Northern Oil & Gas provided a Q2 operational update reporting estimated unrealized mark-to-market gains on derivatives of $155.0–$160.0 million and realized hedge losses of $85.0–$90.0 million. The company reiterated its 2026 production and capital expenditure guidance and increased its share repurchase authorization to approximately $243.0 million. NOG closed ground game deals adding over 2,300 net acres and 6.2 net wells and completed the Duvernay joint development acquisition on June 1.

Financial Highlights

  • Estimated unrealized mark-to-market gains on derivatives for Q2: $155.0–$160.0 million.
  • Estimated realized hedge losses for Q2: $85.0–$90.0 million (primarily driven by oil hedges).
  • Anticipates de minimis gains or losses on hedge book for H2 2026 at current strip prices.
  • Second-quarter capital expenditures expected to be in the $190.0–$200.0 million range.
  • Authorized share repurchase program increased to approximately $243.0 million after a $150.0 million board authorization on July 10, 2026.

Business Highlights

  • Reiterated 2026 production and capital expenditure guidance based on development schedule and improving field performance.
  • Approximately 7,000 Boe/d were shut in during Q2 across April–June (notably Novo assets) due to negative Waha realizations; shut-ins largely returned by quarter end as Waha pricing normalized.
  • Deferred ~3 net turn-in-lines to Q3 that were undergoing completion at quarter end and expected to TIL in Q3, supporting higher oil production going forward.
  • Ground game activity: 30 deals closed in Q2, adding over 2,300 net acres and 6.2 net wells; deployed roughly $45.0 million in acquisition and associated development capital, with ~80% of capital focused on Permian, Williston, and Uinta basins.
  • Closed Duvernay joint development acquisition on June 1 for CA$237.0 million in cash (including a CA$37.5 million deposit) plus ~3.7 million common shares at $22.06 per share.
  • Repurchased 2.95 million shares (~3% of outstanding) in Q2 at an average price of $20.37, largely offsetting shares issued for the Duvernay acquisition.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.