemption Date is March 4, 2026, and the Redemption Price is 100%. As of December 31, 2025, there were $20.2 million of the 2028 Senior Notes outstanding.
In February 2026, the Company closed on its previously announced joint acquisition of interests in the Ohio Utica Shale Upstream and Midstream Assets from Antero Resources Corporation and Antero Midstream Corporation. As previously announced, NOG acquired a 40% stake with Infinity Natural Resources acquiring 60%. The closing payment by NOG was $464.6 million in cash, which includes a $58.8 million deposit paid at signing in December 2025. The closing payment is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements with the sellers. NOG funded the acquisition with cash on hand, operating free cash flow and borrowings from NOG’s revolving credit facility.
Source: Northern Oil and Gas
