ENERCOM DALLAS - APRIL 2022

NYSE: NOG

A DIVERSIFIED HIGH RETURN NON-OP E&P FRANCHISE

➢ NOG's 2021 Permian and Marcellus acquisitions have created a high return national non-op franchise that is benefitting from economies of scale

➢

Going forward, NOG is positioned to continue to capitalize on increased non-operated opportunities present in the "Shale 3.0" era

NYSE: NOG

Williston Basin : ~180,000 Net Acres

2021 Production Exit Rate by Region (1)Permian Basin: ~9,000 Net Acres (1)

Acreage, exit rates, and production mix shown pro forma for recently closed Veritas Permian Acquisition

2021 Production Exit Rate by Commodity (1)Marcellus Acres: ~62,000 Net Acres

THE NORTHERN INVESTMENT PROPOSITION

NYSE: NOG

National non-op franchise - principled ROCE(1) leader (24.2% in Q4:21) diversified by commodity and geography

Strong expected Free Cash Flow (2): >$375 MM in 2022 and >$1.3 Bn through 2025

Return of capital commitment: +23% QoQ dividend growth through 2023; Repurchasing

Preferred Stock initiated in Q1

Continuously improving balance sheet with target net leverage of <1.0x

Compelling Valuation: >17% 2022 Free cash flow yield (2) and 4.9x 22 P/E Ratio (3)

The "Shale 3.0" beneficiary - the Golden Age for non-op is now

  • 1. ROCE is a non-GAAP financial measure. See Appendix for methodology and reconciliation

  • 2. Free Cash Flow (FCF) is a non-GAAP financial measure. See Appendix for methodology. Northern is unable to present a reconciliation of forward-looking FCF because components of the calculation, including fluctuations in working capital accounts, are inherently unpredictable. FCF yield assumes >$375MM of 2022 FCF (2/21/22 forecast), a $28.52 share price (4/5/22 close) and 77.341MM shares (2/21/22 common outstanding), equating to a market capitalization of $2,205MM

  • 3. As of 2/24/2022 based off Bloomberg consensus estimates for 2022 EPS $5.82/share and a NOG share price of $28.52. Not inclusive of Veritas acquisition

A DIFFERENTIATED E&P GROWTH PLATFORM

➢ NOG continues to build scale as the largest dedicated public non-operated working interest company

PRODUCTION CONTINUES TO RAMP…

NYSE: NOG

…WHILE MAINTAINING PEER-LEADING LOW CASH G&A(1)

Material growth driven by accretive M&A

64.2

Q3 '19

Q2 '21

Q4 '19

Q1 '20

Q2'20

Q3'20

Q4'20

Q1 '21

Production (MBoe/d)

Q2 '21

Q3'21

Q4'21

Cash G&A is a non-GAAP financial measure. Please see the appendix for reconciliation to the most directly comparable GAAP Measure.

Reducing overhead cash G&A cost

$1.61

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2'20

Q3'20

Q4'20

Q1 '21

Cash G&A per BOE- Adjusted

Q3 '21

Q4'21

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Northern Oil & Gas Inc. published this content on 06 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 April 2022 08:01:09 UTC.