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RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Jun 3, 2016 · 31 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. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 1
    June 2016 NYSE MKT: NOG
  2. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 2
    Liquidity Capital Allocation Non-Op Business Model 3
  3. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 3
    Capital Allocation 2015 capital expenditures reduced 76% as compared to 2014 First quarter 2016 capital expenditures reduced 59% compared to the first quarter of 2015 2016 capital expenditure guidance down 45% with total production…
  4. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 4
    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…
  5. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 5
    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…
  6. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 6
    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…
  7. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 7
    Increasing Well Productivity 120,000 2012 Cum 2013 Cum 2014 Cum 2015 Cum 100,000 700 Mboe Type Curve Cum Production (Boe) 80,000 60,000 40,000 20,000 - - 1 2 3 4 5 6 Producing Months 2015 IPs up 33% over 2014…
  8. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 8
    Decreased Costs & Increased Reserves Average EUR Average AFE 10 9.3 1000 8.9 8.9 9 8.6 8.4 900 8.2 802 8 7.47.3 772 7.3 800 727 757 726 7.1 7 6.5 700 571 6 5.6 600 560 518 (MM) MBoe 500 460 469 5 425 385 4…
  9. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 9
    Increasing Mix of High Intensity Completions 100% 90% 80% 70% 60% 50% 40% 79% 30% 59% 62% 56% 20% 38% 42% 10% 0% Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 High Intensity Base Trend towards an increased…
  10. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 10
    Focus Area Economics by Commodity Price 60% 12 700 MBOE: 6.5MM CWC IRR 10 700 MBOE: 6.5MM CWC PV10 Single Well PV10 (MM) 40% 8 IRR 6 20% 4 2 0% 0 40 WTI 3/11/2016 50 WTI 60 WTI 2.00 HH Strip 2.50 HH 3.00 HH…
  11. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 11
    Percentage of Producing Wells By Operator Top 10 Operators 1 Slawson 2 Continental 11.1% 3 Whiting 8.5% 4 Hess 7.2% 5 ConocoPhillips 21.6% 5.2% 6 Oasis 7 EOG Resources 6.1% Less Than 2% 8 XTO 4.4% 9 Emerald Oil 11.3% 4.2%…
  12. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 12
    Proved Reserves Comparison (Ryder Scott vs Internal) (MBoe) SEC Ryder Scott(1) Change Internal Reserves(2) P1 Category PDP 40.6 +3.2 43.8 PDNP 1.5 +2.6 4.1 PUD 23.1 +8.7 31.8 Total 65.3 +14.4 79.7 (1) 2015 year-end SEC Ryder…
  13. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 13
    Net Proved PV-10 (Ryder Scott vs Internal) ( in millions) SEC Ryder Scott(1) Change Internal Reserves(1) P1 Category PDP 441.6 +39.9 481.5 PDNP 13.8 +12.1 25.9 PUD 41.6 +49.6 91.1 Total 496.9 101.6 598.5 PV-10 Change Analysis (…
  14. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 14
    12/31/15 3/11/16 Strip 50 Flat 60 Flat 70 Flat Audited SEC Pricing(1) Pricing(2) Pricing(3) Pricing(4) Pricing Reserve Category PDP Oil (Bbl) 35,229,336 37,866,196 37,979,352 39,690,144 40,808,980 Gas & NGLs (Mcf) 32,413,992…
  15. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 15
    SWAPS Contract Period Volume (Bbls) Weighted Average Price (per Bbl) 2016: Q2 450,000 90.00 Q3 450,000 65.00 Q4 450,000 65.00 2017: Q1 360,000 50.00 Q2 360,000 50.00 (1) As of March 31, 2016 16
  16. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 16
    Foundation for Continued Growth and Value Creation Northern Net Acreage Summary 18% 19% 26% 82% 74% 81% Montana North Dakota Total % Held (1) Total % Non-Held ND % Held (1) ND % Non-Held Net Acres By County Total Net…
  17. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 17
    Capital Expenditures & Production 600 537 18,000 Capital Expenditures ( millions) Capital Expenditures: 16,000 Ave Daily Production (Boe) 500 15,794 16,285 14,000 Drilling and Completion 50 - 60 million 400 13,800 12,000…
  18. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 18
    Capital Discipline 2015 capex down 76% vs. 2014 capex spend First quarter 2016 capex down 59% vs. first quarter 2015 2016 budget down 45% vs. 2015 capex spend Maintain Liquidity 230 million of available liquidity 8% senior notes do…
  19. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 19
    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…
  20. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 20
    21
  21. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 21
    NYSE MKT: NOG Shares Outstanding 64.6 million (Fully-Diluted)(1) Market Capitalization(2) 290 million Enterprise Value(2) 1,110 billion Adjusted EBITDA (TTM) 245.9 million Net Producing Wells(3) 207.3 net Average Q1 2016 Daily…
  22. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 22
    2015 Unit Costs per BOE 40.00 36.66 35.00 31.05 11.04 30.00 25.00 14.16 5.82 (/Boe) 20.00 16.99 13.57 14.55 14.81 15.00 3.65 4.01 1.13 2.15 2.42 2.02 3.07 3.78 10.00 8.48 3.63 19.80 1.71 12.88 5.00 2.48 10.42…
  23. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 23
    Annual Production (Boepd) Cash Flow from Operation vs WTI 300 274.3 20,000 100 16,857 15,794 250 222.8 90 16,000 218.9 198.5 80 12,261 200 12,000 10,274 70 150 60 8,000 5,275 100 85.1 50 40 4,000 50 30 0 0 20 2011 2012 2013…
  24. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 24
    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% 76.2% 75.2% 60.00 75.0% % Margin 66.39 (/Boe) 61.19 50.00 57.77 59.87 59.97 52.44 53.70…
  25. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 25
    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…
  26. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 26
    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…
  27. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 27
    Year Ended December 31, 2011 2012 2013 2014 2015 Production Oil (MBbls) 1,792.0 3,465.3 4,046.7 5,150.9 5,168.7 Natural Gas and NGLs 800.2 1,768.9 2,572.3 3,682.8 4,651.6 Total Production (Mboe) 1,925.3 3,760.1 4,475.4 5,764.7…
  28. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 28
    ('s in millions) December 31, 2011 2012 2013 2014 2015 Assets Current assets 80.5 94.2 104.4 226.0 128.8 Property and equipment, net 643.7 1,083.2 1,397.3 1,761.9 589.3 Other assets 1.4 13.5 17.9 38.8 15.8 Total Assets 725.6 1,190.9…
  29. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 29
    (/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…
  30. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 30
    Quarter Ended March 31, December 31, September 30, June 30, (In thousands) 2016 2015 2015 2015 Net Income (126,566) (172,313) (323,242) (250,061) Add Back: Interest Expense 16,098 16,082 16,154 14,388 Income Tax Provision 0 0…
  31. RBC Capital Markets Energy and Power Conference – Northern Oil and Gas, Inc. – slide 31
    2015 2014 2013 2012 2011 (In Thousands) Net (Loss) Income (975,355) 163,746 53,067 72,285 40,611 Add Back: Interest Expense 58,360 42,106 32,709 13,875 586 Income Tax Provision (Benefit) (202,424) 99,367 30,768 43,002 26,835…

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