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Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Nov 6, 2020 · 30 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. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 1
    NYSE American: NOG Q3:20 EARNINGS PRESENTATION NYSE American: NOG
  2. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 2
    NYSE American: NOG I. Q3 TAKEAWAYS AND KEY POINTS II. COMPANY OVERVIEW III. APPENDIX: SUPPLEMENTAL INFO Northern Oil & Gas, Inc. - November 2020 3
  3. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 3
    Q3:20 FINANCIAL & OPERATING HIGHLIGHTS NYSE American: NOG Q3:20 Highlights Q3 CFFO(1) Q3 Recycle Ratio(2) CFFO(1) increased 30% from Q2 and above CAPEX: 69.0 million vs. capital expenditures of 69.0MM 2.69X 43.8 million Cash…
  4. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 4
    2020 AND 2021: PROTECTED WITH HEDGES AND CASH FLOW NYSE American: NOG Amply free cash flow through 2021 earmarked toward debt paydown Hedge book gross in-the-money value of 145MM 11/4/20 Strip Q4:20: 25.8 Mbo/d hedged at 58.03/bbl…
  5. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 5
    BEYOND 2021: A CONSTRUCTIVE MACRO PICTURE FORMS NYSE American: NOG Stifel Global Oil Supply & Demand (Assuming 75% reinvestment Rate for US Onshore Production at Strip) After updating our global supply estimates, we estimate…
  6. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 6
    SHALE 3.0 PARADIGM IDEAL FOR ACTIVE NON-OP MODEL NYSE American: NOG Capital Constrained E&Ps reassessing their Non-Op Positions SHALE 3.0 Operators commit to CAPEX levels no more than 70-80% of cash flow. A growth-driven shale…
  7. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 7
    2020 GROUND GAME ADVANTAGE ACTIVE & PROFITABLE NYSE American: NOG Highly Accretive Full Cycle Return Opportunities 2020 Ground Game Wells in Process Acquisitions 2020 2021 2022 2023 200+ ground game deals Net Wells Turned-in-Line…
  8. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 8
    PERMIAN ENTRY: EXCITING OPTIONALITY AND GROWTH NYSE American: NOG Entry into the Delaware with a top operator in the top county On 9/10 Northern announced its entry into the core of the Delaware Basin through a Ground Game deal in…
  9. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 9
    2020 WELL PERFORMANCE SETTING RECORDS NYSE American: NOG Completion technology and high-grading of well locations has led to improved well recovery across the basin NOGs INCREASING WELL PRODUCTIVITY 2015 Cum (1) HIGHER RECOVERIES +…
  10. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 10
    AND EXCEEDS RESERVE AUDITOR EXPECTATIONS NYSE American: NOG 220 220 2019 Internal Type Curve New wells exceeding 200 200 type curve by 30% 180 180 160 160 Cumulative Oil Production (mbbls) Daily Production 140 140…
  11. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 11
    NYSE American: NOG I. Q3 TAKEAWAYS AND KEY POINTS II. COMPANY OVERVIEW III. APPENDIX: SUPPLEMENTAL INFO Northern Oil & Gas, Inc. - November 2020 12
  12. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 12
    THE NOG INVESTMENT PROPOSITION NYSE American: NOG Northern has prepared to face the environment seen today Best in Class ROCE in E&P space: 16.4% in 2019 1 SUPERIOR RETURNS & FCF Industry Leading Free Cash Flow Yield NOG has…
  13. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 13
    NORTHERN 1-PAGER NYSE American: NOG Non-Operator Model Benefits Williston Basin Core183,155 net acres A superior return on capital (16.4% ROCE (1) in 2019) A Lean structureonly 24 full-time employees Capital allocation…
  14. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 14
    RETURNS METRICS CONTINUE TO LEAD THE PACK NYSE American: NOG High Return Business Driven by Low G&A Burden Peer-Leading ROCE (2019) 18% 16% 14% 12% Non-operator model allows us to 10% run a lean cost structure and cash 8% 6%…
  15. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 15
    MAJORITY OF PRODUCTION HEDGED THROUGH 2021 NYSE American: NOG Northern continues to execute a strategy built around the safeguard of returns during a commodity down-cycle, while retaining flexibility to capture the opportunistic…
  16. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 16
    POSITIVE 2020 BALANCE SHEET MOVES NYSE American: NOG Balance Sheet Improvement Maturity Schedule (MM) 12/31/19 9/30/20 1,200 Key Takeaways: 91 Total Debt Total Debt 1,000 138MM of debt retired YTD as of 9/30 (138MM) 1,127MM…
  17. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 17
    CURRENT BAKKEN SNAPSHOT NYSE American: NOG Portfolio of high-quality acreage in the heart of the basin with interests in over 6,500 gross Bakken/Three Forks oil wells NET ACREAGE SUMMARY 9% 10% 8% 183,155 NET ACRES 91% 90%…
  18. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 18
    FIXING THE BALANCE SHEET & ACHIEVING SCALE NYSE American: NOG Participation in the highest quality wells with stable AFE costs generates consistent production growth & higher IRRs CONSISTENTLY FUNDING ATTRACTIVE WELLS GENERATES…
  19. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 19
    2020 WELLS IN PROCESS ARE IN STRONG AREAS NYSE American: NOG The 2020 program is defined and focused in core areas Williston Basin Core NOGS DATA ADVANTAGE NORTHERN HAS 40% PARTICIPATED IN 40% OF WELLS EVER DRILLED IN THE…
  20. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 20
    DIVERSIFIED BASE & PARTNERED WITH BASIN LEADERS NYSE American: NOG Leverage to some of the best performing operators in the Williston Basin % OF NET PRODUCING WELLS BY OPERATOR OTHERS…
  21. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 21
    STRONG UNDEVELOPED INVENTORY DRIVES NAV UPSIDE NYSE American: NOG Undeveloped Locations By Operator Undeveloped Locations By Reservoir TF3 OTHERS 114.5 41.7 155.5 TF2 115.1 26.4 88.0 BKKN 28.1 329.0 32.2 83.3 TF1 47.1 285.6…
  22. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 22
    THE NON-OPERATOR MODEL NYSE American: NOG CAPITAL BENEFITS COST BENEFITS Ability to increase and decrease capital quickly Only 24 full-time employees No rig or drilling contracts, no embedded personnel at the field level Virtually…
  23. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 23
    BENEFITS OF NORTHERNS NON-OPERATOR MODEL NYSE American: NOG LEVERAGING EXPERIENCE Proprietary Northern database, built from participation in over 6,700 wells, 40%+ of all Bakken and Three Forks wells drilled play to date CAPEX…
  24. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 24
    NORTHERNS SENIOR MANAGEMENT TEAM NYSE American: NOG Nicholas OGrady: Chief Executive Officer Nicholas OGrady has served as Chief Executive Officer since January 2020, following 18 months as the Companys Chief Financial Officer. Mr.…
  25. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 25
    NYSE American: NOG I. Q3 TAKEAWAYS AND KEY POINTS II. COMPANY OVERVIEW III. APPENDIX: SUPPLEMENTAL INFO Northern Oil & Gas, Inc. - November 2020 26
  26. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 26
    HISTORICAL OPERATING & FINANCIAL INFORMATION NYSE American: NOG HISTORICAL OPERATING INFORMATION YEAR ENDED DECEMBER 31, THREE MONTHS ENDED, 2014 2015 2016 2017 2018 2019 September 30, 2019 September 30, 2020 PRODUCTION Oil (MBbls)…
  27. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 27
    NON-GAAP RECONCILIATIONS: EBITDA & OTHER ADJUSTED EBITDA BY YEAR (IN THOUSANDS) Net Income (Loss) 2015 (975,355) 2016 (293,494) 2017 (9,194) 2018 143,689 2019 (76,318) NYSE American: NOG Add: Interest Expense 58,360…
  28. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 28
    NON-GAAP RECONCILIATIONS: ROCE & RECYCLE RATIO NYSE American: NOG Q3:20 Return on Capital Employed (ROCE) EBIT: 207.6MM (Q3:20 annualized) + Adj. EBITDA: 82.7MM Capital - DD&A: 30.8MM EBIT Employed = 18.8% Capital Employed:…
  29. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 29
    NON-GAAP RECONCILIATIONS: ROCE & RECYCLE RATIO NYSE American: NOG 2019 Return on Capital Employed (ROCE) EBIT: 244MM + Adj. EBITDA: 454MM Capital - DD&A: 210MM EBIT Employed = 16.4% Capital Employed: 1,487 MM (2018-19 Avg.) +…
  30. Third Quarter 2020 Earnings Presentation – Northern Oil and Gas, Inc. – slide 30
    HEDGING DISCLOSURES NYSE American: NOG Further Detail about Swap Transaction and Swaption Volumes 1. The Company has entered into certain crude oil derivative contracts for 2021, 2022, and 2023 volumes that give counterparties the option…

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