Northern Oil and Gas boosts production guidance, closes Uinta royalty acquisition

[Permian Basin In West Texas In The Spotlight As Oil Prices Soar]
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Northern Oil and Gas (NYSE:NOG [https://seekingalpha.com/symbol/NOG]) +1.4% post-market Tuesday after providing updated guidance [https://seekingalpha.com/pr/20274397-nog-provides-third-quarter-update] on production and capital spending, and an update on ground game transactions and a recent bolt-on acquisition.

Northern (NYSE:NOG [https://seekingalpha.com/symbol/NOG]) increased FY 2025 production guidance to 75,000-76,500 bbl/day and 132,500-134,000 boe/day for oil and total volumes, respectively, from its previous outlook of 74,000-76,000 bbl/day and 130,000-133,000 boe/day, following better than expected well performance across all four active basins.

Q3 total production is expected to come in at ~131,000 boe/day, with oil production of 72,200-72,300 bbl/day, which is expected to mark the low period for the year, but given the significantly stronger than expected well performance, as well as the increase in development activity, production volumes are poised to increase significantly as 2025 exits.

Northern (NOG [https://seekingalpha.com/symbol/NOG]) said it expects $272 million in capital expenditures for Q3, driven primarily by robust ground game success, while tightening full-year capital spending guidance to $950 million-$1.025 billion from $925 million-$1.05 billion previously.

The company said its ground game program notched another Q/Q increase deploying $59.8 million of acquisition and development capital with 22 transactions and three trades across all four of its basins, adding over 2,500 net acres and 5.8 net wells; it also closed on its acquisition of ~1,000 net royalty acres located in the Uinta Basin in August for a purchase price of $98.3 million.

MORE ON NORTHERN OIL AND GAS

* Northern Oil and Gas: Note Refinancing Pushes Next Note Maturity Until 2029 [https://seekingalpha.com/article/4829202-northern-oil-and-gas-note-refinancing-pushes-next-note-maturity-until-2029]
* Northern Oil and Gas: Capex Reduction Improves Near-Term Free Cash Flow [https://seekingalpha.com/article/4822655-northern-oil-and-gas-capex-reduction-improves-near-term-free-cash-flow]
* Northern Oil and Gas: A Fair Income Play With Potential Price Recovery [https://seekingalpha.com/article/4797210-northern-oil-and-gas-a-fair-income-play-with-potential-price-recovery]