SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2025

Capitalized internal costs are summarized as follows for the years ended December 31, 2025, 2024 and 2023, respectively:


	December 31,
(In thousands)	2025		2024		2023
Capitalized Certain Payroll and Other Internal Costs	$	934	$	788	$	1,036
Capitalized Interest Costs	3,298		2,383		2,999
Total	$	4,232	$	3,172	$	4,036

The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below.


	December 31,
(In thousands)	2025		2024		2023
Costs Incurred for the Year:
Proved Property Acquisition and Other	$	206,897	$	924,454	$	1,288,437
Unproved Property Acquisition	69,263		$	23,363	$	3,414
Development	901,581		936,959		639,203
Total	$	1,177,741	$	1,884,776	$	1,931,054

The Company is unable to predict the future impact on depletion rates. The following is a summary of capitalized costs excluded from depletion at December 31, 2025 by year incurred.


	December 31,
(In thousands)	2025		2024		2023		Prior Years
Property Acquisition	$	62,332	$	17,661	$	802	$	5,239
Development	—		—		—		—
Total	$	62,332	$	17,661	$	802	$	5,239

Schedule of Depletion and Depletion Per BOE Sold

The following table presents depletion and depletion per BOE sold of the Company’s proved oil and natural gas properties for the periods presented:


	Year Ended December 31,
(In thousands)	2025		2024		2023
Depletion of Proved Oil and Natural Gas Properties	$	810,095	$	736,600	$	482,306
Depletion per BOE Produced	$	16.43	$	16.22	$	13.37

Schedule of Disaggregation of Revenue

The following tables presents the disaggregation of the Company’s oil revenues and natural gas and NGL revenues for the years ended December 31, 2025, 2024 and 2023.


	Twelve Months Ended December 31,
(In thousands)	2025		2024		2023
Oil Sales	$	1,627,493	$	1,897,857	$	1,646,096
Natural Gas and NGL Sales(1)	453,795		254,222		251,683
Total	$	2,081,288	$	2,152,079	$	1,897,779

___________

(1)Balances for the year ended December 31, 2025 include $81.7 million in legal settlement from an Operator in North Dakota.

Schedule of Supplemental Cash Flow Information

The following table reflects the Company’s supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023:


	December 31,
(In thousands)	2025		2024		2023
Supplemental Cash Items:
Cash Paid During the Period for Interest, Net of Amount Capitalized	$	170,862	$	152,061	$	128,943
Cash Paid (refund received) During the Period for Income Taxes, Net
U.S. Federal	(1,484)		—		1,950
U.S. State and Local
New Mexico	—		—		1,010

Pennsylvania	(383)		(26)		*
Texas	550		357		777
Utah	132		—		*
Other	13		1		89
Subtotal U.S. State and Local	312		332		1,876
Total Income Taxes Paid (Refunded), Net	(1,172)		332		3,826

*The amount of income taxes paid during the year ended December 31, 2023 does not meet the 5% disaggregation threshold.




Non-cash Investing Activities:
Capital Expenditures on Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities	328,856		330,977		236,314
Capitalized Asset Retirement Obligations	5,456		8,028		5,413

Compensation Capitalized on Oil and Natural Gas Properties	934		786		280

Accrued Liabilities From Acquisitions of Oil and Natural Gas Properties	—		—		5,168
Issuance of Common Stock - Acquisitions of Oil and Natural Gas Properties	—		3,737		—


Non-cash Financing Activities:

Common Stock Dividends Declared, but not paid	43,914		42,156		40,496



Issuance of Common Stock in Exchange for Warrants	—		23,338		13,328


Repurchases of Common Stock - Excise Tax, Net	258		944		—

NORTHERN OIL & GAS, INC. 10-K