Financial Data and Key Metrics Changes - In Q1 2025, the company generated approximately $136 million in free cash flow, up 41% sequentially, with total average daily production at about 135,000 BOE per day, reflecting a 2.5% increase from Q4 2024 [20][21] - Adjusted EBITDA reached a record of approximately $435 million, marking a significant performance improvement [21] - The company maintained a low leverage ratio, ending the quarter with net debt reduced by approximately $90 million, resulting in a net debt to LQAEBITDA ratio around 1.3 times [24] Business Line Data and Key Metrics Changes - The company added 27.3 net wells to production in Q1, with the Permian Basin accounting for 40% of the activity [13] - The first quarter elections saw a 23% increase in lateral lengths compared to last year's average, leading to a 10% decrease in normalized well costs [15] - Gas production increased by 6.5% sequentially and 14% year over year, contributing 42% to the overall production mix [21] Market Data and Key Metrics Changes - Oil prices averaged around $70 per barrel, while gas prices were approximately $3.50 per MMBtu during Q1 [8] - Oil differentials were reported at $5.79 per barrel, above the high end of the guided range, while natural gas realizations were at 100% of benchmark prices [21][22] - The company expects improvements in oil differentials moving forward, maintaining guidance for gas realizations for the remainder of the year [22] Company Strategy and Development Direction - The company emphasizes a flexible capital allocation strategy focused on risk-adjusted returns, balancing growth investments, debt reduction, and share buybacks [11] - NOG aims to leverage downturns for high-return investments, with a proven track record of capital reallocation during pricing resets [9] - The company is actively engaged in over 10 M&A processes, focusing on total returns while being mindful of the balance sheet [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the adaptability of the company's model in response to market volatility, emphasizing the importance of maintaining profitability amid changing commodity prices [6][10] - The outlook for production levels remains stable for 2025, barring significant curtailments or shut-ins, with potential adjustments to CapEx spending based on market conditions [25] - Management expressed optimism about finding creative ways to deploy capital as operators look to reduce capital exposure [18] Other Important Information - The company exited Q1 with over $900 million in liquidity, including $34 million in cash and $870 million available on its revolving credit facility [24] - The CapEx guidance for the year includes $200 million to $300 million in growth capital, with a maintenance level of $850 million to $900 million [23] Q&A Session Summary Question: Production cadence outlook for the rest of the year - Management expects production cadence to be lower in Q2 and early Q3, with Q4 anticipated to see the highest production levels [28][30] Question: Service pricing comparison to the start of the year - AFE costs have seen about a 10% decrease, driven by increased lateral lengths, while drilling rates remain sticky [34][38] Question: Impact of oil and gas outlook on potential sellers of non-operated interests - There has been an acceleration in transaction screening, with operators looking to offload non-operated assets due to capital constraints [41][46] Question: Maintenance CapEx estimates for 2026 and 2027 - Maintenance CapEx is expected to remain around $850 million, assuming no changes in drilling costs [56] Question: Production taxes and gas prices relative to full-year guidance - Production taxes are expected to trend back into the guided range as the production mix shifts towards the Permian [60]

Financial Data and Key Metrics Changes - In Q1, the company generated approximately $136 million in free cash flow and $94 million after dividends, marking a 41% sequential increase in free cash flow [10][23] - Adjusted EBITDA reached a record of approximately $435 million for the quarter, reflecting strong operational performance [23] - Total average daily production was approximately 135,000 BOE per day, up 2.5% versus Q4, with year-over-year production increasing by 13% [22][23] Business Line Data and Key Metrics Changes - The company added 27.3 net wells to production, with the Permian Basin accounting for 40% of the activity [15] - The first quarter elections saw a 23% increase in lateral lengths compared to last year's average, resulting in a 10% decrease in normalized well costs [17] - Gas production ramped up both sequentially and year-over-year, contributing 42% to the production mix, with a 6.5% increase on a sequential basis and 14% year-over-year [22][23] Market Data and Key Metrics Changes - Oil differentials averaged $5.79 per barrel for the quarter, above the high end of the guided range, while natural gas realizations were at 100% of benchmark prices [23][24] - The company expects differentials to improve and is comfortable with its guided range of $4.75 to $5.5 for the year [24] Company Strategy and Development Direction - The company emphasizes a flexible capital allocation strategy focused on returns, balancing investments, debt reduction, and share buybacks [13] - The management highlighted the importance of adapting to market conditions and leveraging downturns for high-return investments [10][12] - The company is actively engaged in over 10 M&A processes, focusing on total returns while being mindful of the balance sheet [21][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the cyclical nature of commodities often leads to pricing resets, creating opportunities for growth and value creation [11][12] - The company remains optimistic about finding creative ways to deploy capital as operators look to trim capital exposure [20][47] - Management indicated that production levels are not expected to change materially in 2025 absent significant curtailments or shut-ins [28] Other Important Information - The company exited the quarter with over $900 million in liquidity, including $34 million in cash and $870 million available on its revolving credit facility [26] - Cash operating costs improved, down nearly $2 per BOE from a year ago, reflecting a diverse and improving asset base [24] Q&A Session Summary Question: Production cadence outlook for the rest of the year - Management expects production cadence to be lowest in Q2 and early Q3, with Q4 anticipated to see the highest production levels [30][31] Question: Service pricing comparison to the start of the year - AFE costs have seen about a 10% decrease, driven by increased lateral lengths, while drilling rates remain relatively stable [34][35] Question: Impact of oil and gas outlook on potential sellers of non-operated interests - There has been an acceleration in transaction screening, with operators looking to offload non-operated assets due to capital constraints [41][47] Question: Thoughts on mid-cycle pricing for gas - Management focuses on resilient assets and does not attempt to predict prices, emphasizing the importance of low-cost assets [51][52]

Q1 2025 Highlights - Average daily production reached 135.0 Mboe/d, showing a 2.4% increase QoQ and a 13.0% increase YoY[5] - Adjusted EBITDA hit a record $434.7 million, up 12.3% YoY and 6.9% QoQ[5] - Free Cash Flow surged 151.4% YoY, driven by XCL asset contribution and record production[5] - Shareholder returns totaled approximately $57 million in Q1, through stock repurchases and dividends[5] Operations & Investment Activity - Uinta volumes increased by approximately 15% sequentially and 18% on an Mboe/day basis[5] - NOG closed $4.8 million in Ground Game deals in Q1, adding over 1,000 net acres and ~1.1 net wells[5] - A 2,275 net acre acquisition in Upton County, Texas, was completed for $61.7 million[5] - Net elections increased 35% compared to 2024's quarterly average[23] Financial Position - Net Debt to LQA Adjusted EBITDA ratio improved to 1.32x, a decrease of 0.15x QoQ[5] - Over $900 million in available liquidity at quarter-end[5] Guidance - The company anticipates annual production between 130,000 and 135,000 Boe/day[40] - Total budgeted capital expenditures are projected to be between $1.05 billion and $1.2 billion[40]