NORTHERN OIL GAS INC

Previous wording

Our primary strategy is to invest in non-operated minority working and mineral interests in oil and gas properties, with a core area of focus in the premier basins within the United States. Using this strategy, we had participated in 9,953 gross (985.3 net) producing wells as of March 31, 2024. As of March 31, 2024, we had leased approximately 272,046 net acres, of which approximately 90% were developed and all were located in the United States.

Current wording

Our primary strategy is to invest in non-operated minority working and mineral interests in oil and gas properties, with a core area of focus in the premier basins within the United States. Using this strategy, we had participated in 10,187 gross (1,015.2 net) producing wells as of June 30, 2024. As of June 30, 2024, we had leased approximately 272,293 net acres, of which approximately 86% were developed and all were located in the United States.

Previous wording

Our average daily production in the first quarter of 2024 was approximately 119,436 Boe per day, of which approximately 59% was oil. This was a 37% increase in production compared to the first quarter of 2023, primarily due to production attributable to recent acquisitions and new wells added to production. During the three months ended March 31, 2024, we added 25.3 net wells to production.

Current wording

Our average daily production in the second quarter of 2024 was approximately 123,342 Boe per day, of which approximately 57% was oil. This was a 36% increase in production compared to the second quarter of 2023, primarily due to production attributable to recent acquisitions and new wells added to production. During the three months ended June 30, 2024, we added 30.1 net wells to production.

Previous wording

Our percentage of production volumes by basin for the three months ended March 31, 2024 and 2023 were as follows:

Current wording

Our weighted average percentage of production volumes by basin for the three months ended June 30, 2024 and 2023 were as follows:

Previous wording

The price at which our oil production is sold typically reflects a discount to the NYMEX benchmark price. The price at which our natural gas production is sold may reflect either a discount or premium to the NYMEX benchmark price. Thus, our operating results are also affected by changes in the price differentials between the applicable benchmark and the sales prices we receive for our production. Our oil price differential to the NYMEX benchmark price during the first quarter of 2024 was $3.99 per barrel, as compared to $2.67 per barrel in the first quarter of 2023. Our net realized gas price in the first quarter of 2024 was $2.47 per Mcf, representing 118% realization relative to average Henry Hub pricing, compared to a net realized gas price of $3.91 per Mcf in the first quarter of 2023, which represented 142% realization relative to average Henry Hub pricing. Fluctuations in our oil and gas price realizations are due to several factors such as pricing by basin, gathering and transportation costs, transportation method, takeaway capacity relative to production levels, regional storage capacity, seasonal refinery maintenance temporarily depressing demand, and in the case of gas realizations, the price of NGLs.

Current wording

The price at which our oil production is sold typically reflects a discount to the NYMEX benchmark price. The price at which our natural gas production is sold may reflect either a discount or premium to the NYMEX benchmark price. Thus, our operating results are also affected by changes in the price differentials between the applicable benchmark and the sales prices we receive for our production. Our oil price differential to the NYMEX benchmark price during the second quarter of 2024 was $3.55 per barrel, as compared to $2.65 per barrel in the second quarter of 2023. Our net realized gas price in the second quarter of 2024 was $2.47 per Mcf, representing 106% realization relative to average Henry Hub pricing, compared to a net realized gas price of $3.18 per Mcf in the second quarter of 2023, which represented 137% realization relative to average Henry Hub pricing. Fluctuations in our oil and gas price realizations are due to several factors such as pricing by basin, gathering and transportation costs, transportation method, takeaway capacity relative to production levels, regional storage capacity, seasonal refinery maintenance temporarily depressing demand, and in the case of gas realizations, the price of NGLs.

Previous wording

Another significant factor affecting our operating results is drilling costs. The cost of drilling wells can vary significantly, driven in part by volatility in commodity prices that can substantially impact the level of drilling activity. Generally, higher oil prices have led to increased drilling activity, with the increased demand for drilling and completion services driving these costs higher. Lower oil prices have generally had the opposite effect. In addition, individual components of the cost can vary depending on numerous factors such as the length of the horizontal lateral, the number of fracture stimulation stages, and the type and amount of proppant. Since 2021, we have observed inflationary pressures on drilling and other operating costs due to various factors, such as higher commodity prices, labor shortages, supply chain disruptions and other factors. During the first three months of 2024, the weighted average gross authorization for expenditure (or AFE) cost for wells we elected to participate in was $9.5 million, compared to $9.6 million for the wells we elected to participate in during 2023.

Current wording

Another significant factor affecting our operating results is drilling costs. The cost of drilling wells can vary significantly, driven in part by volatility in commodity prices that can substantially impact the level of drilling activity. Generally, higher commodity prices have led to increased drilling activity, with the increased demand for drilling and completion services driving these costs higher. Lower commodity prices have generally had the opposite effect. In addition, individual components of the cost can vary depending on numerous factors such as the length of the horizontal lateral, the number of fracture stimulation stages, and the type and amount of proppant. Since 2021, we have observed inflationary pressures on drilling and other operating costs due to various factors, such as higher commodity prices, labor shortages, supply chain disruptions and other factors. During the first six months of 2024, the weighted average gross authorization for expenditure (or AFE) cost for wells we elected to participate in was $9.4 million, compared to $9.2 million for the wells we elected to participate in during 2023. The increase is due in part to a higher proportion of AFEs in the Permian Basin, which typically are more expensive than wells in the Williston Basin.

Previous wording

Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three months ended March 31, 2024 and 2023.

Current wording

Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three and six months ended June 30, 2024 and 2023.

Previous wording

We add production through drilling success as we place new wells into production and through additions from acquisitions, which is offset by the natural decline of our oil and natural gas production from existing wells. Acquisitions were a significant driver of our 38% increase in production levels in the first quarter of 2024 compared to the same period of 2023.

Current wording

We add production through drilling success as we place new wells into production and through additions from acquisitions, which is offset by the natural decline of our oil and natural gas production from existing wells. Acquisitions were a significant driver of our 36% increase in production levels in the second quarter of 2024 compared to the same period of 2023.

Previous wording

We enter into commodity derivative instruments to manage the price risk attributable to future oil and natural gas production. Our gain (loss) on commodity derivatives, net, was a loss of $138.5 million in the first quarter of 2024, compared to a gain of $153.7 million in the first quarter of 2023. Gain (loss) on commodity derivatives, net, is comprised of (i) cash gains and losses we recognize on settled commodity derivative instruments during the period, and (ii) unsettled gains and losses we incur on commodity derivative instruments outstanding at period-end.

Current wording

We enter into commodity derivative instruments to manage the price risk attributable to future oil and natural gas production. Our gain (loss) on commodity derivatives, net, was a loss of $3.4 million in the second quarter of 2024, compared to a gain of $57.8 million in the second quarter of 2023. Gain (loss) on commodity derivatives, net, is comprised of (i) cash gains and losses we recognize on settled commodity derivative instruments during the period, and (ii) unsettled gains and losses we incur on commodity derivative instruments outstanding at period-end.

Previous wording

Unsettled commodity derivative gains and losses was a loss of $157.6 million in the first quarter of 2024, compared to a gain of $140.0 million in the first quarter of 2023. Our derivatives are not designated for hedge accounting and are accounted for using the mark-to-market accounting method whereby gains and losses from changes in the fair value of derivative instruments are recognized immediately into earnings. Mark-to-market accounting treatment creates volatility in our revenues as gains and losses from unsettled derivatives are included in total revenues and are not included in accumulated other comprehensive income in the accompanying balance sheets. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our commodity derivatives. Any gains on our unsettled commodity derivatives are expected to be offset by lower wellhead revenues in the future, while any losses are expected to be offset by higher future wellhead revenues based on the value at the settlement date. At March 31, 2024, all of our derivative contracts are recorded at their fair value, which was a net liability of $193.8 million, a change of $157.6 million from the $36.2 million net liability recorded as of December 31, 2023. The increase in liability at March 31, 2024 as compared to December 31, 2023 was primarily due to changes in forward commodity prices relative to prices on our open commodity derivative contracts since December 31, 2023. Our open commodity derivative contracts are summarized in “Item 3. Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk.”

Current wording

Unsettled commodity derivative gains and losses was a loss of $12.3 million in the second quarter of 2024, compared to a gain of $30.5 million in the second quarter of 2023. Our derivatives are not designated for hedge accounting and are accounted for using the mark-to-market accounting method whereby gains and losses from changes in the fair value of derivative instruments are recognized immediately into earnings. Mark-to-market accounting treatment creates volatility in our revenues as gains and losses from unsettled derivatives are included in total revenues and are not included in accumulated other comprehensive income in the accompanying balance sheets. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our commodity derivatives. Any gains on our unsettled commodity derivatives are expected to be offset by lower wellhead revenues in the future, while any losses are expected to be offset by higher future wellhead revenues based on the value at the settlement date. At June 30, 2024, all of our derivative contracts are recorded at their fair value, which was a net liability of $206.1 million, a change of $170.0 million from the $36.2 million net liability recorded as of December 31, 2023. The increase in liability at June 30, 2024 as compared to December 31, 2023 was primarily due to changes in forward commodity prices relative to prices on our open commodity derivative contracts since December 31, 2023. Our open commodity derivative contracts are summarized in “Item 3. Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk.”

Previous wording

Production expenses were $105.4 million in the first quarter of 2024, compared to $78.1 million in the first quarter of 2023. On a per unit basis, production expenses were $9.70 per Boe in the first quarter of 2024 compared to $9.93 per Boe in the first quarter of 2023. The lower production expenses per Boe was driven by decreased salt water disposal costs and workover expenses in the first quarter of 2024 compared to the first quarter of 2023. On an absolute dollar basis, the increase in our production expenses in the first quarter of 2024 compared to the first quarter of 2023 was primarily due to a 38% increase in production volumes and a 19% increase in the total number of net producing wells .

Current wording

Production expenses were $100.9 million in the second quarter of 2024, compared to $84.4 million in the second quarter of 2023. On a per unit basis, production expenses were $8.99 per Boe in the second quarter of 2024 compared to $10.20 per Boe in the second quarter of 2023. The lower production expenses per Boe was driven by lower repair and maintenance costs and lower firm transport costs in the second quarter of 2024 compared to the second quarter of 2023. On an absolute dollar basis, the increase in our production expenses in the second quarter of 2024 compared to the second quarter of 2023 was primarily due to a 36% increase in production volumes and a 16% increase in the total number of net producing wells.

Previous wording

We pay production taxes based on realized oil and natural gas sales. Production taxes were $51.2 million in the first quarter of 2024, compared to $34.9 million in the first quarter of 2023. As a percentage of oil and natural gas sales, our production taxes were 9.6% and 8.2% in the first quarter of 2024 and 2023, respectively. The fluctuation in our average production tax rate from year to year is primarily due to changes in our oil sales as a percentage of our total oil and gas sales as well as the mix of our production by basin. Oil sales are taxed at a higher rate than natural gas sales.

Current wording

We pay production taxes based on realized oil and natural gas sales. Production taxes were $48.6 million in the second quarter of 2024, compared to $37.1 million in the second quarter of 2023. As a percentage of oil and natural gas sales, our production taxes were 8.7% and 8.9% in the second quarter of 2024 and 2023, respectively. The fluctuation in our average production tax rate from year to year is primarily due to changes in our oil sales as a percentage of our total oil and gas sales as well as the mix of our production by basin. Oil sales are taxed at a higher rate than natural gas sales.

Previous wording

General and administrative expenses were $11.4 million in the first quarter of 2024 compared to $13.0 million in the first quarter of 2023. The decrease was primarily due to a $2.7 million decrease in acquisition-related costs in the first quarter of 2024 as compared to the first quarter of 2023, offset by a $0.7 million increase in total compensation expense and $0.4 million increase in professional fees and other.

Current wording

General and administrative expenses were $13.5 million in the second quarter of 2024 compared to $12.4 million in the second quarter of 2023. The increase was primarily due to a $1.9 million increase in non-cash compensation expense and $0.4 million increase in professional fees and other, offset by a $1.5 million decrease in acquisition-related costs in the second quarter of 2024 as compared to the second quarter of 2023.

Previous wording

Depletion, depreciation, amortization and accretion (“DD&A”) was $174.0 million in the first quarter of 2024, compared to $94.6 million in the first quarter of 2023. Depletion expense, the largest component of DD&A, increased by $79.2 million in the first quarter of 2024 compared to the first quarter of 2023. The aggregate increase in depletion expense was driven by a 38% increase in production levels and a 33% increase in the depletion rate per Boe. On a per unit basis, depletion expense was $15.91 per Boe in the first quarter of 2024 compared to $11.92 per Boe in the first quarter of 2023. The higher depletion rate per Boe was primarily driven by a significant increase to our depletable base, due to the closing of several larger acquisitions in 2023 and 2024 (see Note 3 to our condensed financial statements). Depreciation, amortization and accretion was $1.0 million and $0.9 million in the first quarter of 2024 and 2023, respectively. The following table summarizes DD&A expense per Boe for the first quarter of 2024 and 2023:

Current wording

Depletion, depreciation, amortization and accretion (“DD&A”) was $176.6 million in the second quarter of 2024, compared to $106.4 million in the second quarter of 2023. Depletion expense, the largest component of DD&A, increased by $70.0 million in the second quarter of 2024 compared to the second quarter of 2023. The aggregate increase in depletion expense was driven by a 36% increase in production levels and a 23% increase in the depletion rate per Boe. On a per unit basis, depletion expense was $15.64 per Boe in the second quarter of 2024 compared to $12.76 per Boe in the second quarter of 2023. The higher depletion rate per Boe was primarily driven by a significant increase to our depletable base, due to the closing of several larger acquisitions in 2023 and 2024 (see Note 3 to our condensed financial statements). Depreciation, amortization and accretion was $1.1 million and $0.9 million in the second quarter of 2024 and 2023, respectively. The following table summarizes DD&A expense per Boe for the second quarter of 2024 and 2023:

Previous wording

Interest expense, net of capitalized interest, was $37.9 million in the first quarter of 2024 compared to $30.1 million in the first quarter of 2023. The increase was primarily due to higher levels of debt outstanding during the first quarter of 2024 compared to the first quarter of 2023. Additionally, higher interest rates on our floating rate debt contributed to higher interest expense in the first quarter of 2024 compared to the first quarter of 2023.

Current wording

Interest expense, net of capitalized interest, was $37.7 million in the second quarter of 2024 compared to $32.0 million in the second quarter of 2023. The increase was primarily due to higher levels of debt outstanding during the second quarter of 2024 compared to the second quarter of 2023. Additionally, higher interest rates on our floating rate debt contributed to higher interest expense in the second quarter of 2024 compared to the second quarter of 2023.

Previous wording

During the first quarter of 2024, we recorded income tax expense of $2.8 million which equated to an effective tax rate of 19.7%. During the first quarter of 2023, we recorded income tax expense of $0.7 million related to state income taxes as the Company maintained a full valuation allowance for its deferred tax assets which equated to an effective tax rate of 0.2%.

Current wording

During the second quarter of 2024, we recorded income tax expense of $42.7 million which equated to an effective tax rate of 23.6%. During the second quarter of 2023, we recorded income tax expense of $39.0 million which equated to an effective tax rate of 18.9%.

Previous wording

In the first quarter of 2024, our oil, natural gas and NGL sales, excluding the effect of settled commodity derivatives, was $532.0 million, compared to $426.2 million in the first quarter of 2023. This 25% increase was driven by a 38% increase in production volumes, partially offset by a 10% decrease in realized prices. The lower average realized price in the first quarter of 2024 as compared to the same period in 2023 was driven by a $1.44 per Mcf (or 37%) decrease in realized natural gas and NGL prices, excluding the effect of settled commodity derivatives, and a higher average oil price differential. Oil price differential during the first quarter of 2024 was $3.99 per barrel, as compared to $2.67 per barrel in the first quarter of 2023.

Current wording

In the first six months of 2024, our oil, natural gas and NGL sales, excluding the effect of settled commodity derivatives, was $1,093.1 million, compared to $842.7 million in the first six months of 2023. This 30% increase was driven by a 37% increase in production volumes, partially offset by a 5% decrease in realized prices. The lower average realized price in the first six months of 2024 as compared to the same period in 2023 was driven by a $1.06 per Mcf (or 30%) decrease in realized natural gas and NGL prices, excluding the effect of settled commodity derivatives, and a higher average oil price differential. Oil price differential during the first six months of 2024 was $3.81 per barrel, as compared to $2.66 per barrel in the first six months of 2023.

Previous wording

For the first quarter of 2024, we realized a gain on settled commodity derivatives of $19.1 million, compared to a $13.7 million gain in the first quarter of 2023. The increased gain on settled derivatives was primarily due to higher volumes of natural gas hedged, and a decrease in the average NYMEX gas price, in the first quarter of 2024 compared to the same period of 2023.

Current wording

For the first six months of 2024, we realized a gain on settled commodity derivatives of $28.0 million, compared to a $40.9 million gain in the first six months of 2023. The decrease in the gain on settled derivatives was primarily due to higher average NYMEX oil price in the first six months of 2024 compared to the same period of 2023.

Previous wording

During the three months ended March 31, 2024, we repurchased and retired 549,356 shares of our common stock for total consideration of $20.0 million, or an average price of $36.42 per share.

Current wording

During the six months ended June 30, 2024, we repurchased and retired 1,444,432 shares of our common stock for total consideration of $54.9 million, or an average price of $37.99 per share.

Previous wording

As of March 31, 2024, we had outstanding total debt of $1,968.1 million consisting of $263.0 million of borrowings under our Revolving Credit Facility, $705.1 million aggregate principal amount of our Senior Notes due 2028, $500.0 million aggregate principal amount of our Senior Notes due 2031, and $500.0 million aggregate principal amount of our Convertible Notes.

Current wording

As of June 30, 2024, we had outstanding total debt of $1,903.1 million consisting of $198.0 million of borrowings under our Revolving Credit Facility, $705.1 million aggregate principal amount of our Senior Notes due 2028, $500.0 million aggregate principal amount of our Senior Notes due 2031, and $500.0 million aggregate principal amount of our Convertible Notes.

Previous wording

As of March 31, 2024, we had total liquidity of $1,019.5 million, consisting of $987.0 million of committed borrowing availability under the Revolving Credit Facility and $32.5 million of cash on hand.

Current wording

As of June 30, 2024, we had total liquidity of $1.3 billion, consisting of $1.3 billion of committed borrowing availability under the Revolving Credit Facility and $7.8 million of cash on hand.

Previous wording

One of the primary sources of variability in our cash flows from operating activities is commodity price volatility. Oil accounted for 88% and 83% of our total oil and gas sales in the first quarter of 2024 and 2023, respectively. As a result, our operating cash flows are more sensitive to fluctuations in oil prices than they are to fluctuations in natural gas and NGL prices. We seek to maintain a robust hedging program to mitigate volatility in commodity prices with respect to a portion of our expected production. For the three months ended March 31, 2024, we hedged approximately 71% of our crude oil production and approximately 61% of our natural gas and NGL production. For a summary as of March 31, 2024, of our open commodity price derivative contracts for future periods, see “Quantitative and Qualitative Disclosures about Market Risk” in Part I, Item 3 below.

Current wording

One of the primary sources of variability in our cash flows from operating activities is commodity price volatility. Oil accounted for 87% and 85% of our total oil and gas sales in the second quarter of 2024 and 2023, respectively. As a result, our operating cash flows are more sensitive to fluctuations in oil prices than they are to fluctuations in natural gas and NGL prices. We seek to maintain a robust hedging program to mitigate volatility in commodity prices with respect to a portion of our expected production. For the six months ended June 30, 2024, we hedged approximately 75% of our crude oil production and approximately 61% of our natural gas production. For a summary as of June 30, 2024, of our open commodity price derivative contracts for future periods, see “Quantitative and Qualitative Disclosures about Market Risk” in Part I, Item 3 below.

Previous wording

At March 31, 2024, we had a working capital deficit of $15.2 million, compared to a surplus of $123.6 million at December 31, 2023. Current assets decreased by $96.6 million and current liabilities increased by $42.2 million at March 31, 2024, compared to December 31, 2023. The decrease in current assets is primarily related to a $42.4 million decrease in our advances to operators, a $39.4 million decrease in accounts receivable, and a $39.0 million decrease in the fair value of our derivative instruments as a result of commodity price changes, partially offset by an increase of $24.3 million in cash and cash equivalents. The increase in current liabilities is primarily related to a $63.5 million increase in the fair value of our derivative instruments as a result of commodity price changes, a $13.6 million increase in our accrued liabilities, partially offset by a $36.4 million decrease in our accounts payable.

Current wording

2024, compared to December 31, 2023. The decrease in current assets is primarily related to a $56.2 million decrease in the fair value of our derivative instruments as a result of commodity price changes, a $27.5 million decrease in our advances to operators, and a $10.9 million decrease in accounts receivable. The increase in current liabilities is primarily related to a $67.9 million increase in our accrued liabilities and a $53.9 million increase in the fair value of our derivative instruments as a result of commodity price changes, partially offset by a $42.5 million decrease in our accounts payable.

Previous wording

Cash flows from operations are primarily affected by production volumes and commodity prices, net of the effects of settlements of our derivative contracts, and by changes in working capital. Any interim cash needs are funded by cash on hand, cash flows from operations or borrowings under our Revolving Credit Facility. We typically enter into commodity derivative transactions covering a substantial, but varying, portion of our anticipated future oil and gas production for the next 12 to 36 months. Our cash flows for the three months ended March 31, 2024 and 2023 are presented below:

Current wording

Cash flows from operations are primarily affected by production volumes and commodity prices, net of the effects of settlements of our derivative contracts, and by changes in working capital. Any interim cash needs are funded by cash on hand, cash flows from operations or borrowings under our Revolving Credit Facility. We typically enter into commodity derivative transactions covering a substantial, but varying, portion of our anticipated future oil and gas production for the next 12 to 36 months. Our cash flows for the six months ended June 30, 2024 and 2023 are presented below:

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2024 was $392.1 million, compared to $269.3 million in the same period of the prior year. This increase was due to significantly higher production volumes, offset by lower realized natural gas prices (including the effect of settled derivatives) and higher operating costs. Net cash provided by operating activities is affected by working capital changes or the timing of cash receipts and disbursements. Changes in working capital and other items (as reflected in our statements of cash flows) in the three months ended March 31, 2024 was a surplus of $39.7 million compared to a deficit of $26.9 million in the same period of the prior year.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2024 was $732.6 million, compared to $577.1 million in the same period of the prior year. This increase was due to significantly higher production volumes, offset by lower realized natural gas prices (including the effect of settled derivatives) and higher operating costs. Net cash provided by operating activities is affected by working capital changes or the timing of cash receipts and disbursements. Changes in working capital and other items (as reflected in our statements of cash flows) in the six months ended June 30, 2024 was a surplus of $6.0 million compared to a surplus of $0.5 million in the same period of the prior year.

Previous wording

Cash flows used in investing activities during the three months ended March 31, 2024 and 2023 were $407.1 million and $461.2 million, respectively. The decrease in cash used in investing activities for the first three months of 2024 as compared to the same period of 2023 was attributable to a $54.0 million decrease in our capital expenditures for oil and natural gas properties spending. Additionally, the amount of capital expenditures included in accounts payable (and thus not included in cash flows from investing activities) was $211.3 million and $217.1 million at March 31, 2024 and 2023, respectively.

Current wording

Cash flows used in investing activities during the six months ended June 30, 2024 and 2023 were $630.3 million and $871.4 million, respectively. The decrease in cash used in investing activities for the first six months of 2024 as compared to the same period of 2023 was attributable to a $240.7 million decrease in our capital expenditures for oil and natural gas properties spending. Additionally, the amount of capital expenditures included in accounts payable (and thus not included in cash flows from investing activities) was $263.0 million and $242.6 million at June 30, 2024 and 2023, respectively.

Previous wording

Our cash flows used in investing activities reflects actual cash spending, which can lag several months from when the related costs were incurred. As a result, our actual cash spending is not always reflective of current levels of development activity. For instance, during the three months ended March 31, 2024, our capitalized costs incurred, excluding non-cash consideration, for oil and natural gas properties (e.g., drilling and completion costs, acquisitions, and other capital expenditures) amounted to $447.2 million, while the actual cash spend in this regard amounted to $407.0 million.

Current wording

Our cash flows used in investing activities reflects actual cash spending, which can lag several months from when the related costs were incurred. As a result, our actual cash spending is not always reflective of current levels of development activity. For instance, during the six months ended June 30, 2024, our capitalized costs incurred, excluding non-cash consideration, for oil and natural gas properties (e.g., drilling and completion costs, acquisitions, and other capital expenditures) amounted to $683.8 million, while the actual cash spend in this regard amounted to $630.2 million.

Previous wording

Development and acquisition activities are discretionary. We monitor our capital expenditures on a regular basis, adjusting the amount up or down, and between projects, depending on projected commodity prices, cash flows and returns. Our cash spend for development and acquisition activities for the three months ended March 31, 2024 and 2023 are summarized in the following table:

Current wording

Development and acquisition activities are discretionary. We monitor our capital expenditures on a regular basis, adjusting the amount up or down, and between projects, depending on projected commodity prices, cash flows and returns. Our cash spend for development and acquisition activities for the six months ended June 30, 2024 and 2023 are summarized in the following table:

Previous wording

Net cash provided by financing activities was $39.2 million during the three months ended March 31, 2024, compared to net cash provided by financing activities of $195.5 million during the three months ended March 31, 2023. For the three months ended March 31, 2024, cash provided by financing activities was primarily related to $102.0 million of net advances under our Revolving Credit Facility, which was partially offset by $20.0 million in repurchases of common stock and $40.1 million of common stock dividend payments. For the three months ended March 31, 2023, cash provided by financing activities was primarily related to $250.0 million of net advances under our Revolving Credit Facility, which was partially offset by $8.0 million in repurchases of common stock, $18.4 million in repurchases of our Senior Notes due 2028, and $25.5 million of common stock dividend payments.

Current wording

Net cash used for financing activities was $102.8 million during the six months ended June 30, 2024, compared to net cash provided by financing activities of $306.6 million during the six months ended June 30, 2023. For the six months ended June 30, 2024, cash used for financing activities was primarily related to $80.3 million of common stock dividend payments and $54.9 million in repurchases of common stock, which was partially offset by $37.0 million of net advances under our Revolving Credit Facility. For the six months ended June 30, 2023, cash provided by financing activities was primarily related to the issuance of the Senior Notes due 2031 of $492.8 million and the issuance of common stock of $224.7 million, partially offset by $319.0 million of net payments under our Revolving Credit Facility, $54.4 million of common stock dividend payments, $18.4 million in repurchases of our Senior Notes due 2028, and $8.0 million in repurchases of common stock.

Previous wording

We have entered into a Revolving Credit Facility with Wells Fargo Bank, as administrative agent, and the lenders from time to time party thereto. The Revolving Credit Facility is subject to a borrowing base with maximum loan value to be assigned to the proved reserves attributable to our oil and gas properties. As of March 31, 2024, the Revolving Credit Facility had a borrowing base of $1.80 billion and an elected commitment amount of $1.25 billion, and we had $263.0 million in borrowings outstanding under the facility, leaving $987.0 million in available committed borrowing capacity. On April 29, 2024, the borrowing base was reaffirmed at $1.80 billion and the aggregate elected commitment amount was increased to $1.50 billion. See Note 4 to our condensed financial statements for further details regarding the Revolving Credit Facility.

Current wording

We have entered into a Revolving Credit Facility with Wells Fargo Bank, as administrative agent, and the lenders from time to time party thereto. The Revolving Credit Facility is subject to a borrowing base with maximum loan value to be assigned to the proved reserves attributable to our oil and gas properties. As of June 30, 2024, the Revolving Credit Facility had a borrowing base of $1.8 billion and an elected commitment amount of $1.5 billion, and we had $198.0 million in borrowings outstanding under the facility, leaving $1.3 billion in available committed borrowing capacity. See Note 4 to our condensed financial statements for further details regarding the Revolving Credit Facility.