Northern Oil And Gas (NOG) Reports Prelim. Q4 Results

Northern Oil and Gas, Inc. (NYSE: NOG) today announced selected preliminary and unaudited fourth quarter 2017 results.

FOURTH QUARTER HIGHLIGHTS

• Daily production in the fourth quarter exceeded prior guidance, increasing 9.3% sequentially and 22.3% year over year to average 16,742 barrels of oil equivalent ("Boe") per day, for a total of 1,540,237 Boe
• Northern beat its prior expense guidance with lower production expenses, production taxes, and general and administrative expenses on a per Boe basis
• Fourth quarter oil differential was $3.51 per barrel, an improvement of $2.71 per barrel compared to the third quarter
• Northern added 7.1 net wells to production during the fourth quarter, bringing year-to-date well additions to 16.9 net wells

MANAGEMENT COMMENT

"December marked an excellent finish to a very good quarter for Northern with net well additions and production coming in higher than our prior guidance and expenses (LOE, production taxes, G&A expenses and differentials) coming in lower than our previous guidance," commented Northern's Interim President, Brandon Elliott. "The strong end to 2017 demonstrates the effectiveness of our focus on capital allocation and the advantages of the non-operating business model. Our production has returned to levels not seen since the first quarter of 2015 and we have achieved this production with capital spending levels that were 71% lower in 2017 compared to 2014. We are looking forward to the momentum that our capital allocation process has helped build continuing in 2018."

CAPITAL EXPENDITURES & DRILLING ACTIVITY

Northern saw a pick-up of activity and completions within its core acreage during 2017 resulting in 7.1 net wells added to production during the fourth quarter, bringing year-to-date well additions to 16.9 net wells. Higher activity levels in the core also resulted in a 4.9 net well increase of wells in process compared to year-end 2016, with total wells in process equaling 18.3 net wells at year-end 2017. The combination of more wells in process and more wells added to production than originally anticipated resulted in total capital expenditures incurred of $57.3 million for the fourth quarter and $156.0 million for 2017.

PRELIMINARY FOURTH QUARTER 2017 RESULTS

The following table sets forth selected operating and financial data for the periods indicated. The results for the three months ended December 31, 2017 are preliminary unaudited estimates and are subject to change.

UPCOMING CONFERENCE SCHEDULE

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