Northern Oil And Gas, Inc. · NYSE:NOG
Northern Oil And Gas — Q4 2024 Earnings Presentation
30 slides from Northern Oil And Gas's earnings presentation, Feb 20, 2025
Slide 1: Q4 and Full Year 2024 Earnings Presentation
Q4 and Full Year 2024 Earnings Presentation February 19, 2025 Q4 and Full Year 2024 Earnings Presentation | 1
Slide 2: Contents
Contents I. Q4 and Full Year 2024 Highlights II. Operations & Investment Activity Updates III. Guidance IV. Value Proposition V. Appendix Q4 and Full Year 2024 Earnings Presentation | 2
Slide 3: Q4 and Full Year 2024 Financial & Operating Highlights
Q4 and Full Year 2024 Financial & Operating Highlights Q4 Production Headwinds Mask Highly Successful 2024 • Adjusted EBITDA $406.6MM -1.4% QoQ on lower oil pricing and production headwinds +1.2% YoY, closing out another successful year of growth and future positioning Free Cash Flow(1) Shareholder
Slide 4: Q4 2024 Operations Highlights
Q4 2024 Operations Highlights Development activity poised to continue growth through 2025 and 2026 AFEs Wells in Process Well Completions • $2.5B (gross) in AFEs • Drilling & Completions list ended the quarter with • Significant uptick in • ~250 wells evaluated 50.4 net wells in process completions
Slide 5: Well Performance Continues to Impress
Well Performance Continues to Impress Williston Basin continues to show improvement in 2024 after a stellar 2023. Permian well productivity remaining consistent. Williston Basin Productivity Permian Basin Productivity 250,000 250,000 (1) 2022 Cum (1) 2022 Cum 2023 Cum (1) 2023 Cum(1) 200,000 200,000
Slide 6: Stable D&C List Heading into Year-End
Stable D&C List Heading into Year-End NOG’s oil-weighted wells-in-process (D&C) list is consistent with strong organic spud and development activity. Q4 and Full Year 2024 Earnings Presentation | 6
Slide 7: Q4 2024 Production by Basin
Q4 2024 Production by Basin NOG saw increased oil production in Q4 driven by acquisitions and organic Permian well performance. Aggregate Production Contribution by Basin Production Mix by Basin Williston Permian 31% 36% 6% 12% 34% 69% 64% Uinta Appalachian 1% 12% 48% 99% 88% Williston Permian Appal
Slide 8: Q4 2024 Production and Revenue by Commodity
Q4 2024 Production and Revenue by Commodity Oil remains the majority source of production and dominant source of revenue. 13% 40% Production Revenue by by Commodity Commodity 60% 87% Commodity Type Oil Gas Q4 and Full Year 2024 Earnings Presentation | 8
Slide 9: Q4 2024 CapEx by Basin
Q4 2024 CapEx by Basin Highly successful on elective Ground Game in Q4. Increase in completion activity in Q4. Workover and refrac activity continues to accelerate. 6% 2% • The D&C list held relatively flat despite strong completions activity, supported by Uinta adds via the XCL acquisition 33% • In
Slide 10: Investment Activity Update
Investment Activity Update Bolt-On Significant elective Ground Game across the entire portfolio accumulating both near term development and longer dated inventory. Large bolt-on opportunities emerging across multiple basins. Opportunity Set Ground Game Bolt-On’s & JV’s • M&A landscape remains • Eval
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 • Borrowing base maintained at $1.8 billion with an elected commitment expanded to $1.5 billion (April 2024) • Maintaining long-term leverage target at or near 1.0
Slide 12: 2025 Guidance and Capital Budget
2025 Guidance and Capital Budget Guidance implies another year of growth for oil and total production UNDERLYING ASSUMPTIONS PRODUCTION: 2025 Guidance • Production guidance reflects increased natural gas development and Appalachian drilling partnership Annual Production (2-stream, Boe/day) 130,000 –
Slide 13: NOG Value Proposition
PART 2 NOG Value Proposition Q4 and Full Year 2024 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 - >$461MM Free Cash Flow1 in last twelve Return of Capital Commitment: Growing Dividend and Shareholder Strong Balance Sheet with Organic De-Levering to Target of ~1.0x Net Domi
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 10,000 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 Q4-24 PRODUCTION BY REGION (BOE) non-op franchise that is benefitting from economies of scale Uinta 6% Appalachia • NOG is positioned to continue to capitalize on increased 12% 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 ~179,200 Acres ~53,140 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 and record low Adjusted Cash G&A per Boe(1) in 2024. PRODUCTION CONTINUES TO RAMP… WHILE MAINTAINING PEER-LEADING LOW CASH G&A(1) Reducing overhead unit cash G&A costs, with ability to reduce
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 2023 ESG report was completed using various sustainability reporting frameworks and two
Slide 21: Appendix: Supplemental Info
PART 3 Appendix: Supplemental Info Q4 and Full Year 2024 Earnings Presentation | 21
Slide 22: Historical Operating & Financial Information
Historical Operating Information Historical Operating & Production 2022 2023 2024 4Q23 4Q24 Financial Information Oil (MBbls) 16,090.1 22,013.0 26,510.6 6,336.2 7,262.4 Natural Gas and NGLs (Mmcf) 68,829.1 84,341.9 113,476.3 25,111.4 29,166.6 Total Production (Mboe) 27,561.6 36,070.0 45,423.4 10,521
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 Net Income (Loss) $ 340,191 $ 167,815 $ 26,111 $ 388,853 $ 11,606 $ 138,556 $ 298,446 $ 71,698 Add: Interest Expense 30,143 31,968 37,040 36,513 37,925 37,696 36,837 45
Slide 24: NON-GAAP Reconciliations: ROCE & Recycle Ratio
NON-GAAP Reconciliations: ROCE & Recycle Ratio 2024 Return on Capital Employed (ROCE) • EBIT: $878.2MM (2024) • + Adj. EBITDA: $1,619.1MM (Full Year 24) Capital • - DD&A: $740.9MM (Full Year 24) EBIT ÷ Employed = 19.2% • Capital Employed: $4,579.0MM (Avg. of YE 23/24) • + Total Assets: $5,044.0MM (A
Slide 25: NON-GAAP Reconciliations: Free Cash Flow
NON-GAAP Reconciliations: Free Cash Flow FREE CASH FLOW (FCF) (in thousands) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Net Cash Provided by Operating Activities $ 269,308 $ 307,786 $ 263,865 $ 342,362 $ 392,147 $ 340,477 $ 385,761 $ 290,278 Exclude: Changes in Working Capital and Other Items 26,864 (2
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 upside CRUDE OIL DERIVATIVE SWAPS NATURAL GAS DERIVATIVE SWAPS Total Hedged Weighted Contract Barrels per Total Hedged Weighted Aver
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 upside CRUDE OIL DERIVATIVE COLLARS & PUTS NATURAL GAS DERIVATIVE COLLARS & PUTS Total Floor Total Ceiling Floor Million
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 upside MIDLAND-CUSHING BASIS SWAP WAHA BASIS SWAP Barrels per Day Total Hedged Weighted Average Contract Million British Therm
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