Shares of Northern Oil & Gas (NOG) plunged 5.03% during intraday trading on Friday, underperforming the broader market. The sharp decline came after the company reported its Q4 2024 earnings, where it revealed a series of operational issues and a weaker production outlook for 2025.

According to NOG's Q4 earnings call, the company faced significant disruptions in the fourth quarter, including forest fires, refinery outages, freeze-offs, shut-ins, and various delays due to weather and logistics issues. These problems led to a substantial number of well completion delays, particularly in the Williston Basin, impacting production levels.

Looking ahead, NOG expects production to remain relatively flat for most of 2025 before ramping up towards the end of the year. The company cited a weighted completion schedule and the timing of its joint venture developments as reasons behind the anticipated production profile.

Additionally, NOG warned of higher workover and refracturing costs in 2025 as its producing well count grows and shale wells age. Despite strong cash flow generation, the company's debt levels are temporarily on the higher end due to a recent acquisition, although management expects leverage to decline by the end of 2025.