Northern Oil and Gas reports strong Q2 results with adjusted EBITDA up 17% sequentially and production growth despite Permian curtailments.
Northern Oil and Gas posted a 400% sequential increase in free cash flow to $159 million in the second quarter, driven by higher adjusted EBITDA and production growth. Adjusted EBITDA rose 17% from the prior quarter, while total production climbed 9% year over year despite temporary Permian Basin curtailments due to weak Waha natural gas prices.
The company repurchased 2.95 million shares during the quarter and expanded its buyback authorization to $243 million. It also paid a $0.45 quarterly dividend, which management stated was covered multiple times by free cash flow. Northern Oil and Gas is integrating its Duvernay acquisition and expects 2026 adjusted EBITDA of $1.4 billion to over $1.5 billion.
Management highlighted the benefits of its diversified non-operated portfolio, which helped mitigate the impact of Permian curtailments. The company continues to pursue drilling opportunities through acquisitions and leasing.