Q1:22 EARNINGS PRESENTATION
NYSE: NOG
Northern Oil & Gas, Inc. - November 2020 2
Q1:22 FINANCIAL & OPERATING HIGHLIGHTS
Q1:22 Earnings Highlights
• Record Free Cash Flow, Strong Growth, Exceptional Returns
Q1 Free Cash Flow(1)
$146MM
Record FCF +107% QoQ
Q1 Production
71.3Mboe/d
+11% QoQ
Q1 Adj. EBITDA (1)
$256.6MM
Record EBITDA +46.5% QoQ
Dividend Growth
+35% Increase
Q2:22 dividend increased to $0.19, +35% vs. Q1:22
Q1 ROCE(1)
36.5%
Top-Tier Across Industry
Q1 Recycle Ratio(1)
4.8X
Cash Margin $40.05/boeDD&A $8.29/boe
• Record Free Cash Flow. $146MM in Q1, +107% QoQ
• Growth that's Macro Friendly. Q1 net production +85% YoY with no impact on US gross production given NOG's non-op model
• Standout margins and returns(1). NOG's recycle ratio of 4.8x and ROCE of 36.5% highlight another quarter of stellar corporate returns
• Shareholder Returns Initiatives In Focus
• Base Dividend Plan (updated 5/3) calls for minimum of 23% QoQ dividend growth 2022 through 2023
• $0.19 2Q Dividend declared, 35% increase from Q1 ($0.14)
• $36.3MM of Preferred Stock retired, 1.6MM common shares equivalent
• Additional $3.7MM retired in Q2, additional 165K shares equivalent
• Increasing Organic Activity Boosts 2022 Capital Efficiency
• Net AFE activity up 62% QoQ in Q4:21 and another +40% in Q1:22
• Acquisition Pipeline Remains Robust
• Veritas Permian Acquisition - largest deal in NOG history - closed on 1/27
• 10 Ground Game deals closed in Q1
• Balance Sheet Strength
• 1.1x LQA Debt / EBITDA in Q1:22
(1)Free Cash Flow, Adjusted EBITDA, Recycle Ratio and ROCE may be considered non-GAAP financial measures. See Appendix for methodology and reconciliations. We calculate ROCE with impairments added back to Total Assets
NYSE: NOG
Q1:22 FCF AND SHAREHOLDER RETURNS AT A GLANCE
NYSE: NOG
NOG Continues a Balanced Approach - Reduce Debt, Pay Rich Dividends, Reduce Highest Cost of Capital Securities
$160
Q1:22 Free Cash Flow - $146 million
$140
$120
$100
Debt Repayment
Preferred Stock Repurchases
$80
Base CoSmtomckoDnividendsBase Common
Dividend
✓ Significant Preferred Stock retirement, reduced the diluted share count by 1.6 million shares in 1Q
✓ 1.8 million share reduction after April retirements ✓ $2.6 million in dividend savings annually
$60
$40
$20
$0
Debt Retirement
✓ Common dividends declared represented ~10% of free cash flow
✓ ~1/2 of free cash flow went to debt retirement
Q1:22 PRODUCTION & CAPEX BREAKDOWN
NYSE: NOG
Northern's Commodity, Capital Expenditures and Production Mix Continue to Become More Diversified and Balanced
Q1 2022 - PRODUCTION BY REGION
10%
➢
Permian production continued to grow as a portion of our production mix, and was bolstered by approximately 2-months of contribution from Veritas
Q1 2022 - PRODUCTION BY COMMODITYQ1 2022 - CAPEX BY CATEGORY
20% 10%
4%
1%
➢ Permian capital expenditures grew to 35% of the total in Q1
➢
Production continues to be balanced from a mix perspective
➢ Northern is a 'two-stream reporter,' meaning its natural gas prices include the revenues associated with NGLs, but it does not report the volumes of the NGLs themselves
➢ This means both its production and liquids mix on a comparative reporting basis with most other public companies would be significantly higher
➢ Upcoming Marcellus pad development spending largely already incurred in prior periods
➢ Strong activity levels (proposals up over 250% y/y) in our Williston business continue, given pull-forward of activity
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Northern Oil & Gas Inc. published this content on 05 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2022 20:38:06 UTC.