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Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Dec 31, 2013 · 30 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. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 1
    One Step Ahead of The Drill Bit December 2013 NYSE MKT: NOG
  2. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 2
    Position: 187,000 Net Acres 1,000 Remaining Net Well Inventory(2) 61% Held(3), 71% Held in North Dakota Production: (3rd Quarter 2013) Averaged 13,049 BOE/d, 90% Crude 1,712 Producing Wells (143.0 net) (1) 255 Wells Drilling…
  3. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 3
    Leading Non-op Franchise in the Williston First-mover advantage in 2006 Strong balance sheet and liquidity for drilling and additional acquisitions Acquire only strategic non-operated acreage in the Bakken core Longstanding…
  4. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 4
    Operational Focus 5
  5. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 5
    North Dakota Active Horizontal Rig Count and Production(1) 1100 250 Active Horizontal Rig Count Daily Production (Mboe/d) 1000 900 200 800 700 150 600 500 400 100 300 200 50 100 0 0 Daily Oil Production (MBbl/d)…
  6. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 6
    Three Forks Potential Increases Footprint Gamma Ray Resistivity Upper Middle Bakken Bakken Traditional Focus Middle 11,300 Benches of Three Forks Opens Lower New Resource Potential Bakken Petroleum System Three Forks…
  7. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 7
    Strengthening the Foundation, Multi-Year Growth Profile 8
  8. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 8
    Proven Business Model Converts Acreage Into Shareholder Value Step 3 Step 2 Grow Production Fund AFE & Grow Reserves Creating Value One Step Ahead of The Drill Bit Step 4 Step 1 Realize High Buy Acreage Return on Invested…
  9. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 9
    Step Step 2 3 Step Step 1 4 Step Buy Acreage One Step Ahead of the Drill Bit 5 Deep knowledge of the Williston Basin 1,700+ gross producing wells Good visibility on who the operators are, drilling plans, AFE costs and…
  10. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 10
    Step Step 2 3 Step Step 1 4 Step 5 Non-Operated Larger Operators Positions from Seeking to Companies Consolidate Preferring to Operated Positions Operate (Post-Acquisition) Operators Looking to Sell Down Smaller…
  11. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 11
    Step Step 2 3 Step Step 1 4 Step 5 187,000 net mineral acres in the Acquisition History Bakken/Three Forks play 60,000 4,000 at September 30, 2013 56,858 3,200 45,000 Net Acres Acquired Average acreage acquisition…
  12. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 12
    Step Step 2 3 Step Step 1 4 Step Foundation for Continued Growth and Value Creation 5 Northern Net Acreage Summary 22% 29% 39% 61% 71% 78% Montana North Dakota Total % Held(1) Total % Non-Held ND % Held (1) ND %…
  13. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 13
    Step Step 2 3 Step Step 1 4 Current Estimated Gross Run Rate Step 5 Company Williston Rigs(1) Bakken Capex(2) Gross Bakken run EOG Resources 16 1,440 MM Total North Dakota Rigs (193)(1) rate capex for these 12 Hess 15…
  14. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 14
    Step Step 2 3 Step Step 1 4 Step 5 Diversify Risk Among Active Drillers in the Williston Basin NOG participates 11.0% in wells with most 23.0% 7.5% of the top operators in the 6.5% 3.5% Williston Basin 3.0% 4.7%…
  15. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 15
    Step Step 2 3 Step Step 1 4 Net Proved Reserves as of 12/31/2012 Step 5 ( in millions) Oil Gas Total SEC (MMBbls) (Bcf) (MMBoe) PV-10(1) P1 Category PDP 23.7 15.0 26.2 795.7 PDNP 3.7 2.3 4.1 42.8 PUD 33.4 23.9 37.4 448.9…
  16. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 16
    Step Step 2 3 Step Step 1 4 Step Historical Cash Operating Margins per BOE (1) 5 90.00 100.0% 80.00 79.0% 82.78 82.58 70.00 75.85 78.79 76.7% 79.80 76.2% 76.0% 73.9% 75.4% 60.00 69.0% 75.0% % Margin 66.39 (/Boe)…
  17. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 17
    Step Step 2 3 Step Step 1 4 Step Northern Delivers Strong Fundamental Performance in Key Operational Metrics 5 Three-Year F&D Cost 2010-2012 (/Boe)(1) Cash Operating Margin TTM 9/30/2013 (/Boe) 35.0 30.0 80.0 70.0 25.0 60.0…
  18. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 18
    Step Step 2 3 Step Step 1 4 Step Northern Generated 3.62 in EBITDA for Each 1.00 Invested in F&D 5 500% 462% 456% 450% 400% 362% 350% 300% 261% 250% 216% 198% 200% 152% 150% 100% 50% 0% OAS CLR NOG KOG…
  19. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 19
    Growth Track Record from Consistent Execution of Business Strategy Oil & Gas Revenue (MM) (1) Adjusted EBITDA (MM)(2) 400.0 300.0 350.0 345.8 260.6 296.2 250.0 300.0 225.3 250.0 200.0 200.0 150.0 146.0 112.3 150.0…
  20. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 20
    Capital and Liquidity to Continue Growth Path 21
  21. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 21
    Financial Resources to Stay One Step Ahead Liquidity (as of 9/30/2013) 800 700 600 in millions 260 260 266 MM Surplus (Est) 500 400 300 200 405 405 411 100 12 12 0 Cash Credit Facility(3) Adjusted EBITDA Available…
  22. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 22
    Acquisition and Development Investment Capital Shifting to Development 600 100% 538.1 90% Percentage of Total Capital Investment Capital Investment ( in millions) 500 80% 38% 414.0 411 400 70% 62% 73% 60% 300 485.4…
  23. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 23
    COSTLESS COLLARS SWAPS Weighted Average Weighted Average Contract Volume Floor/Ceiling Price Volume Floor/Ceiling Price Period (Bbls) (Bbl) (Bbls) (Bbl) 2013: Q4 532,864 90.45 - 104.29 495,000 91.13 2014: Q1 60,000 90.00 - 99.05…
  24. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 24
    EV / Proved Reserves (YE 2012) EV / Production (TTM Q313) 50 250 40 200 /Boepd ( in thousands) /Boe ( in thousands) 30 150 20 100 10 50 0 0 KOG OAS MHR CLR EOG WLL HES NOG OAS CLR KOG MHR NOG EOG WLL HES As…
  25. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 25
    One Step Ahead of the Drill Bit Proven Acquisition Model Acquire High-Potential Acreage About to be Drilled Focused on the Bakken and Three Forks A Premier Crude Oil Play in North America Strong Well Economics Deep Knowledge of the…
  26. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 26
    APPENDIX: Supplemental Information 27
  27. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 27
    Year Ended December 31, 9-Mos 9/30 2009 2010 2011 2012 2013 Production Oil (MBbls) 274.3 849.8 1,792.0 3,465.3 2,891.2 Natural Gas and NGLs 47.3 234.4 800.2 1,768.9 1,807.1 Total Production (Mboe) 282.2 888.9 1,925.4 3,760.1…
  28. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 28
    9-Months 2013* 2012 2011 2010 2009 2008 (In Thousands) Net Income 35,666 72,285 40,611 6,917 2,798 2,424 Add Back: Interest Expense 23,140 13,875 586 583 535 28 Income Tax Provision 21,263 43,002 26,835 4,419 1,466 (830)…
  29. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 29
    Quarter Ended March 31, June 30, September 30, December 31, In thousands 2012 2012 2012 2012 Net Income 8,807 43,626 300 19,552 Add Back: Interest Expense 196 2,728 5,204 5,744 Income Tax Provision 5,824 28,840 213 8,123…
  30. Capital One Securities Inc 8th Annual Energy Conference – Northern Oil and Gas, Inc. – slide 30
    (/BOE, except % Margin) Realized Year Price* Production Expense Production Taxes Cash G&A Margin % Margin 2009 51.55 2.67 4.6 8.83 35.57 69.0% 2010 66.39 3.70 6.16 4.09 52.44 79.0% 2011 75.85 6.77 7.43 3.88 57.77 76.2%…

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