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3Q 2018 Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Nov 9, 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. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 1
    NOVEMBER 2018 NYSE American: NOG 1
  2. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 2
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & THIRD QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 3
  3. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 3
    Organic Activity Acquisitions Market Conditions Capital Allocation A Returns Focused Strategy for All Cycles Refinance Debt Return Capital to Stakeholders 4
  4. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 4
    GROWTH Organic and Acquisitions Ahead of Plan Driving Production Growth = 74% year-over-year Driving Adjusted EBITDA up 174% year-over-year Driving Cash Flow and reactivating stock buy-back plan Balance Sheet Transactions &…
  5. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 5
    Quarterly Comparison 3Q 2017 3Q 2018 1 GREW PRODUCTION (Boe/d) 15,321 26,708 74% 174% INCREASED ADJUSTED 2 EBITDA(1) (MM) 97.9 35.7 33% DIFFERENTIALS 3 DECREASED (/Bbl) 6.22 4.16 4 REDUCED CASH OPERATING COSTS…
  6. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 6
    Committing Capital to the Highest Return Wells Well costs stable over the last 6 quarters 70% Weighted Average IRR 10.0 Weighted Average AFE Costs 9.0 60% 58% 8.1 8.1 55% 7.8 7.9 7.9 8.0 7.6 7.6 50% 6.8 7.0 43% 6.6 6.0 40% 37%…
  7. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 7
    Consistently Funding Attractive AFEs Generates Consistent Production Growth 30.0 35,500 75% CAGR (Est) 25.0 9.3 Net Organic Wells Added to PDP Quarterly Activity 5.8 7.0 7.1 26,708 8.1 59% CAGR 20.0 3.6 4.3 21,046…
  8. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 8
    Higher Recoveries + Stable Costs = Improved Capital Efficiency 2018 vintage wells better 2015 Cum (1) (1) 2016 Cum than ever 280,000 2017 Cum (1) (1) 2018 Cum 700 Mboe Type Curve 2018 wells tracking over a 240,000 800 Mboe…
  9. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 9
    1 Liberty 45-1311H 2 Gabriel 1-36-25H 3 Wold Federal 44-7-4XH 4 Shorty 4-9F 3H 5 Wiley 8-25H EOG (IP: August 2018) Slawson (IP: July 2018) Whiting (IP: August 2018) Equinor (IP: April 2018) Continental (IP: June 2018) Peak 30: 1,568…
  10. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 10
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & THIRD QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 11
  11. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 11
    1Q 2018 2Q 2018 3Q 2018 4Q 2018 Est PRODUCTION (Boed) 1 2018: 28 - 31 Net Well Additions 35,500 Well Performance 21,046 26,708 16,742 D&C List Supportive of 19 Plans OPERATING EXPENSES (per Boe) 9.29 2 Better Than Plan: 8.61…
  12. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 12
    Adjusted Earnings Per Share Three Months Ended Measure September 30th, 0.17 2018 2017 % Production (MMBoe/d) 26,708 15,321 74% 0.11 0.10 0.09 Realized Price per BOE 53.96 40.90 32% Adjusted EPS 0.11 0.04 175% 0.04…
  13. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 13
    Field-Level Costs Declining Increasing Productivity at the Home Office 3.02 8.94 8.65 7.71 7.60 7.39 LOE per BOE Cash G&A per BOE 1.58 1.45 1.28 1.01 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 14
  14. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 14
    Debt-Adjusted Cash Flow per Share Debt-Adjusted Production per MM Shares (Boe) 5,546 0.20 4,080 3,409 0.11 0.07 1,592 1,105 0.02 0.02 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 Notes: Debt-adjusted…
  15. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 15
    As of As of As of 2019E (In millions) 6/30/18 9/30/18 11/05/18 Targets Debt: Cash 200.9 112.8 16.8 Total Debt 853.2 807.0 870.1 Lower Net Debt 652.3 694.2 853.3 Liquidity: Drawn 360.0 360.0 175.0 Available 40.0 40.0 250.0…
  16. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 16
    Protecting Liquidity and Cash Flows Crude Oil Derivative Basis Swaps (1) Contract Period Volumes (Bbls) Weighted Average Price (/Bbl) 2019 Q4 3,650,000 -2.41 Crude Oil Derivative Price Swaps Contract Period Volumes (Bbls) Weighted…
  17. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 17
    FULL YEAR 2018 GUIDANCE SUMMARY COMMENTARY 2017 Actuals 2018 Guidance Range 2018 - Northern anticipates that organic net well additions will increase to 28 31 from 16.9 in 2017 Production Avg. Daily Prod. (Boed) 14,800 25,240 25,500…
  18. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 18
    Northern Has Amongst the Highest Expected FCF Yields Ranking 17% 17% 14% 11% 10% 6% 1) NOG Free Cash Flow Yield 3% 2% 2% CRC NOG WLL MGY DNR CLR OAS QEP LONE HK 2) MGY 2019E 3) WLL -32% 4) CRC With a Much Better Balance…
  19. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 19
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & THIRD QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 20
  20. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 20
    NOG Leasehold Acquired Leasehold 21
  21. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 21
    Greater inventory of projects with attractive economics Increased reserve base Increased value Stronger foundation for continued growth NOG Acreage Acquired Acreage (1) Based on Strip Pricing as of 06/29/2018. 22
  22. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 22
    Salt Creek, Pivotal and Acquisition Criteria W Energy Transactions Strengthens NOGs Position as the Go-To Buyer of Non-Op Interests in the Williston Basin Leverages Expertise of In-House Technical Team and Proprietary Database…
  23. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 23
    Pro Forma 3P Inventory Locations(1) Pro Forma 1P Reserves (MMBoe)(1) 800 140 51.9 741.8 700 679.3 8.2 2.4 120 115.2 600 19.5 100 6.6 8.3 500 80.8 80 400 60 300 40 200 100 20 0 0 Pre-Acquisitions Salt Creek Pivotal…
  24. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 24
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & THIRD QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 25
  25. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 25
    Basin Activity Increasing Organic Activity Activity on Northerns acreage is increasing Ground game utilizes scale to increase additional working interest Accretive acquisitions in the core of the play Acquisitions Capital…
  26. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 26
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  27. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 27
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  28. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 28
    Historical Operating Information 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…
  29. 3Q 2018 Presentation – Northern Oil and Gas, Inc. – slide 29
    Adjusted EBITDA by Year (in thousands) 2013 2014 2015 2016 2017 Net Income (Loss) 53,067 163,746 (975,355) (293,494) (9,194) Add: Interest Expense 32,709 42,106 58,360 64,486 70,286 Income Tax Provision (Benefit) 31,768 99,367…

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