Skip to main content Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. Investor Presentation | Shale Experts
Loading...
Pm

Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Dec 6, 2018 · 25 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 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 1
    DECEMBER 2018 NYSE American: NOG 1
  2. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 2
    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 &…
  3. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 3
    Northern Has Amongst the Highest Expected FCF Yields Ranking Free Cash Flow Yield 17% 17% 1) NOG 16% 13% 11% 6% 2019E 2% -1% -3% 2) WLL CRC WLL NOG DNR MGY CLR QEP OAS LONE HK CRC WLL NOG DNR MGY CLR QEP OAS LONE HK 3)…
  4. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 4
    NORTHERNS ASSETS PRODUCE BETTER MARGINS THAN PEERS, EVEN MANY CONSIDERED THE BEST 3Q18 RESULTS NOG OAS CLR EOG WLL WPX MGY Oil as a Percentage of Production 84% 77% 55% 55% 67% 67% 69% Unhedged Realized Price / BOE 59.18 57.61…
  5. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 5
    NORTHERN HAS MITIGATED RISK BETTER THAN PEERS AND AT BETTER PRICES 63% 63 54 54 % 2019E Total Production Hedged 51 48% 2019E Average Hedge Price 42% 29% 0% 0% 0 0 NOG OAS WPX WLL CLR MGY NOG OAS WPX WLL CLR…
  6. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 6
    Northern has run scenarios from 20 40 wells and WTI prices from 40 70 for 2019 and beyond Northern believes in all of these scenarios that the Company generates substantial free cash flow (1) Table Source: SunTrust Robinson Humphrey…
  7. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 7
    ALL ROADS STILL LEAD TO LEVERAGE BELOW 2.0X Northern has run scenarios from 20 40 net wells per year and WTI prices from 40 70 for 2019 and beyond Northern believes in all of these scenarios the Company will have year-end Net Debt…
  8. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 8
    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 9
  9. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 9
    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%…
  10. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 10
    Consistently Funding Attractive AFEs Generates Consistent Production Growth 30.0 35,500 75% CAGR (Est) 25.0 9.3 Quarterly Activity Net Organic Wells Added to PDP 5.8 7.0 7.1 26,708 8.1 59% CAGR 20.0 3.6 4.3 21,046 2.0…
  11. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 11
    Quarterly Comparison 3Q 2017 3Q 2018 1 GREW PRODUCTION (Boe/d) 15,321 26,708 74% INCREASED ADJUSTED 2 EBITDA(1) (MM) 35.7 97.9 174% DIFFERENTIALS 3 DECREASED (/Bbl) 6.22 4.16 33% 4 REDUCED CASH OPERATING COSTS PER UNIT…
  12. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 12
    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. 13
  13. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 13
    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…
  14. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 14
    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…
  15. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 15
    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 240,000 2018 wells tracking over a 800 Mboe…
  16. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 16
    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…
  17. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 17
    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…
  18. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 18
    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…
  19. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 19
    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…
  20. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 20
    Protecting Liquidity and Cash Flows Crude Oil Derivative Basis Swaps (1) Contract Period Volumes (Bbls) Weighted Average Price (/Bbl) 2019 CY 3,650,000 -2.41 Crude Oil Derivative Price Swaps Contract Period Volumes (Bbls) Weighted…
  21. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 21
    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…
  22. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 22
    23
  23. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 23
    24
  24. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 24
    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…
  25. Capital One Securities 13th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 25
    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…

From the store

Browse maps, data & reports in the Shale Experts store