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Northern Oil Completes Reverse Stock Split; Ups 3Q Production Outlook, Cuts Debt

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   |    Monday,September 21,2020

Northern Oil and Gas, Inc. has completed its reverse stock split as well as updated its outlook.

First announced on June 24, 2020, Northern completed its 1-for-10 reverse split of its common stock.

This process has been designed to reduce costs for ownership, improve Northern's ability to participate in broad market indices, and to better represent its financial health to prospective and existing investors.

Increases Q3 Production Guidance

As previously announced on September 10th, Northern's operations continue to improve. Northern raised its production guidance for the third quarter of 2020, with production steadily returning to sales.

The new estimate for Q3 production was not disclosed.

For Q2, production averaged 23,804 BOEPD. In its Q2 report, Northern Oil originally projected 3Q production of of 22,500 - 30,000 BOEPD and 30,000 - 40,000 Boe per day in the Q4.

Risk & Hedge Update

Northern has hedged an average of 24,787 barrels of oil per day for the fourth quarter of 2020 at approximately $58 per barrel and 21,393 barrels per day in 2021 at approximately $55 per barrel.

With its surplus cash, Northern plans to continue to reduce outstanding borrowings. Year-to-date Northern has reduced its highest cost debt, the Senior Secured Notes, by approximately $130.0 million through exchanges and open market repurchases.

As previously announced, management does not anticipate additional debt-for-equity exchanges in 2020, instead debt reduction will be driven from the Company's cash flow. Additionally, Northern expects steady reductions to its revolver borrowings at year-end 2020 and continuing throughout 2021, inclusive of scheduled maturities.

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