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4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Feb 28, 2018 · 29 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. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 1
    February 2018 NYSE American: NOG
  2. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 2
    1) INTRODUCTION 2) Q4 EARNINGS AND GUIDANCE 3) CAPITAL STRUCTURE UPDATE 4) ASSET OVERVIEW 5) APPENDIX
  3. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 3
    (1,2) (3) D&C Well Basin Rigs (4) (5) Costs Performance Differentials Active THE + + + = BAKKEN Flat 50 % 60 % 50 % IS BACK Operational resulting in Better wells is driving efficiencies bigger coupled with higher…
  4. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 4
    5
  5. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 5
    1 BAKKEN NON-OP PRODUCER 3,500+ WELLS currently active (1) 45 operating PARTNERS 16.7 mboed 4Q17 production 83% of 4Q17 production OIL-WEIGHTED 143+ THOUSAND NET 88% HELD 7.0% AVERAGE (2) ACRES by production or…
  6. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 6
    Net Undeveloped Locations by IRR(1) Economics by EUR & Commodity Price(2) Avg. EUR (Mboe): 1,087 1,049 931 782 598 200% %Oil 79% 77% 80% 79% 79% 1,100 Mboe: 7.5MM CWC Avg. PV-10 (MM): 12.2 8.9 7.4 4.5 1.8 1,000 Mboe: 7.5MM CWC 180%…
  7. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 7
    Company Case PV10% Bridge SEC Pricing(1,2) FYE17 NYMEX Pricing Differentiated Value Proposition 1.7Bn+ Total 758mm Net Inventory: 147 PUD 35+ 101 PDNP 510 PDP Rig Years FYE2017 Ryder Scott 1P PV10% NOG 3P…
  8. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 8
    Since 3Q17, Northern has been in the process of a financial transformation, positioning itself for growth in one of the nations premier rate-of-change oil plays with the following goals: TTM Q4 Annualized Reducing net leverage Adj.…
  9. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 9
    Background When evaluating acquisitions, Northern has a significant competitive advantage over its peers given considerable amounts of data accumulated over 10 years of participating in 3,500+ Bakken wells across its 143k net acres…
  10. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 10
    Commentary Northern believes the current and future acquisition opportunities are attractive due to a dislocation in the market: Forced sellers: As producers switch to pad drilling, many non-operators are undercapitalized to fund the…
  11. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 11
    1) INTRODUCTION 2) Q4 EARNINGS AND GUIDANCE 3) CAPITAL STRUCTURE UPDATE 4) ASSET OVERVIEW 5) APPENDIX
  12. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 12
    Significant MOMENTUM Quarterly Comparison Q3 Q4 Heading Into 2018 1 GREW PRODUCTION (Boed) 15,321 16,742 10% Q317 Q417 DIFFERENTIALS 2 DECREASED (/Bbl) 6.22 3.51 45% Q317 Q417 INCREASED 3 Adjusted EBITDA…
  13. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 13
    FULL YEAR 2018 GUIDANCE SUMMARY COMMENTARY 2017 Actuals 2018 Guidance Range Production Northern anticipates that net well additions will increase from 16.9 in 2017 to 20 22 in 2018 Avg. Daily Prod. (Boed) 14,800 17,200 - 17,800 The…
  14. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 14
    1) INTRODUCTION 2) Q4 EARNINGS AND GUIDANCE 3) CAPITAL STRUCTURE UPDATE 4) ASSET OVERVIEW 5) APPENDIX
  15. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 15
    The Company took an important first step in addressing its capital structure with the completion TPG Term Loan of a five year 400 million Term Loan Credit Facility with TPG in November 2017 Proceeds were used to refinance its…
  16. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 16
    Exchange Agreement entered into with Cooperating Group of Noteholders, holding approximately 71%, or 497 million, of Senior Notes due 2020 Exchange Agreement TRT Holdings (205 million) Other Cooperating Noteholders (292 million)…
  17. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 17
    Sources (in millions) COMMENTARY 344.3 New 8.5%/9.5% PIK Toggle 2L Notes due 2023 Equitization of Debt 154.9 The capitalization table below pro-formas Northerns Equity Raise 156.0 12/31/17 balance sheet for a 156mm equity raise and…
  18. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 18
    1) INTRODUCTION 2) Q4 EARNINGS AND GUIDANCE 3) CAPITAL STRUCTURE UPDATE 4) ASSET OVERVIEW 5) APPENDIX
  19. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 19
    Northern Net Acreage Summary(1) 10% 12% 11% 90% 88% 89% (2) (2) North Dakota Montana Total % Held Total % Non-Held ND % Held ND % Non-Held Net Acres By County Total Net Acreage: 143,253(1) 30,008 ND: 128,747 Net Acres…
  20. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 20
    Percentage of Net Producing Wells By Operator Other Operators (less than 3%) Top 10 Operators 1 Slawson 2 Continental 19.2% 22.5% 3 Whiting 4 Hess 5 ConocoPhillips 6 Oasis 3.0% 11.4% 7 XTO Energy 3.2% 8 EOG 3.5% 9…
  21. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 21
    Increasing Well Productivity 280,000 2012 - 2014 Cum (1) (1) 2015 Cum (1) 2016 Cum 240,000 2017 Cum (1) 700 Mboe Type Curve 800 Mboe Type Curve 29% 200,000 Cum Production (Boe) 900 Mboe Type Curve 1,000 Mboe Type…
  22. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 22
    1) INTRODUCTION 2) Q4 EARNINGS AND GUIDANCE 3) CAPITAL STRUCTURE UPDATE 4) ASSET OVERVIEW 5) APPENDIX
  23. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 23
    Protecting Liquidity and Cash Flows Swaps(1) Weighted Average Price Contract Period Volume (Bbls) (per Bbl) 2018: 1Q 860,400 53.42 2Q 829,000 53.09 3Q 753,000 53.42 4Q 643,000 53.54 2019: 1Q 621,000 53.01 2Q 600,600 52.89…
  24. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 24
    Year Ended December 31, 2013 2014 2015 2016 2017 Production: Oil (MBbls) 4,046.7 5,150.9 5,168.7 4,325.9 4,537.3 Natural Gas and NGLs (Mmcf) 2,572.3 3,682.8 4,651.6 4,026.9 5,187.9 Total Production (Mboe) 4,475.4 5,764.7 5,944.0…
  25. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 25
    ('s in millions) Year Ended December 31, 2013 2014 2015 2016 2017 Assets Current assets 104.4 226.0 128.8 46.9 152.8 Property and equipment, net 1,397.3 1,761.9 589.3 376.2 473.2 Other assets 17.9 38.8 15.8 8.4 6.3 Total Assets…
  26. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 26
    (s thousands) Quarter Ended December 31, September 30, June 30, March 31, 2017 2017 2017 2017 Net Income (Loss) (23,849) (16,087) 13,802 16,941 Add Back: Interest Expense 20,882 16,673 16,428 16,304 Income Tax Benefit (1,570)…
  27. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 27
    (s thousands) Year Ended December 31, 2017 2016 2015 2014 2013 Net (Loss) Income (9,194) (293,494) (975,355) 163,746 53,067 Add Back: Interest Expense 70,286 64,486 58,360 42,106 32,709 Income Tax Provision (Benefit) (1,570)…
  28. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 28
    Cases Standardized Measure Reconciliation (in thousands) SEC Case(1) NOG Internal Case(2) Pre-Tax Present Value of Estimated Future Net Revenues (Pre-Tax PV10%) 758,000 1,718,431 Future Income Taxes, Discounted at 10% (4,014)…
  29. 4Q 2017 Earnings Presentation – Northern Oil and Gas, Inc. – slide 29
    FYE17 Strip Pricing Period WTI (/bbl) HHub (/MMbtu) 2018: 1Q 61.61 3.17 2Q 60.24 2.75 3Q 59.42 2.80 4Q 58.39 2.89 2019: 1Q 57.41 3.05 2Q 56.52 2.68 3Q 55.73 2.72 4Q 55.11 2.81 2020: 1Q 54.55 2.99 2Q 53.95 2.68 3Q 53.46…

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