Northern Oil And Gas (4LT1) Q2 2026 Earnings Report

The call emphasized clear operational and financial momentum: sequential EBITDA growth (+17%), a large QoQ free cash flow improvement (>400%), strong YoY production and gas volume gains (+9% and +35%), and continued M&A and shareholder return activity (repurchases, dividend). Management also acknowledged near-term headwinds including Q2 Waha-driven curtailments, prior Permian logistics constraints, LOE dynamics from aging wells, and a persistent public-market valuation disconnect despite claiming substantial asset upside. On balance, the company presented multiple tangible wins and a constructive forward outlook while identifying manageable risks that the team has plans to address.

Management's guidance emphasized strong cash‑flow generation: at current strip prices they expect roughly $1.4–$1.5 billion of adjusted EBITDA for 2026, supported by $850–$900 million of D&C capital that should produce about $375–$500+ million of free cash flow; they also flagged Q2 budgeted capex of $196 million (≈$151M D&C, $45M ground game) and normalized well costs of $761 per lateral foot, noting modest incremental spending could grow volumes while preserving FCF. To underpin that outlook, Q2 results showed adjusted EBITDA up 17% sequentially, free cash flow of $159 million (>400% vs. Q1), total production +9% YoY (gas +35% YoY, +5% QoQ), over $1 billion of liquidity, a $0.45/share dividend (~$48M) described as "several times" covered, 2.95 million shares repurchased (~3% of shares) at a $20.37 average, and an increased repurchase authorization to ≈$243 million.