The following is a summary of the Northern Oil and Gas, Inc. (NOG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Northern Oil and Gas reported a record Q1 production of more than 119,000 BOE per day, a 37% increase compared to Q1 of 2023.

• The company had a slightly higher than planned CapEx of $296 million due to pull-forward of organic activity driven by strong oil prices.

• Adjusted EBITDA for Q1 was $387 million, marking a 19% increase from last year, despite the drop from the previous quarter as a result of lower average realized prices per BOE.

• The company managed to reduce its debt by around $50 million, despite spending $60 million for share repurchases and dividends.

• The Q1 free cash flow was lower than expected at $54 million due to the pull-forward of activities.

Business Progress:

• Northern Oil and Gas continues to examine potential acquisition opportunities, despite the challenges of high bid-ask spreads and the risk of high crude prices.

• The company stayed on track for its growth plans, leading to a peak of growth capital in midyear with expected acceleration of free cash flow in Q2.

• Northern Oil and Gas secured an improvement of about $40 million in working capital since the end of the year.

• The company aims to increase the dividend, allocate more towards buybacks or for growth prospects by 2025.

• Over 30 potential transactions were evaluated in Q1, with the company active in over 10 processes involving asset values between $100 million and $1 billion.

• The company looks forward to a volatile market as an opportunity, while ensuring to maintain asset quality and operational efficiency, and aims to maintain resilience in the face of challenges such as the upcoming election year and gas price lows.

More details: Northern Oil & Gas IR

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