Northern Oil and Gas (NOG Quick QuoteNOG - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.37, which beat the Zacks Consensus Estimate of 87 cents. The outperformance reflects strong production, with total output beating the consensus mark by 2%. However, the bottom line declined from the year-ago adjusted profit of $1.46 due to weaker year-over-year oil prices and a 55.2% increase in operating expenses.

This oil and natural gas company’s quarterly sales of $574.4 million beat the Zacks Consensus Estimate of $519 million. Moreover, the top line increased from the year-ago figure of $561 million. The year-over-year growth was primarily driven by higher net gains on commodity derivatives, increased oil and gas sales and contributions from other revenue sources.

On Aug. 1, 2025, NOG's board of directors declared a cash dividend of 45 cents per share, indicating a 7% year-over-year increase and matching the previous quarterly payout. The dividend will be distributed on Oct. 31 to its shareholders on record as of the close of business on Sept. 29, 2025.

In the second quarter of 2025, the company executed a repurchase of roughly 1.1 million shares of its common stock, paying an average of $31.15 per share. The transaction coincided with the reissuance of the 2029 Convertible Notes.

The company reported that it finalized the acquisition of assets in Upton County, TX, on April 1, 2025, as previously announced. The transaction, completed with a private operator, added approximately 2,275 net acres to NOG’s portfolio. The total cash payment, after closing adjustments, amounted to $61.7 million.

During the second quarter, the company achieved record Appalachian production, reaching 123.5 MMcf per day. Uinta volumes rose more than 18.5% sequentially, representing a second straight quarter of double-digit growth. Additionally, the company completed 22 Ground Game transactions, acquiring around 2,600 net acres and 4.8 net wells for a total of $31.2 million, including related development expenses.

Northern Oil and Gas, Inc. Price, Consensus and EPS Surprise

Northern Oil and Gas, Inc. price-consensus-eps-surprise-chart | Northern Oil and Gas, Inc. Quote

NOG’s Production Details

The second-quarter production increased 9% year over year to 134,094 barrels of oil equivalent per day (Boe/d). Additionally, the figure beat our estimate of 133,600 Boe/d.

While oil volume totaled 76,944 Boe/d (up 10% year over year), natural gas (and natural gas liquids) amounted to 342,900 thousand cubic feet per day (up 6%). Our model estimate for oil volume and natural gas production was pegged at 77,800 Boe/d and 335,000 cubic feet per day, respectively.

The average sales price for crude was $58.37 per barrel, indicating a 24% decrease from the prior-year quarter’s level of $77.11. Moreover, the figure missed our expectation of $59.75 per barrel.

The average realized natural gas price was $2.89 per thousand cubic feet compared with $2.47 in the year-earlier period. Our model estimate for the same was pinned at $2.99 per thousand cubic feet.

NOG’s Costs & Expenses

Total operating expenses in the quarter rose to $530.6 million from $341.8 million in the year-ago period. This was mainly on account of a surge in production expenses, general and administrative expenses, legal settlement expense, impairment of oil and gas assets, depletion, depreciation, amortization and accretion, and other expenses. Moreover, the metric exceeded our estimate of $377.1 million.

Capital Expenditures of NOG

The company reported capital expenditures of $210 million for the second quarter, excluding non-budgeted acquisitions and other unplanned items. Of this total, $178.8 million was dedicated to drilling and completion activities on organic assets, while $31.2 million was allocated to Ground Game efforts, including associated development costs.

The company reported that 34% of its second-quarter capital expenditures were directed toward the Permian Basin, with 25% allocated to the Williston, 15% to the Uinta and 26% to the Appalachian region. In terms of Ground Game acquisitions, the company completed 22 separate transactions across all four of its operational areas. These deals included a variety of deal structures, collectively adding more than 2,600 net acres and approximately 4.8 net wells slated for current and future development.

NOG’s Financial Position

The company’s free cash flow for the quarter totaled $126.2 million. As of June 30, Northern had $25.9 million in cash and cash equivalents. The company had a long-term debt of $2.4 billion, with a debt-to-capitalization of 49.5%.

NOG’s Guidance

The company anticipates total capital expenditures for 2025 to be between $925 million and $1.05 billion, indicating a $125 million to $150 million reduction from prior guidance due to decreased activity in the Williston Basin and a pullback in discretionary spending. Despite this, capital remains strategically allocated, with approximately 57% directed to the Permian Basin, 17% to the Williston, 16% to the Appalachian and 11% to the Uinta Basin.

Production guidance has been adjusted accordingly. Oil production is now expected in the range of 74,000-76,000 barrels per day and total production at 130,000-133,000 Boe/d. The company plans to turn in line 73-76 net oil wells, with total net wells turned in line and net wells spud each estimated between 83 and 85.

On the cost front, production expenses are anticipated between $9.25 and $9.60 per Boe, supported by production taxes ranging from 7.5% to 8.5% of oil and gas sales. The company expects an average WTI price differential of $5.25 to $5.75 per barrel and gas realizations to reach 85% to 90% of NYMEX Henry Hub pricing. Depreciation, depletion and amortization costs are estimated at $16-$17 per Boe. General and administrative expenses are estimated in the range of 85-90 cents per Boe in cash costs, excluding transaction-related expenses, with non-cash costs between 25 cents and 30 cents per Boe.

The company anticipates net cash proceeds of $48.6 million, following the deduction of roughly $33.1 million related to legal settlement costs. These funds are expected to be received during the third quarter of 2025.

Important Earnings at a Glance

While we have discussed NOG’s second-quarter results in detail, let us take a look at three other key reports in this space.

San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO Quick QuoteVLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.

The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL Quick QuoteHAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.

As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.

Norway-based integrated oil and gas operator, Equinor ASA (EQNR Quick QuoteEQNR - Free Report) , reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.