Contents I. Q2 2023 Highlights II. Operations & Investment Activity Updates III. Guidance IV. Value Proposition V. Appendix Q2 2023 Earnings Presentation 2
Q2-23 Financial & Operating Highlights Q2 Free Cash Flow(1) Dividend Growth Strong results despite lower commodity prices and TIL deferrals Adjusted EBITDA 315.5MM in Q2, +16% YoY, -3% QoQ 47.6MM +95% Q2 net production +25% YoY,…
Q2 2023 Production by Basin NOGs production mix continues to be diversified and balanced. Williston production surged in 2Q despite some delays. Record Williston production, even with 3.8 net TIL 12% deferments, gained portfolio…
Q2 2023 Production by Commodity and Basin (% Boe) Oil cut for the quarter was lower than full year expectations at 60% due to Q2 gas production outperformance and deferrals from the Williston. NOG expects oil to trend higher to a range of…
Q2 2023 Cap Ex by Basin Capital expenditures were weighted toward the Permian Basin in Q2. 3% TILs +37% v Q2 22, while D&C list sits +19% vs Q2 22 and has held at an elevated average level of completion 39% TIL activity expected…
Q2 23 Operations Highlights Organic activity up 35% year over year. Wells-in-process at record highs. Scale driving organic growth. AFEs Wells in Process Well Completions 1.4B (gross) in AFEs Drilling & Completions list Net Turn in…
D&C List Surging Momentum Building for 2H and 2024 NOGs oil-weighted wells-in-process (D&C) list is at record levels, and the Companys recent investment cycle is poised to convert into production and cash flow in the coming quarters.…
Q2 2023 Investment Activity Update Bolt-On Current M&A bolt-on opportunities variable in quality. Signature Ground Game opportunities abundant, trending larger in scale vs historical Ground Game acquisitions. Opportunity Set Ground…
MPDC Mascot Update Performance snapshot through 7/1/2023 Drilling plan revised to enhance efficiencies and long-term project returns Plan revision moving some Q2/Q3 TILs to Q1 24 Offset shut-in period in-between pads 59% of the total…
Forge Closed High Quality Acreage in the Permian Basin DELAWARE ASSET LOCATOR MAP KEY STATISTICS Purchased 30.0% undivided interest in Forge assets for 167.9 million Acreage: 10,200 net acres primarily located in Ward and Reeves…
Novo Adds Scale, High Quality, Low Breakeven Acreage KEY STATISTICS Agreement to purchase 33.33% undivided stake in Novo Assets for 500MM Gross NRI: 77% (78% Eddy, 75% Culberson), net WI: 29% Effective date May 1, 2023, expected to…
Asset Sales Cycle Driving Growth Private equity players are in a divesting cycle, providing episodic access to high quality, low break-even growth assets. NOG has been selectively participating in this cycle by flexing leverage in the…
2023 Year-to-Date Cap Ex Ground Game highly active in Q2 with 13 acquisitions. Cap ex for 2H-23 should be equally weighted by quarter. 764 - 800 800 600 Approximately 60% of total initial budget 445 400 212 233 200 0…
Track Record of Dividend Growth NOG has established a conservative through-cycle dividend level with potential upside. The current dividend run rate will be evaluated annually during the first fiscal quarter and potentially adjusted to…
Enhanced Liquidity Position NOG has methodically managed its debt structure and maturity wall. High quality asset base has driven increases to credit facility as well as attracting new members to the syndicate. Issued 500MM of 8.75%…
2023 Guidance and Capital Budget The Companys production continues to increase, with reductions to unit costs driven by benefits of scale and quality from acquired assets. 2023 Guidance(1) Prior Current UNDERLYING ASSUMPTIONS Annual…
PART 2 NOG Value Proposition Q2 2023 Earnings Presentation 18
The NOG Investment Proposition 1 2 3 4 5 National Non-Op Franchise offering scale and diversification by Stable, Cash-Generating Assets + Growth: Assets continue to generate Return of Capital Commitment: Growing Shareholder…
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 Unit G&A…
Leading Non-Op E&P Franchise NOGs acquisitions have created a high return, national Q2-23 PRODUCTION BY REGION (BOE) non-op franchise that is benefitting from economies of scale; 12,800 net acres were added to Permian footprint in…
And Focus on the Highest-Quality Areas No requirement for contiguous acreage allows NOG to participate in prime drilling opportunities across basins or regions Williston Basin: 180,400 Net Acres Permian Basin: 30,400 Net Acres…
A Differentiated E&P Growth Platform NOG continues to build scale as the largest dedicated public non-operated working interest company PRODUCTION CONTINUES TO RAMP WHILE MAINTAINING PEER-LEADING LOW CASH G&A(1) Material increases…
PART 3 Appendix: Supplemental Info Q2 2023 Earnings Presentation 24
Historical Operating Information Historical Operating & Production 2020 2021 2022 2Q22 2Q23 Financial Information Oil (MBbls) 9,361.1 12,288.4 16,090.1 3,801.7 4,981.2 Natural Gas and NGLs (Mmcf) 16,473.3 44,073.9 68,829.1 16,878.5…
Adjusted EBITDA by Year (in thousands) NON-GAAP 2020 2021 2022 Net Income (Loss) (906,041) 6,361 773,237 Add: Reconciliations: Interest Expense 58,503 59,020 80,331 Income Tax Provision (Benefit) (166) 233 3,101 Depreciation,…
NON-GAAP Reconciliations: ROCE & Recycle Ratio Q2-23 Return on Capital Employed (ROCE) EBIT: 836.5MM (Q2 23 annualized) + Adj. EBITDA: 315.5MM - DD&A: 106.4MM Capital EBIT Employed = 34.5% Capital Employed: 2,421.2MM (Avg. of Q2…
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 SWAPS NATURAL GAS…
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 ProfileBASIS SWAPS 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 MIDLAND-CUSHING BASIS SWAP WAHA BASIS…
NON-GAAP Reconciliations: Free Cash Flow FREE CASH-FLOW (FCF) (in thousands) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Net Cash Provided by Operating Activities 154,034 210,239 276,766 287,379 269,308 307,786 Exclude: Changes in Working Capital and…
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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