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Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Dec 6, 2017 · 27 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 Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 1
    December 2017 NYSE American: NOG
  2. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 2
    Participating in some of the best wells being drilled by some of the best operators in the Williston Basin. Capital Allocation Wells in process are comprised of some of the best wells the company has ever participated in. Production…
  3. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 3
    Position: 145,749 net acres(1) Large net well inventory 86% held, 87% held in North Dakota(1) Production: 3Q 2017 averaged 15,321 BOE/d, 84% crude 222.3 net producing wells (3,143 gross)(1) 18.0 net wells-in-process(1) Hedges…
  4. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 4
    Northern Net Acreage Summary (2) 10% 14% 13% 90% 86% 87% North Dakota Montana Total % Held (1) Total % Non-Held ND % Held (1) ND % Non-Held Net Acres By County Total Net Acreage: 145,749 (2) ND: 131,243 Net Acres 29,973…
  5. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 5
    Percentage of Producing Wells By Operator Top 10 Operators 1 Slawson 9.1% 2 Continental 10.8% 6.7% 3 Whiting 4 ConocoPhillips 6.4% 5 Hess 19.5% 6 Oasis 5.6% 7 XTO Energy Less Than 2% 8 EOG Resources 5.5% 9 Petro-Hunt…
  6. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 6
    Extensive well database from the evaluation and participation in over 3000 gross wells in the basin drives investment decisions A sizable inventory of undrilled locations for future investment Net Undeveloped Breakeven…
  7. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 7
    Increased activity levels has resulted in an increase in the number of inbound AFEs Permitting levels on Northerns acreage over the last 180 days supports continued investment opportunities Williston Basin Activity(1) 120…
  8. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 8
    Committing Capital to the Highest Return Wells 50% Average IRR 10.0 Average AFE Costs 47% 9.0 45% 9.0 8.4 7.9 7.8 40% 37% 8.0 7.5 7.6 7.6 37% 36% 35% 7.3 7.1 6.9 6.8 6.6 35% 33% 32% 7.0 30% 29% 28% 6.0 26% 26% 26% MM…
  9. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 9
    7 Operators Represent 89% of In Process Wells & 90% of YTD Consented Wells % of Total % of In Consented Weighted Weighted Operator Process Wells Wells Average EUR Average IRR Continental Resources 35% 5% 910,000 40% Whiting…
  10. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 10
    Increasing Mix of High Intensity Completions 100% 90% 80% 70% 60% 50% 100% 98% 96% 100% 89% 90% 40% 79% 30% 59% 56% 62% 20% 39% 42% 10% 0% Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17…
  11. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 11
    Curtis 21-16MBH-2NH Anna 2-34H Hereford Federal 9-20H Wiley 7-25H BB-Chapin A-151-95-0403H-6 1 Burlington (Jul. 2017) 2 Continental (Jul. 2017) 3 Continental (Aug. 2017) 4 Continental (Aug.2017) 5 Hess (Jun. 2017) Peak 30: 1,102 Boepd…
  12. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 12
    Increasing Well Productivity 300,000 2012 - 2014 Cum(1) 280,000 2015 Cum(1) 260,000 2016 Cum(1) 700 Mboe Type Curve 240,000 800 Mboe Type Curve 220,000 900 Mboe Type Curve 200,000 Cum Production (Boe) 1200 Mboe Type Curve…
  13. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 13
    Superior Well Performance 340,000 Average (Wells Completed in 2017) 320,000 700 Mboe Type Curve 300,000 280,000 800 Mboe Type Curve 260,000 900 Mboe Type Curve 240,000 1200 Mboe Type Curve Cum Production (Boe) 220,000…
  14. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 14
    450,000 Average 700 Mboe Type Curve 400,000 800 Mboe Type Curve 900 Mboe Type Curve 350,000 1200 Mboe Type Curve 300,000 Cum Production (Boe) 250,000 200,000 150,000 100,000 50,000 - - 30 60 90 120 150 180 210 240…
  15. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 15
    Continually Improving Results 300,000 Average (Wells Completed in 2017) Average (Wells Completed in 2016) 280,000 700 Mboe Type Curve 260,000 800 Mboe Type Curve 240,000 900 Mboe Type Curve 220,000 1200 Mboe Type Curve 200,000…
  16. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 16
    Economics by EUR & Commodity Price 1000 Mboe: 7.5MM CWC 140% 900 Mboe: 7.5MM CWC 142% 120% 800 Mboe: 7.5MM CWC 700 Mboe: 7.5MM CWC 100% 98% 80% 88% IRR 60% 74% 62% 49% 40% 55% 35% 47% 26% 35% 20% 20% 0% 50 WTI 60…
  17. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 17
    Production vs Capital Expenditures 600 537.5 536.9 16,000 16,285 15,794 500 15,321 439.1 414.0 13,933 13,794 13,552 13,442 13,688 13,653 13,299 Capital Expenditures (in millions) 12,000 400 Production (Boepd)…
  18. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 18
    Protecting Liquidity and Cash Flows Swaps(1) Collars(1) Weighted Average Weighted Average Contract Period Volume (Bbls) Price (per Bbl) Volume (Bbls) Price (per Bbl) 2017: 4Q 418,500 53.74 50,000 50.00 - 60.06 2018: 1Q 825,000…
  19. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 19
    Capital Expenditures(1) & Production(2) 600 15,794 16,285 18,000 Capital Expenditures ( millions) 14,440 16,000 13,653 Ave Daily Production (Boe) 500 537 14,000 Production: 400 12,000 10,000 Total Production Increase 5%…
  20. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 20
    De-risked non-op position comprised of over 145,000 net acres of Dominate Non-op largely HBP acreage Position in the Participated in approximately 20% of gross wells drilled and completed Williston Basin to the Bakken & Three Forks;…
  21. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 21
    22
  22. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 22
    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…
  23. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 23
    Takeaway Options Takeaway Capacity (Mbopd) (1) 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 destinations for…
  24. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 24
    Year Ended December 31, Production: 2012 2013 2014 2015 2016 Oil (MBbls) 3,465.3 4,046.7 5,150.9 5,168.7 4,325.9 Natural Gas and NGLs 1,768.9 2,572.3 3,682.8 4,651.6 4,026.9 Total Production (Mboe) 3,760.1 4,475.4 5,764.7 5,944.0…
  25. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 25
    December 31, ('s in millions) 2012 2013 2014 2015 2016 Assets Current assets 94.2 104.4 226.0 128.8 46.9 Property and equipment, net 1,083.2 1,397.3 1,761.9 589.3 376.2 Other assets 13.5 17.9 38.8 15.8 8.4 Total Assets 1,190.9…
  26. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 26
    Quarter Ended September 30, June 30, March 31, December 31, (In thousands) 2017 2017 2017 2016 Net Income (Loss) (16,087) 13,802 16,941 (12,330) Add Back: Interest Expense 16,673 16,428 16,304 16,195 Income Tax Benefit - - -…
  27. Capital One Securities 12th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 27
    2016 2015 2014 2013 2012 (In Thousands) Net (Loss) Income (293,494) (975,355) 163,746 53,067 72,285 Add Back: Interest Expense 64,486 58,360 42,106 32,709 13,875 Income Tax Provision (Benefit) (1,402) (202,424) 99,367 31,768…

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