Investor Presentation November 2024 Investor Presentation November 2024 1
Contents I. Investment Highlights II. Recent Financial Results III. Appendix Investor Presentation November 2024 2
I. Investment Highlights Investor Presentation November 2024 3
The NOG Investment Proposition 1 2 3 4 5 National Non-Op Franchise offering scale and diversification by Cash Generation - 468MM Free Cash Flow1 in last twelve Return of Capital Commitment: Growing Dividend and Shareholder…
NOG At-a-Glance1 Disciplined aggregator of accretive, high-quality minority interests, aligned with the best operators. 10,000/1,000 291k 95 121.8 GROSS/NET WELLS NET ACRES OPERATORS AVERAGE PRODUCTION MBOE/DAY Appalachian 14%…
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 10,000 wells Unit…
What We Do THE NON-OPERATOR MODEL A flexible and moderated approach to upstream investment, offering capital discipline, cost control & protection from downside exposure. We do not drill wells or We acquire fractional Ability to…
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 provides…
Benefits of NOGs Non-Operated Model Efficient Operations Enhance Return Profile Leveraging Data and Experience Peer leading cost structure & Corporate ROCE1 Proprietary database, built from participation in over 10,000 wells Unit…
Focus on the Highest-Quality Areas No requirement for contiguous acreage allows NOG to participate in prime drilling opportunities North1 East 195,200 Net Acres 53,000 Net Acres across basins or regions1 As a non-operated E&P…
The Ideal Partner: There is NOG, and then everyone else NOGs enterprise value is 2.6x larger than all its public non-op competitors combined NOG can solve significant capital needs for its partners that its competitors cannot.1…
A Differentiated Upstream Investment Growth Platform Operating leverage at work: NOG had record high volumes and record low Adjusted Cash G&A per Boe(1) in 2023. PRODUCTION CONTINUES TO RAMP WHILE MAINTAINING PEER-LEADING LOW CASH…
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 5.0 billion of accretive acquisitions(1) 2018 2019 2021 2022 2023 2024 Reliance…
Superior Return on Capital Employed1 Our size, scale and network of private and public operators affords us the ability to be highly selective, pursuing opportunities with superior returns. Our investment discipline and methodology drives…
Substantial Growth in Total Proved Reserves over Last 5 Years A 2.5x 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 Business Model Exhibits Torque from Scale Unlike operators, Non-Ops have nearly unlimited scale benefits from growth, without the dis-synergies that come from operational diversity for multi-basin operators. Production per employee…
Healthy Build in D&C List Heading into Year-End NOGs oil-weighted wells-in-process (D&C) list rebounding driven by strong organic spud and development activity. Investor Presentation November 2024 17
Well Performance Continues to Impress Williston Basin continues to show improvement in 2024 after a stellar 2023. Permian 2024 reflects an increase in Midland Basin activity which is slightly less productive than the Delaware.…
Investment Activity Update Bolt-On Ground Game focused on acreage accumulation to advance optionality over the near-term. Large bolt-on opportunities emerging across multiple basins. Opportunity Set Ground Game Bolt-On M&A landscape…
XCL Is NOGs Largest & Most Accretive Acquisition To Date XCL Asset Locator Map & Key Stats Key Financial Statistics Purchased 20% undivided interest in XCL assets for 527.5 million, inclusive of the exercise of the Altamont Energy…
Point Energy Adding Scale to NOG and Vital's Positions NOG and Vital Central & Southern Delaware Basin Map Key Financial Statistics Joint acquisition with Vital Energy of certain assets of Point Energy Partners, LLC for 1.1 billion. NOG…
Disciplined Approach to Delivering Total Return Invest Protect Harvest Buy self funding assets at a Protect underwritten returns Capture cash flows premium to cost of capital through hedging to ensure Deliver returns to investors…
Track Record of Dividend Growth NOG has established a conservative through-cycle dividend level with potential upside. Dividend run rate to be evaluated annually during the first fiscal quarter with potential for intra-year adjustments…
Balanced Approach to Capital Allocation FREE CASH-FLOW ALLOCATION Shareholder Returns Focus Reinvestment For Growth Capital Regular Dividend Organic Acreage Debt Repayment Opportunistic Stock Buybacks Ground Game Liquidity…
Asset Sales Cycle Driving Growth Private equity players are in a divesting cycle and public companies are in a consolidation phase. Each of these cohorts provide NOG episodic access to high quality, low break-even growth assets. We have…
Enhanced Liquidity Position NOG has methodically managed its debt structure and maturity wall. Growing high quality asset base has driven increases to credit facility as well as attracting new members to NOGs banking syndicate.…
Strong Organizational Infrastructure Supports Investment Decisions Deep presence in four core basins, relationships with a wide breadth of operators and minority interests in thousands of wells gives NOG an informational advantage in…
NOGs Drakkar System 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 daily operations and…
Sustainability Framework Meaningfully Improved NOG made significant strides in its environmental, social and governance1 framework and is setting the standard for publicly-traded non-operating E&P companies. Our 2022 ESG report was…
Alignment with Operators who are ESG Leaders NOG strives to align with Energy-Sector ESG leaders. Forty-nine percent of NOGs 2023 production came from 20 public operators with publicly available ESG ratings. EQT PR OXY CHRD COP EOG HES…
II. Recent Financial Results Investor Presentation November 2024 31
Q3 2024 Financial & Operating Highlights Steady as she goes with acceleration in oil production and free cash flow as NOG heads into Q4 Free Cash Flow(1) Shareholder Returns Strong financial performance on fewer completions, boosted…
Q3 2024 Operations Highlights Development activity spooling as the D&C list builds after three consecutive quarters of draws AFEs Wells in Process Well Completions 1.7B (gross) in AFEs Drilling & Completions list Completion…
Q3 2024 Production by Basin NOG saw increased oil production in Q3 on lower turn-in-lines. Balanced growth in the Williston and Permian sequentially. 14% Modest growth in Permian and Williston volumes driven by well productivity,…
Q3 2024 Production by Commodity and Basin (% Boe) Production mix among the basins remained consistent quarter over quarter. The Company maintains its full year guidance. Williston 30% Appalachian 3% 70% 42% Oil Gas 58%…
Q3 2024 CapEx by Basin Disciplined Capital Expenditures for Q3, focused primarily on modest Q3 TIL activity and spud and development activity for an active TIL schedule expected in Q4. Workovers continue to accelerate. The Permian and…
III. Appendix Investor Presentation November 2024 37
2024 Guidance and Capital Budget Reaffirmed Production and CapEx Guidance, which includes the impact of XCL and Point Acquisitions Prior Guidance Revised Guidance Annual Production (2-stream, Boe/day) 120,000 124,000 120,000 124,000…
Historical Operating Information 2021 2022 2023 3Q23 3Q24 Historical Operating & Production Oil (MBbls) 12,288.4 16,090.1 22,013.0 5,847.9 6,524.0 Financial Information Natural Gas and NGLs (Mmcf) 44,073.9 68,829.1 84,341.9…
NON-GAAP Reconciliations: Adjusted EBITDA & Other Adjusted EBITDA by Quarter (in thousands) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Net Income (Loss) 340,191 167,815 26,111 388,853 11,606 138,556 298,446 Add: Interest Expense 30,143 31,968…
NON-GAAP Reconciliations: ROCE & Recycle Ratio Q3-24 Return on Capital Employed (ROCE) Adj. EBIT: 907.0MM (Q3 24 annualized) + Adj. EBITDA: 412.4MM (Q3 2024) Capital - DD&A: 185.7MM (Q3 2024) EBIT Employed = 21.8% Capital…
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 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 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…
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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