Northern Oil and Gas, Inc.

All participants are in a listen-only mode. The question and answer session will follow the formal presentation. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Evelyn Inferno, Vice President, Investor Relations, thank you. You may begin.

Good morning. Welcome to NOG First Quarter 2025 Earnings Conference Call. Yesterday, after the close, we released our financial results. You can access our earnings release and presentation in the Investor Relations section of our website at NOGinc.com. We will be filing our March 31st 10-Q with the SEC within the next few days. I'm joined this morning by our Chief Executive Officer, Nick O'Grady, our President, Adam Derlam, and our Chief Financial Officer, Chad Allen, and our Chief Technical Officer, Jim Evans. Our agenda for today's call is as follows. First, Nick will provide his introductory remarks, and Adam will give you an overview of operations and business development activities, and Chad will review our financial results. After our prepared remarks, the team will be available to answer any questions. Before we begin, let me cover our safe harbor language. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements within the meaning of the private securities litigation or format. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by our forward-looking statements. Those risks include, among others, matters that have been described in our earnings release as well as our filings with the SEC, including our annual report on Form 10-K and our quarterly report on Form 10-Q. We disclaim any obligation to update these fellow committee statements. During today's call, we may discuss certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Reconciliations of these measures to the close measures can be found in our earnings release. With that, I'll turn the call over to Nick.

Thank you, Evelyn. Welcome and good morning, everyone, and thank you for your interest in our company. The recent market volatility and changing outlook for commodities provides the perfect opportunity to give perspective on NOG's adaptability in six key points. Number one, we are in the catbird seat. NOG operates with a uniquely adaptable model. No re-contracts, no frack commitments, no field offices, and non-consent rights across the vast majority of our joint ventures and assets. This economic machine adjusts activity based solely on marketplace dynamics, focusing singularly on profitability. As commodity prices weaken, spending will naturally slow, but absent significant shut-ins or curtailments, volume effects should remain modest with stable leverage levels. Our model's inherent flexibility ensures dynamic capital allocation centered on returns with the ability to use any downturn to add acreage and working interests in core areas on a countercyclical basis. Number two, strength in numbers. In Q1, with oil at around 70 and gas at around 350, NOG put forth incredible numbers. generating $136 million in free cash flow and $94 million after dividends, with minimal contribution from hedge gains. This year's budget incorporates hundreds of millions in growth capital, yet requires less than $900 million in sustaining capital, demonstrating NOG's capacity to tighten spending if needed. Over 60% of expected production is hedged for 2025, and we have additional protection beyond, ensuring resilience amid commodity cycles. Our leverage remains extremely low on an absolute basis, offering a cushion to navigate market shifts confidently. Number three, opportunity in uncertainty. Historical cycles show that pricing resets create valuable opportunities for capital reallocation. NOG has a proven track record, most notably during 2020, of leveraging downturns for high return investments such as small-scale acquisitions. As capital becomes scarce, our model allows us to flex towards creating long-term value with exceptional returns. Number four, understanding commodity cycles. The cyclical nature of commodities means that low prices often serve as a reset for higher prices in future periods. While short-term volatility may challenge perceptions, NOG's hedging strategy and non-op model ensure resilience. Patient investors will benefit as long-term implications unfold, creating opportunities for growth in our business and value creation. Number five, outlook and strategy. The duration of pricing troughs will be key in shaping activity levels. To the extent our operators indicate a change in activity, which leads to the lower end of capital spending, this provides NOG with increased flexibility between organic and ground-gain capital allocations. Reductions in rate counts and activity, if they transpire, ultimately drive higher prices, reinforcing the cyclical nature of this sector. Number six, capital allocation focused on returns. NOG remains committed to risk-adjusted capital allocation, balancing ground game investments, debt reduction, and share buybacks. As Adam will discuss further, we're already seeing opportunities arise out of what's transpired year to date. Every decision we make revolves around creating long-term value without excessive dependence on predicting commodity cycles. NOG's Q1 results definitively showcase the strength of our asset base. Past cycles, such as those in 2020, demonstrate our ability to create significant value during downturns, and we are motivated to seize on the opportunities presented by current market conditions. We are fortunate to have strategically aligned ourselves with some of the best and most efficient operators in the industry that will be aligned to adapt alongside them with any market. Thank you again for listening and for your continued interest in our company. Adam?