Northern Oil And Gas, Inc. · NYSE:NOG
Northern Oil And Gas — Q1 2025 Earnings Presentation
30 slides from Northern Oil And Gas's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation April 29, 2025 Q1 2025 Earnings Presentation | 1
Slide 2: Contents
Contents I. Q1 2025 Highlights II. Operations & Investment Activity Updates III. Guidance IV. Value Proposition V. Appendix Q1 2025 Earnings Presentation | 2
Slide 3: Q1 2025 Financial & Operating Highlights
Q1 2025 Financial & Operating Highlights Production and Financials Exceed Expectations • Average Daily Production +2.4% QoQ, +13.0% YoY, Oil 58% of production, gas volumes Free Cash Flow(1) Shareholder Returns +6.5% QoQ • Uinta volumes up ~15% on a sequential quarter basis and 18% on an Mboe/day bas
Slide 4: NOG is Highly Diversified – with Unique Governance and Top Tier Operators
NOG is Highly Diversified(1) – with Unique Governance and Top Tier Operators NOG’s Joint Ventures make up less than 30% of its 2025 capital budget, but the benefits to visibility and long-term development are substantial. Even with our JVs, NOG’s overall production footprint is highly diversified, w
Slide 5: Long Term Focus Creates Value Through Cycles
Long Term Focus Creates Value Through Cycles NOG has grown free cash flow over time and through cycles even as oil prices have had their ups and downs. The Company has delivered operating cash flow per share growth while also reducing debt per share significantly. FREE CASH FLOW GROWTH VS. OIL PRICE
Slide 6: Q1 2025 Operations Highlights
Q1 2025 Operations Highlights Navigating a volatile macro environment with a resilient and diversified asset base. AFEs Wells in Process Well Completions • ~230 wells evaluated, 19.9 net • Drilling & Completions list • Q4 deferrals and logistical • Over 95% consent rate, gross ended the quarter with
Slide 7: Q1 2025 Production by Basin
Q1 2025 Production by Basin Uinta production accelerated ~18% QoQ contributing to stable oil production in the quarter and the ~12% increase YoY. Gas production up ~7% QoQ and ~14% YoY reflecting uptick in Appalachian activity. Aggregate Production Contribution by Basin Production Mix by Basin Willi
Slide 8: Q1 2025 Production and Revenue by Commodity
Q1 2025 Production and Revenue by Commodity Oil remains the majority source of production and dominant source of revenue, though gas has improved its contribution as prices have increased. 21% Production 42% Revenue by by Commodity Commodity 58% 79% Commodity Type Oil Gas Q1 2025 Earnings Presentati
Slide 9: Q1 2025 CapEx by Basin
Q1 2025 CapEx by Basin Q4 Deferrals Drive Strong Results While Net New Normalized AFE Costs Beat Forecasts. 15% • Capital efficient Q1 as wells turned in line at a higher rate than new 20% spuds despite a record in seasonal additions 9% • Net new elections were up nearly 40% over the prior quarter a
Slide 10: Investment Activity Update
Investment Activity Update Bolt-On Active pipeline of opportunities persists even in a volatile market, increasing Ground Game opportunities. Opportunity Set Ground Game Bolt-On & JV • M&A landscape remains • Evaluated 100+ ground • 2,275 net acre bolt-on in robust; widening bid/ask game opportuniti
Slide 11: Enhanced Liquidity Position
Enhanced Liquidity Position NOG has methodically managed its debt structure and maturity wall over time. • No debt maturities until 2027 (RBL) which can be renewed and extended, no term security maturities until 2028 • Borrowing base maintained at $1.8 billion with an elected commitment of $1.5 bill
Slide 12: 2025 Guidance and Capital Budget
2025 Guidance and Capital Budget UNDERLYING ASSUMPTIONS PRODUCTION: 2025 Guidance • Production guidance reflects increased natural gas development and Appalachian drilling partnership Annual Production (2-stream, Boe/day) 130,000 – 135,000 • Significant year-over-year increase in number of gas wells
Slide 13: NOG Value Proposition
PART 2 NOG Value Proposition Q1 2025 Earnings Presentation | 13
Slide 14: The NOG Investment Proposition
The NOG Investment Proposition 1 2 3 4 5 National Non-Op Franchise – offering scale and diversification by Cash Generation - ~$543MM Free Cash Flow(1) in last twelve Return of Capital Commitment: Growing Dividend and Shareholder Strong Balance Sheet with Organic De-Levering to Target of ~1.0x Net Do
Slide 15: Benefits of NOG's Non-Operated Model
Benefits of NOG’s 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 11,000 wells • Unit G&A costs are 50% less than • Enables well-informed and experien
Slide 16: Leading Non-Op Upstream Franchise
Leading Non-Op Upstream Franchise • NOG’s acquisitions have created a high-return, national Q1-25 PRODUCTION BY REGION (BOE) non-op franchise that is benefitting from economies of scale Uinta 7% Appalachia • NOG is positioned to continue to capitalize on increased 14% Region non-operated opportuniti
Slide 17: Focus on the Highest-Quality Areas
Focus on the Highest-Quality Areas No requirement for contiguous acreage allows NOG to participate Williston Appalachian in prime drilling opportunities across basins or regions1 ~178,300 Acres ~53,400 Acres • As a non-operated E&P company, NOG is un- burdened by the need to have large contiguous ac
Slide 18: A Differentiated Upstream Investment Growth Platform
A Differentiated Upstream Investment Growth Platform Operating leverage at work: NOG had record high volumes in Q1 2025 while still maintaining low G&A per BOE even after expanding workforce over the last 12 months. PRODUCTION CONTINUES TO RAMP… WHILE MAINTAINING PEER-LEADING LOW CASH G&A(1) Reducin
Slide 19: NOG's Drakkar System Empowers our Data Driven Investment Process
NOG’s 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 informs our investment management decisions. Inputs Outputs Lan
Slide 20: Sustainability Framework Meaningfully Improved
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 2024 ESG report was completed using various sustainability reporting frameworks and two
Slide 21: Appendix: Supplemental Info
PART 3 Appendix: Supplemental Info Q1 2025 Earnings Presentation | 21
Slide 22: Historical Operating & Financial Information
HISTORICAL OPERATING INFORMATION 2022 2023 2024 1Q24 1Q25 Historical Operating & PRODUCTION Oil (MBbls) 16,090.1 22,013.0 26,510.6 6,386.5 7,080.7 Financial Information Natural Gas and NGLs (Mmcf) 68,829.1 84,341.9 113,476.3 26,892.9 30,393.5 Total Production (Mboe) 27,561.6 36,070.0 45,423.4 10,868
Slide 23: NON-GAAP Reconciliations: Adjusted EBITDA & Other
NON-GAAP Reconciliations: Adjusted EBITDA & Other ADJUSTED EBITDA BY QUARTER (IN THOUSANDS) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Net Income (Loss) $ 340,191 $ 167,815 $ 26,111 $ 388,853 $ 11,606 $ 138,556 $ 298,446 $ 71,698 $ 138,982 Add: Interest Expense 30,143 31,968 37,040 36,513 37,925 3
Slide 24: NON-GAAP Reconciliations: ROCE & Recycle Ratio
NON-GAAP Reconciliations: ROCE & Recycle Ratio Q1 25 Return on Capital Employed (ROCE) • Adj. EBIT: $916.2MM (Q1 25 annualized) • + Adj. EBITDA: $434.7MM (Q1 2025) Capital • - DD&A: $205.7MM (Q1 2025) EBIT ÷ Employed = 19.7% • Capital Employed: $4,658.0MM (Avg. of Q1/24 and Q1/25) • + Total Assets:
Slide 25: NON-GAAP Reconciliations: Free Cash Flow
NON-GAAP Reconciliations: Free Cash Flow FREE CASH FLOW (FCF) - QUARTERLY (IN THOUSANDS) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Net Cash Provided by Operating Activities $ 269,308 $ 307,786 $ 263,865 $ 342,362 $ 392,147 $ 340,477 $ 385,761 $ 290,278 $ 407,426 Exclude: Changes in Working Capita
Slide 26: Hedge Profile—SWAPS
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 DERIVATIVE SWAPS Total Hedged Weighted Contract Barrels per Total Hedged
Slide 27: Hedge Profile—COLLARS and PUTS
Hedge Profile—COLLARS 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 NATURAL GAS DERIVATIVE COLLARS & PUTS Total Floor Total Ceiling
Slide 28: Hedge Profile—Basis SWAPS
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 SWAP Barrels per Day Total Hedged Weighted Average Contract Million
Slide 29: Important Disclosures
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 (the “Securities Act”) and the Securities Exchange Act of 1934,
Slide 30: Important Disclosures
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 markets), were obtained from sources believed to be reliable an