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Enercom’s the oil and gas conference 19

One Step Ahead of The Drill Bit. Enercom’s the oil and gas conference 19. August 2014. Forward Looking Statements.

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Enercom’s the oil and gas conference 19

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  1. One Step Ahead of The Drill Bit Enercom’s the oil and gas conference 19 August 2014

  2. Forward Looking Statements • Statements 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 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.

  3. CORPORATE PROFILE Position: • 186,700 Net Acres • ~1,300 Remaining Net Well Inventory(1) • 75% of North Dakota Held(2), 64% Held in Total Production: (2nd Quarter 2014) • Averaged ~ 15,400 BOEpd • 90% Crude • Producing Wells 2,037 gross (165.2 net) • 298 Wells Drilling or Completing (23.5 net)(3) Proved Reserves: Year-End 2013 • 84.2 MMBoe Enterprise Value: ~$1.70 Billion • ~$1.0 Billion Equity Market Cap • $500 Million 8% coupon 2020 series bonds • $198 million drawn on $500 million borrowing base • Liquidity of $300+ Million • Based on 186,700 net acres and 1,280 acre units - 10 wells per 1,280 unit. • Held defined as developed, held by production or held by operations. • As of 6/30/2014

  4. Key investment highlights • Leading Non-op Franchise in the Williston • First-mover advantage in 2006 • Strong balance sheet and liquidity for drilling and additional acquisitions • Acquire only strategic non-operated acreage in the Bakken core • Partnered with Leading Operators • Exposure to the best operators in the best oil play • 25+ operating partners diversifies risk • Visible Growth Potential Over Long-Term • Extensive multi-year drilling inventory (1,300+ net wells to drill) • Down spacing and lower Three Forks benches may add significant drilling inventory

  5. Our Focus is Purely North Dakota & Montana The Williston basin

  6. Production up – rig count flat North Dakota Active Rig Count and Production(1) Daily Production (Mboe/d) Active Horizontal Rig Count North Dakota Wells Spud(1) NDIC – Updated July 2014

  7. Growing production Consistent Growth Production Growth 118% CAGR

  8. MULTI-PlAY, MULTI-PAY Gamma Ray Resistivity Upper Three Forks Potential Increases Footprint • Middle Bakken Traditional Focus • Benches of Three Forks Opens New Resource Potential • Three Forks Increases Effective Acreage Position and Drilling Inventory Bakken Middle 11,300 Lower 1st Bench 11,400 Bakken Petroleum System 308’ 2nd Bench Three Forks 11,500 3rd Bench 4th Bench 11,600 Charlotte 2-22H Log

  9. Strengthening the Foundation, Multi-Year Growth Profile Growing the franchise

  10. Value proposition Proven Business Model Converts Acreage Into Shareholder Value Creating Value One Step Ahead of The Drill Bit

  11. ACQUISITION MODEL • Buy Acreage “One Step Ahead of the Drill Bit” • Deep knowledge of the Williston Basin • Participated in 2,300+ gross wells • Good visibility on who operates, drilling plans, AFE costs and general economics prior to acreage acquisition • Seek Lease Positions Contiguous to Large Operator Positions • Reduce acquisition-to-value creation time • Manage capital outlays • Participate with operators we know • Purchase at Discount to Market • Low entry cost enhances returns

  12. Continuous opportunity stream

  13. Acquisition track record • ~186,700 net acres • First Half 2014 acquired 11,681 acres for $1,671 per acre • Majority of acreage acquisitions involve properties that are “hand-picked” by Northern on a lease-by-lease basis • Increased percent of HBP/HBO acreage from ~3% in 2008 to ~64% in Q2 2014.(~75% in North Dakota) Acquisition History 186,700 Net Acres as of June 30, 2014

  14. High-Quality Acreage portfolio Foundation for Continued Growth Northern Net Acreage Summary Net Acres By County • Total Net Acreage: ~186,700 (as of 6/30/2014) • ND: 146,7000 Net Acres • MT: 40,000 Net Acres North Dakota Montana • Includes acreage classified as held by production, held by operations or developed.

  15. Northern Acreage Core to Premier Operators Total North Dakota Rigs (194)(1) • NDIC North Dakota rig count as of August 12, 2014 • Assumes one well per rig per month and $7.5 MM gross capex per well.

  16. PARTNERED WITH LEADING OPERATORS Diversify Risk Among Premier Operators

  17. Proved Reserve Summary Proved Reserves as of 12/31/2013 Proved Reserves Proved Reserves (MMBoe) Proved Reserves 154% CAGR Large Drilling Inventory (1). Reserves audited by Ryder Scott. SEC average realized prices in 2013 were $88.00/Bbland $5.23/Mcf.

  18. High cash operating margin Historical Cash Operating Margins per BOE (1) TTM Q2’14 Peer Cash Operating Margins per BOE (1) Average Realized Price of $74.26 per Boe Average Cash Operating Margin of $49.06 per Boe Realized Price is defined as oil, gas and NGL sales, including the effects of realized hedging gains or losses. Data as of 6/30/14. Cash Operating Margin is defined as oil and gas sales, including settled derivatives, less production expenses, production taxes and cash G&A.

  19. Low costs + high margins Strong Fundamental Performance in Key Operational Metrics Three-Year F&D Cost 2011-2013 ($/Boe)(1) Cash Operating Margin TTM 06/30/2014 ($/Boe) Low Asset Intensity(2) = Cash Flow to Grow Three-Year Production Replacement (2011-2013) F&D Cost is cost incurred in oil and gas activities excluding abandonment, divided by the sum of extensions, discoveries, revisions and purchases of proved reserves over a 3-year period. Asset Intensity is calculated as TTM production multiplied by 3-year F&D cost per Boe all divided by TTM cash flow from operations.

  20. leading Capital efficiency Northern Generated $3.22 in EBITDA for Each $1.00 Invested in F&D Capital Efficiency is calculated by dividing TTM EBITDA per TTM production (per Boe) by three-year finding and development cost per Boe as of 6/30/2014. F&D Cost is cost incurred in oil and gas activities excluding abandonment, divided by the sum of extensions, discoveries, revisions and purchases of proved reserves over a 3-year period.

  21. Repeatable EXECUTION = GROWTH Consistent Execution of Business Strategy Oil & Gas Sales ($MM) (1) Adjusted EBITDA ($MM)(2) Oil & Gas Sales 131% CAGR Adjusted EBITDA 138% CAGR Source: SEC filings. As of 6/30/2014. See appendix for Adjusted EBITDA reconciliation.

  22. Capital and Liquidity to Continue Growth Path Financial overview

  23. 2014 GUIDANCE Production and Net Well Additions 20% - 25% Increase inAnnual Production to approximately ~5.5 MMBoe Production +20% – 25% Net Wells +10% 10% Increase in net well additions – 44 for FY 2014

  24. Improving capital efficiencies Disciplined Growth Through the Drill Bit Production Production CapEx CapEx

  25. CAPITAL investments Acquisition and Development Investment (1) Capital Shifting to Development (1) $537.5 ~$450 $439.1 $414.0 $198.5 $49.5 (1) Based on capital budget from August 2014.

  26. PROTECTING FINANCIAL STRENGTH

  27. Leading Performance at a value price EV / Proved Reserves (YE 2013) EV / Production (TTM Q2’14) As of 8/12/2014

  28. Why northern today? One Step Ahead of the Drill Bit • Proven Acquisition Model – Acquire High-Potential Acreage • Focused on the Bakken and Three Forks – A Premier Crude Oil Play in North America • Deep Knowledge of the Bakken and Three Forks • “Go-To” Non-Op Acreage Buyer • Steady Deal Flow from Multiple Sources • Ample Liquidity to Fund AFE’s as well as Acquisitions • Partnered with Leading Operators • Partnered with the Bakken’s Best and Most Active Drillers • Strong Financial Foundation and Liquidity to Fund Growth • Visible Growth • Extensive Multi-Year Drilling Inventory • Ability to Continue Acquiring Non-Op Working Interests • Rights to Multiple Zones, Multiple Depths

  29. Northern oil and gas, inc. • APPENDIX: Supplemental Information

  30. Selected historical operating information

  31. adjusted ebitda by year

  32. TTM adjusted ebitda by quarter

  33. Cash operating margin reconciliation *Realized Price: Including effect of settled hedges.

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