Northern Oil and Gas (NOG) Q3 2024 earnings summary

Executive summary

• Achieved record free cash flow of $177.1 million in Q3 2024, up 32% sequentially, and near-record adjusted EBITDA of $412.4 million, despite weaker commodity prices.

• Production averaged 121,815 BOE/day, up 19% year-over-year, with record oil production of 70,913 barrels/day.

• Net income for Q3 2024 was $298.4 million, up from $26.1 million in Q3 2023, reflecting higher production and derivative gains.

• Closed major acquisitions: Point, XCL, and Delaware, expanding presence in Uinta and Delaware basins.

• Shareholder returns exceeded $230 million year-to-date through dividends and share repurchases, including $120.2 million in dividends and $69.3 million in buybacks.

Financial highlights

• Q3 2024 total revenues rose 140% year-over-year to $753.6 million, with oil and gas sales at $513.5 million.

• Free cash flow reached $177.1 million, up 32% sequentially and 39% year-over-year.

• CapEx for the quarter was $198 million, with 56% allocated to the Permian and 41% to the Williston.

• Net leverage ratio held flat at 1.16x, with over $1.3 billion in liquidity at quarter-end.

• Operating cash flow for the first nine months of 2024 was $1.12 billion, up from $841 million in 2023.

Outlook and guidance

• Annual production guidance reaffirmed at 120,000–124,000 Boe/d and 73,000–76,000 Bbl/d oil.

• 2025 capital program expected to allocate 60% to Permian, 30% to Williston, 9% to Uinta, and 1% to Appalachian.

• No detailed 2025 guidance yet, but CapEx not anticipated to exceed $1.1 billion.

• Robust hedging program in place, with 74% of crude oil and 62% of natural gas production hedged for the first nine months of 2024.

• Management expects sufficient liquidity to fund capital expenditures and operations for at least the next twelve months.