Northern Oil and Gas — Third Quarter 2026 Earnings Summary

Financial Performance:

• Oil and natural gas sales totaled $697.7 million for the quarter.
• GAAP net loss was $111.8 million ($1.06 per diluted share), driven by non-cash mark-to-market losses on derivatives.
• Adjusted Net Income was $142.2 million ($1.32 per adjusted diluted share), up from $101.8 million in the third quarter of 2025.
• Record Adjusted EBITDA of $444.5 million, an 11% increase from the second quarter of 2026 and up from $387.1 million in the third quarter of 2025.
• Cash flow from operations was $397.7 million, compared to $321.6 million in the second quarter of 2026.
• Free Cash Flow generated was $148.6 million, a 25.0% increase from the third quarter of 2025.
• Lease operating expenses were $143.5 million ($9.98 per Boe), up 2% per unit from the third quarter of 2025.
• Production taxes were $48.3 million, compared to $28.7 million in the third quarter of 2025.
• General and administrative costs were $18.0 million ($1.25 per Boe), compared to $1.17 per Boe in the third quarter of 2025.
• Adjusted cash G&A was $12.6 million ($0.88 per Boe), down $0.06 per Boe from the second quarter of 2026.
• Total liquidity was $1.6 billion as of September 30, 2026, consisting of $1.577 billion in borrowing availability and $26.4 million in cash.
• Net debt-to-annualized Adjusted EBITDA ratio was 1.47x.

Guidance and Future Outlook:

• Raised 2026 annual production guidance to 147,000–150,000 Boepd (previously 143,000–148,000 Boepd).
• Maintained 2026 total budgeted capital expenditures guidance at $850–$900 million.
• Adjusted 2026 LOE/Production Expenses guidance to $9.75–$9.85 per Boe (previously $9.70–$9.80).
• Adjusted 2026 Production Taxes guidance to 7.00%–7.25% of Oil & Gas Sales (previously 7.5%–8.0%).
• Adjusted 2026 Oil Differential guidance to ($4.00)–($4.50) per Bbl (previously ($5.00)–($5.40)).
• Adjusted 2026 Gas Realization guidance to 77.5%–82.5% of Henry Hub (previously 70.0%–75.0%).
• Adjusted 2026 Cash G&A guidance to $0.85–$0.90 per Boe (previously $0.83–$0.86).
• Expect capital expenditures to trend toward the high-end of the range based on current activity levels.

Business Segments and Product Lines:

• Record quarterly production of 156,239 Boe per day, a 19% increase from the third quarter of 2025 and 7.3% from the second quarter of 2026.
• Record natural gas production of 488,391 Mcf per day, a 39% increase from the third quarter of 2025 and 5.2% from the second quarter of 2026.
• Oil production averaged 74,837 Bbls per day (48% of total production).
• Added 23.9 net wells to production during the quarter, compared to 12.7 net wells in the second quarter.
• Year-to-date, the company added 53.7 net wells to production.
• Appalachian volumes set a production record; Utica joint development activity is accelerating.
• Uinta Assets continued to outperform internal estimates on legacy production and the 2026 development program.
• Completed 19 Ground Game transactions adding over 1,060 net acres and 2.9 net wells for $56.5 million.
• Net producing wells at period end were 1,391.2.

Market and Competitive Landscape:

• Unhedged net realized oil price was $82.83 per Bbl, a 36% increase from $61.08 in the third quarter of 2025.
• Unhedged net realized gas price was $2.84 per Mcf, a 13% increase from $2.52 in the third quarter of 2025.
• Average differential to WTI prices was $2.84, improving 27% from the third quarter of 2025.
• Natural gas realizations improved as Waha pricing normalized and NGL realizations showed strength.
• Capital expenditures were allocated 33% to the Williston Basin, 31% to the Permian, 16% to the Appalachian, 11% to the Duvernay, and 9% to the Uinta.
• Normalized well costs improved 2.9% quarter-over-quarter to approximately $739 per lateral foot.

Risks and Challenges:

• Recorded a non-cash unrealized mark-to-market loss on derivatives of approximately $308.0 million.
• Realized hedge losses were $51.4 million as gains on natural gas hedges were offset by losses on crude oil hedges.
• Forward-looking statements are subject to risks including changes in commodity prices, infrastructure constraints, economic conditions, and regulatory changes.
• Potential impacts from the Dakota Access Pipeline shutdown, legal disputes, and climate regulations are noted.
• Risks associated with convertible notes, including potential dilution and counterparty risk on capped call transactions.

Management Commentary and Tone:

• CEO Nick O'Grady stated the quarter was a record, highlighting that assets are self-funding growth while generating substantial excess cash.
• Management noted that shares trade at a deep discount to asset value, viewing this as an opportunity to be seized.
• Management emphasized that the company is run by investors for investors and intends to keep delivering record results.
• The tone was confident, citing outperformance across all regions and the ability to deliver more production for the same capital budget.

Other Key Points:

• Retired over $100 million of total debt during the quarter.
• Issued $500 million of 7.5% Senior Notes due in 2034 in an oversubscribed offering; proceeds used to pay down revolving credit facility and for general corporate purposes.
• Repurchased 667,989 shares of common stock at an average price of $23.96.
• Board declared a $0.45 per share cash dividend paid on October 30, 2026, and another $0.45 per share dividend declared in November 2026 to be paid January 29, 2027.
• Board authorized a $150.0 million increase to the stock repurchase program in July 2026, bringing total capacity to approximately $227.2 million as of September 30, 2026.
• Completed semi-annual borrowing base redetermination in November; elected commitment remains $1.8 billion and borrowing base remains $1.975 billion.
• Weighted average debt maturity is 5.3 years, with the earliest maturity not until 2029.