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June 2019 Conferences Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Jun 4, 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. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 1
    NYSE American: NOG June Conferences JUNE 2019 NYSE American: NOG
  2. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 2
    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…
  3. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 3
    NORTHERN OIL & GAS WHY NORTHERN IS BETTER NYSE American: NOG RETURNS FOCUS Changing the way the market thinks about Upstream Investing BETTER BETTER BUSINESS BASIN MODEL BETTER BETTER LT CAPITAL GROWTH ALLOCATION…
  4. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 4
    NYSE American: NOG NYSE American: NOG A BETTER BUSINESS MODEL
  5. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 5
    DIFFERENTIATED UPSTREAM INVESTMENT 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…
  6. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 6
    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…
  7. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 7
    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…
  8. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 8
    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…
  9. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 9
    THE NON-OPERATOR MODEL: CAPITAL & COST 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 Costs limited to drilling and…
  10. June 2019 Conferences 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. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 11
    NYSE American: NOG NYSE American: NOG WILLISTON BASIN A BETTER BASIN
  12. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 12
    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…
  13. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 13
    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…
  14. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 14
    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…
  15. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 15
    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…
  16. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 16
    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…
  17. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 17
    NYSE American: NOG NYSE American: NOG BETTER CAPITAL ALLOCATION
  18. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 18
    2019 CAPITAL ALLOCATION STRATEGY NYSE American: 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…
  19. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 19
    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…
  20. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 20
    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 +…
  21. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 21
    AND RESERVES THAT 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…
  22. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 22
    NYSE American: NOG NYSE American: NOG BETTER LONG-TERM GROWTH POTENTIAL
  23. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 23
    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…
  24. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 24
    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:…
  25. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 25
    NYSE American: NOG NYSE American: NOG PROACTIVELY MANAGED BALANCE SHEET
  26. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 26
    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…
  27. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 27
    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…
  28. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 28
    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…
  29. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 29
    OIL VOLUMES PROTECTED FOR MULTIPLE YEARS NYSE American: NOG OIL ONLY PRODUCTION PER DAY 60 ASSUMING RUNRATE UNCHANGED total Flywheel Estimates Northern 2019E Guidance % Hedged FOR 2019E STANDALONE MBPD 50 OIL ONLY PRODUCTION…
  30. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 30
    ONGOING POLICY OF RISK MANAGEMENT NYSE American: NOG Northern continues to execute a strategy designed to safeguard returns during a commodity downcycle CRUDE OIL DERIVATIVE BASIS SWAPS (1) NORTHERN STANDALONE PRO FORMA WITH FLYWHEEL…
  31. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 31
    NYSE American: NOG NYSE American: NOG GENERATING BETTER PERFORMANCE
  32. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 32
    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…
  33. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 33
    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…
  34. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 34
    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 &…
  35. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 35
    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 -…
  36. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 36
    SHOWING UP IN FREE CASH FLOW ESTIMATES NYSE American: NOG FREE CASH FLOW YIELD OF 58% DEBT ADJUSTED PRODUCTION GROWTH OF 24% 37
  37. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 37
    COMPELLING UNDERVALUED OPPORTUNITY NYSE American: NOG EBITDA ESTIMATE UP 54% PRODUCTION GROWTH UP 56% TARGET PRICE UP 150% EV/EBITDA MULTIPLE DOWN 38%, TARGET MULTIPLE DOWN 10% Source: FactSet, as of 3/20/2019. Peers,…
  38. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 38
    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…
  39. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 39
    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 40
  40. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 40
    NYSE American: NOG NYSE American: NOG APPENDIX
  41. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 41
    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 2,541.2…
  42. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 42
    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…
  43. June 2019 Conferences Presentation – Northern Oil and Gas, Inc. – slide 43
    NYSE American: NOG

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