Energy Prospectus

THIRD QUARTER HIGHLIGHTS

Production of 121,815 Boe per day (58% oil), up 19% from the third quarter of 2023 < Below my forecast of 125,000 Boepd.
Record oil volumes of 70,913 Bbl per day, despite only 9.5 net turn-in-lines during the quarter < Below my forecast of 72,500 BOPD.
GAAP net income of $298.4 million, Adjusted Net Income of $141.1 million and Adjusted EBITDA of $412.4 million. < Adjusted Net Income beat my forecast of $117.5.
Cash flow from operations of $385.8 million. Excluding changes in net working capital, cash flow from operations was $377.1 million, an increase of 9% from the third quarter of 2023, up 1% from the second quarter of 2024 < This has the most impact on my valuation. Adjusted Cash Flow From Operations of $377.1 million beat my forecast of $351.3 million.
Generated record $177.1 million of Free Cash Flow, up 32% from the second quarter of 2024.
Capital expenditures of $198.0 million, excluding non-budgeted acquisitions and other items
D&C list increased to 52.2 net wells, up 11.1 net wells from the second quarter of 2024
Repurchased 397,301 shares of common stock at an average price of $36.38 per share

POST-QUARTER HIGHLIGHTS: Closed joint acquisition with SM Energy Company of Uinta Basin properties from XCL Resources for $519.0 million net to NOG. < Adds high-quality Running Room for both companies. SM will be the operator of this JV. They are a good partner for NOG. NOG's non-op strategy only works if they have good operators.

MANAGEMENT COMMENTS

“During the third quarter we generated record oil volumes and free cash flow despite limited completion activity and a period of weaker commodity prices. Importantly, we notched multiple achievements on the business front executing on acquisitions of two high-quality growth assets,” commented Nick O’Grady, NOG’s Chief Executive Officer. “We closed our $220 million Point transaction on time and on schedule, yet our net debt changed by only approximately $50 million during the quarter, a testament to the power of our cash generation and the strength of our asset base. On October 1, we closed on XCL, our largest and most accretive acquisition to date. With these two assets now closed and D&C activity building, we look forward to continuing to generate differentiated returns and growth for our investors.”