Northern Oil and Gas(US:NOG) ZACKSยท2025-08-05 13:06Core 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]