Northern OIL & Gas, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 28 April 2026: press release. Guidance figures: 1 raised, 1 lowered, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• GAAP net loss driven by derivative marks: The company reported a GAAP net loss of $522.8 million, or $5.31 per basic and diluted share, including a non-cash unrealized mark-to-market derivative loss of about $521.4 million. Source
• Adjusted EBITDA down 21%: Adjusted EBITDA was $342.5 million, down 21% from the first quarter of 2025. Management attributed this to a 19% lower realized price per Boe including settled derivatives and a changing commodity mix. Source
• Production up 10% year on year: Total production averaged 148,303 Boe per day, 50% oil, up 10% from the first quarter of 2025 and up 6% from the fourth quarter of 2025. Source
• Capital expenditures of $270.1 million: Capital expenditures excluding non-budgeted acquisitions were $270.1 million: $226.5 million on organic drilling and completion and $43.6 million on Ground Game. Source
• 41 Ground Game transactions closed: The company completed 41 Ground Game transactions adding over 5,100 net acres and 6.14 net wells for $43.6 million, inclusive of associated development costs. Source
• Liquidity of $1.2 billion: Total liquidity was $1.2 billion at March 31, 2026, including $1.1 billion of committed revolver availability and $37.0 million of cash on hand. Source
• Ceiling test impairment of $268.3 million: A non-cash ceiling test impairment of $268.3 million was recorded on oil and gas assets, driven by lower average oil prices under the full cost method. Source

“The current geopolitical environment is creating a dynamic environment for our business, and NOG is well-positioned to navigate it.”

Nick O’Grady, Chief Executive Officer

Guidance

What changed from last quarter

• New: The company completed a March 2026 common stock offering with net proceeds of $227.9 million. The prior release did not mention this offering. Source

Earnings and cash flow

• GAAP net loss driven by derivative marks: The company reported a GAAP net loss of $522.8 million, or $5.31 per basic and diluted share, including a non-cash unrealized mark-to-market derivative loss of about $521.4 million. Source
• Adjusted Net Income of $74.7 million: Adjusted Net Income was $74.7 million, or $0.74 per adjusted diluted share, a non-GAAP measure the company reconciles to pre-tax income. Source
• Adjusted EBITDA down 21%: Adjusted EBITDA was $342.5 million, down 21% from the first quarter of 2025. Management attributed this to a 19% lower realized price per Boe including settled derivatives and a changing commodity mix. Source
• Operating and free cash flow: Cash flow from operations was $323.6 million, or $297.2 million excluding working capital changes. Free cash flow was $30.4 million, against $135.7 million in the first quarter of 2025. Source

Production and well additions

• Production up 10% year on year: Total production averaged 148,303 Boe per day, 50% oil, up 10% from the first quarter of 2025 and up 6% from the fourth quarter of 2025. Source
• Natural gas output reached a record: Natural gas averaged 448,444 Mcf per day, up 33% year on year and a company record, while oil averaged 73,567 Bbls per day, down 6%. Source
• Well additions below fourth quarter: NOG added 17.1 net wells to production in the quarter, against 24.2 in the fourth quarter of 2025. Management described the quarter as a lower point for well additions, in line with forecast. Source
• Appalachian production hits another record: Appalachian volumes set another production record, and the joint development program continued to deliver turned-in-line wells according to plan. Source

“Q1 was a banner quarter for our Ground Game, closing 41 transactions while keeping capital disciplined.”

Nick O’Grady, Chief Executive Officer

Pricing and hedging

• Oil realized near $66 per barrel: The unhedged net realized oil price was $66.32 per Bbl. The average differential to WTI was $5.85, a 1% increase from the first quarter of 2025. Source
• Gas realization 72% of Henry Hub: The unhedged net realized gas price was $2.50 per Mcf, a 72% realization against Henry Hub pricing. Source
• Hedge losses offset gas gains: Realized hedge losses were $17.6 million. Gains on natural gas hedges were more than offset by losses on crude oil hedges. Source
• Boe price including derivatives fell: Realized price per Boe including settled commodity derivatives was $39.13, against $48.49 a year earlier. Excluding derivatives it was $40.45, against $47.50. Source

Operating costs

• Lease operating cost per Boe up: Lease operating costs were $129.7 million, or $9.72 per Boe, up 4% per unit from the first quarter of 2025. Source
• G&A rose on Ohio Utica deal costs: G&A was $23.2 million, or $1.74 per Boe, against $1.19 a year earlier. Management attributed the increase mainly to $6.7 million of Ohio Utica transaction costs. Source
• Adjusted cash G&A near $0.96 per Boe: Adjusted cash G&A, excluding share-based compensation and acquisition costs, was $12.8 million, or $0.96 per Boe, up $0.09 per Boe year on year. Source
• Production taxes slightly higher: Production taxes were $38.3 million, against $36.1 million in the first quarter of 2025. Per Boe they were $2.87, against $2.97 a year earlier. Source

“With a strong balance sheet and robust free cash flow, we see the potential for meaningful growth ahead”

Adam Dirlam, President

Capital spending and Ground Game

• Capital expenditures of $270.1 million: Capital expenditures excluding non-budgeted acquisitions were $270.1 million: $226.5 million on organic drilling and completion and $43.6 million on Ground Game. Source
• 41 Ground Game transactions closed: The company completed 41 Ground Game transactions adding over 5,100 net acres and 6.14 net wells for $43.6 million, inclusive of associated development costs. Source
• Normalized well costs fell sequentially: Normalized well costs on AFE elections averaged about $749 per lateral foot, down sequentially and from $833 in the first quarter of 2025. Source
• Permian and Appalachia lead spending: Permian Basin took 31% of capital expenditures, Appalachian 28%, Williston 24% and Uinta 17%. Source
• Non-budgeted acquisitions of $466.2 million: The capital table lists $466.2 million of non-budgeted acquisitions in the quarter, which sit outside the $270.1 million capital expenditure figure. Source

Liquidity and shareholder returns

• Liquidity of $1.2 billion: Total liquidity was $1.2 billion at March 31, 2026, including $1.1 billion of committed revolver availability and $37.0 million of cash on hand. Source
• Offering proceeds repaid revolver: The March 2026 offering of 8,288,289 shares raised $227.9 million net, applied to outstanding revolver borrowings. Source
• Dividend unchanged at $0.45: The board declared a $0.45 per share cash dividend in February 2026, payable April 30, 2026, to holders of record at March 30, 2026. Source
• Long-term debt rose to $2,551.5 million: Long-term debt, net was $2,551.5 million at March 31, 2026, up from $2,395.4 million at December 31, 2025. Source

Impairment and income tax

• Ceiling test impairment of $268.3 million: A non-cash ceiling test impairment of $268.3 million was recorded on oil and gas assets, driven by lower average oil prices under the full cost method. Source
• Full cost method applied: The company accounts for its assets under the full cost method, as opposed to the successful efforts method, which does not perform historical price-based asset tests. Source
• Income tax benefit of $173.1 million: Income tax was a benefit of $173.1 million, against expense of $46.8 million a year earlier, following the pre-tax loss. Source

Demand, leasing and strategy

• Operator activity relatively unchanged: Management said operator activity has remained relatively unchanged since the prior quarter despite current volatility. Source
• Leasing added over 70 net locations: Management said the leasing program has added over 70 net locations in the past year, building future value for the company. Source
• Forward prices support activity and M&A: Management cited improvements in 2027 and 2028 forward prices as support for activity durability, M&A market liquidity, and access to high-quality assets. Source
• Williston price realizations improving: Management said field-level price realizations are improving, particularly in the Williston, while hedging insulates the company from seasonal gas price weakness. Source

Coming up, as management said on 28 April 2026

• Well additions to accelerate: Management expects well additions to accelerate through the balance of 2026 after the lower first quarter. Source

Figures management reported

Risks management discussed

• External: Management described the geopolitical environment as creating a dynamic environment for the business. Source
• Operational: Lack of takeaway capacity in the Permian Basin continues to pressure natural gas realizations. Source
• Financial: Lower average oil prices led to a ceiling test impairment, and derivative mark-to-market movements drive the reported GAAP net loss. Source
• Demand: Management said it will continue to monitor operator plans and activity in coming quarters. Source

Earlier plans management reported on

• On track: Management said the first quarter well additions were a lower point, in line with forecast. Source
• On track: Management said the Appalachian joint development program continues to deliver turned-in-line wells according to plan. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.