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Howard Weil Energy Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Mar 24, 2015 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 1
    March 2015 NYSE MKT: NOG
  2. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 2
    NYSE MKT: NOG Shares Outstanding (1) 60.6 million Market Cap(2) 425 million Term Debt (Due 2020) 500 million Total Net Debt 789 million Enterprise Value 1.2 billion PV-10 1.7 billion Proved Reserves 100.7 MMBoe 89% Oil 11% Gas…
  3. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 3
    Pure Play Williston Basin E&P Annual Production (Boepd) 100% Non-Op Business Model 20,000 Production: (4th Quarter 2014) Averaged 18,000 BOEpd 16,000 29% Year over Year Growth 12,000 Premier Non-Op Position Early mover advantage -…
  4. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 4
    Optionality of Consent vs. Non-Consent Flexibility to participate in wells that meet IRR threshold No mandate If non-consent; retain our WI in the unit and ability to participate in future wells No long term rig, frac, sand or…
  5. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 5
    1) Cutting Capital 2015 budget down 74% vs. 2014 budget Maintain flat year/year production on substantially reduced budget 2015 Guidance: 5.8 million BOE 2) Preserving Liquidity Non-Consent AFEs that dont meet IRR hurdles Sticking…
  6. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 6
    Capital Expenditures & Production 600 18,000 Capital Expenditures: 537 Capital Expenditures ( millions) 15,800 16,000 500 15,794 Production Flat Drilling and Completion 120 million 14,000 Production (Mboe) 400 12,000…
  7. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 7
    NOG Core Inventory 200 Net Locations 35 - 50 Breakeven Avg AFE: 7.5 million Avg EUR: 800 MBOE 8
  8. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 8
    Foundation for Continued Development Northern Net Acreage Summary 24% 24% 35% 65% 76% 76% Montana North Dakota Total % Held (1) Total % Non-Held ND % Held (1) ND % Non-Held Net Acres By County Total Net Acreage: 185,000…
  9. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 9
    Proved Reserves as of 12/31/2014 ( in millions) Oil Gas Total SEC (MMBbls) (Bcf) (MMBoe) PV-10(1) P1 Category PDP 35.1 30.5 40.2 1129.2 PDNP 9.6 7.8 10.9 117.1 PUD 44.2 32.7 49.7 455.9 Total Proved Reserves 88.9 70.9 100.7…
  10. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 10
    Do not drill or operate wells We own minority leasehold / Working Interest (WI) percentage in drilling spacing units (DSU) Operator of the DSU proposes to drill a well. State Law requires they send all minority leasehold/WI owners…
  11. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 11
    Percentage of PDPs By Operator Top 10 Operators Slawson 1 10.8% Exploration 7.2% Continental 2 Resources 21.5% 6.2% 3 Hess 5.5% 4 Whiting Petroleum Less Than 2% 5 Oasis Petroleum 5.2% 14.0% 6 EOG Resources 4.4% 7 XTO…
  12. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 12
    Disciplined - Every drilling opportunity is carefully evaluated to ensure capital is allocated to projects with highest returns. Flexible - No mandate to participate; we decide based on economics. Consistent - NOG Land Department…
  13. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 13
    Review hundreds of AFEs annually Land Department Pad drilling driving more AFEs Review of Proposal Evaluate using NOG proprietary data Engineering Consider DrillingInfo and NDIC data Consider completion technique Analysis Consider…
  14. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 14
    Do not sign JOAs or have any JVs State Law in ND and MT dictates terms Not mandated to participate We decide based on economics; avoid low IRRs PROs CONs Acreage still HBP Multiple zones Do not participate in the economics HBP by a…
  15. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 15
    Annual Production (Boepd) Cash Flow from Operation ( millions) 20,000 300 16,000 250 200 12,000 150 8,000 100 4,000 50 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Adjusted EBITDA ( millions)…
  16. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 16
    TTM Q414 Unit Costs per BOE (1) 45.00 43.82 40.00 35.00 19.45 30.00 25.00 22.45 23.38 (/Boe) 22.18 20.29 20.00 4.24 5.54 8.50 16.34 3.05 7.24 13.87 15.00 1.85 6.05 7.58 7.66 2.90 3.49 10.00 8.55 5.50 15.87…
  17. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 17
    Historical Cash Operating Margins per BOE (1) 90.00 100.0% 80.00 79.0% 79.77 70.00 75.85 78.79 75.2% 76.2% 76.0% 73.51 72.4% 60.00 69.0% 75.0% % Margin 66.39 (/Boe) 50.00 57.77 59.87 59.97 51.55 52.44 53.22 40.00…
  18. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 18
    Financial Resources Liquidity 600 500 Liquidity of in millions 400 298 261 Million 550 300 9 200 252 252 100 9 0 Credit Facility(1) Outstanding Available Credit Cash Available Liquidity Borrowings Facility (1)…
  19. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 19
    SWAPS (NO SUBFLOORS) Weighted Average Floor/Ceiling Contract Period Volume (Bbls) Price (Bbl) 2015: Q1 990,000 89.03 Q2 990,000 89.03 Q3 990,000 89.82 Q4 990,000 89.82 2016: Q1 450,000 90.00 Q2 450,000 90.00 20
  20. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 20
    EV / Proved Reserves (YE 2014) EV / Production (TTM Q414) 35 140 30 120 /Boepd ( in thousands) 25 100 20 80 /Boe 15 60 10 40 5 20 0 0 TPLM EOG OAS CLR WLL EOX NOG TPLM CLR WLL OAS EOG EOX NOG As of…
  21. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 21
    Proven Business Model Have been here since the play began - 2006 Participated in 2,500+ gross Bakken/Three Forks wells 25% of all Bakken/Three Forks drilling Favorable Non-Op laws in North Dakota & Montana Premeir Non-Op Williston…
  22. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 22
    APPENDIX: Supplemental Information 23
  23. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 23
    Year Ended December 31, 2014 2013 2012 2011 2010 Production Oil (MBbls) 5,510.9 4,046.7 3,465.3 1,792.0 849.8 Natural Gas and NGLs (Mmcfe) 3682.8 2,572.2 1,768.9 800.2 234.4 Total Production (Mboe) 7564.7 4,475.4 3,760.1 1,925.4…
  24. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 24
    2014 2013 2012 2011 2010 (In Thousands) Net Income 163,746 53,067 72,285 40,611 6,917 Add Back: Interest Expense 42,106 32,709 13,875 586 583 Income Tax Provision 99,367 30,768 43,002 26,835 4,419 Depreciation, Depletion,…
  25. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 25
    Quarter Ended December 31, September 30, June 30, March 31, In thousands 2014 2014 2014 2014 Net Income 103,584 57,985 (4,412) 6,589 Add Back: Interest Expense 11,258 10,624 10,326 9,898 Income Tax Provision 62,967 35,050…
  26. Howard Weil Energy Conference – Northern Oil and Gas, Inc. – slide 26
    (/Boe, except % Margin) Realized Year Price* Production Expense Production Taxes Cash G&A Margin % Margin 2009 51.55 2.67 4.60 8.70 35.57 69.0% 2010 66.39 3.70 6.16 4.09 52.44 79.0% 2011 75.85 6.77 7.43 3.88 57.77 76.2%…

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