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Capital One Annual Energy Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Dec 29, 2015 · 35 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. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 1
    December 2015 NYSE MKT: NOG
  2. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 2
    WHY ENDURANCE DURABILITY OPTIONALITY 3
  3. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 3
    endurance in-du r-n(t)s, -dyu r-, en- : the ability to do something difficult for a long time : the ability to deal with pain or suffering that continues for a long time 4
  4. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 4
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  5. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 5
    durable du r--bl also dyu r- : staying strong and in good condition over a long period of time : able to exist for a long time without significant deterioration 6
  6. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 6
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  7. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 7
    Liquidity Capital Allocation Non-Op Business Model 8
  8. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 8
    Do not drill or operate wells We own minority leasehold/working interest (WI) percentage in Drilling Spacing Units (DSU) Operator of the DSU initiates/proposes drill schedule State law requires the operator of the DSU to send all…
  9. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 9
    FLEXIBLE Our option to consent or non-consent a well PROPRIETARY DISCIPLINED 3,000+ well database Evaluate every drilling gives us an advantage opportunity, allocate in analyzing wells and capital only to wells acreage with…
  10. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 10
    GO Drill well and turn GO / NO-GO to production Consent to only Engineering those wells that will generate high IRRs Analysis AFE Review Use proprietary data Verify acreage and to develop type working interest curve and estimated…
  11. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 11
    Core Inventory: 200+ Net Locations 35 - 50 WTI Breakeven Avg AFE: 7.3 million Avg EUR: 750+ MBOE Source: Company information for producing wells as of June 30, 2015. 12
  12. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 12
    Northern Average Well Profile by Year, Proposed IP Rates up 30% from 2014 30,000 180,000 25,000 150,000 20,000 120,000 Cum Production (Boe) Rate (Boepd) 15,000 90,000 10,000 60,000 5,000 30,000 - - 0 1 2 3…
  13. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 13
    Average EUR1 Average AFE 800 10 751 9.2 9.1 700 9 8.0 600 8 7.7 527 (MM) MBoe 500 466 7 407 400 6 300 5 200 4 2014 YTD 2015 2014 YTD 2015 Consented Non-Consent Consented Non-Consent Average YTD IRR on…
  14. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 14
    Liquidity 600 Reaffirmed Oct. 2015 500 Liquidity of 387 Million in millions 400 7 300 550 200 380 380 100 170 7 0 Credit Facility Outstanding Available Credit Cash Available Liquidity Borrowings Facility (1) 550…
  15. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 15
    SWAPS Contract Period Volume (Bbls) Weighted Average Price (per Bbl) 2015: Q4 990,000 89.82 2016: Q1 450,000 90.00 Q2 450,000 90.00 Q3 450,000 65.00 Q4 450,000 65.00 16
  16. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 16
    Well Costs (MM) Cash Operating Costs (/Boe) 25.00 9 20.33 8 20.00 2.62 7 6 14.46 15.00 /Millions 7.98 (/Boe) 5 2.38 9.2 4 7.7 10.00 3.46 3 2 5.00 9.73 8.62 1 0 - 2014 2015 (9 months) Q3 2014 Q3 2015 17…
  17. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 17
    TTM Q315 Unit Costs per BOE (1) 35.00 32.05 30.00 9.04 25.00 19.70 19.72 20.00 4.42 (/Boe) 17.10 1.63 16.53 4.97 14.46 3.59 15.00 2.95 5.83 1.83 4.39 10.14 2.28 4.38 3.49 10.00 2.48 18.59 3.01 12.26 5.00…
  18. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 18
    NOG Historical Cash Operating Margins per BOE (1)(2) 90.00 100.0% 80.00 79.0% 78.79 79.77 70.00 75.85 76.2% 76.0% 73.51 73.1% 74.9% 75.2% 60.00 75.0% % Margin 66.39 63.21 (/Boe) 50.00 57.77 59.87 59.97 52.44 53.70…
  19. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 19
    A Solid Foundation Northern Net Acreage Summary 19% 20% 29% 71% 80% 81% Montana North Dakota Total % Held (1) Total % Non-Held ND % Held (1) ND % Non-Held Net Acres By County Total Net Acreage: 169,000 (as of 9/30/2015)…
  20. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 20
    Percentage of Producing Wells By Operator Top 10 Operators Slawson 1 11.1% Exploration Continental 7.3% 2 Resources 21.9% 8.2% 3 Whiting Petroleum 4 Hess Less Than 2% 5.3% 5 Oasis Petroleum 11.0% 4.4% 6 EOG Resources…
  21. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 21
    Completion Trends: 80% of new consented wells are planned high intensity completions 25% increase in EURs with new completion design 2016 per-well productivity expected to improve Source: NDIC and DrillingInfo 22
  22. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 22
    North Dakota Play to Date Completion Comparison Average EUR1 700 651 600 536 514 500 452 400 MBoe 300 200 100 0 Bakken Three Forks Conventional Enhanced 23 (1) NOG Internal Estimates
  23. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 23
    Capital Discipline 2015 budget down 74% vs. 2014 actual capex spend 2015 production expected to be flat vs. 2014 levels Maintain Liquidity 387 million of available liquidity (up 18 million versus prior quarter) 8% senior notes do…
  24. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 24
    Capital Expenditures & Production Capital Expenditures: 600 537 18,000 Drilling and Completion 120 million Capital Expenditures ( millions) 16,000 Ave Daily Production (Boe) 500 15,800 15,794 Acreage & Other 20 million…
  25. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 25
    ENDURANCE DURABILITY OPTIONALITY Northerns non-op business model Access to core acreage and best in class operators Consent v Non-Consent capital allocation process Liquidity Ability to adjust spending up or down based on rate…
  26. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 26
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  27. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 27
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  28. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 28
    NYSE MKT: NOG Shares Outstanding 62.9 million (Fully-Diluted)(1) Market Capitalization(2) 302 million Enterprise Value(2) 1,180 billion Adjusted EBITDA (TTM) 291.2 million Net Producing Wells(3) 201.9 net Average Q3 2015 Daily…
  29. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 29
    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 2009 2010 2011 2012 2013 2014 TTM Q3'15 2009 2010 2011 2012 2013 2014 TTM Q3'15 Adjusted EBITDA (…
  30. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 30
    North Dakota Active Horizontal Rig Count and Production(1) 1600 250 Active Horizontal Rig Count Daily Production (Mboe/d) 1400 200 1200 1000 150 800 600 100 400 50 200 0 0 Daily Oil Production (MBbl/d) Daily Gas…
  31. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 31
    Takeaway Capacity Options Takeaway Capacity (Mbopd) (1) 3,500 3,000 2,500 2,000 1,500 1,000 500 - Pipeline/Refining Rail Basin Production NDIC Production Forecast Current Pipeline and rail provide multiple…
  32. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 32
    Year Ended December 31, First 9 months 2011 2012 2013 2014 2015 Production Oil (MBbls) 1,792.0 3,465.3 4,046.7 5,150.9 3,904.8 Natural Gas and NGLs 800.2 1,768.9 2,572.3 3,682.8 3,559.6 Total Production (Mboe) 1,925.3 3,760.1 4,475.4…
  33. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 33
    (/Boe, except % Margin) Year Realized Price* Production Expense Production Taxes Cash G&A Margin % Margin 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% 2012 78.79 8.61 7.58 2.64 59.96 76.0% 2013…
  34. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 34
    Quarter Ended September 30, June 30, March 31, December 31, In thousands 2015 2015 2015 2014 Net Income (323,242) (250,061) (229,739) 103,584 Add Back: Interest Expense 16,154 14,388 11,737 11,258 Income Tax Provision (78)…
  35. Capital One Annual Energy Conference – Northern Oil and Gas, Inc. – slide 35
    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,…

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