Q1 2026 Northern Oil and Gas Inc Earnings Call Transcript
Key Points
- Northern Oil & Gas Inc (NOG) reported a strong first quarter with production exceeding internal expectations, particularly in Appalachia and the Williston Basin.
- The company achieved a record first quarter with 41 transactions, adding over 5,100 net acres and 6 net wells, demonstrating robust ground game activity.
- NOG's diversified and scaled platform delivered a 6% sequential increase in average daily production, reaching over 148,000 BOE per day, a company record.
- The company maintains a strong financial position with over $1.2 billion in liquidity and an additional $175 million of untapped liquidity.
- NOG's leasing program added over 70 net locations in the last year, enhancing its inventory and positioning it well for future growth.
- The company faced a non-cash mark-to-market loss on derivatives of approximately $521 million due to a surge in oil prices, impacting GAAP net income.
- NOG experienced a non-cash impairment charge of $268 million, attributed to its use of the full cost method for asset accounting.
- Natural gas realizations were weak, particularly in the Permian, due to ongoing market constraints, with expectations of continued weakness until infrastructure projects come online.
- The geopolitical situation, particularly the war in Iran, has introduced significant volatility and uncertainty, affecting long-term planning and activity levels.
- Despite strong performance, the company has not updated its 2026 guidance due to the significant level of volatility in commodity prices and macroeconomic conditions.
Greetings, and welcome to the NOG's first-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Evelyn Infurna, Vice President, Investor Relations. Thank you. You may begin.
Good morning. Welcome to NOG's first-quarter 2026 earnings conference call. Yesterday after the close, we released our financial results. You can access our earnings release and presentation in the Investor Relations section of our website at noginc.com. We will be filing our March 31, 2026, 10-Q with the SEC within the next few days.
I'm joined this morning by our Chief Executive Officer, Nick O'Grady; our President, Adam Dirlam; our Chief Financial Officer, Chad Allen; and our Chief Technical Officer, Jim Evans. Our agenda for today's call is as follows: Nick will provide introductory remarks followed by Adam, who will share an overview of NOG's operations and business development activities,
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