Northern Oil and Gas, Inc. (NYSE:NOG) Q1 2024 Earnings Conference Call April 30, 2024 10:00 AM ET Company Participants Evelyn Infurna - VP, IR Nick O'Grady - CEO Adam Dirlam - President Chad Allen - CFO Jim Evans - Chief Technical Officer Conference Call Participants Neal Dingmann - Truist Securities Phillips Johnston - Capital One Scott Hanold - RBC Charles Meade - Johnson Rice Derrick Whitfield - Stifel Donovan Schafer - Northland Capital Lloyd Byrne - Jefferies Paul Diamond - Citi Noel Parks - Tuohy Brot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to____________ Commission File No. 001-33999 NORTHERN OIL AND GAS, INC. (Exact Name of Registrant as Specifie ...

Financial Performance - First quarter oil and natural gas sales reached $532.0 million, with GAAP net income of $11.6 million and Adjusted Net Income of $130.5 million, representing a 19% increase in Adjusted EBITDA to $387.0 million compared to Q1 2023[4][7] - Total revenues for Q1 2024 were $396,348,000, a decrease of 32% from $582,214,000 in Q1 2023[34] - Oil and gas sales increased to $532,041,000 in Q1 2024 from $426,234,000 in Q1 2023, representing a growth of 25%[34] - Net income for Q1 2024 was $11,606,000, a significant drop from $340,191,000 in Q1 2023[34] - Adjusted net income for Q1 2024 was $130,519,000, compared to $149,912,000 in Q1 2023, reflecting a decrease of 13%[41] - Adjusted EBITDA for Q1 2024 was $387,030,000, up from $325,472,000 in Q1 2023, indicating an increase of 19%[43] - Free cash flow for Q1 2024 was $53,975,000, after capital expenditures of $298,507,000[45] Production and Operations - Record quarterly production of 119,436 Boe per day, a 4% increase from Q4 2023 and a 37% increase from Q1 2023, with oil comprising 59% of total production[5][7] - NOG's net producing wells at the end of Q1 2024 totaled 985.3, with 25.3 net wells added to production during the period[26] - NOG expects second quarter production to be relatively flat with approximately 22 - 25 wells turned in-line, and anticipates capital expenditures of $240 - $260 million in Q2[16][17] - Annual production guidance remains at 115,000 - 120,000 Boe per day, with total capital expenditures projected between $825 - $900 million for 2024[15][17] Cash Flow and Liquidity - Cash flow from operations was $392.1 million, with Free Cash Flow generated at $54.0 million, marking a 19% increase from Q1 2023[7] - Total liquidity as of March 31, 2024, was $1.02 billion, with total debt amounting to $1,968.1 million[11][12] Capital Expenditures and Investments - Capital expenditures for Q1 totaled $295.8 million, with 68% allocated to the Permian Basin, 26% to the Williston, and 6% to the Appalachian[9][10] - In Q1 2024, NOG incurred capital expenditures of $290.8 million for organic drilling and development[26] - NOG closed on the acquisition of non-operated interests across 3,000 net acres in the Northern Delaware Basin, with a total cash settlement of $162.2 million[7][13] Derivatives and Pricing - Average realized oil price in Q1 was $72.92 per Bbl, with a $3.99 differential to WTI prices, while natural gas realized price was $2.47 per Mcf, representing 118% realization compared to Henry Hub pricing[6][19] - Cash received on settled derivatives in Q1 2024 was $19.1 million, compared to $13.7 million in Q1 2023[24] - NOG reported a non-cash mark-to-market loss on derivatives of $157.6 million in Q1 2024, contrasting with a gain of $140.0 million in Q1 2023[24] - The average price for natural gas commodity derivative swaps in Q2 2024 is projected at $3.45 per MMBTU, with a volume of 119,514 MMBTU/day[24] - For crude oil, the average price in Q2 2024 is expected to be $75.52 per barrel, with a volume of 27,173 Bbls/day[22] - NOG's derivative contracts include significant volumes that may increase due to swaptions and call options, which are not reflected in the current data[22] Shareholder Actions - The company repurchased 549,356 shares at an average price of $36.42 per share, with $67.5 million remaining on its share repurchase authorization[14] - The weighted average shares outstanding increased to 100,442,472 (basic) and 101,636,132 (diluted) in Q1 2024, compared to 84,915,729 (basic) and 85,407,197 (diluted) in Q1 2023[34] Financial Position - Total assets as of March 31, 2024, were $4,633,801,000, an increase from $4,484,255,000 at the end of 2023[36] - Long-term debt increased to $1,938,731,000 as of March 31, 2024, compared to $1,835,554,000 at the end of 2023[36] - Total stockholders' equity decreased to $2,001,980,000 from $2,047,676,000 at the end of 2023[37] Strategic Focus - NOG's strategy focuses on acquiring and investing in non-operated minority working and mineral interests in premier hydrocarbon producing basins[28] - The weighted average gross AFE for wells elected to drill is $9.4 million[26] Upcoming Events - The company plans to hold a conference call on April 30, 2024, to discuss its financial and operating results[27]

Northern Oil and Gas (NOG) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.30%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.64 per share when it actually produced earnings of $1.61, delivering a surprise of -1.83%.Over the last ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or Commission File Number 001-33999 NORTHERN OIL AND GAS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 95-3848122 (State or Other Jurisdiction of Incorporati ...

Q4 & 2023 Operations Highlights Organic completions up 30% vs FY22. Scale driving organic growth. Well Performance Continues to Impress 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 - 30 60 90 120 150 180 210 240 270 300 330 360 Cum Production (Boe) Days Online 2022 Cum 2023 Cum 2024 Cum(1) (1) (1) 1. Wells assigned to years based on year in which they started producing. Cumulative type curves comprised of the following numbers of gross wells: 2022-320; 2023-458; 2024-21. Includes ...

[PART I – FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents unaudited financial statements, management's analysis of financial condition and operations, market risk disclosures, and internal controls [Condensed Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed financial statements and notes, highlighting significant asset and liability growth due to acquisitions and a sharp decline in Q3 2023 net income [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) This section details the company's financial position, showing significant increases in total assets and liabilities primarily due to acquisitions Balance Sheet Comparison (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,304,666** | **$2,875,178** | | Total Current Assets | $469,626 | $320,485 | | Total Property and Equipment, Net | $3,788,636 | $2,482,926 | | **Total Liabilities** | **$2,896,873** | **$2,129,917** | | Total Current Liabilities | $602,491 | $344,972 | | Long-term Debt, Net | $2,057,359 | $1,525,413 | | **Total Stockholders' Equity** | **$1,407,793** | **$745,260** | - The significant increase in assets and liabilities is primarily attributable to acquisitions of oil and natural gas properties completed during the first nine months of 2023[103](index=103&type=chunk)[273](index=273&type=chunk) [Condensed Statements of Operations](index=10&type=section&id=Condensed%20Statements%20of%20Operations) This section outlines the company's operational performance, noting a substantial decrease in Q3 2023 net income due to derivative losses Statement of Operations Highlights (in thousands) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Oil and Gas Sales | $511,651 | $534,050 | $1,354,376 | $1,540,151 | | Gain (Loss) on Commodity Derivatives, Net | ($199,548) | $257,590 | $11,878 | ($339,995) | | **Total Revenues** | **$313,973** | **$791,640** | **$1,372,742** | **$1,200,156** | | **Net Income** | **$26,111** | **$583,465** | **$534,116** | **$628,169** | | **Net Income Per Share – Diluted** | **$0.28** | **$6.77** | **$5.97** | **$6.92** | - The substantial decrease in Q3 2023 net income compared to Q3 2022 was primarily driven by a significant loss on commodity derivatives, which swung from a **$257.6 million gain** to a **$199.5 million loss**[64](index=64&type=chunk)[247](index=247&type=chunk) [Condensed Statements of Cash Flows](index=11&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This section summarizes cash inflows and outflows, showing increased operating cash flow and significant investing activities for acquisitions Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Category | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $840,959 | $641,039 | | Net Cash Used for Investing Activities | ($1,484,203) | ($858,542) | | Net Cash Provided by Financing Activities | $653,668 | $217,112 | | **Net Increase (Decrease) in Cash** | **$10,424** | **($390)** | - Cash from operations increased by **31% YoY** for the nine-month period, driven by higher production. Cash used for investing activities rose significantly due to increased capital expenditures on acquisitions[285](index=285&type=chunk)[286](index=286&type=chunk) [Notes to Condensed Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) This section provides detailed explanations for financial statement line items, including significant acquisitions, debt issuance, and tax asset valuation - The company completed three major bolt-on acquisitions in 2023: the MPDC Acquisition (**$319.9 million**), the Forge Acquisition (**$167.9 million**), and the Novo Acquisition (**$468.4 million**), significantly expanding its Permian Basin assets[103](index=103&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) - In May 2023, the company issued **$500.0 million** in 8.750% senior notes due 2031 to refinance existing debt and for general corporate purposes[160](index=160&type=chunk) - The company closed an underwritten public offering of **7.65 million shares** of common stock in May 2023, resulting in net proceeds of approximately **$224.7 million**[169](index=169&type=chunk) - In the second quarter of 2023, management released a significant portion of its valuation allowance against deferred tax assets, concluding it is more likely than not that these assets will be realized[192](index=192&type=chunk)[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased production from acquisitions, a decline in realized prices, and the company's liquidity position after funding significant capital expenditures [Results of Operations](index=44&type=section&id=Results%20of%20Operations) This section analyzes the company's operating performance, highlighting production increases offset by lower realized commodity prices Q3 2023 vs Q3 2022 Operating Highlights | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Production (Boe) | 9,414,055 | 7,279,311 | 29% | | Oil Sales (in thousands) | $464,793 | $375,732 | 24% | | Natural Gas & NGL Sales (in thousands) | $46,858 | $158,318 | (70)% | | Realized Price per Boe (ex-derivatives) | $54.35 | $73.37 | (26)% | | Production Expenses per Boe | $8.76 | $9.41 | (7)% | | DD&A per Boe | $14.21 | $9.06 | 57% | - The **29% increase** in Q3 production was driven by acquisitions and new wells. However, this was offset by a **26% decrease** in realized prices, led by a **74% drop** in realized natural gas and NGL prices[245](index=245&type=chunk)[246](index=246&type=chunk) - Depletion, Depreciation, Amortization and Accretion (DD&A) expense per Boe increased **57% year-over-year**, primarily due to a higher depletable base from recent acquisitions[253](index=253&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's financial flexibility, including available liquidity and funding sources for capital expenditures - As of September 30, 2023, the company had total liquidity of **$879.0 million**, comprising **$866.0 million** available under its Revolving Credit Facility and **$13.0 million** in cash[277](index=277&type=chunk) - To fund acquisitions and strengthen the balance sheet, the company completed a **$224.7 million** common stock offering and issued **$500.0 million** in Senior Notes due 2031 during the first nine months of 2023[274](index=274&type=chunk) Capital Expenditures for Nine Months Ended Sep 30 (in millions) | Category | 2023 | 2022 | | :--- | :--- | :--- | | Drilling and Development | $484.3 | $270.4 | | Acquisition of Oil and Natural Gas Properties | $996.6 | $551.5 | | **Total** | **$1,483.6** | **$825.5** | [Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses market risks from commodity prices and interest rates, detailing hedging strategies and interest rate sensitivity - The company uses derivative contracts, such as swaps and collars, to reduce exposure to commodity price volatility and achieve more predictable cash flow[300](index=300&type=chunk) - A **1% increase** in short-term interest rates on the company's floating-rate debt outstanding at September 30, 2023, would increase annual interest expense by an estimated **$3.8 million**[309](index=309&type=chunk) - Detailed tables are provided summarizing the company's open crude oil and natural gas derivative contracts by quarter through 2026, showing volumes and weighted-average prices for swaps and collars[303](index=303&type=chunk)[304](index=304&type=chunk)[306](index=306&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[312](index=312&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the third quarter of 2023[313](index=313&type=chunk) [PART II – OTHER INFORMATION](index=57&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section addresses legal proceedings, risk factors, and equity security transactions, including the status of the stock repurchase program [Legal Proceedings & Risk Factors](index=57&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) This section discusses ongoing legal proceedings and confirms no material changes to previously disclosed risk factors - The company is subject to litigation from time to time in the ordinary course of business, but the outcomes are not expected to have a material impact on its financial position[315](index=315&type=chunk) - No material changes to the risk factors disclosed in the 2022 Form 10-K have occurred, except as described in the Q2 2023 Form 10-Q[316](index=316&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered equity sales and details the status of the common stock repurchase program for Q3 2023 Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet be Purchased | | :--- | :--- | :--- | :--- | | July 2023 | — | — | $87.5 million | | August 2023 | — | — | $87.5 million | | September 2023 | — | — | $87.5 million | | **Total** | **—** | **—** | **$87.5 million** |

Financial Highlights - Q3 Free Cash Flow was $127.8 million[3] - Q3 Adjusted ROCE was 24.5%[3] - Q3 Adjusted EBITDA increased by 22% compared to Q2 2023[4, 11] - The company declared a Q4 dividend of $0.40, a 33% increase year-over-year[5] Operational Performance - Q3 net production per day increased by 12.6% compared to Q2 2023 and 29.3% year-over-year[5] - Q3 Production reached 102.3 Mboe/d, a 160 bps increase compared to Q2 2023[9] - The Drilling & Completions list grew nearly 34% compared to year-end 2022[13] Strategic Initiatives - The company completed the Novo acquisition for approximately $468 million[11] - Year-to-date, 24.9 net wells and 1,823 net acres were added through ground game deals[19] - Permian acreage has doubled year-to-date in 2023[21, 37]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to____________ Commission File No. 001-33999 NORTHERN OIL AND GAS, INC. (Exact Name of Registrant as Specified ...

Meaningful spread over WACC despite significant capital investment period 1.34X V. Appendix Heavy 1H-23 investment phase, FCF poised for acceleration in 2H-23 II. Operations & Investment Activity Updates III. Guidance IV. Value Proposition • Company to announce prospective changes to dividend on an annual basis Q2 Adj. EBITDA(1) Q2 Leverage(1) $315.5MM +16% vs Q2-22 Q2 dividend increased to $0.37, +95% vs. Q2-22, +9% vs. Q1-23 Q2 2023 Earnings Presentation | 2 Q2-23 Financial & Operating Highlights Q2 Free ...