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1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · May 9, 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. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 1
    NYSE American: NOG Q1 2019 Supplemental Earnings Presentation MAY 2019 NYSE American: NOG
  2. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 2
    NORTHERN OIL & GAS WHY NORTHERNS BETTER NYSE American: 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…
  3. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 3
    NORTHERN OIL & GAS NYSE American: 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…
  4. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 4
    DIFFERENTIATED E&P PLATFORM NYSE American: NOG OIL-LEVERED VISIBLE LONG-TERM DISCIPLINED CAPITAL PROACTIVELY MANAGED WILLISTON PRODUCER GROWTH POTENTIAL ALLOCATION BALANCE SHEET Diverse operator group Multi-year well inventory…
  5. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 5
    2019 CAPITAL ALLOCATION STRATEGY NYSE American: 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…
  6. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 6
    THE NON-OPERATOR MODEL: WHAT WE DO NYSE American: 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…
  7. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 7
    THE NON-OPERATOR MODEL: CONSENT PROCESS NYSE American: 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…
  8. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 8
    THE NON-OPERATOR MODEL: CAPITAL BENEFITS NYSE American: 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…
  9. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 9
    THE NON-OPERATOR MODEL: COST BENEFITS NYSE American: NOG SCALABILITY Only 22 full-time employees Virtually unchanged despite doubling of production base in 2018 COST & MARGIN Peer leading cost structure 1.06/Boe cash G&A(1)…
  10. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 10
    THE NON-OPERATOR MODEL: NOG ADVANTAGE NYSE American: 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…
  11. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 11
    FOCUSED WILLISTON BASIN CORE FOOTPRINT NYSE American: 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 10% 9% 8% 160,000 NET…
  12. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 12
    PARTICIPATING IN THE HIGHEST-QUALITY WELLS NYSE American: 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…
  13. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 13
    WITH LEADING, TECHNICALLY STRONG OPERATORS NYSE American: NOG Deep operating partner relationships facilitate both organic and acquisition-based production growth opportunities % NET PRODUCING WELLS BY OPERATOR OTHERS…
  14. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 14
    WILLISTON BASIN: NORTHERNS HOME FIELD NYSE American: 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…
  15. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 15
    YIELDING YOY IMPROVEMENTS IN WELL RECOVERY NYSE American: 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 +…
  16. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 16
    THE BAKKEN: THE WILLISTONS SWEET SPOT NYSE American: 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…
  17. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 17
    ENHANCED RETURNS WITH DISCIPLINED CAPITAL ALLOCATION NYSE American: NOG Participation in the highest quality wells with stable AFE costs generates consistent production growth & higher IRRs CONSISTENTLY FUNDING ATTRACTIVE WELLS…
  18. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 18
    RESERVES UNDERPIN VALUE PROPOSITION NYSE American: 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…
  19. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 19
    CORE GROWTH THESIS IS SUSTAINABLE NYSE American: 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…
  20. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 20
    POSITION ENHANCED THROUGH ACCRETIVE ACQUISITIONS NYSE American: NOG Directing cash flow to acquisitions consistently grows Northern's position while diversifying opportunities Broadening inventory position in the core of the basin:…
  21. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 21
    ORGANIC GROWTH & ACQUISITIONS DRIVE OPPORTUNITY SET NYSE American: 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…
  22. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 22
    1Q19 & YE 2018: BUSINESS UPDATE NYSE American: NOG Non-operated model continues to demonstrate measured growth with improving capital discipline to drive returns mboe/d MM GROWING PRODUCTION ENHANCING EBITDA Production ramping…
  23. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 23
    ALIGNED WITH THE SHAREHOLDER LIKE NO OTHER E&P NYSE American: 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 Barrel 1.06 Cash G&A in 1Q2019 Insider &…
  24. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 24
    OUTPERFORMING GUIDANCE NYSE American: 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 -…
  25. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 25
    CONTINUED BALANCE SHEET IMPROVEMENT NYSE American: NOG Northerns balance sheet continues to offer robust protection against market volatility As of As of As of As of (In millions) 6/30/18 9/30/18 12/31/18 3/31/19 DEBT: Cash…
  26. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 26
    HOLDING LEVERAGE AT 2.0X OR BETTER NYSE American: NOG Actively working to further reduce debt and continue generating free cash flow Net Debt/Annualized Adjusted EBITDA LEVERAGE 4.1x EXPECT YE2019 LEVERAGE TO…
  27. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 27
    THROUGH CLOSELY MANAGED DEBT MATURITY NYSE American: NOG Enhancing cash flow to leverage liquidity position to pay down debt LIQUIDITY PROFILE1 DEBT MATURITY SCHEDULE 282 million of liquidity as of 3/31/19(2) Favorable schedule…
  28. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 28
    RISK MANAGEMENT NYSE American: NOG Company has expanded its hedge profile and will assume additional hedges from Flywheel upon closing Crude Oil Derivative Basis Swaps (1) Weighted Average Price Contract Period Barrels Per Day…
  29. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 29
    2018 DELIVERED BEYOND OUR PLAN NYSE American: 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…
  30. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 30
    WHY NORTHERN OIL & GAS NYSE American: NOG NON-OPERATOR Unique model provides capital flexibility & discipline, levers FLEXIBILITY Northerns experience and relationships in the region GROWING ORGANIC Basin and Northern acreage…
  31. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 31
    DIFFERENTIATED E&P PLATFORM NYSE American: NOG OIL-LEVERED WILLISTON DISCIPLINED CAPITAL BASIN PRODUCER ALLOCATION & RETURNS PROACTIVELY MANAGED VISIBLE LONG-TERM BALANCE SHEET GROWTH POTENTIAL Northern Oil & Gas 1st…
  32. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 32
    HISTORICAL OPERATING & FINANCIAL INFORMATION NYSE American: NOG HISTORICAL OPERATING INFORMATION YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 Q1 2019 PRODUCTION Oil (MBbls) 5,150.9 5,168.7 4,325.9 4,537.3 7,790.2 7,790.2…
  33. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 33
    NON-GAAP RECONCILIATIONS NYSE American: 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…
  34. 1Q 2019 Earnings Presentation – Northern Oil and Gas, Inc. – slide 34
    NYSE American: NOG

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