Northern Oil and Gas Reports 8% Production Increase in Q3 Amid Negative Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Production Growth: Northern Oil and Gas reported a production increase of over 131,000 barrels per day in Q3 2025, an 8% rise from the same quarter in 2024, indicating the company's resilience despite a 9% revenue decline due to weak energy prices.
- Cash Flow Challenges: While the company generated $2.2 billion in revenue over the past 12 months, it reported negative free cash flow of $177 million, which could pose a threat to its valuation and requires investor attention on future profitability improvements.
- Attractive Dividend Yield: With an 8.2% dividend yield significantly higher than Chevron's 3.2%, Northern Oil and Gas offers a stable income source for investors, although future dividend payouts may be at risk if earnings do not improve substantially.
- Unique Business Model: By holding minority stakes in over 11,000 wells, Northern Oil and Gas avoids high exploration costs, allowing for diversified investments across major oil-producing regions, although this strategy may impact cash flow in the short term.
Analyst Views on NOG
Wall Street analysts forecast NOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOG is 28.86 USD with a low forecast of 25.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 22.560
Low
25.00
Averages
28.86
High
34.00
Current: 22.560
Low
25.00
Averages
28.86
High
34.00
About NOG
Northern Oil and Gas, Inc. is a real asset company that focuses on acquiring and investing in non-operated minority working and mineral interests in the hydrocarbon producing basins. The Company is engaged as a non-operator in the acquisition, exploration, development and production of oil and natural gas properties in the United States, primarily in the Williston Basin, the Permian Basin, the Appalachian Basin and the Uinta Basin. Its portfolio comprises 300,000 acres of low-breakeven land with over 10,000 wells. Diversified by basin and across commodity type, its wells are operated by over 100 public and private operators. It engages in oil and natural gas exploration and production by participating on a proportionate basis alongside third-party interests in wells drilled and completed in spacing units that include its acreage. In addition, it acquires wellbore-only working interests in wells in which it does not hold the underlying leasehold interests from third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
