June 2017 NYSE MKT: NOG

Transcription

1 June 2017 NYSE MKT: NOG

2 Statements included in this slide deck, or made by representatives of Northern Oil and Gas, Inc. ( Northern or the Company ) during the course of this presentation, that are not historical facts are forward looking statements. These statements are based on certain assumptions and expectations made by the Company which reflect management s experience, estimates and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward looking statements. These include risks relating to crude oil and natural gas prices; the pace of drilling and completions activity on our properties; our ability to acquire additional development opportunities; changes in our reserves estimates or the value thereof; our ability to raise or access capital; general economic or industry conditions, nationally and/or in the communities in which the Company conducts business; changes in the interest rate environment; legislation or regulatory requirements; conditions of the securities markets; changes in accounting principles, policies or guidelines; financial or political instability; acts of war or terrorism; other economic, competitive, governmental, regulatory and technical factors affecting our operations, products and prices; and other important factors that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. Northern undertakes no obligation to publicly update any forward looking statements, whether as a result of new information or future events. 2

3 Position: 151,672 net acres (1) Large net well inventory 82% held, 84% held in North Dakota (1) Production: 1Q 2017 averaged 13,299 BOE/d, 85% crude net producing wells (2,973 gross) (1) 15.9 net wells in process (1) Hedges Protecting Liquidity: Swaps ,895,000 Bbls $ ,717,000 Bbls hedged@ $53.52 Costless Collars ,000 Bbls $50.00 $ ,000 Bbls $50.00 $60.25 $196.5 million of liquidity on $325 million borrowing base (1)(2) Enterprise Value $956 (1) million: $127 million Market Cap (2) $700 million 8% coupon 2020 series bonds $134 million drawn on $325 million credit facility (1) (1) As of 3/31/17 (2) $325 million borrowing base became effective in May

4 Committing Capital to the Highest Return Wells 50% 45% 40% 35% 30% 25% 20% 33% 26% 47% 29% Average IRR 26% 26% 28% 37% 36% 37% 16% 17% $MM $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $ Average AFE Costs % 12% 10% 13% 11% $3.0 10% 7% 7% $2.0 5% 1% 2% $1.0 0% Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 $0.0 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Consented IRR Non Consent IRR Consented IRR Non Consent IRR Source: All company wells as of March 31, IRRs based on internal estimate at time each well is evaluated for consent/non consent. 4

5 CCU Golden Creek MBH 1 Burlington (2016) Peak 30: 1,064 Boepd (90% oil) 10,162 Lateral Proppant: 523 lbs/lateral ft Fort Berthold D 25 10H 2 Halcon (2016) Peak 30: 1,030 Boepd (90% oil) Approx. 10,000 Lateral Proppant: Approx 500 lbs/lateral ft 3 BB Eide LE H 1 Hess (2016) Peak 30: 1,624 Boepd (82% oil) 9,743 Lateral Proppant: 424 lbs/lateral ft 4 Rolfson S B 5 Carscallen 31 14H Oasis (2016) Whiting (2016) Peak 30: 1,738 Boepd (78% oil) Peak 30: 1,877 Boepd (70% oil) Approx. 9,800 Lateral 10,706 Lateral Proppant: Approx 400 lbs/lateral ft Proppant: 823 lbs/lateral ft Lost Bridge Federal H Newfield (2016) 1 Peak 30: 1,143 Boepd (82% oil) 9,581 Lateral Proppant: 785 lbs/lateral ft 6 Peterson 6 4 4HC WPX (2016) Peak 30: 1,397 Boepd (91% oil) 14,928 Lateral Proppant: 900 lbs/lateral ft Rolla Federal TFH Whiting (2016) Peak 30: 1,988 Boepd (70% oil) 8,644 Lateral Proppant: 824 lbs/lateral ft Nashville 5 21H 7 Continental (2016) Peak 30: 1,077 Boepd (86% oil) 12,326 Lateral Proppant: 1,950 lbs/lateral ft Wold 16 7TFH 3 Whiting (2016) Peak 30: 1,813 Boepd (70% oil) Approx. 9,700 Lateral Proppant: Approx 750 lbs/lateral ft Rath Federal 5 22H Continental (2016) Peak 30: 1,166 Boepd (87% oil) 13,588 Lateral Proppant: 1,007 lbs/lateral ft Tat T2HD (2 nd Bench) 4 QEP (2016) Peak 30: 904 Boepd (91% oil) Approx. 10,000 Lateral Proppant: Approx 800 lbs/lateral ft Maggie USA 21 4H Marathon (2016) Peak 30: 2,084 Boepd (85% oil) 9,473 Lateral Proppant: 1,579 lbs/lateral ft Fort Berthold D 15 10H Halcon (2016) 5 Peak 30: 1,290 Boepd (91% oil) Approx 10,000 Lateral Proppant: Approx 950 lbs/lateral ft Rolla Federal H Whiting (2016) Peak 30: 1,879 Boepd (72% oil) 9,228 Lateral Proppant: 773 lbs/lateral ft NOG Leasehold Three Forks Wells Middle Bakken Wells Tackle C 25 TF Enerplus (2016) Peak 30: 1,165 Boepd (81% oil) 9,581 Lateral Proppant: 1,131 lbs/lateral ft Source: Company info, NDIC, and DrillingInfo 6 Brangus North 1 2H2 Continental (2016) Peak 30: 1,844 Boepd (85% oil) 9,838 Lateral Proppant: 1,015 lbs/lateral ft 7 Stenehjem 14H Abraxas (2016) Peak 30: 915 Boepd (75% oil) 9,449 Lateral Proppant: 803 lbs/lateral ft 8 Rufus USA 21 4TFH Marathon (2016) 9 Peterson 6 5 4HQ WPX (2016) 10 Peak 30: 2,474 Boepd (87% oil) 9,425 Lateral Proppant: 637 lbs/lateral ft Peak 30: 1,413 Boepd (91% oil) 14,887 Lateral Proppant: 611 lbs/lateral ft 5

6 Increasing Well Productivity Cum Production (Boe) 240, , , , , , , ,000 80, Cum 2015 Cum 2016 Cum 700 Mboe Type Curve 800 Mboe Type Curve 900 Mboe Type Curve 60,000 40,000 20, Producing Months day rates up 59% over 2015; wells tracking a 1 million Boe type curve month cum up 48% over 2014; wells continue to track above 700 Mboe type curve Source: Company information as of March 31, NOG Leasehold Wells WOC 2016 Spuds 2015 Spuds Spuds 6

7 Superior Well Performance 400, , ,000 Average 700 Mboe TC 800 Mboe TC 900 Mboe TC Cum Production (Boe) 250, , , ,000 50, Normalized Producing Days Excluding Downtime 27 wells completed with 10+ million pounds of proppant; average volume of 12.7 million pounds Average production up 36% over 900 Mboe type curve after 210 days Source: Company information as of March 31, NOG Leasehold NOG Super Frac Other Industry Super Frac 7

8 Production vs Capital Expenditures $537.5 $536.9 Production (Boepd) $ ,274 $ ,261 15,794 16,285 13,552 13,933 13,442 13,688 13,653 13,299 13,700 $510 $410 $310 $210 Cap ex in millions ,275 $128.7 $102.2 $110 0 $18.1 $16.5 $15.8 $34.1 [VALUE] Q '16 2Q '16 3Q '16 4Q ' Q ' Est $10 Cap ex 8

9 Dominate Non op Position in the Williston Basin High Quality Oil Levered Asset Base Strong Liquidity & Hedge Protection De risked non op position comprised of over 151,000 net acres of largely HBP acreage Participated in approximately 20% of gross wells drilled and completed to the Bakken & Three Forks; 2,973 gross (214.6 net) producing wells at March 31, 2017 Multi year drilling inventory (325 net locations breakeven or better at $50/Bbl) Significant upside outside the core and in lower Three Forks zones as well productivity and/or oil prices improve Borrowing base of $325 million providing $196 million of liquidity (1) Significant hedge position for the remainder of 2017 & 2018 to help protect cash flows and returns Ability to adjust spending up and down as returns dictate Positioned for Future Growth (1) At March 31, 2017 Enhanced completion designs and the expansion of core to drive continued well productivity improvements Accretive bolt on acquisitions as the non op consolidator in the Williston Basin Increase in activity to provide more investment opportunities 9