Northern Oil and Gas Posts $367M Q4 EBITDA and Expands Appalachia Acreage by 45%
Northern Oil and Gas reported Q4 Adjusted EBITDA of $367M, full-year free cash flow of $424M and over $1B in liquidity after extending its revolver to 2030. Gas volumes rose 24% year-over-year after adding 90,000 net acres in Appalachia, and management affirmed dividend sustainability through the oil trough.
1. Strong Q4 Earnings and Liquidity
Northern Oil and Gas generated $367M in Q4 Adjusted EBITDA and $1.63B for the full year, delivering $424M in free cash flow. The company extended its credit revolver to November 2030, issued $725M of notes and now holds over $1B in available liquidity post-Utica acquisition.
2. Natural Gas Growth and Utica Acquisition
Gas-led production grew 24% year-over-year in Q4, marking a third consecutive record quarter, as the Utica acquisition added approximately 90,000 net acres, a 45% increase to the Appalachia footprint. Management identified over 100 gross drill locations on the acquired asset and is shifting capital toward natural gas.
3. Dividend Designed for Oil Trough
Management reiterated that the dividend was structured to be sustainable in a significantly weaker environment, targeting cash-flow break-even even at the 2026 oil-cycle trough. Executive leadership cited robust hedging and deferral capability as safeguards against lower commodity prices.
4. 2026 Activity Outlook and Capital Shift
The company projects 2026 activity to be roughly split between Permian (40%), Appalachia (25%), Williston (25%) and Uinta (10%), with spending weighted 60/40 to the first half. Capital allocation will favor drill-ready Ground Game projects, smaller M&A opportunities and a strategic tilt toward natural gas over oil.