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4Q20 Earnings Presentation – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Mar 1, 2021 · 36 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. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 1
    NYSE American: NOG Q4:20 EARNINGS PRESENTATION NYSE American: NOG
  2. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 2
    NYSE American: NOG I. LAUNCH OF A NATIONAL NON-OP FRANCHISE II. Q4 TAKEAWAYS AND 2021 GUIDANCE III. MARCELLUS TRANSACTION OVERVIEW- ADJUSTED FOR EQTS EXERCISED PREFERENTIAL PURCHASE RIGHT IV. APPENDIX: SUPPLEMENTAL INFO Northern…
  3. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 3
    THE NORTHERN INVESTMENT PROPOSITION NYSE American: NOG National non-op franchise principled ROCE (1) leader (23.5% in Q4:20) diversified by commodity and geography Strong expected free cash flow(2): 125MM in 21 (15% yld); 450MM…
  4. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 4
    NEW NORTHERN: DIVERSIFIED HIGH RETURN NON-OP E&P FRANCHISE NYSE American: NOG Northerns pending Marcellus acquisition will create a national non-op franchise, with a significantly larger base footprint and production diversified across…
  5. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 5
    THE NEW NORTHERN OIL AND GAS NYSE American: NOG Northern is the pre-eminent E&P with focus on non-operated model offering superior returns and free cash flow generation Exposure to set of leading operators in Williston and Permian…
  6. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 6
    BENEFITS OF NORTHERNS NON-OPERATOR MODEL NYSE American: NOG HIGH RETURN WAY TO PLAY E&P SPACE Peer leading cost structure & Corporate ROCE Unit G&A costs 50% less than operating peers Scalable Model: NOG has only 25 Employees…
  7. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 7
    RETURNS METRICS CONTINUE TO LEAD THE PACK NYSE American: NOG High Return Business Driven by Low G&A Burden Peer-Leading ROCE (2021) Raymond James E&P Research Coverage 35% 30% 25% Non-operator model allows us to 20% 15% run a…
  8. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 8
    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…
  9. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 9
    2020 GROUND GAME ADVANTAGE SHALE 3.0 CASE STUDY NYSE American: NOG Highly Accretive Full Cycle Return Opportunities 2020 Ground Game Wells in Process Acquisitions Free Cash Flow Derivation (MM) 2020 2021 2022 2023 100 Net Wells…
  10. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 10
    MAJOR BALANCE SHEET UPGRADE ACHIEVED NYSE American: NOG ( in millions) 950 million of funded debt (100% of total) due by 2024 Weighted Avg. Maturity: 2.4 years Liquidity: 128 million 12/31/20 128 532 288 65 65 2021 2022…
  11. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 11
    NOG COMMITTED TO GOOD GOVERNANCE NYSE American: NOG ENVIRONMENTAL SOCIAL GOVERNANCE Operators are selected for Separate CEO and Chairman environmental and safety NOG employees provided roles records free health care and paid…
  12. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 12
    NYSE American: NOG I. LAUNCH OF A NATIONAL NON-OP FRANCHISE II. Q4 TAKEAWAYS AND 2021 GUIDANCE III. MARCELLUS TRANSACTION OVERVIEW- ADJUSTED FOR EQTS EXERCISED PREFERENTIAL PURCHASE RIGHT IV. APPENDIX: SUPPLEMENTAL INFO Northern…
  13. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 13
    Q4:20 FINANCIAL & OPERATING HIGHLIGHTS NYSE American: NOG Q4 CFFO(1) Q4 Recycle Ratio(2) Q4:20 Highlights CFFO(1) increased 23% from Q3 and above 81.8MM 2.87X CAPEX: 81.8 million vs. capital expenditures of 48.9 million Cash…
  14. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 14
    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) +90% HIGHER…
  15. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 15
    AND EXCEEDS RESERVE AUDITOR EXPECTATIONS NYSE American: NOG 220 220 2019 Internal Type Curve 200 New wells exceeding 200 type curve by 20% 180 180 160 160 Cumulative Oil Production (mbbls) Daily Production 140 140 120…
  16. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 16
    2021 GUIDANCE NYSE American: NOG 2021 Bakken/Permian Guidance 2021 Marcellus Guidance (full-year) Corporate G&A Guidance (per Boe) Q1 Pre-RIL Q2-Q4 Post- Annual Production (Boe per day) 37,750 - 42,750 Annual Production (Mmcf per…
  17. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 17
    NYSE American: NOG I. LAUNCH OF A NATIONAL NON-OP FRANCHISE II. Q4 TAKEAWAYS AND KEY POINTS III. MARCELLUS TRANSACTION OVERVIEW- ADJUSTED FOR EQTS EXERCISED PREFERENTIAL PURCHASE RIGHT IV. APPENDIX: SUPPLEMENTAL INFO Northern Oil…
  18. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 18
    RELIANCE APPALACHIA TRANSACTION OVERVIEW NYSE American: NOG Northern agreed to acquire a non-operated interest in Appalachia natural gas assets from Reliance Marcellus, LLC Transaction (Reliance) for an unadjusted cash purchase price…
  19. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 19
    ENTRY INTO ATTRACTIVE BASIN WITH A LEADING LOW COST OPERATOR EQT NYSE American: NOG Non-operated interests in the Reliance / EQT Participation and Development Agreement (PDA) Average, blended working interest of 27% EQT announced…
  20. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 20
    PV22 DEAL WITH MEANINGFUL UPSIDE NYSE American: NOG In addition to operational improvements and capital efficiencies future performance is expected to benefit from operational expertise from EQT 250MM in Potential Value Upside…
  21. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 21
    RELIANCE APPALACHIA: ASSET-LEVEL PROJECTION DETAIL NYSE American: NOG Projections assume PDP and WIP completions and no further development of new wells (strip pricing as of 3/5/21) Production (MMcfe/d) Cash Flow From Operations (MM)…
  22. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 22
    EQT EXPECTED TO DRIVE MATERIAL IMPROVEMENTS IN OPERATIONAL PERFORMANCE AND COST LEADERSHIP NYSE American: NOG EQT expected to deliver better operating results with lower costs and will benefit from economies of scale and application of…
  23. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 23
    NATURAL GAS DIVERSITY WELCOMED NYSE American: NOG Rapid decline in oil-directed activity materially reduces associated gas Rig Counts 450 supply 400 U.S. rigs down 51% reducing well inventory and affecting future gas supply 350…
  24. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 24
    NYSE American: NOG I. LAUNCH OF A NATIONAL NON-OP FRANCHISE II. Q4 TAKEAWAYS AND KEY POINTS III. MARCELLUS TRANSACTION OVERVIEW- ADJUSTED FOR EQTS EXERCISED PREFERENTIAL PURCHASE RIGHT IV. APPENDIX: SUPPLEMENTAL INFO Northern Oil…
  25. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 25
    DIVERSIFIED BASE & PARTNERED WITH BASIN LEADERS NYSE American: NOG Leverage to some of the best performing operators in multiple basins % OF NET PRODUCING WELLS BY OPERATOR OTHERS…
  26. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 26
    NON-OP OF SCALE WITH IMPROVING COST STRUCTURE NYSE American: NOG Participation in the highest quality wells with stable AFE costs generates consistent production & higher IRRs CONSISTENTLY FUNDING ATTRACTIVE WELLS GENERATES CONSISTENT…
  27. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 27
    CURRENT BAKKEN SNAPSHOT NYSE American: NOG Portfolio of high-quality acreage in the heart of the basin with interests in over 7,000 gross Bakken/Three Forks oil wells NET ACREAGE SUMMARY 9% 9% 8% 183,242 NET ACRES 91% 91% 92%…
  28. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 28
    STRONG BAKKEN 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 60.7…
  29. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 29
    2020 BAKKEN WELLS WERE IN STRONG AREAS NYSE American: NOG The 2020 program was focused in core areas Williston Basin Core NOGS DATA ADVANTAGE NORTHERN HAS 45% PARTICIPATED IN 45% OF WELLS EVER DRILLED IN THE WILLISTON BASIN…
  30. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 30
    HEDGE PROFILE 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 upside CRUDE OIL DERIVATIVE PRICE…
  31. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 31
    WELL POSITIONED TO WEATHER REGULATORY HEADWINDS NYSE American: NOG Federal Land Policy Risk Northern has minimal exposure to federal lands with 8% of total leasehold position subject to the federal regulation Across the 14,500 net…
  32. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 32
    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.…
  33. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 33
    HISTORICAL OPERATING & FINANCIAL INFORMATION NYSE American: NOG HISTORICAL OPERATING INFORMATION YEAR ENDED DECEMBER 31, THREE MONTHS ENDED, 2015 2016 2017 2018 2019 2020 December 31, 2019 December 31, 2020 PRODUCTION Oil (MBbls)…
  34. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 34
    NON-GAAP RECONCILIATIONS: EBITDA & OTHER NYSE American: NOG Adjusted EBITDA by Year (in thousands) 2015 2016 2017 2018 2019 2020 Net Income (Loss) (975,355) (293,494) (9,194) 143,689 (76,318) (906,041) Add: Interest Expense 58,360…
  35. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 35
    NON-GAAP RECONCILIATIONS: ROCE & RECYCLE RATIO NYSE American: NOG Q4:20 Return on Capital Employed (ROCE) EBIT: 246.2MM (Q4:20 annualized) + Adj. EBITDA: 94.3MM Capital EBIT Employed = 23.5% - DD&A: 32.76MM Capital Employed:…
  36. 4Q20 Earnings Presentation – Northern Oil and Gas, Inc. – slide 36
    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 2022 and 2023 volumes that give counterparties the option to…

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