Core Insights - Northern Oil and Gas (NOG) reported second-quarter 2025 adjusted earnings per share of $1.37, exceeding the Zacks Consensus Estimate of 87 cents, driven by strong production despite a decline from the previous year's adjusted profit of $1.46 due to lower oil prices and increased operating expenses [1][9] Financial Performance - Quarterly sales reached $574.4 million, surpassing the Zacks Consensus Estimate of $519 million and increasing from $561 million year-over-year, primarily due to higher net gains on commodity derivatives and increased oil and gas sales [2] - Total operating expenses rose to $530.6 million from $341.8 million in the prior year, driven by increased production expenses and other costs, exceeding the estimate of $377.1 million [9] - Free cash flow for the quarter was $126.2 million, with cash on hand at $25.9 million and long-term debt of $2.4 billion [11][14] Production and Sales - Second-quarter production increased 9% year-over-year to 134,094 barrels of oil equivalent per day (Boe/d), beating the estimate of 133,600 Boe/d [7] - Oil volume totaled 76,944 Boe/d, up 10% year-over-year, while natural gas production reached 342,900 thousand cubic feet per day, up 6% [7] - The average sales price for crude was $58.37 per barrel, a 24% decrease from the prior year, while the average realized natural gas price was $2.89 per thousand cubic feet, compared to $2.47 in the previous year [8] Capital Expenditures and Acquisitions - Capital expenditures for the second quarter totaled $210 million, with $178.8 million allocated to drilling and completion activities and $31.2 million for Ground Game efforts [12] - The company completed 22 Ground Game transactions, adding approximately 2,600 net acres and 4.8 net wells for a total of $31.2 million [6][13] - NOG finalized the acquisition of assets in Upton County, TX, for $61.7 million, adding approximately 2,275 net acres to its portfolio [5] Dividend and Share Repurchase - The board declared a cash dividend of 45 cents per share, a 7% year-over-year increase, to be distributed on October 31, 2025 [3] - The company repurchased approximately 1.1 million shares at an average price of $31.15 per share during the second quarter [4] Guidance and Future Outlook - NOG anticipates total capital expenditures for 2025 to be between $925 million and $1.05 billion, reflecting a reduction due to decreased activity in the Williston Basin [15] - Production guidance has been adjusted, with oil production expected in the range of 74,000-76,000 barrels per day and total production at 130,000-133,000 Boe/d [16] - The company expects net cash proceeds of $48.6 million in Q3 after legal settlement deductions of $33.1 million [18]

Northern Oil and Gas (NOG) reported $574.37 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 2.4%. EPS of $1.37 for the same period compares to $1.46 a year ago. The reported revenue represents a surprise of +10.64% over the Zacks Consensus Estimate of $519.14 million. With the consensus EPS estimate being $0.87, the EPS surprise was +57.47%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Core Viewpoint - Northern Oil And Gas reported strong revenue performance in Q2 2025, exceeding analyst expectations, but faced a decline in GAAP net income due to softer commodity prices and a non-cash asset impairment [1][7]. Financial Performance - Revenue for Q2 2025 was $574.4 million, surpassing the estimate of $526.46 million [1][7]. - GAAP net income decreased to $99.6 million, down 28.1% from $138.6 million in Q2 2024 [2][7]. - Non-GAAP EPS was $1.37, a 6.2% decline from $1.46 in Q2 2024 [2]. - Adjusted EBITDA increased by 6.6% year-over-year to $440.4 million [2]. Production and Operations - Total production rose by 9% year-over-year to 134,094 barrels of oil equivalent (Boe) per day [5]. - Oil production increased by 10.5% to 76,944 barrels per day, while natural gas output also grew [5]. - Development activity saw a reduction, with only 20.8 net wells added, but the company maintained a record 53.2 net wells in process [6]. Strategic Acquisitions - The company closed a $61.7 million acquisition in Upton County, Texas, along with 22 smaller transactions adding approximately 2,600 net acres and 4.8 net wells [6]. - Management highlighted an "all-time peak" in the pipeline of potential acquisitions, indicating a focus on industry consolidation [6]. Cost and Expenses - Lease operating expenses rose to $9.95 per Boe, reflecting a 6% sequential increase and an 11% year-over-year rise [8]. - Capital spending outside of acquisitions decreased by 12% year-over-year, emphasizing a disciplined approach [8]. Shareholder Returns - The company repurchased 1.1 million shares at an average price of $31.15 and raised the quarterly dividend by 7% to $0.45 per share [9][13]. - Liquidity remained strong with over $1.1 billion available in cash and borrowing capacity [9]. Future Guidance - The company revised its full-year 2025 production forecast to an average of 130,000–133,000 Boe per day, down from a prior midpoint of 132,500 [11]. - Estimated capital expenditures were reduced by $125–$150 million to a range of $925–$1,050 million [11]. - Management indicated a shift towards acquiring existing production rather than organic drilling to maximize risk-adjusted returns [12].

[Glossary of Terms](index=2&type=section&id=Glossary%20of%20Terms) This section defines key technical terms for crude oil, natural gas, well interests, and reserve classifications - Crude oil and natural gas equivalents (Boe) are determined using a ratio of **six Mcf of natural gas to one barrel of crude oil**, condensate, or NGLs[7](index=7&type=chunk) - PV-10 is defined as the estimated future net revenue, discounted at **10% per annum**, before income taxes and without price or cost escalation, following SEC guidelines[42](index=42&type=chunk) - Proved reserves are quantities of oil, NGLs, and gas estimated with reasonable certainty to be economically producible from a given date forward from known reservoirs under existing economic conditions. Economic conditions are based on the unweighted arithmetic average of the first-day-of-the-month price for the twelve-month period prior to the report's ending date[46](index=46&type=chunk)[51](index=51&type=chunk) PART I – FINANCIAL INFORMATION [Condensed Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(unaudited)) This section presents Northern Oil and Gas, Inc.'s unaudited condensed financial statements as of June 30, 2025 [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) Total assets increased to **$5.70 billion** by June 30, 2025, with equity rising to **$2.41 billion** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $588,357 | $500,743 | | **Total Property and Equipment, Net** | $5,093,146 | $5,082,170 | | **Total Assets** | **$5,702,493** | **$5,603,822** | | **Total Current Liabilities** | $488,197 | $544,270 | | **Long-term Debt, Net** | $2,365,942 | $2,369,294 | | **Total Liabilities** | **$3,289,474** | **$3,283,387** | | **Total Stockholders' Equity** | $2,413,019 | $2,320,435 | [Condensed Statements of Operations](index=10&type=section&id=Condensed%20Statements%20of%20Operations) Net income decreased to **$99.6 million** in Q2 2025, primarily due to a **$115.6 million** impairment charge and legal expenses Key Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $706,809 | $560,766 | $1,308,908 | $957,113 | | **Income From Operations** | $176,166 | $218,936 | $405,447 | $271,256 | | **Net Income** | $99,585 | $138,556 | $238,567 | $150,163 | | **Net Income Per Share – Diluted** | $1.00 | $1.36 | $2.39 | $1.47 | [Condensed Statements of Cash Flows](index=11&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$769.5 million** for H1 2025, funding investing and financing activities Summary of Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $769,538 | $732,624 | | **Net Cash Used for Investing Activities** | ($591,813) | ($630,255) | | **Net Cash Used for Financing Activities** | ($160,802) | ($102,786) | | **Net Increase (Decrease) in Cash** | $16,923 | ($417) | [Notes to Condensed Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Notes detail key accounting policies and events, including a legal settlement, impairment, and convertible notes - In June 2025, the company received an **$81.7 million** legal settlement related to post-production costs, recorded as Oil and Gas Sales, alongside a **$33.1 million** legal expense[89](index=89&type=chunk) - A non-cash impairment charge of **$115.6 million** was recorded on oil and natural gas properties in Q2 2025 due to the full cost method ceiling test, with no comparable charge in 2024[106](index=106&type=chunk) - On June 17, 2025, the company issued an additional **$200.0 million** of 3.625% convertible senior notes due 2029, increasing the total principal to **$700.0 million**[138](index=138&type=chunk) - Cash dividends of **$0.45 per share** were declared in January, April, and July 2025, and **1,622,695 shares** were repurchased for **$50.5 million** during the first six months of 2025[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, including production, legal settlement, impairment, and **$1.1 billion** liquidity [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Total revenues increased **26%** in Q2 2025, but net income decreased due to a **$115.6 million** impairment charge Q2 2025 vs Q2 2024 Operating Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Production (MBoe)** | 12,203 | 11,224 | 9% | | **Oil Sales (in thousands)** | $402,672 | $488,690 | (18)% | | **Natural Gas & NGL Sales (in thousands)** | $171,697 | $72,335 | 137% | | **Gain (Loss) on Commodity Derivatives (in thousands)** | $128,819 | ($3,428) | N/A | | **Total Revenues (in thousands)** | $706,809 | $560,766 | 26% | | **Impairment Expense (in thousands)** | $115,576 | $0 | N/A | | **Production Expenses (per Boe)** | $9.95 | $8.99 | 11% | | **DD&A (per Boe)** | $16.86 | $15.73 | 7% | - Oil and gas sales for Q2 2025 included an **$81.7 million** legal settlement; excluding this, sales would have declined by **12%** due to an **18%** decrease in realized prices, partially offset by a **9%** production increase[239](index=239&type=chunk)[240](index=240&type=chunk) - A non-cash impairment charge of **$115.6 million** was recorded in Q2 2025 due to the full cost ceiling test, with no comparable charge in Q2 2024[250](index=250&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$1.1 billion** as of June 30, 2025, supported by note issuance and share repurchases - Total liquidity as of June 30, 2025, was **$1.1 billion**, comprising **$1.1 billion** of borrowing availability under the Revolving Credit Facility and **$25.9 million** of cash[273](index=273&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $769,538 | $732,624 | | Net Cash Used for Investing Activities | ($591,813) | ($630,255) | | Net Cash Used for Financing Activities | ($160,802) | ($102,786) | - In H1 2025, financing activities included a **$210.0 million** net repayment on the Revolving Credit Facility, **$86.0 million** in dividend payments, and **$50.0 million** in stock repurchases, partially offset by **$211.2 million** in net proceeds from additional convertible notes[286](index=286&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from commodity price volatility and interest rates using derivative contracts - The company utilizes derivative contracts to hedge a significant portion of its anticipated future production, thereby reducing exposure to commodity price volatility[298](index=298&type=chunk)[299](index=299&type=chunk) Open Crude Oil Hedging Summary (Swaps & Collars) as of June 30, 2025 | Period | Swap Volume (Bbls) | Avg. Swap Price ($/Bbl) | Collar Volume (Floor, Bbls) | Avg. Floor Price ($/Bbl) | Avg. Ceiling Price ($/Bbl) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Q3 2025** | 2,935,969 | $72.76 | 1,817,970 | $69.15 | $77.43 | | **Q4 2025** | 3,029,836 | $72.75 | 1,791,487 | $69.15 | $77.55 | | **2026** | 5,313,057 | ~$69.08 | 6,953,106 | ~$64.00 | ~$72.25 | Open Natural Gas Hedging Summary (Swaps & Collars) as of June 30, 2025 | Period | Swap Volume (MMBTU) | Avg. Swap Price ($/MMBTU) | Collar Volume (Floor, MMBTU) | Avg. Floor Price ($/MMBTU) | Avg. Ceiling Price ($/MMBTU) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Q3 2025** | 9,469,432 | $3.99 | 9,368,137 | $3.10 | $4.80 | | **Q4 2025** | 9,798,257 | $4.08 | 9,785,466 | $3.19 | $4.89 | | **2026** | 25,640,000 | ~$4.04 | 37,352,303 | ~$3.37 | ~$5.03 | - A **1%** increase in short-term interest rates on floating-rate debt outstanding at June 30, 2025, would result in approximately **$4.1 million** in additional annual interest expense[313](index=313&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[315](index=315&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended June 30, 2025[316](index=316&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various litigation claims and regulatory proceedings arising in the ordinary course of business - The company states it is subject to litigation from time to time in the ordinary course of business[317](index=317&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K - No material changes to risk factors were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[318](index=318&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased shares, with **$160.3 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | April 2025 | — | $— | $195.3 million | | May 2025 | — | $— | $195.3 million | | June 2025 | 1,123,595 | $31.15 | $160.3 million | | **Total** | **1,123,595** | **$31.15** | **$160.3 million** | [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025[327](index=327&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements and certifications

Group 1 - The conference call is for NOG's Second Quarter 2025 Earnings, with financial results released the previous day [2][3] - Key participants include the CEO, President, CFO, and Vice President of Investor Relations, indicating a comprehensive leadership presence [4] - The agenda includes introductory remarks from the CEO, an overview of operations from the President, and a financial review from the CFO [4]

Financial Data and Key Metrics Changes - The company generated over $126 million in free cash flow for the quarter, marking the 22nd consecutive quarter of positive free cash flow, totaling over $1.8 billion during this period [10][27][30] - Adjusted EBITDA for the quarter was $440.4 million, including a legal settlement impact of approximately $48.6 million [27][30] - Total average daily production was approximately 134,000 BOE per day, up 9% year-over-year and in line sequentially [26][30] Business Line Data and Key Metrics Changes - Oil production was approximately 77,000 barrels per day, up 10.5% year-over-year but down 2% sequentially due to lower activity in the Williston [26][30] - The Uinta basin showed strong performance with volumes up 18.5% sequentially [26] - Gas production reached record volumes of approximately 343 MMcf per day, with contributions from the Appalachian JV [27] Market Data and Key Metrics Changes - Oil differentials averaged $5.31 per barrel, while natural gas realizations were 82% of benchmark prices, down from 100% in the previous quarter [27][28] - Lease operating costs per BOE rose 6% to $9.95 due to higher expenses in the Williston and Permian [28] Company Strategy and Development Direction - The company emphasizes a disciplined approach to capital allocation, focusing on maximizing returns for investors and maintaining a strong balance sheet [16][17] - The strategy includes a shift towards acquisitions in a lower price environment, with a backlog of potential acquisitions at an all-time peak [13][14] - The company aims to grow profits on a per-share basis while focusing on strong returns on capital [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the business model has proven resilient despite commodity price volatility, with a focus on risk optimization and cash flow generation [4][5] - The outlook for the second half of the year anticipates a modest dip in production in Q3, with expectations for a recovery in Q4 [76] - Management remains optimistic about the M&A landscape, with a robust pipeline of opportunities driven by market conditions [70][71] Other Important Information - The company recorded a non-cash impairment charge of $115.6 million due to lower oil prices, leading to a reduction in DD&A guidance per BOE [32] - The company has maintained over $1.1 billion in liquidity, consisting of cash and available credit [30] Q&A Session Summary Question: What is the cadence into 2026? - Management indicated that lower spending in Q2 would translate into modestly lower volumes in Q3, but Q4 should see levels similar to Q2 [36][38] Question: Is the reduction in CapEx due to fewer wells being proposed? - The reduction is attributed to a combination of lower activity from operators and discretionary spending being curtailed due to risk-adjusted returns [50][51] Question: How will the nearly $50 million legal settlement be treated? - The settlement will be treated as working capital and will not be included in free cash flow calculations [64][65] Question: What are the expectations for the M&A market? - The M&A market remains robust, with a variety of asset types available, and management is optimistic about finding value-accretive opportunities [70][71][90]

Financial Data and Key Metrics Changes - The company generated over $126 million in free cash flow for the quarter, marking the 22nd consecutive quarter of positive free cash flow, totaling over $1.8 billion during this period [11][27] - Adjusted EBITDA for the quarter was approximately $440.4 million, including a legal settlement impact of about $48.6 million [27][32] - Total average daily production was approximately 134,000 BOE per day, up 9% year-over-year and in line sequentially [26] Business Line Data and Key Metrics Changes - Oil production was approximately 77,000 barrels per day, up 10.5% year-over-year but down 2% sequentially due to lower activity in the Williston [26] - Gas production reached record volumes of approximately 343 MMcf per day, with contributions from the Appalachian joint venture [27] - The Uinta basin saw a significant increase in drilling activity, with 4.8 net wells spud during the quarter, up from 1.4 in Q1 [19] Market Data and Key Metrics Changes - The company experienced a 6% sequential increase in lease operating costs per BOE, rising to $9.95 due to higher expenses in the Williston and Permian [28] - Oil differentials averaged $5.31 per barrel, with year-to-date differentials at $5.5, leading to adjusted guidance [27][28] - Natural gas realizations were at 82% of benchmark prices, down from 100% in the previous quarter due to market weaknesses [28] Company Strategy and Development Direction - The company is focusing on a disciplined capital allocation strategy, prioritizing acquisitions over organic growth in a volatile price environment [8][14] - The backlog of potential acquisitions is at an all-time peak, with over 10 ongoing processes assessed at a combined value exceeding $8 billion [24][70] - The company aims to maximize returns for investors while maintaining a strong balance sheet and focusing on long-term value creation [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the business model has proven resilient despite commodity price volatility, with a focus on risk optimization and cash flow generation [5][6] - The company anticipates modestly lower volumes in Q3 due to reduced spending but expects a recovery in Q4 as drilling activity ramps up [35][75] - Management emphasized the importance of preserving capital for better opportunities in the future, especially in a fluctuating price environment [48][66] Other Important Information - The company recorded a non-cash impairment charge of $115.6 million due to lower oil prices, leading to a reduction in guidance for depreciation, depletion, and amortization [32] - The company has maintained over $1.1 billion in liquidity, consisting of cash and available credit, reflecting confidence in its asset base and credit profile [30] Q&A Session Summary Question: What is the cadence into 2026 and the impact of lower activity in the Williston? - Management indicated that lower spending in Q2 would translate to modestly lower volumes in Q3, with expectations to exit the year at levels similar to Q2 [35][36] Question: How is the reduction in CapEx being managed? - The reduction is a combination of non-consenting wells and discretionary spending, with a focus on preserving capital for better returns [47][48] Question: What is the outlook for the M&A market? - The M&A market remains robust, with a variety of asset types available, and the company is positioned to capitalize on these opportunities [70][89]

Financial Performance - Free Cash Flow was $126.2 million, a decrease of 5.7% year-over-year and 7.0% quarter-over-quarter[4] - Adjusted EBITDA reached $440.4 million, up 6.6% year-over-year and 1.3% quarter-over-quarter[4] - Shareholder returns totaled approximately $79.3 million through dividends and share repurchases[4] - ROCE was 19.6%, approximately flat quarter-over-quarter[4] Production and Operations - Average daily production was 134.1 Mboe/d, an increase of 8.7% year-over-year but a decrease of 0.6% quarter-over-quarter[4] - Capital expenditures amounted to $210 million, down 11.5% year-over-year and 16.0% quarter-over-quarter[4] - Appalachian volumes reached a record 123.5 mmcf per day[4] - Uinta volumes increased by approximately 18.5% on a sequential quarter basis[8] M&A and Capital Allocation - The company closed on an Upton County, Texas acquisition for a total cash consideration of $61.7 million, net of closing adjustments[8] - Over $1.1 billion of available liquidity at quarter-end[8]

This quarterly report represents an earnings surprise of +57.47%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.12 per share when it actually produced earnings of $1.33, delivering a surprise of +18.75%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Northern Oil and Gas, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $574.37 million for the quar ...

Business Update [Second Quarter Hedging Results and Outlook](index=1&type=section&id=Second%20Quarter%20Hedging%20Results%20and%20Outlook) NOG anticipates significant derivative gains in Q2 2025 and has expanded crude oil and natural gas hedging positions through 2026 to protect its capital program Q2 2025 Estimated Hedging Results | Category | Estimated Amount (Millions) | | :--- | :--- | | Unrealized Mark-to-Market Gains | $65 - $70 | | Realized Hedge Gains | $58 - $63 | - NOG has added new hedges for oil, natural gas, and basis differentials since its Q1 report[2](index=2&type=chunk) Average Hedged Volumes (as of release date) | Period | Commodity | Average Hedged Volume per Day | | :--- | :--- | :--- | | 2H 2025 | Oil | > 50,000 Bbls | | 2026 | Oil | > 30,000 Bbls | | 2H 2025 | Natural Gas | > 200 MMBtu | | 2026 | Natural Gas | > 175 MMBtu | [Expected Non-Cash Impairment](index=1&type=section&id=Expected%20Non-Cash%20Impairment) NOG expects a non-cash impairment charge of $112-$120 million in Q2 2025 due to lower oil prices and full-cost accounting rules, with no cash flow impact - A non-cash impairment charge of **$112 - $120 million** is expected in Q2 2025 due to lower oil prices and full-cost accounting rules[3](index=3&type=chunk) - This accounting charge will have **no impact on the company's cash flows**[3](index=3&type=chunk) [Commodity Derivative Contracts](index=1&type=section&id=Commodity%20Derivative%20Contracts) The company details open derivative contracts for crude oil, natural gas, and NGLs settling after June 30, 2025, utilizing swaps and collars to manage price risk [Crude Oil Contracts](index=1&type=section&id=Crude%20Oil%20Contracts) NOG has hedged significant crude oil volumes through 2026 using swaps and collars, with specific volumes and prices detailed for Q3 2025 Open Crude Oil Derivative Contracts (Post June 30, 2025) | | Swaps | | Collars | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Contract Period** | **Volume (Bbls)** | **W.A. Price ($/Bbl)** | **Volume Floor (Bbls)** | **Volume Ceiling (Bbls)** | **W.A. Floor Price ($/Bbl)** | **W.A. Ceiling Price ($/Bbl)** | | **2025: Q3** | 2,935,969 | $72.76 | 1,817,970 | 2,304,994 | $69.15 | $77.43 | | **2025: Q4** | 3,029,836 | $72.75 | 1,791,487 | 2,278,511 | $69.15 | $77.55 | | **2026: Q1** | 1,433,726 | $69.84 | 2,446,789 | 3,121,226 | $62.94 | $72.98 | | **2026: Q2** | 1,040,157 | $68.11 | 1,563,977 | 2,245,907 | $63.55 | $71.35 | | **2026: Q3** | 1,419,587 | $69.06 | 1,121,163 | 1,810,587 | $65.01 | $72.33 | | **2026: Q4** | 1,419,587 | $69.04 | 1,121,163 | 1,810,587 | $65.01 | $72.33 | [Natural Gas Contracts](index=3&type=section&id=Natural%20Gas%20Contracts) NOG has extensive natural gas hedges through 2027, including significant swap and collar volumes for Q3 2025 at specified prices Open Natural Gas Derivative Contracts (Post June 30, 2025) | | Swaps | | Collars | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Contract Period** | **Volume (MMBTU)** | **W.A. Price ($/MMBTU)** | **Volume Floor (MMBTU)** | **Volume Ceiling (MMBTU)** | **W.A. Floor Price ($/MMBTU)** | **W.A. Ceiling Price ($/MMBTU)** | | **2025: Q3** | 9,469,432 | $3.99 | 9,368,137 | 9,368,137 | $3.10 | $4.80 | | **2025: Q4** | 9,953,257 | $4.09 | 9,785,466 | 9,785,466 | $3.19 | $4.89 | | **2026: Q1** | 7,860,000 | $4.13 | 10,278,249 | 10,278,249 | $3.36 | $5.07 | | **2026: Q2** | 6,745,000 | $3.93 | 10,314,706 | 10,314,706 | $3.37 | $5.05 | | **2026: Q3** | 6,440,000 | $4.02 | 9,704,706 | 9,704,706 | $3.39 | $5.02 | | **2026: Q4** | 7,350,000 | $4.25 | 7,054,642 | 7,054,642 | $3.37 | $4.95 | | **2027: Q1** | 450,000 | $3.04 | 1,335,000 | 1,335,000 | $3.00 | $3.86 | | **2027: Q2** | 460,000 | $2.96 | 1,380,000 | 1,380,000 | $3.00 | $3.86 | | **2027: Q3** | 460,000 | $2.96 | 1,380,000 | 1,380,000 | $3.00 | $3.86 | | **2027: Q4** | 455,000 | $2.96 | 915,000 | 915,000 | $3.00 | $3.86 | [NGL Contracts](index=5&type=section&id=NGL%20Contracts) NOG has NGL swap contracts extending into 2027, with over 193,000 barrels hedged for 2H 2025 at approximately $36.50/BBL Open NGL Swap Contracts (Post June 30, 2025) | | Swaps | | | :--- | :--- | :--- | | **Contract Period** | **Volume (BBL)** | **W.A. Price ($/BBL)** | | **2025: Q3** | 59,800 | $36.16 | | **2025: Q4** | 133,400 | $36.71 | | **2026: Q1** | 92,250 | $36.00 | | **2026: Q2** | 106,925 | $33.32 | | **2026: Q3** | 96,600 | $33.03 | | **2026: Q4** | 80,500 | $33.32 | | **2027: Q1** | 65,250 | $32.30 | | **2027: Q2** | 59,150 | $30.73 | | **2027: Q3** | 57,500 | $30.69 | | **2027: Q4** | 52,900 | $30.87 | Strategic and Operational Updates [Ground Game Update](index=5&type=section&id=Ground%20Game%20Update) NOG increased 'Ground Game' activity in Q2 2025, completing 22 transactions to add 4.8 net wells and 2,600 net acres for $23.8 million initial capital - The company noted that the volume of acquisition opportunities has expanded compared to a year ago due to weakness in commodity pricing[10](index=10&type=chunk) Q2 2025 Ground Game Activity Summary | Metric | Value | | :--- | :--- | | Transactions Completed | 22 | | Net Wells Added | 4.8 | | Net Acres Added | ~2,600 | | Initial Capital | ~$23.8 million | | Incremental Development Capital | ~$7.3 million | [Legal Settlement](index=5&type=section&id=Legal%20Settlement) NOG finalized a legal settlement in June 2025, expecting to recognize $81.7 million in revenue and receive a net cash payment of $48.6 million in Q3 2025 Legal Settlement Financial Impact | Item | Amount (Millions) | | :--- | :--- | | Total Settlement (Recorded as Oil & Gas Sales) | ~$81.7 | | Legal Settlement Expenses | ~$33.1 | | **Net Cash Settlement Received** | **$48.6** | - The cash proceeds from the settlement are expected to be received in the third quarter of 2025[11](index=11&type=chunk) Company Information and Disclosures [About NOG](index=5&type=section&id=About%20NOG) NOG acquires and invests in non-operated minority working and mineral interests within premier US hydrocarbon-producing basins - NOG's business model is focused on **non-operated minority interests** in top US oil and gas basins[12](index=12&type=chunk) [Preliminary Information & Safe Harbor](index=6&type=section&id=Preliminary%20Information%20%26%20Safe%20Harbor) The company's financial data is preliminary and unaudited, and the release contains forward-looking statements subject to risks and uncertainties - The Q2 2025 financial information is **preliminary** and based on estimates; actual results may differ materially[13](index=13&type=chunk) - The press release contains **forward-looking statements** regarding future events and results, which are **not guarantees of future performance** and are subject to **significant risks**[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)