Strong Cash Flow Growth Drives BofA’s Bullish Case for Northern Oil (NOG)

Northern Oil and Gas Inc. (NYSE:NOG) is one of the deep value stocks to buy according to analysts. NOG’s shares have lost more than a third of their value so far this year, and continue to trade near the bottom of their 52-week range. Despite the share price pressure, Bank of America Securities analyst Noah Hungness reiterated a Buy rating on the shares with an unchanged price target of $33, on July 31. The update followed the company’s second-quarter earnings, which came in ahead of expectations. Adjusted EBITDAX (X stands for exploration expenses) reached $440 million, supported by record natural gas output from its Appalachian assets.

A group of oil and gas workers in safety gear inspecting a well head.

While lease operating expenses were higher, Northern Oil still generated free cash flow above expectations. Management also updated its 2025 guidance, cutting capital spending but maintaining strong free cash flow forecasts. Hungness noted that this shift should improve financial flexibility and create room to pursue incremental opportunities in the market.

Looking ahead, the analyst sees continued free cash flow growth into 2026, aided by stable production and cost discipline, which in turn supports further deleveraging.

Northern Oil and Gas Inc. (NYSE:NOG) is an independent energy company that focuses on acquiring, developing, and producing oil and natural gas properties across the United States. The company operates as a non-operator, with a primary presence in the Williston, Permian, Appalachian, and Uinta Basins.

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Disclosure: None. This article is originally published at Insider Monkey.