Northern Oil And Gas, Inc. · NYSE:NOG
Northern Oil And Gas — Merger or Acquisition (June 2024)
15 slides from Northern Oil And Gas's merger presentation, Jun 27, 2024
Slide 1: XCL Joint Acquisition
XCL Joint Acquisition June 2024 XCL Joint Acquisition June 2024 | 1
Slide 2: XCL Acquisition Overview | Scaled Entry with Significant Runway
XCL Acquisition Overview(1) | Scaled Entry with Significant Runway Undivided interest in high quality Uinta Basin properties to be operated by SM Energy in a joint acquisition. With its significant, long-lived and low-breakeven inventory, XCL sets milestones as NOG’s largest and most accretive acqui
Slide 3: XCL Is NOG's Largest & Most Accretive Acquisition To Date
XCL Is NOG’s Largest & Most Accretive Acquisition To Date XCL Asset Locator Map & Key Stats Key Financial Statistics • Agreement to purchase 20% undivided interest in XCL assets for $510 MM WY • Gross NRI: ~80%, net operated WI ~18% NV UT CO UTAH • 95% HBP (78% fee, 16% tribal, 5% state, 1% federal)
Slide 4: Uinta Inventory Competes With Core Permian
Uinta Inventory Competes With Core Permian Uinta Basin combines core Delaware Basin productivity with the attractive cost structure of the Midland Basin Type Curve Comparison | 10,000’ Normalized Cumulative Oil 1,000 XCL Uteland Butte wells pay Uteland Butte Core 800 out in average of 18 months Uint
Slide 5: Uinta Stacked Pay | Opportunity Rich Asset Play
Uinta Stacked Pay | Opportunity Rich Asset Play More zones across a thicker column translates into significant future organic development opportunities UINTA BASIN (30-40 WELLS PER MILE) DELAWARE BASIN (24-36 WELLS PER MILE) WILLISTON BASIN (10-12 WELLS PER MILE) 5-6 wells/mile per bench ~350 ft 4-6
Slide 6: High Value Crude with Access to Premium Markets
High Value Crude with Access to Premium Markets Ample offtake with well-established oil and gas takeaway logistics XCL Takeaway Locator Map XCL Production Commodity Flows Production WYOMING Facilities Wellhead SLC Refineries 1 UTAH COLORADO Kinder Morgan Green River (2026) Contracted Kinder Morgan A
Slide 7: SM Partnership Is Consistent with NOG's Playbook Bolt-On
SM Partnership Is Consistent with NOG’s Playbook Bolt-On NOG repeats successful strategy of basin expansion through a scaled entry with a proven operator Proven Operating Scaled Entry with Governance & Partner Additional Growth Alignment • SM and NOG have a • Adds 9,300 net contiguous acres • Deal s
Slide 8: XCL Further Enhances & De-Risks NOG's Business Model
XCL Further Enhances & De-Risks NOG’s Business Model As NOG adds another substantial JV and fourth major region, its operator, basin and commodity concentration have declined markedly and substantially lowered business and cyclical risk for its investors Basins(1) Operators Commodity 23% Williston 4
Slide 9: Transaction Enhances NOG's Growth
Transaction Enhances NOG’s Growth Adds diversity and scale with a fourth joint venture and fourth basin in NOG's portfolio Compelling long-term value – sets up for over 10 years of self-funding cash flow High quality assets – adds significant <$50/bbl breakeven properties to enhance platform resilie
Slide 10: Appendix
Appendix XCL Joint Acquisition June 2024 | 10
Slide 11: 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 Floor Million Total Floor
Slide 12: 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 13: 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 14: 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 15: 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
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