In This Article:
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Free Cash Flow: $136 million in Q1, with $94 million after dividends.
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Adjusted EBITDA: Approximately $435 million, a record for NOG.
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Total Average Daily Production: Approximately 135,000 BOE per day, up 2.5% from Q4.
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Oil Production: Approximately 79,000 barrels per day, flat versus Q4.
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Gas Production: Contributed 42% to production mix, up 6.5% sequentially and 14% year over year.
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Cash Operating Costs: Down nearly $2 per BOE from one year ago and $1 per BOE from last quarter.
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CapEx: Nearly $250 million in Q1, with 57% allocated to the Permian.
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Liquidity: Over $900 million, including $34 million of cash on hand and $870 million of availability on a revolving credit facility.
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Net Debt: Reduced by approximately $90 million in the quarter, with net debt to LQA EBITDA ratio around 1.3 times.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Northern Oil & Gas Inc (NYSE:NOG) operates with a highly adaptable model, allowing for flexibility in capital allocation based on market dynamics.
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The company generated $136 million in free cash flow in Q1 2025, showcasing strong financial performance.
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Over 60% of expected production is hedged for 2025, providing resilience against commodity price fluctuations.
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NOG's Q1 production increased by 13% year-over-year, with significant contributions from the Uinta and Appalachian basins.
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The company has maintained 21 consecutive quarters of positive free cash flow, totaling over $1.7 billion since 2020.
Negative Points
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Market volatility and changing commodity prices present challenges for future planning and capital allocation.
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Oil differentials came in above the high end of the guided range, reflecting disruptions and seasonal widening.
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There is uncertainty regarding potential changes in activity levels and capital spending due to fluctuating commodity prices.
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Service pricing, particularly in drilling, remains relatively sticky, limiting cost relief opportunities.
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The company faces challenges in larger M&A activities due to widened bid-ask spreads in a volatile market.
Q & A Highlights
Q: Can you provide more color on the production cadence for the rest of the year given the macro uncertainty? A: Chad Allen, CFO: We expect production cadence to be flat for the first three quarters, with Q2 and early Q3 marking the lowest activity levels. CapEx will be sequentially down in Q2, and we anticipate Q4 to have the highest production levels, barring any significant pullbacks in spending. The situation remains fluid due to volatile commodity pricing.