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Except as described below, there have been no material changes to the risk factors disclosed in the “Risk Factors” section of our Annual Report on Form 10-K filed with the SEC for the period ended December 31, 2025.
Our future results will suffer if we do not effectively manage our expanded operations and the risks inherent in operating in a foreign jurisdiction.
In recent years, the size and geographic footprint of our business has increased as a result of a series of acquisitions, including most recently our acquisition of certain oil and gas properties, interests and related assets located in the Duvernay East Shale Basin in Alberta, Canada. Our future success will depend, in part, upon our ability to manage this expanded business and the challenges associated with our international operations, including the need to understand, interpret and comply with applicable Canadian laws and regulations, potential tax issues, including, but not limited to, with respect to our corporate operating structure and intercompany arrangements, fluctuations in currency exchange rates, and increased legal, compliance and administrative costs. We may also face increased scrutiny from governmental authorities as a result of our international operations. There can be no assurances that we will be successful in managing these challenges or that we will realize the expected benefits currently anticipated from our recent acquisitions. If our efforts to effectively manage these risks are unsuccessful, our business, financial condition and results of operations could be adversely affected.
Fluctuations in exchange rates could affect expenses or result in realized and unrealized losses.
As a result of the recently completed Duvernay Acquisition, we have operations in Canada and, as a result, a portion of our revenues and expenses are denominated in Canadian dollars. In addition, our subsidiary that is domiciled in Canada may hold U.S. dollar denominated assets and liabilities. Fluctuations in the exchange rate between the U.S. dollar and the Canadian dollar have resulted in, and could in the future result in realized and unrealized losses, which could impact our revenue and expenses and have a material adverse effect on our business, financial condition and results of operations.