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IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. · Sep 22, 2014 · 33 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. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 1
    One Step Ahead of The Drill Bit September 2014 NYSE MKT: NOG
  2. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 2
    Position: 186,700 Net Acres 1,300 Remaining Net Well Inventory(1) 75% of North Dakota Held(2), 64% Held in Total Production: (2nd Quarter 2014) Averaged 15,400 BOEpd 90% Crude Oil Producing Wells 2,037 gross (165.2 net) 298…
  3. IPAA OGIS SAN FRANCISCO – 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 Partnered with Leading…
  4. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 4
    2014 CapEx Budget ( in millions) Production and Net Well Additions Drilling and Completion * 415 5.6 45 5.5 5.5 MMBoe Acreage and Other Expenditures 35 5.4 44 Wells Total 450 44 5.3 5.2 Production (MMBoe) 5.1 43 20% - 25%…
  5. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 5
    Our Focus is Purely North Dakota & Montana 6
  6. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 6
    North Dakota Active Rig Count and Production(1) 1150 250 Active Horizontal Rig Count Daily Production (Mboe/d) 950 200 750 150 550 100 350 150 50 -50 0 Daily Oil Production (MBbl/d) Daily Gas Production (Mboe/d)…
  7. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 7
    Consistent Growth 16,000 15,000 180 14,000 160 12,261 140 12,000 10,274 Production (Boepd) 120 Producing Wells 10,000 100 8,000 80 6,000 5,275 60 4,000 2,435 40 2,000 20 773 140 - 0 2008 2009 2010 2011 2012…
  8. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 8
    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…
  9. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 9
    Strengthening the Foundation, Multi-Year Growth Profile 10
  10. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 10
    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…
  11. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 11
    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 Participated in 2,300+ gross wells Good visibility on who operates, drilling plans, AFE costs and general…
  12. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 12
    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…
  13. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 13
    Step Step 2 3 Step Step 1 4 Step 5 Acquisition History 60,000 4,000 56,858 49,032 3,200 45,000 Net Acres Acquired 43,239 2,400 / Acre 30,000 1,832 1,600 1,043 20,316 1,671 15,000 17,590 11,681 544 20,900…
  14. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 14
    Step Step 2 3 Step Step 1 4 Step Foundation for Continued Growth 5 Northern Net Acreage Summary 22% 25% 36% 64% 78% 75% Montana North Dakota Total % Held (1) Total % Non-Held ND % Held (1) ND % Non-Held Net Acres…
  15. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 15
    Step Step 2 3 Step Step 1 4 Step Current Estimated Gross Run Rate Total North Dakota Rigs (196)(1) 5 Company Williston Rigs(1) Bakken Capex(2) 22 1,980 MM 6% 18 1,620 MM 13 1,170 MM 10 900 MM 96% 15 1,350 MM NOG…
  16. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 16
    Step 2 Step 3 Step 1 Step 4 Step 5 Diversify Risk Among Premier Operators 10.9% 21.9% 7.2% 6.2% 3.4% 4.0% 5.4% 3.3% 3.9% 3.0% 4.2% 9.3% 5.5% 11.9% Between 2% and 3% Less Than 2% 17
  17. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 17
    Step Step 2 3 Step Step 1 4 Proved Reserves as of 12/31/2013 Step 5 ( in millions) Oil Gas Total SEC (MMBbls) (Bcf) (MMBoe) PV-10(1) P1 Category PDP 26.2 16.5 28.9 881.7 PDNP 5.9 4.1 6.6 151.1 PUD 43.8 29.5 48.7 488.5…
  18. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 18
    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% 79.77 70.00 75.85 78.79 75.2% 77.74 74.3% 76.2% 76.0% 60.00 69.0% 75.0% % Margin 66.39 (/Boe) 50.00 57.77…
  19. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 19
    Step Step 2 3 Step Step 1 4 Step Strong Fundamental Performance in Key Operational Metrics 5 Three-Year F&D Cost 2011-2013 (/Boe)(1) Cash Operating Margin TTM 06/30/2014 (/Boe) 30.0 70.0 25.0 60.0 20.0 50.0 40.0 15.0 30.0…
  20. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 20
    Step Step 2 3 Step Step 1 4 Step Northern Generated 3.22 in EBITDA for Each 1.00 Invested in F&D 5 500% 451% 450% 400% 377% 350% 322% 300% 261% 250% 200% 200% 183% 155% 150% 100% 50% 0% CLR OAS NOG KOG WLL…
  21. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 21
    Consistent Execution of Business Strategy Oil & Gas Sales (MM) (1) Adjusted EBITDA (MM)(2) 450.0 424.4 350.0 400.0 369.2 292.8 300.0 350.0 268.0 296.6 300.0 250.0 225.3 250.0 200.0 200.0 159.4 150.0 150.0 112.3 100.0…
  22. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 22
    Capital and Liquidity to Continue Growth Path 23
  23. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 23
    Financial Resources to Stay One Step Ahead Liquidity (as of 6/30/2014) 800 700 600 in millions 500 292 292 400 300 200 450 302 302 100 14 14 0 Cash Credit Facility(3) Adjusted EBITDA Available Capex 2014E(2) (TTM)…
  24. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 24
    Organic Disciplined Growth 16,000 700 15,000 15,000 650 Capital Expenditures (MM) 14,000 Production (Boepd) 600 13,000 12,261 12,000 538 550 11,000 10,274 500 10,000 439 450 450 9,000 8,000 400 2012 2013 2014…
  25. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 25
    Acquisition and Development Investment (1) Capital Shifting to Development (1) 600 100% 537.5 90% Percentage of Total Capital Investment Capital Investment ( in millions) 500 38% 450 80% 439.1 414.0 70% 62% 400 73%…
  26. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 26
    COSTLESS COLLARS SWAPS Weighted Average Weighted Average Contract Volume Floor/Ceiling Price Volume Floor/Ceiling Price Period (Bbls) (Bbl) (Bbls) (Bbl) 2014: Q3 60,000 90.00 - 99.05 945,000 89.81 Q4 60,000 90.00 - 99.05 975,000…
  27. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 27
    EV / Proved Reserves (YE 2013) EV / Production (TTM Q214) 40 250 35 200 30 /Boepd ( in thousands) 25 150 /Boe 20 100 15 10 50 5 0 0 MHR KOG OAS EOX EOG CLR WLL NOG MHR CLR EOX OAS KOG EOG NOG WLL As of…
  28. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 28
    One Step Ahead of the Drill Bit Proven Acquisition Model Acquire High-Potential Acreage Focused on the Bakken and Three Forks A Premier Crude Oil Play in North America Deep Knowledge of the Bakken and Three Forks Go-To Non-Op…
  29. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 29
    APPENDIX: Supplemental Information 30
  30. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 30
    Year Ended December 31, 2013 2012 2011 2010 2009 Production Oil (MBbls) 4,046.7 3,465.3 1,792.0 849.8 274.3 Natural Gas and NGLs 2,572.2 1,768.9 800.2 234.4 47.3 Total Production (Mboe) 4,475.4 3,760.1 1,925.4 888.9 282.2…
  31. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 31
    2013 2012 2011 2010 2009 2008 (In Thousands) Net Income 53,067 72,285 40,611 6,917 2,798 2,424 Add Back: Interest Expense 32,709 13,875 586 583 535 28 Income Tax Provision 30,768 43,002 26,835 4,419 1,466 (830) Depreciation,…
  32. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 32
    Quarter Ended June 30, March 31, December 31, September 30, In thousands 2014 2014 2013 2013 Net Income (4,412) 6,589 17,401 21,702 Add Back: Interest Expense 10,326 9,898 9,569 9,212 Income Tax Provision (2,750) 4,100 10,505…
  33. IPAA OGIS SAN FRANCISCO – Northern Oil and Gas, Inc. – slide 33
    (/Boe, except % Margin) Realized Year Price* Production Expense Production Taxes Cash G&A Margin % Margin 2009 51.55 2.67 4.60 8.70 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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