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Should NOG’s Asset Impairment and Higher Output Guidance Change How Investors View Northern Oil and Gas?

Simply Wall St·11/18/2025 05:23:05
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  • Northern Oil and Gas recently reported a quarterly net loss of US$129.07 million and recognized an oil and gas assets impairment of US$318.67 million for the third quarter ended September 30, 2025, alongside a year-over-year revenue decrease to US$556.64 million.
  • This period also saw Northern Oil and Gas raise its annual production guidance, extend and improve terms on its US$1.6 billion revolving credit facility, and continue its regular dividend payments, despite not repurchasing shares in the latest quarter.
  • We’ll look at how the significant asset impairment and revised production guidance could shift Northern Oil and Gas’s investment narrative.

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Northern Oil and Gas Investment Narrative Recap

To be a shareholder in Northern Oil and Gas, you need confidence in the company’s ability to deliver stable production growth, capitalize on acquisition opportunities, and manage commodity price volatility, all while preserving capital efficiency. The recent US$318.67 million asset impairment and net loss reinforce the importance of watching near-term earnings risk, but do not fundamentally shift the core catalyst: ongoing execution of capital allocation strategies and operational efficiency remain the primary focus for value creation.

Among the latest announcements, the improvement and extension of the US$1.6 billion revolving credit facility stands out. Enhanced terms and a longer maturity to November 2030 could give Northern Oil and Gas more financial flexibility for future acquisitions or balance sheet management, supporting its efforts to withstand commodity price swings, still the biggest short-term risk.

However, investors should be aware that, in contrast to the company’s progress in optimizing its credit facility, risks from potential declines in oil and gas prices remain especially important if...

Read the full narrative on Northern Oil and Gas (it's free!)

Northern Oil and Gas is projected to reach $2.3 billion in revenue and $240.1 million in earnings by 2028. This outlook assumes a 3.7% annual revenue growth rate, but earnings are forecast to decrease by $368.6 million from the current $608.7 million.

Uncover how Northern Oil and Gas' forecasts yield a $32.10 fair value, a 47% upside to its current price.

Exploring Other Perspectives

NOG Community Fair Values as at Nov 2025
NOG Community Fair Values as at Nov 2025

Fair value estimates from 7 members of the Simply Wall St Community range from US$32.10 to US$20,826.44, underscoring wide differences in expectations. With oil and gas price volatility posing a real risk to earnings, you can compare your outlook to a range of alternative views.

Explore 7 other fair value estimates on Northern Oil and Gas - why the stock might be a potential multi-bagger!

Build Your Own Northern Oil and Gas Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.