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IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Apr 9, 2019 · 43 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. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 1
    NYSE: NOG 25th Annual IPAA OGIS APRIL 2019 NYSE: NOG
  2. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 2
    NORTHERN OIL & GAS NYSE: NOG DOMINANT NON-OPERATOR FRANCHISE IN THE WILLISTON BASIN Focused on disciplined growth, free cash flow generation and sustainable shareholder returns BY THE NUMBERS1 SCALE ACTIVITY CASH FLOW NYSE:…
  3. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 3
    NORTHERN OIL & GAS WHY NORTHERNS BETTER NYSE: NOG RETURNS FOCUS Changing the way the market thinks about E&P BETTER BETTER BUSINESS BASIN MODEL BETTER BETTER LT CAPITAL GROWTH ALLOCATION POTENTIAL Northern Oil & Gas…
  4. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 4
    NYSE: NOG NYSE: NOG A BETTER BUSINESS MODEL
  5. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 5
    DIFFERENTIATED E&P PLATFORM NYSE: NOG OIL-LEVERED VISIBLE LONG-TERM DISCIPLINED CAPITAL PROACTIVELY MANAGED WILLISTON PRODUCER GROWTH POTENTIAL ALLOCATION BALANCE SHEET Diverse operator group Multi-year well inventory Selective…
  6. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 6
    2019 CAPITAL ALLOCATION STRATEGY NYSE: NOG FREE CASH FLOW STREAM REINVEST CAPITAL Scale of capital reinvestment ORGANIC ACTIVITY dependent on market conditions for a ACQUISITIONS returns-focused strategy for all cycles PAY…
  7. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 7
    THE NON-OPERATOR MODEL: WHAT WE DO NYSE: NOG A flexible and moderated approach to E&P, offering capital discipline, cost control & protection from downside exposure We do not drill wells or We acquire minority working operate rigs…
  8. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 8
    THE NON-OPERATOR MODEL: CONSENT PROCESS NYSE: NOG Northern's land & engineering teams review every well AFE to determine participation or non-consent WELL PROPOSAL AFE REVIEW ANALYSIS DECISION GO Operator must Minority partners…
  9. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 9
    THE NON-OPERATOR MODEL: CAPITAL BENEFITS NYSE: NOG 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…
  10. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 10
    THE NON-OPERATOR MODEL: COST BENEFITS NYSE: NOG SCALABILITY Only 22 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…
  11. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 11
    THE NON-OPERATOR MODEL: NOG ADVANTAGE NYSE: NOG LEVERAGING EXPERIENCE Proprietary Northern database, built from participation in over 5,000 wells, 30%+ of all Bakken and Three Forks wells drilled play to date 300+ internally…
  12. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 12
    NYSE: NOG NYSE: NOG WILLISTON BASIN A BETTER BASIN
  13. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 13
    FOCUSED WILLISTON BASIN CORE FOOTPRINT NYSE: NOG Portfolio of high-quality acreage in the heart of the basin with interests in over 5,000 gross Bakken/Three Forks oil wells NET ACREAGE SUMMARY 7% 10% 6% 157,083 NET ACRES 90%…
  14. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 14
    PARTICIPATING IN THE HIGHEST-QUALITY WELLS NYSE: NOG No requirement for contiguous acreage allows Northern to participate in prime drilling opportunities across the region Periot 44-20HU Kaitlin Federal 5693 41-28B Moen 41-2-5H…
  15. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 15
    WITH LEADING, TECHNICALLY STRONG OPERATORS NYSE: NOG Deep operating partner relationships facilitate both organic and acquisition-based production growth opportunities % NET PRODUCING WELLS BY OPERATOR OTHERS…
  16. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 16
    WILLISTON BASIN: NORTHERNS HOME FIELD NYSE: NOG Northern is a pure-play Williston Basin company, with long-term relationships with premier operators and land owners Presence in basin since Northerns inception in 2006 7.4 15k…
  17. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 17
    THE BAKKEN: THE WILLISTONS SWEET SPOT NYSE: NOG Bakken shale meets the optimal criteria for profitable returns in the current fundamental climate Oil cut and high BTU gas Drilling efficiency is helps enhance overall SIGNIFICANT…
  18. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 18
    NYSE: NOG NYSE: NOG BETTER CAPITAL ALLOCATION
  19. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 19
    2019 CAPITAL ALLOCATION STRATEGY NYSE: NOG 2019 capital allocation hierarchy ensures strategic management of balance sheet through disciplined approach FREE CASH FLOW STREAM REINVEST CAPITAL Allocation in 2019 will be value-centric,…
  20. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 20
    ENHANCED RETURNS WITH DISCIPLINED CAPITAL ALLOCATION NYSE: NOG Participation in the highest quality wells with stable AFE costs generates consistent production growth & higher IRRs CONSISTENTLY FUNDING ATTRACTIVE WELLS GENERATES…
  21. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 21
    YIELDING YOY IMPROVEMENTS IN WELL RECOVERY NYSE: NOG Completions technology and high-grading of well locations has led to improved well recovery across the basin INCREASING WELL PRODUCTIVITY 2015 Cum (1) HIGHER RECOVERIES + STABLE…
  22. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 22
    RESERVES UNDERPIN VALUE PROPOSITION NYSE: NOG Participation in highest-quality wells ensures optimal exposure to high-volume regional reservoirs Growing reserves across portfolio Proved reserve growth of 79% YoY Working Interest…
  23. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 23
    NYSE: NOG NYSE: NOG BETTER LONG-TERM GROWTH POTENTIAL
  24. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 24
    CORE GROWTH THESIS IS SUSTAINABLE NYSE: NOG As a non-operator, NOG can be both opportunistic and strategic in its acquisition of additional acreage BACKDROP OPPORTUNITIES FORCED AFE burdens lead to SELLERS undercapitalization 1.…
  25. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 25
    POSITION ENHANCED THROUGH ACCRETIVE ACQUISITIONS NYSE: NOG Directing cash flow to acquisitions consistently grows Northern's position while diversifying opportunities Broadening inventory position in the core of the basin: Greater…
  26. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 26
    ORGANIC GROWTH & ACQUISITIONS DRIVE OPPORTUNITY SET NYSE: NOG Northern adds to its acreage position and well inventory in multiple ways Northerns goal is to leverage its strong financial position to counter-cyclically invest in…
  27. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 27
    NYSE: NOG NYSE: NOG PROACTIVELY MANAGED BALANCE SHEET
  28. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 28
    CONTINUED BALANCE SHEET IMPROVEMENT NYSE: NOG Northerns balance sheet continues to offer robust protection against market volatility 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…
  29. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 29
    HOLDING LEVERAGE BELOW 2.0x NYSE: NOG Actively working to further reduce debt and continue generating free cash flow Net Debt/Annualized Adjusted EBITDA LEVERAGE 4.6x EXPECT YE2019 LEVERAGE TO 4.1x…
  30. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 30
    THROUGH CLOSELY MANAGED DEBT MATURITY NYSE: NOG Enhancing cash flow to leverage liquidity position to pay down debt LIQUIDITY PROFILE1 DEBT MATURITY SCHEDULE 287 million of liquidity2 Favorable schedule Plan to live within Free…
  31. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 31
    PROACTIVE HEDGING PROGRAM TO PROTECT CASH FLOW NYSE: NOG Hedging production actively safeguards against exposure to commodity price downdrafts Contract Weighted Average Volumes (Bbls) Period Price (/Bbl) DEEP HEDGING PROGRAM…
  32. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 32
    NYSE: NOG NYSE: NOG GENERATING BETTER PERFORMANCE
  33. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 33
    2018 DELIVERED BEYOND OUR PLAN NYSE: NOG Execution of strategic priorities through 2018 and into 2019 supported by unique non-operator flexibility STRATEGY FY2018 STATUS Participated in more wells than prior year 1 CAPTURE…
  34. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 34
    4Q & YE 2018: BUSINESS UPDATE NYSE: NOG Non-operated model continues to demonstrate measured growth with improving capital discipline to drive returns mbbl/d MM GROWING PRODUCTION ENHANCING EBITDA Production ramping across Northern…
  35. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 35
    ALIGNED WITH THE SHAREHOLDER LIKE NO OTHER E&P NYSE: NOG Northern is focused on what it means to be accountable to the shareholder TYPICAL E&P PEER NORTHERN 3.00 Cash G&A per…
  36. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 36
    OUTPERFORMING GUIDANCE NYSE: NOG 2018 was another year executing on our disciplined plan to meet guidance 2018 GUIDANCE 2018 ACTUALS 2019 GUIDANCE RANGE PRODUCTION ACHIEVED 2018 GUIDANCE Avg. Daily Prod. (Boepd) 23,650 - 24,250…
  37. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 37
    COMPELLING UNDERVALUED OPPORTUNITY NYSE: NOG Northern trades at an attractive valuation point below peers, yet has leading free cash flow metrics 2019E FREE CASH FLOW YIELD 2019E EV / EBITDA 11.0x 21% 21% 9.4x 14% 12% 7.9x 6%…
  38. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 38
    WHY NORTHERN OIL & GAS NYSE: NOG NON-OPERATOR Unique model provides capital flexibility & discipline, levers FLEXIBILITY Northerns experience and relationships in the region GROWING ORGANIC Basin and Northern acreage activity…
  39. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 39
    DIFFERENTIATED E&P PLATFORM NYSE: NOG OIL-LEVERED WILLISTON DISCIPLINED CAPITAL BASIN PRODUCER ALLOCATION & RETURNS PROACTIVELY MANAGED VISIBLE LONG-TERM BALANCE SHEET GROWTH POTENTIAL Northern Oil & Gas Investor…
  40. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 40
    NYSE: NOG NYSE: NOG APPENDIX
  41. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 41
    HISTORICAL OPERATING & FINANCIAL INFORMATION NYSE: NOG HISTORICAL OPERATING INFORMATION YEAR ENDED DECEMBER 31, 2013 2014 2015 2016 2017 2018 PRODUCTION Oil (MBbls) 4,046.7 5,150.9 5,168.7 4,325.9 4,537.3 7,790.2 Natural Gas and…
  42. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 42
    NON-GAAP RECONCILIATIONS NYSE: NOG 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…
  43. IPAA Oil and Gas Investment Symposium – Northern Oil and Gas, Inc. – slide 43
    NYSE: NOG

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