We recently published a list of 12 High Growth Oil Stocks to Buy. In this article, we are going to take a look at where Northern Oil and Gas, Inc. (NYSE:NOG) stands against other high growth oil stocks to buy.

The oil and gas sector remains a cornerstone of the global economy, driving industries from transportation to manufacturing. Despite the accelerating shift toward renewable energy, oil continues to account for a substantial share of the world’s primary energy supply. According to the International Energy Agency (IEA), global oil demand is projected to increase by approximately 3.2 million barrels per day by 2030 compared to 2023 levels.

Technological Advancements:

Technological advancements have revolutionized oil exploration and production, delivering measurable improvements in efficiency and cost reduction. Innovations in hydraulic fracturing and horizontal drilling have significantly boosted U.S. shale production. The Energy Information Administration (EIA) reported that U.S. crude oil production has reached approximately 13 million barrels per day in recent years. These technologies have made previously unprofitable reserves economically viable, enhancing the industry’s resilience.

US Crude Oil Production:

The U.S. Energy Information Administration (EIA) further projects that U.S. crude oil production will average 13.6 million barrels per day (b/d) in 2026, an increase from the 13.2 million b/d recorded in 2024. This growth is primarily driven by enhanced efficiency in drilling operations and increased output from the Permian Basin, which is expected to account for over 50% of U.S. crude oil production by 2026. In addition to U.S. growth, global liquid fuel production is expected to increase by 1.7 million b/d in 2025, according to EIA. This is driven by both the relaxation of OPEC+ production cuts and further growth from non-OPEC countries such as Canada, Brazil, and Guyana.

Emerging Markets:

Emerging markets are poised to be the primary drivers of future oil demand. India and other emerging Asian economies are anticipated to contribute a combined 500,000 barrels per day to the increase in demand. This surge is largely attributed to the expanding middle classes and the increasing energy needs of developing economies.

Margers and Acquistion:

Concurrently, the oil industry is undergoing significant consolidation. Recent mergers and acquisitions have been valued at $150 billion according to Enverus Intelligence Research, as companies seek to streamline operations, expand reserves, and harness economies of scale.

Our Methodology

To compile a list of the 12 High-Growth Oil Stocks to Buy, we first used the Finviz stock screener to identify oil companies with over 20% revenue growth over the last five years. We then cross-checked the data on Reuters to verify financial health and growth potential before finalizing our selection. Finally we ranked these companies according to their revenue growth over the last five years.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

An aerial view of an oil and gas platform in the middle of the ocean, representing the massive resources harvested by the company.

Northern Oil and Gas, Inc. (NYSE:NOG)

Revenue growth past 5 years: 36.34%

Northern Oil and Gas, Inc. (NYSE:NOG) is a real asset company that specializes in acquiring and investing in non-operated minority working and mineral interests across key U.S. hydrocarbon basins. Its diversified portfolio includes low-breakeven land and wellbore-only working interests, allowing it to participate proportionately in oil and gas development. NOG is one of the best high growth stocks to buy.

Northern Oil and Gas, Inc. (NYSE:NOG) continues to expand its footprint in the Permian Basin with a $40 million acquisition of assets in Upton County, Texas, announced on February 11, 2025. The deal includes 2,275 net acres in the Midland Basin. This strengthens the company’s non-operated working interest portfolio in one of the most prolific oil-producing regions in the U.S.

Northern Oil and Gas, Inc. (NYSE:NOG) posted strong Q4 2024 results, with production reaching 131,777 barrels of oil equivalent per day, marking a 15% increase from the prior year. The company generated $515 million in total revenue, with GAAP net income of $71.7 million and earnings per share of $0.71. Adjusted net income was $111.8 million, while adjusted EBITDA reached $406.6 million. Free cash flow for the quarter stood at $96.4 million, despite capital expenditures of $258.9 million.

On February 25, 2025, Citigroup maintained its Buy rating on the stock but lowered its price target from $55 to $45.

Overall, NOG ranks 6th on our list of high growth oil stocks to buy. While we acknowledge the potential for NOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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