Northern Oil and Gas, Inc
Northern Oil & Gas, Inc. is a U.S.-based independent energy company that acquires, explores, develops, and produces oil and natural gas properties as a non-operator. Its portfolio is concentrated in major U.S. unconventional basins, including the Williston, Permian, Appalachian, and Uinta basins, where it participates alongside operating partners.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueMinority working interests in wells operated by third parties across U.S. basins.
Royalty-like and mineral ownership interests tied to production from leased acreage.
Purchased producing and development properties that expand the asset base.
Hedging instruments used to manage oil and gas price exposure.
Customers
Northern Oil & Gas does not sell to end consumers in the usual sense; its revenue comes from the sale of oil, natural gas, and NGLs produced from properties in which it owns interests. Those volumes are marketed by operating partners and sold into commodity markets at prevailing prices, so the effective counterparties are commodity purchasers, marketers, and midstream transport systems. The company’s economic exposure is therefore tied to basin-level production, transportation access, and benchmark pricing rather than a traditional customer base.
Refiners, marketers, and gas purchasers that buy produced volumes at market-linked prices.
Third-party operators that market and sell production from wells in which NOG participates.
Pipeline, rail, and trucking networks that enable delivery to market and affect realized pricing.
Financial institutions and trading counterparties used for crude oil and gas hedges.
Strategy
Northern Oil & Gas focuses on acquiring and holding non-operated minority interests across premier U.S. shale basins, allowing it to diversify across many wells and operators. It also uses hedging to reduce commodity price volatility and preserve cash flow visibility while continuing to add acreage and producing assets through acquisitions and participation in new wells.
This model gives exposure to large resource plays without operating overhead.
A broad well base reduces dependence on any single operator or project.
Hedging helps stabilize cash flows in a price-sensitive business model.
Geography
The company’s acreage and operations are concentrated in the United States, with core exposure to the Williston, Permian, Appalachian, and Uinta basins. Its reported acreage is entirely U.S.-based, and production is sold into domestic commodity markets where realized prices depend on local differentials, transportation access, and benchmark links. Geography matters because basin mix and takeaway capacity influence both production growth and the price received at the wellhead.
Risks
The business is highly exposed to oil and natural gas price volatility, because realized revenue depends on benchmark prices, local differentials, and production volumes. As a non-operator, the company also depends on third-party operators for drilling execution, marketing, and transportation, while its crude shipments face rail and pipeline logistics and regulatory risk. Full-cost accounting and reserve estimates add financial statement sensitivity through ceiling-test impairments when commodity prices weaken.
- Oil and natural gas price volatilityImpact: HighLikelihood: High
Revenue and cash flow are tied to market prices for produced volumes.
Exposure: Oil and gas sales
- Reserve and impairment riskImpact: HighLikelihood: High
Lower commodity prices can reduce proved reserve values and trigger ceiling-test write-downs.
Exposure: Full-cost oil and gas properties
- Operator dependenceImpact: HighLikelihood: Medium
The company relies on third-party operators for drilling, completion, and marketing.
Exposure: Non-operated working interests
- Rail transportation and logistics riskImpact: MediumLikelihood: Medium
A portion of crude is shipped by rail, creating derailment and regulatory exposure.
Exposure: Crude oil transportation
- Hedging and derivative riskImpact: MediumLikelihood: Medium
Hedges reduce volatility but can also limit upside and create mark-to-market swings.
Exposure: Commodity derivatives
Accounting
Judgemental itemsCapitalized costs cannot exceed the ceiling based on proved reserve value.
Impact: Can cause large non-cash write-downs in weak price environments
Swaps and hedges are remeasured to fair value and settled gains/losses flow through results.
Impact: Creates earnings volatility and affects cash flow presentation
Reserve volumes and price assumptions drive depletion and impairment tests.
Impact: Changes can materially alter reported asset values and DD&A
Acquired properties and new wells change the depreciable base and unit-of-production depletion.
Impact: Affects expense recognition timing across periods
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Last updated: 24/09/2026