Northern Oil & Gas Reports Strong Hedging Results

By Tamara Parker • Thursday, July 24 15:32 • Permanent Link

Northern Oil and Gas, Inc. (NYSE: NOG) has released its second-quarter update, which includes details on hedging results, ground game progress, and a significant legal settlement. The company reported unrealized mark-to-market gains on derivatives for the second quarter to be in the range of $65 * $70 million, with realized hedge gains estimated at $58 * $63 million.

In terms of hedging, Northern Oil and Gas, Inc. has significantly increased its hedged volumes for both oil and natural gas compared to the previous quarter. The company had an average of over 50,000 barrels per day of oil hedged for the second half of 2025, an increase from the previous quarter, and an average of over 30,000 barrels per day of oil hedged for 2026. Additionally, the company has an average of over 200 million MMBtu per day of natural gas hedged for the second half of 2025 and an average of over 175 million MMBtu per day of natural gas hedged for 2026. This represents a substantial increase in hedged volumes from the previous quarter.

The company also provided an update on its ground game transactions, noting that it completed 22 transactions in the second quarter, adding 4.8 net wells and approximately 2,600 net acres. This activity represents significant progress compared to the previous quarter.

Furthermore, Northern Oil and Gas, Inc. disclosed a material settlement of a legal matter, stating that it entered into a settlement agreement with an operator in North Dakota, resulting in the company receiving approximately $81.7 million, recorded within oil and gas sales in its June 30, 2025, condensed statements of operations. The company expects to receive a net cash settlement of $48.6 million after deducting approximately $33.1 million in legal settlement expenses.

The company also expects to take a non-cash impairment charge of $112 * $120 million in the second quarter of 2025 under the “ceiling test” of the full cost pool on its assets, which will have no impact on cash flows.

The market has reacted to these announcements by moving the company's shares 2.17% to a price of $28.68. Check out the company's full 8-K submission here.

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