Raymond James lowered its price target on Northern Oil and Gas to $30 from $35 while reiterating an Outperform rating. The revision follows the company's agreement to acquire a 25% non-operated stake in Parallax Energy's Duvernay East Shale Basin assets for $259 million, a deal expected to add roughly 4 MBoe/d of production in fiscal 2027 and about 75,000 net acres with below-average operating costs. During the first-quarter 2026 earnings call, CFO Chad Allen said 2026 guidance remains unchanged due to unpredictable commodity prices and economic conditions, with the company tracking toward the upper end of its low-activity scenario. Allen added that natural gas realizations in the Permian Basin are likely to stay under pressure until new infrastructure projects come online in the second half of 2026, and a clearer outlook is expected with second-quarter results.
Northern Oil & Gas IncRaymond James lowered price target to $30 from $35 but maintained Outperform rating, reflecting mixed analyst sentiment.
Parallax Energy sold a 25% stake in its Duvernay East assets, implying a need for capital or reduced ownership.