In a report released yesterday, Noah Hungness from Bank of America Securities reiterated a Buy rating on Northern Oil And Gas, with a price target of $28.00.
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Noah Hungness has given his Buy rating due to a combination of factors including Northern Oil and Gas’s strategic acquisitions and operational improvements. The company recently completed a significant acquisition of royalty and mineral interests in Utah, which is expected to enhance their production capacity by adding approximately 900 barrels of oil equivalent per day by 2026. This acquisition is projected to generate substantial unhedged cash flow, contributing positively to the company’s financial outlook.
Additionally, Northern Oil and Gas has been actively expanding its ground game program, investing in new wells and acreage. This expansion includes a joint development agreement in the Williston Basin, which is anticipated to be a growing trend in the region. The company’s upward revision of its 2025 production guidance further supports a positive outlook, with increased oil production estimates and a refined capital expenditure plan. These strategic moves and financial projections underpin the Buy rating, suggesting potential for stock price appreciation.
Hungness covers the Energy sector, focusing on stocks such as Northern Oil And Gas, Matador Resources, and Kimbell Royalty Partners. According to TipRanks, Hungness has an average return of -1.3% and a 40.74% success rate on recommended stocks.