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4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Mar 12, 2019 · 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. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 1
    MARCH 2019 NYSE American: NOG 1
  2. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 2
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & FOURTH QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 3
  3. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 3
    We acquire minority We do not drill wells or working interest in drilling operate rigs units and wells Ability to control capital Big company advantages expenditures higher and with only 20 employees lower 4
  4. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 4
    CAPEX CONTROL Ability to increase and decrease capital quickly No rig or drilling contracts, no embedded personnel at the field level Non-consent process allows us to cut drilling rapidly as returns dictate Decision to drill, given…
  5. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 5
    SCALABILITY Only 20 full-time employees Virtually unchanged despite doubling of production base in 2018 COST & MARGIN Peer leading cost structure 0.92/Boe cash G&A(1) cost in 4Q 2018 among the best in the industry Majority of…
  6. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 6
    LEVERAGING EXPERIENCE Proprietary Northern database, built from participation in 30%+ of all Bakken and Three Forks wells 300+ internally generated type curves by operator, by field, by formation More accurate analysis tailored to…
  7. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 7
    FREE CASH FLOW STREAM REINVEST CAPITAL Scale of capital reinvestment dependent on market conditions ORGANIC ACTIVITY for a returns focused strategy for ACQUISITIONS all cycles PAY DOWN DEBT STOCK BUYBACKS DIVIDENDS 2019…
  8. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 8
    Non-Op Model & Capital Allocation Outperforming Forecast Growth - Organic and Acquisition Returns Ahead of Plan Driving 2018 Production Growth up 73% year-over-year Driving 2018 Adjusted EBITDA up 141% year-over-year…
  9. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 9
    Quarterly Comparison 4Q 2017 4Q 2018 1 GREW PRODUCTION (Boe/d) 16,742 36,258 117% INCREASED OIL & GAS 2 SALES (MM) 72.5 152.6 111% INCREASED ADJUSTED 3 EBITDA(1) (MM) 48.5 124.9 157% 4 REDUCED CASH OPERATING COSTS…
  10. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 10
    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…
  11. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 11
    Consistently Funding Attractive AFEs Generates Consistent Production Growth 35.0 77% CAGR 36,258 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 8.5 21,046 3.6 4.3 2.0…
  12. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 12
    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…
  13. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 13
    Periot 44-20HU Kaitlin Federal 5693 41-28B Moen 41-2-5H SC-5WX-152-99-0310H-2 Missouri 152-103-4-2-3H 1 Whiting (IP: October 2018) 2 Oasis (IP: December 2018) 3 Whiting (IP: October 2018) 4 Hess (IP: November 2018) 5 Nine Point (IP:…
  14. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 14
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & FOURTH QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 15
  15. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 15
    1Q 2018 2Q 2018 3Q 2018 4Q 2018 PRODUCTION (Boepd) 1 2018: 31.2 Net Organic Well Additions 36,258 Some Shut-In and Curtailed Prod. in Q4 21,046 26,708 17,995 D&C List Supportive of 19 Plans LEASE OPER. EXPENSES (per Boe) 2…
  16. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 16
    Field-Level Costs Declining Increasing Productivity at the Home Office 3.02 8.94 8.65 7.71 7.60 7.39 6.43 LOE per BOE Cash G&A per BOE(1) 1.58 1.45 1.28 1.01 0.92 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 3Q 17 4Q 17…
  17. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 17
    CRUDE OIL DERIVATIVE BASIS SWAPS1 Proactive cash flow protection against Weighted Average Price Contract Period Volumes (Bbls) downside commodity risk (/Bbl) 2019 Fiscal Year 3,741,000 (2.41) Contributes towards balance sheet…
  18. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 18
    As of As of As of Long Term (In millions) 6/30/18 9/30/18 12/31/18 Targets Debt: Cash 200.9 112.8 2.4 Total Debt 853.2 807.0 830.2 Net Debt 652.3 694.2 827.8 Liquidity: Borrowing Base 400.0 400.0 425.0 Drawn 360.0 360.0 140.0…
  19. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 19
    FULL YEAR 2019 GUIDANCE SUMMARY COMMENTARY 2018 Actuals 2019 Guidance Range 2019 Northern anticipates that organic net well additions will be 28 32 from 31.2 in 2018 Production Avg. Daily Prod. (Boepd) 25,555 34,500 35,500 2019…
  20. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 20
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & FOURTH QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 21
  21. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 21
    NOG Leasehold 2018 Major Acquisitions 22
  22. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 22
    Accretive to Per-Share Metrics at Corporate Level Exceed Rate-of-Return Hurdle Rate at Asset Level Increase Core Drilling Inventory and Locations Leverage In-House Technical Team and Expertise Drive Increased Non-Op Size and…
  23. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 23
    NORTHERNS BUSINESS STRATEGY AHEAD OF PLAN 1) STRATEGY REVIEW & FOURTH QUARTER HIGHLIGHTS 2) FINANCIAL RESULTS & GUIDANCE 3) ACQUISITIONS 4) KEY TAKEAWAYS 24
  24. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 24
    NON-OPERATOR Northerns disciplined model provides capital flexibility with an ability to increase or decrease spending as returns FLEXIBILITY dictate GROWING ORGANIC Northerns scale and commodity price volatility is driving ACTIVITY…
  25. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 25
    26
  26. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 26
    Historical Operating Information 2014 2015 2016 2017 2018 Production Oil (MBbls) 5,150.9 5,168.7 4,325.9 4,537.3 7,790.2 Natural Gas and NGLs (Mmcf) 3,682.8 4,651.6 4,026.9 5,187.9 9,224.8 Total Production (Mboe) 5,764.7 5,944.0 4,997.1…
  27. 4Q 2018 Earnings Presentation – Northern Oil and Gas, Inc. – slide 27
    Adjusted EBITDA by Year (in thousands) 2014 2015 2016 2017 2018 Net Income (Loss) 163,746 (975,355) (293,494) (9,194) 143,689 Add: Interest Expense 42,106 58,360 64,486 70,286 86,005 Income Tax Provision (Benefit) 99,367 (202,424)…

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