NOG Conference Notes

This morning Bakken producer Northern Oil and Gas presented at the Global Hunter Energy Conference.  These presentation slides are pretty standard for one the few E&P’s actually oil production dominate.  Bullet points of interest:

  • As a non-operator NOG takes advantage of the discount in prices for small parcels of non-op acreage compared to operated acreage.  Moreover, without the drilling infrastructure NOG maintains more flexibility should oil prices fall out of bed.
  • Acreage is acquired in the path of development, giving great time value metrics.
  • NOG will issue an updated reserve report with Q2 results.  With 40% of net wells having come online in 2012, expect NPV-10 to balloon.
  • NOG participates in ~25% of North Dakota Bakken wells, with average interests of almost 10%.
  • Hedged:  75% for balance of 2012 with a floors near $91;  hedged 50% for 2013 with floors near $90.
  • Drilled more net wells in Q1 2012 than OAS or KOG.
  • When the oil price is down, acreage acquisition dynamics moves into their favor.