# Northern Oil and Gas, Inc > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Northern Oil and Gas, Inc). ## Overview 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. ## Products & services • Non-operated working interests in oil and gas wells • Mineral interests in producing and undeveloped acreage • Acquisition of oil and natural gas properties • Exploration and development participation in U.S. basins • Commodity hedging for oil and gas production - **Non-operated oil and gas interests** (70%) — Minority working interests in wells operated by third parties across U.S. basins. - **Mineral interests** (20%) — Royalty-like and mineral ownership interests tied to production from leased acreage. - **Acquisition-driven portfolio growth** (5%) — Purchased producing and development properties that expand the asset base. - **Commodity derivative gains and settlements** (5%) — Hedging instruments used to manage oil and gas price exposure. - Non-operated working interests in oil and gas wells - Mineral interests in producing and undeveloped acreage - Acquisition of oil and natural gas properties - Exploration and development participation in U.S. basins - Commodity hedging for oil and gas production ## 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. - **Oil and gas commodity buyers** (primary) — Refiners, marketers, and gas purchasers that buy produced volumes at market-linked prices. - **Operating partners** (primary) — Third-party operators that market and sell production from wells in which NOG participates. - **Midstream transport providers** (secondary) — Pipeline, rail, and trucking networks that enable delivery to market and affect realized pricing. - **Derivative counterparties** (secondary) — Financial institutions and trading counterparties used for crude oil and gas hedges. - Commodity purchasers buying crude oil, natural gas, and NGLs - Operating partners that market production from NOG-owned interests - Midstream transport and storage networks that move produced volumes - Refiners and marketers that buy crude tied to spot benchmarks - Gas buyers and index-linked counterparties for short-term sales ## 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. - **United States** (100%) — All leased acreage reported as located in the U.S. - All reported acreage is located in the United States - Core basins include Williston, Permian, Appalachian, and Uinta - Production is sold into U.S. commodity markets - Rail and pipeline access affect realized oil and gas prices - Basin mix shapes oil weighting and development opportunities ## 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. - **Acquire and develop non-operated interests in core basins** (medium-term) — This model gives exposure to large resource plays without operating overhead. - **Maintain diversification across operators and wells** (short-term) — A broad well base reduces dependence on any single operator or project. - **Hedge commodity exposure** (short-term) — Hedging helps stabilize cash flows in a price-sensitive business model. - Expand non-operated positions across major U.S. unconventional basins - Diversify across many wells and operators to reduce single-asset risk - Use well-by-well participation to control capital timing and exposure - Pursue acquisitions that add producing wells and undeveloped acreage - Hedge a substantial portion of expected oil and gas production ## 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 volatility** [high] — Revenue and cash flow are tied to market prices for produced volumes. - **Operator dependence** [high] — The company relies on third-party operators for drilling, completion, and marketing. - **Rail transportation and logistics risk** [medium] — A portion of crude is shipped by rail, creating derailment and regulatory exposure. - **Reserve and impairment risk** [high] — Lower commodity prices can reduce proved reserve values and trigger ceiling-test write-downs. - **Hedging and derivative risk** [medium] — Hedges reduce volatility but can also limit upside and create mark-to-market swings. - Commodity price swings directly affect revenue, cash flow, and reserve value - Dependence on third-party operators limits control over drilling and timing - Rail transport of crude oil creates accident, regulatory, and liability risk - Pipeline and gathering constraints can widen price differentials - Full-cost ceiling tests can trigger large non-cash impairments ## Accounting Northern Oil & Gas uses the full cost method, so capitalized oil and gas property costs are subject to ceiling-test impairment when estimated future net revenues fall. Derivative contracts are marked to market, which can create period-to-period earnings volatility even when the underlying production is stable, and reserve estimates remain a key judgment area because they drive depletion and impairment calculations. - **Full cost ceiling impairment** — Can cause large non-cash write-downs in weak price environments - **Commodity derivative accounting** — Creates earnings volatility and affects cash flow presentation - **Reserve estimates** — Changes can materially alter reported asset values and DD&A - **Production and acquisition accounting** — Affects expense recognition timing across periods - Full cost ceiling test can create large non-cash impairments - Reserve estimates affect depletion and asset valuation - Commodity derivatives are marked to market each period - Hedge settlements and unrealized gains/losses affect earnings - Production declines and acquisition accounting affect DD&A --- *Last updated: 2026-09-24T11:25:03.958677+00:00*