Northern Oil and Gas Posts Strong Q2 Results Despite Permian Basin Challenges

Northern Oil and Gas (NOG) reported strong second-quarter results, with cash flow and production increasing despite challenges in the Permian Basin. The company cited its diversified non-operated portfolio as a key factor in its success.

Adjusted EBITDA rose 17% sequentially to $159 million, while free cash flow surged more than 400% from the first quarter. Total production increased 9% year-over-year, driven by record natural gas volumes that rose 35% over the same period and 5% sequentially. Northern Oil and Gas experienced significant production curtailments in the Permian due to challenging Waha pricing, but volumes have begun returning as market conditions improved.

The company's assets performed ahead of internal expectations in several regions, including the Williston and Uinta basins. Appalachian production reached a record with full-quarter contributions from the Utica joint development, where early results have been strong. Normalized well costs were $761 per lateral foot, largely unchanged from the first quarter.

Northern Oil and Gas ended the quarter with more than $1 billion in total liquidity and repurchased 2.95 million shares at an average price of $20.37 per share. The company declared a quarterly dividend of $0.45 per share and increased its repurchase authorization to approximately $243 million.

Northern Oil and Gas CEO Nick O'Grady said the company expects its assets to generate $1.4 billion to more than $1.5 billion of adjusted EBITDA in 2026, with sustaining current production volumes requiring approximately $850 million to $900 million of drilling and completion capital. The company's diversified non-operated model allows it to allocate capital among regions based on economics rather than maintain operating teams and drilling programs in each basin.