Mizuho Cuts Northern Oil and Gas (NOG) PT to $32, Keeps Neutral Rating

Northern Oil and Gas Inc. (NYSE:NOG) is one of the most undervalued stocks to buy and hold for 3 years. On July 16, Mizuho lowered its price target for Northern Oil and Gas/NOG to $32 from $33, while maintaining a Neutral rating on the shares. The adjustment came as part of Mizuho’s Q2 preview, as the firm anticipates NOG will reduce its 2025 capital expenditure budget and volume guidance due to decreased activity.

The company achieved a record Adjusted EBITDA of ~$435 million in Q1 2025. Total average daily production reached ~ 135,000 BOE per day, which was a 2.5% increase sequentially and a 13% increase year-over-year. Oil production remained flat at ~79,000 barrels per day compared to the last quarter, while gas production contributed 42% to the mix, which was up 6.5% sequentially and 14% year-over-year.

Capital expenditures in Q1 were ~$250 million, with 57% allocated to the Permian Basin. Northern Oil and Gas operates with a flexible model for capital allocation and has demonstrated strong financial performance, including 21 consecutive quarters of positive free cash flow, which total over $1.7 billion since 2020. Over 60% of its expected 2025 production is hedged.

Northern Oil and Gas Inc. (NYSE:NOG) is an independent energy company that acquires, explores, exploites, develops, and produces crude oil and natural gas properties in the US.

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