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January 2019 Investor Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Jan 22, 2019 · 34 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. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 1
    JANUARY 2019 NYSE American: NOG 1
  2. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 2
    NORTHERN REPOSITIONED AHEAD OF PLAN 1) STRATEGY REVIEW & YTD 2018 HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 3
  3. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 3
    Position: 151,978 net acres(1) Large highly economic net well inventory 95% held, 97% held in North Dakota(1) Production: 3Q 2018 averaged 26,708 BOE/d, 84% crude 4Q 2018 guidance mid-pt. 35,500 BOE/d Hedges Protecting Liquidity:…
  4. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 4
    Organic Activity Market Conditions Capital Acquisitions Allocation A Returns Focused Strategy for All Cycles Refinance Debt Return Capital to Stakeholders 5
  5. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 5
    GROWTH Organic and Acquisitions Ahead of Plan Driving Production Growth = 70%+ year-over-year Driving 3Q18 Adjusted EBITDA up 174% year-over-year Driving Cash Flow and Reactivated stock buy-back plan Balance Sheet Transactions…
  6. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 6
    Committing Capital to the Highest Return Wells Well costs stable over the last 7 quarters 70% Weighted Average IRR 10.0 Weighted Average AFE Costs 9.0 60% 58% 55% 8.1 8.1 55% 7.9 7.9 8.1 7.6 7.8 7.6 8.0 50% 6.8 7.0 6.6 43% 6.0…
  7. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 7
    Consistently Funding Attractive AFEs Generates Consistent Production Growth 35.0 75% CAGR (Est) 35,500 30.0 Quarterly Activity Net Organic Wells Added to PDP 7.7 25.0 59% CAGR 26,708 9.3 7.1 5.8 20.0 3.6 8.1 21,046 4.3…
  8. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 8
    Increasing Well Productivity Economics by EUR & Commodity Price(2) (1) 2015 Cum 2016 Cum (1) 200% 280,000 1,100 Mboe: 7.5MM CWC 2017 Cum (1) 2018 Cum (1) 1,000 Mboe: 7.5MM CWC 700 Mboe Type Curve 180% 181% 240,000 800 Mboe Type…
  9. January 2019 Investor 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. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 10
    Percentage of Producing Wells By Operator Top 10 Operators 1 Slawson 11.9% 2 Continental 14.2% 3 Whiting 8.0% 4 Hess 5 ConocoPhillips 7.4% 6 Oasis 15.1% 7 XTO Energy Less Than 2% 5.0% 8 Equinor (Statoil) 9 Petro-Hunt Dakota…
  11. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 11
    Northern Net Acreage Summary(1) 10% 5% 3% 90% 95% 97% (2) (2) North Dakota Montana Total % Held Total % Non-Held ND % Held ND % Non-Held Net Acres By County Total Net Acreage: 151,978(1) 31,332 ND: 136,875 Net Acres 27,978…
  12. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 12
    NORTHERN REPOSITIONED AHEAD OF PLAN 1) STRATEGY REVIEW & YTD 2018 HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 13
  13. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 13
    1Q 2018 2Q 2018 3Q 2018 4Q 2018 Est PRODUCTION (Boed) 1 2018: Approx. 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:…
  14. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 14
    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 15
  15. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 15
    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…
  16. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 16
    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…
  17. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 17
    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…
  18. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 18
    FULL YEAR 2018 GUIDANCE SUMMARY COMMENTARY 2017 Actuals Guidance 2018 - Northern anticipates that organic net well additions will increase to 28 31 from 16.9 in 2017 Production 4Q 2018 Avg. Daily Prod. (Boed) 14,800 35,000 36,000…
  19. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 19
    NORTHERN REPOSITIONED AHEAD OF PLAN 1) STRATEGY REVIEW & YTD 2018 HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 20
  20. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 20
    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. 21
  21. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 21
    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…
  22. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 22
    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…
  23. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 23
    NORTHERN REPOSITIONED AHEAD OF PLAN 1) STRATEGY REVIEW & YTD 2018 HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 24
  24. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 24
    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…
  25. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 25
    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…
  26. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 26
    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…
  27. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 27
    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…
  28. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 28
    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…
  29. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 29
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  30. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 30
    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…
  31. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 31
    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…
  32. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 32
    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…
  33. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 33
    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…
  34. January 2019 Investor Presentation – Northern Oil and Gas, Inc. – slide 34
    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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