Northern Oil & Gas (NOG) Update - Feb 9

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NOG Updates Base Dividend Growth Plan and Announces Additional Shareholder Returns;
Increases Average Quarterly Dividend Growth to 23%

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG”) today announced an updated long-term base dividend growth plan. Details can be found in the presentation made available today on NOG’s website at https://www.northernoil.com/investors/c ... sentations.

DIVIDEND GROWTH PLAN ACCELERATION

NOG management has updated its recommended long-term base dividend plan to increase planned growth in 2022 and 2023. Quarterly dividend growth is now expected to average 23% through year-end 2023, with significant acceleration in 2022. This includes a plan to recommend a dividend of $0.19 per share to the Board of Directors for the second quarter of 2022, a 36% increase over the first quarter dividend, and 27% higher than the previous target of $0.15.

ADDITIONAL SHAREHOLDER RETURNS

NOG continues to use its free cash flow to boost shareholder returns. During the first quarter of 2022, NOG has agreed to repurchase and retire approximately $26.3 million in face value of its 6.5% Series A Perpetual Convertible Preferred Stock, including the $7.2 million previously announced in NOG’s year-end earnings release. After these transactions, the remaining outstanding liquidation preference value of NOG’s Preferred Stock has been reduced to $195.6 million.

In total, these transactions reduce NOG’s fully diluted share count by approximately 1.2 million shares and reduce annualized dividends on the Series A stock by approximately $1.7 million.

MANAGEMENT COMMENT

“Robust free cash flow continues to allow us to reach our targets faster,” commented Nick O’Grady, NOG’s Chief Executive Officer. “This has driven NOG to accelerate our dividend growth plan, while also taking advantage of what we perceive as a significant dislocation in our current market valuation. These actions will serve to boost per share values, reduce preferred dividend payments and simplify our balance sheet, while we continue to target less than 1.0x leverage in 2022. Additionally, as 2022 progresses, a strong pipeline of high-quality bolt-on prospects continues to grow, and this could provide further accretion opportunities and increase long term cash return potential for shareholders.”

ABOUT NORTHERN OIL AND GAS

NOG is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the premier basins within the United States. More information about NOG can be found at www.northernoil.com.