Contents I. Q3 2023 Highlights II. Operations & Investment Activity Updates III. Guidance IV. Value Proposition V. Appendix Q3 2023 Earnings Presentation 2
Q3 2023 Financial & Operating Highlights Record Production & EBITDA; Positioned for 2024 Growth Q3 Free Cash Flow(1) Dividend Growth Active Ground Game in Q3, D&C List Reaches New Record Adjusted EBITDA 385.5MM in Q3, +22% QoQ Q3 net…
Q3 23 Operations Highlights Organic activity up 16% year to date vs. the same period of 2022. Scale driving organic growth. AFEs Wells in Process Well Completions 1.8B (gross) in AFEs Drilling & Completions list Organic completion…
D&C List Surging Momentum Building for 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 over time. Diversity of regions…
Investment Activity Update Bolt-On High quality bolt-on plays starting to emerge while capitalizing on larger ground game opportunities in the interim. Opportunity Set Ground Game Bolt-On M&A landscape still Evaluated over 400…
Permian Presence Doubles Year-to-Date in 2023 Since 2021, NOG has methodically expanded its presence in the Permian. With the addition of Forge and Novo, NOG has doubled its Permian acreage through two unique joint operating…
Novo Closed - Adds Scale and High Quality, Low Breakeven Acreage KEY STATISTICS Purchased 33.33% undivided stake in Novo Assets for 468MM Gross NRI: 77% (78% Eddy, 75% Culberson), net WI: 29% Effective date May 1, 2023, closed August…
Q3 2023 Production by Basin NOGs production mix continues to become more diversified and balanced. Permian gaining production share with contributions from MPDC, Forge and Novo. 10% Flat Williston production quarter over quarter…
Q3 2023 Production by Commodity and Basin (% Boe) Oil cut for the quarter was up materially to 62.1%, with the Williston and Permian both seeing increases. Overall, the Company continues to expect a 62.0% - 63.0% oil cut for 2023.…
Q3 2023 CapEx by Basin Capital Expenditures were weighted toward the Permian Basin in Q3, with the Permian expected to lead the charge into year-end. 1% Turn-in-lines (TILs) up 64% vs. Q2 23 30% Despite strong TIL activity, the D&C…
2023 Year-to-Date CapEx Q3-23 saw an active 34MM in Ground Game opportunities and an uptick in AFE activity which accelerated CapEx spend. Full year CapEx revised to reflect year to date activity levels. 1,000 790 - 820 800 657…
A Track Record of Dividend Growth NOG has established a conservative through-cycle dividend level with potential upside. ACTUAL DIVIDENDS COMPARED WITH INITIAL 2021 DIVIDEND PLAN RECOMMENDATIONS 0.45 1 0.40 (1) 0.4 0.38 0.37…
Asset Sales Cycle Driving Growth Consolidation is afoot in the upstream industry, providing episodic access to high quality, low break-even growth assets. NOG has been selectively participating in this cycle by flexing leverage in the…
Enhanced Liquidity Position Pro Forma for Recent Capital Raise 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…
2023 Guidance and Capital Budget The Company remains on track, with improvements to differentials and G&A unit costs. Activity ramping into 2024. 2023 Guidance Prior Current COMMENTARY Annual Production (2-stream, Boe/day) 96,000 -…
PART 2 NOG Value Proposition Q3 2023 Earnings Presentation 17
The NOG Investment Proposition 1 2 3 4 5 National Non-Op Franchise offering scale and diversification by 128MM Free Cash Flow1 in Q3 2023 Return of Capital Commitment: Growing Dividend and Shareholder Strong Balance Sheet…
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 9,000 wells Unit G&A…
Leading Non-Op Upstream Franchise NOGs acquisitions have created a high-return, national Q3-23 PRODUCTION BY REGION (BOE) non-op franchise that is benefitting from economies of scale; 18,800 net acres were added to Permian footprint…
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: 179,600 Net Acres Permian Basin: 36,400 Net Acres…
A Differentiated Upstream Investment Growth Platform Operating Leverage at Work: NOG saw a 16% drop in adjusted per unit Q3 Cash G&A while production increased 12.5% sequentially. PRODUCTION CONTINUES TO RAMP WHILE MAINTAINING…
PART 3 Appendix: Supplemental Info Q3 2023 Earnings Presentation 23
Historical Operating & Historical Operating Information 2020 2021 2022 3Q22 3Q23 Production Financial Information Oil (MBbls) 9,361.1 12,288.4 16,090.1 4,149.8 5,847.9 Natural Gas and NGLs (Mmcf) 16,473.3 44,073.9 68,829.1 18,776.8…
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 Q3-23 Return on Capital Employed (ROCE) EBIT: 1,006.9MM (Q3 23 annualized) + Adj. EBITDA: 385.5MM - DD&A: 133.8MM Capital EBIT Employed = 34.8% Capital Employed: 2,896.0MM (Avg. of Q3…
Hedge Profile 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. CRUDE OIL DERIVATIVE SWAPS NATURAL GAS…
Hedge ProfileCOLLARS and PUTS 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 & PUTS…
Hedge Profile BASIS 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…
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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