Northern Oil and Gas (NOG) Stock Analysis & Winston Score

Northern Oil and Gas is an oil and gas company that owns small ownership stakes in hundreds of oil and natural gas wells across the United States. Instead of running its own drilling operations, it partners with larger energy companies — called operators — who do the actual drilling and day-to-day work. The company focuses mainly on the Williston Basin in North Dakota and Montana, the Permian Basin in Texas, and the Appalachian region. Northern Oil and Gas makes money by collecting its share of revenue from oil and natural gas sales based on its ownership percentage in each well. It operates entirely in the U.S. and generates roughly $1.5 billion in annual revenue. Its unusual "non-operator" business model keeps costs low since it avoids the heavy expenses of running drilling equipment, but it also means the company depends heavily on its partners to make good decisions. The biggest risk the company faces is falling oil and gas prices, which directly reduce its income since it sells a commodity with no control over the market price.