Investor Presentation June 2023 Investor Presentation June 2023 1
Contents I. Investment Highlights II. Recent Financial Results III. Appendix Investor Presentation June 2023 2
Investment Highlights 1 2 3 4 5 National non-op franchise offering scale and Track record of executing on highly accretive investments with Disciplined capital allocator. Growing debt repurchases. Strong balance sheet with…
NOG At-a-Glance(1) Disciplined aggregator of accretive, high-quality minority interests, aligned with the best operators. 9,400/887 260k 100 87.4k GROSS/NET WELLS(2) NET ACRES OPERATORS Q1-23 PRODUCTION BOE/DAY Marcellus…
Leading Non-Op E&P Franchise NOGs acquisitions have created a high return, national Q1-23 PRODUCTION BY REGION (BOE) non-op franchise that is benefitting from economies of scale; 8,000 net acres were added to Permian footprint in…
What We Do THE NON-OPERATOR MODEL 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 fractional Ability to control capital…
How We Do It OUR INVESTMENT APPROACH We apply modern portfolio theory in our investment approach to pursue optimal risk adjusted returns. Diversification across geography, commodity, operators and deal structure or concentration…
Benefits of NOGs Non-Operated Model Efficient Operations Enhance Return Profile Leveraging Data and Experience Peer leading cost structure & Corporate ROCE Proprietary database, built from participation in over 9,400 wells Scalable…
A Differentiated E&P Growth Platform NOG continues to build scale as the largest dedicated public non-operated working interest company while efficiently leveraging G&A. PRODUCTION CONTINUES TO RAMP WHILE MAINTAINING LOW CASH G&A(1)…
Focused on the Highest-Quality Areas No requirement for contiguous acreage allows NOG to participate in prime drilling opportunities across basins or regions. Williston Basin: 181,200 Net Acres Permian Basin: 30,000 Net Acres…
Track Record of Executing on Large-Scale Accretive Investments NOG has been an active participant in M&A. Since 2018, the Company has completed over 2.7 billion of accretive acquisitions.(1) 2018 2019 2021 2022 2023 MPDC Mascot…
Capacity to Pursue Growth Assets Bolt-On At 6B, NOGs opportunity set is at a historic high. Recent notes issuance and equity offering provide dry powder to pursue high-quality, low breakeven growth assets that should enhance cash flows…
Forge Acquisition: Adding High Quality Acreage to Permian Footprint KEY STATISTICS DELAWARE ASSET LOCATOR MAP Agreement to purchase 30.0% undivided interest in Forge assets for 162MM valued…
Building a Position of Scale In the Permian NOGs position is diversified across top operators and positions in the Permian Permian Net Acres(1) Permian Net Production MBoe/d(1)(2) NOG Top Permian Operators(3) Selected 29,758 34.0…
Substantial Total Proved Reserves Growth over Last 5 Years(1) A 2.4x increase in NOGs total proved reserves over the last 5 years, driven by its acquisition activity is expected to support durable FCF generation and de-risk the future…
NOGs M&A Execution Has Led to Significant Market Outperformance Since year-end 2020 NOG has outperformed the XOP by over 150% 350% 300% Forge 250% +260% Since YE20 200% 150% XOP (1) 100% +103% Since YE20 50%…
A Track Record of Dividend Growth NOG has consistently exceeded and accelerated its dividend growth ACTUAL DIVIDENDS COMPARED WITH INITIAL 2021 DIVIDEND PLAN RECOMMENDATIONS 0.40 1 0.37 0.35 0.34 0.30 Dividend Per Common…
Disciplined Approach to Delivering Total Return Invest Protect Harvest Buy self funding assets at a Lock in underwritten returns Capture cash flows premium to cost of capital through hedging to ensure Deliver returns to investors…
Balanced Approach to Capital Allocation FREE CASH-FLOW ALLOCATION Shareholder Returns Focus Reinvestment For Growth Capital Regular Dividend Organic Acreage Debt Repayment Stock Buybacks Ground Game Liquidity Enhancement Bolt-on…
Enhanced Liquidity Position NOG IS POSITIONED TO EXECUTE ON ITS PIPELINE Raised 223MM of Equity on May 15, 2023 Issued 500MM of 8.75% senior notes due in 2031 and reduced outstanding balance on the Company revolving line of credit…
Strong Organizational Infrastructure Supports Investment Decisions Deep presence in three core basins, relationships with a wide breadth of operators and minority interests in thousands of wells gives NOG an informational advantage in…
NOG's Industry Leading Database, Drakkar, Empowers our Data Driven Investment Process Drakkar is an internal, proprietary data science system developed in partnership with technology industry leaders. The system enables us to optimize…
Sustainability Framework NOG instituted explicit board-level oversight of ESG and is working toward expanding and improving disclosures related to ESG. ENVIRONMENTAL SOCIAL GOVERNANCE Operators are screened for NOG employees…
Alignment with Operators who are ESG Leaders NOGs Current Top Ten Public Operators Represent a Whos Who of ESG Stewardship. EQT CLR OVV CHRD COP EOG HES DVN ERF XOM Dedicated ESG Section of Website Board-Level Oversight of…
PART 2 Recent Financial Results Investor Presentation June 2023 25
Q1-23 Financial & Operating Highlights Strong Execution, Continuing Momentum from Q4-22 Q1 Free Cash Flow1 Dividend Growth Growth in production and smooth integration drives outperformance Completed MPDC Mascot acquisition in Q1 for a…
Q1 2023 Production by Basin NOGs Production Mix Continues to Become More Diversified and Balanced with the Permian Leading the Charge. 13% Permian production was record in total and as a portion of NOGs production mix (35%)…
Q1 2023 Production by Commodity and Basin (% Boe) Production was heavily weighted toward oil in Q1 and is expected to grow given higher productivity in the Williston and as MPDC volumes come online. Williston 27% Marcellus 73%…
Q1 2023 Cap Ex by Basin Capital Expenditures were weighted toward the Williston Basin in Q1 with emphasis balanced between the Williston and Permian for the remainder of the year. 1% Seasonally strong activity as TILs were up 30% vs.…
PART 3 Appendix Investor Presentation June 2023 30
Historical Operating & Historical Operating Information Production 2020 2021 2022 Q1 22 Q1 23 Financial Information Oil (MBbls) Natural Gas and NGLs (Mmcf) Total Production (Mboe) 9,361.1 16,473.3 12,106.7 12,288.4 44,073.9…
Adjusted EBITDA and Adjusted EBIT by Year (in thousands) 2020 2021 2022 NON-GAAP Net Income (Loss) Add: Interest Expense (906,041) 58,503 6,361 59,020 773,237 80,331 Reconciliations: Income Tax Provision (Benefit)…
NON-GAAP Reconciliations: ROCE & Recycle Ratio Q1-23 Return on Capital Employed (ROCE) EBIT(1): 923.4MM (Q1 23 annualized) + Adj. EBITDA(1): 325.5MM - DD&A: 94.6MM Capital EBIT(1) Employed = 42.0% Capital Employed: 2,198.3MM (Avg.…
NON-GAAP Reconciliations: Free Cash Flow FREE CASH-FLOW (FCF) (in thousands) Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Net Cash Provided by Operating Activities 154,034 210,239 276,766 287,379 269,308 Exclude: Changes in Working Capital and Other…
Hedge ProfileCOLLARS NOG 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 COLLARS NATURAL GAS…
Hedge ProfileSWAPS NOG 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 SWAPS - NYMEX…
Important Disclosures Forward Looking Statements This presentation contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended…
Important Disclosures Industry and Marketing Data Although all information and opinions expressed in this presentation, including market data and other statistical information (including estimates and projections relating to addressable…
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