Northern Oil and Gas(US:NOG)2025-11-07 21:11Production and Operations - As of September 30, 2025, the company participated in 11,469 gross (1,174.2 net) producing wells and leased approximately 296,108 net acres, with 84% developed[228]. - Average daily production in Q3 2025 was approximately 131,054 Boe per day, an 8% increase compared to Q3 2024, driven by recent acquisitions and new wells[230]. - The company added 16.5 and 74.7 net wells to production during the three and nine months ended September 30, 2025, respectively[230]. - Approximately 55% of the average daily production in Q3 2025 was oil, indicating a strong focus on oil production[230]. - In Q3 2025, oil production increased by 2% to 6,656 MBbl, while natural gas production rose by 15% to 32,407 MMcf, contributing to an overall production increase of 8% to 12,057 MBoe compared to Q3 2024[251]. - For the three months ended September 30, 2025, net production of oil was 6,656 MBbl, a 2% increase from 6,524 MBbl in 2024, while natural gas production rose by 15% to 32,407 MMcf[251]. - In the first nine months of 2025, net production of oil increased by 8% to 20,738 MBbl, and natural gas production rose by 12% to 94,004 MMcf, resulting in a total production increase of 9% to 36,405 MBoe compared to the same period in 2024[265]. Financial Performance - Total revenues for Q3 2025 were $556.6 million, a decrease of 26% from $753.6 million in Q3 2024, primarily due to a 12% drop in average realized prices[252]. - Total revenues for the first nine months of 2025 were $1,865.5 million, a 9% increase from $1,710.8 million in 2024, driven by a 102% increase in natural gas and NGL sales[265]. - Oil sales decreased by 11% to $1,262.9 million, while the average sales price for oil fell by 17% to $61.72 per Bbl[265]. - The company recorded a legal settlement of approximately $81.7 million, which, if excluded, would have resulted in a 3.4% decline in oil and natural gas sales due to an 11% decrease in realized prices[266][267]. - The company reported a net gain of $70.8 million from commodity derivatives in the third quarter of 2025, down from a gain of $238.2 million in the same quarter of 2024[254]. - The company achieved a net gain from commodity derivatives of $221.4 million in the first nine months of 2025, compared to $96.2 million in the same period of 2024[269]. Expenses and Charges - The company recorded a non-cash impairment charge of $318.7 million and $434.3 million for the three and nine months ended September 30, 2025, respectively, due to declining average commodity prices[234]. - Production expenses increased by 11% to $118.3 million in Q3 2025, with per unit costs rising to $9.81 per Boe from $9.54 per Boe in Q3 2024[257]. - General and administrative expenses rose to $14.1 million in Q3 2025, or $1.17 per Boe, compared to $10.0 million, or $0.89 per Boe, in Q3 2024[259]. - Production taxes increased significantly to $28.7 million in Q3 2025, representing 5.9% of oil and natural gas sales, compared to 2.9% in Q3 2024[258]. - The company incurred a non-cash impairment charge of $434.3 million in the first nine months of 2025, compared to no impairment in the same period of 2024[277]. - Interest expense rose to $43.0 million in Q3 2025, up from $36.8 million in Q3 2024, primarily due to increased debt from recent acquisitions[262]. Debt and Liquidity - As of September 30, 2025, total debt was $2.4 billion, with total liquidity of $1.2 billion, including $1.1 billion available under the Revolving Credit Facility[283][284]. - The company reported a working capital surplus of $47.1 million, a significant improvement from a deficit of $43.5 million at December 31, 2024[290]. - The Revolving Credit Facility had a borrowing base of $1.8 billion and an elected commitment amount of $1.6 billion as of September 30, 2025, with $459.0 million in borrowings outstanding[301]. Capital Expenditures and Investments - The company incurred capitalized costs of $899.0 million for oil and natural gas properties during the nine months ended September 30, 2025, with actual cash spending amounting to $943.7 million[295]. - The company’s drilling and development capital expenditures for the nine months ended September 30, 2025, were $706.4 million, an increase from $631.0 million in 2024[297]. - Total cash used in investing activities for the nine months ended September 30, 2025, was $944.4 million, a decrease from $1,012.1 million in the same period of 2024, attributed to prior acquisitions[294]. Hedging and Risk Management - The company has entered into derivatives contracts to hedge commodity price risk, with a net asset of $35.5 million as of September 30, 2025, reflecting a change of $92.7 million from a net liability at the end of 2024[256]. - The company hedged approximately 77% of its crude oil production and 60% of its natural gas production to mitigate commodity price volatility[286].