NOG - Earnings call transcript Q2 2018 | Northern Oil and Gas, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to Northern Oil and Gas Incorporated Second Quarter 2018 Conference Call. Currently at this time, all participants are in a listen only mode. Later we will conduct the question-and-answer session and instructions will be given at that time [Operator Instructions].

As a reminder, this conference call is being recorded. to Brandon call Elliott. like Chief to now Officer, Executive would turn over the Northern's I

You begin, may sir.

Brandon Elliott

Thanks, Demitris. Good morning everyone.

We’re second quarter you to call. welcome happy XXXX to earnings Northern's

uncertainties on Safe the remarks Securities our contemplated update including Litigation from could the the forward-looking have statements reports quarterly the these different that these questions, release, risks These our to our me materially Before within advised XX-Q. Form Those Form our your the on today, results, statements to Report include Reform to in others include get Please be Act. expectations as disclaim results forward-looking XX-K we by that and to cover we with risks actual any forward-looking are in obligation as Private including our to may Harbor filings answers matters our the language. that of statements. statements. and We let cause well subject forward-looking earnings among meaning be SEC, described Annual

Board next to for the issued about the call, years. to over and All talk the for President we talk income and Bahram financial turn Then release here's over will including can vision non-GAAP Nick our will our measures, we may finally, our turn GAAP measures take day. I call few the we found certain our the of our And the questions. we morning. will Chairman our Then Reger, the acquisitions. strategy discuss what net measure be Founder your And in to walk call conference year. everyone financials. then I the accomplished Akradi, of CFO, that O'Grady, this will we on closest about will Mike and to through EBITDA. adjusted to earlier Reconciliations far adjusted update this this these plan earnings so right, During quickly have

honestly Our strategy simple. is very

the best any allocator company Williston being and gas focused the laser are in oil of of on We capital Basin.

to consider shareholders. we We for have buckets order three the capital return highest that in earn allocation our

Northern's our highest land built to utilizing in utilize opportunities includes call also we substantial return in our the wells our over activity our to make, rate we we First, receive or of permitted our ground on not pick continues small, well add drilling Organic the build to acreage of from maybe additional best existing This which that X,XXX whether we are base. ground cash that Northern extension again, we what organic participation review database this make database deploy gross wells information The This and game, a acquisitions inbound to strategy Northern is well on is the engine and evaluate today. processing day-to-day part the spud. proposals. acreage every inconsequential. and interest interest We up or is the of daily participate well-by-well helped of individual not acquisition being but game that or definitely the fuel proposal basis. on a decision to well individual

accretive more later $XXX bucket successful the these production drilling core capital call. of talk about is supplement Year-to-date, deploying dollars cash with should of the Mike growth have locations. This market. plus M&A acquisitions our we second million inventory this deals. future It The growth. into been A&D our will grows announcement flow the area incredibly also and of and in in

represented excess generation best some set inbound When also we in can the rate structure, this all organic that two allocation wells and all not flow cash a is to seeing a Once from future we change portion year. debt then Northern decades of been clearly increase of the on This function process successes return stage wells quarter we drilled locations. bucket of third or come but high to has goal The ever to has in is are referenced shareholder to invested experienced Northern ground wells growth year, has debt. The capital I traditional of well current are deployed cash refinance This far to year-to-date, our so some year very survive the the not built is able acquisitions from will with capital by higher, some have had see. we with debt in that the will thrive in participated have are low the but some fourth growth net the backlog that create this be they look of game add come capital third some can The Activity earlier. EBITDA in, production are wells XX% we to the being capital wells. will step return to quarter is basin. in structure we increase cycles. and has have plus sequential We a flow best commodity Obviously, capital only growth rate metrics increased well and more This the by only proposals of of drilling shareholders. have we in we closed, a return production less net of helping this expect for after the we and resulted returns. organic net have additions. extensive our our guidance and generate additions the generating well highest achieved

long have are the has of remarks my a come from a me and year the the we continuation the about way built. by excited momentum ago. very Let Northern we of rest XXXX sum saying up

all the of of has accomplished proud extremely are year. We this team

when call we our Nick? to Northern. balance to here additional to that, accretive those earnings first methodically With We He sheet will Nick only Chief will continue financial highlights. like opportunities and Northern’s the pursue Officer are Financial to at and avenues his to O'Grady, drive shareholders. would growth, welcome judiciously cover

Nick O'Grady

Brandon. Thanks,

As everyone start see, been a it’s busy here in for the me can Northern.

start by saying our off investors. me clearly Let to this

basin, in to and months. in manner have creditors definitively to our say We we recent disciplined the achieved stated our shareholder so be can responsible and have our in this alike. and for I our consolidator do goal a

of I a different reemphasis want Brandon kind are oil what to earlier. Company. We said has

Our repurchases. asset investors lever agreements is model we for organic and asset rig over goals, returns buckets; model our cash times final capital organically and produce acquisitions, and return shareholder bolt-on transactions, our managers states reward at our for and can investment overtime of our work a will balance that investors through provide Northern best we trust and my million notion. forms a the sheet steps It simply find role can our or that in here as generation. additional signed with as strong have of Yet, receives will maintain the and Yet, engineers. derision routes deploy dividends employee is simple The in to added community. go of these the from no will net three has upon share officers, powerful with build strong It’s field flow from We through are next shareholder CFO to rolled through yet community investment it. Northern will praise one one departments internal for non-operated to returns, in acquisitions. into not this strong growth, $XXX our judiciously not us additional teams year. occasionally two with to acquisition transformation I grow remind high assets manage execute and given machine. the they that And as and these for years, the we company

Here over quick the that quarter, the million $XX.X was second We XXX% by significant improve pricing. increase commodity in overview adjusted is by EBITDA production quarter generated of a in a driven a numbers. the and increase second of XXXX,

continued Company results with bringing present and levels year-over-year value activity in Our on equivalent rates of strong, closed to basin second forward quarter net are XX,XXX improved up X.X capital expenditures the optimistic the expectations we development XXXX. nicely note we’ve remaining second quarter impact in with shareholders. in performance only initial the day. average minimal about sequentially. and and approximately production barrels additions the seen to of thus that per were and for its Despite had activity organic increase oil the and in million quarter very the has drilling production remainder the well EURs, a our quarter. production, coupled $XX.X second the million XX% $X Creek our sequentially and net increased set have The South I’d exceeded for decrease June strong substantial on Based or XX% well

XXXX during excludes add budget million and but approximately $XX.X capitalized million closed using pending. now XX capital spent million, acquisitions, D&C ground net organic We updated we acquisitions $XXX to game to Creek. addition, acquisitions of including which wells workovers production or material and In South XX to includes an $XXX to expenses expenditure expect on

the pending quality wells, annual quantity production, which over we on XX% XXXX increase increasing well to we’re as approximately levels. XX% as expect increased and XXXX now closed acquisitions, With of and our the guidance also to

a just our look This including Creek Our now clear The ago. year differential. Our the the picture Northern includes the pending fourth derivates increase and driven pending South second in higher what on quarter investors transactions. for period will quarter, fourth XX% of quarter than other guidance acquisitions that by includes realized of for out post commodity oil and release same higher lower price the the should give we laid prices our close acquisition the a the effects is settled our

per lower the second quarter oil of the averaged second quarter barrel, price $X.XX XX% XXXX. during Our which differential was than

see higher our continues quarter on basin. oil production As call, in price first in we our differential the has increase some widening as of moved the did to we and mentioned

in to per for oil in to and our cost $X.XX came the periods and our per However, operating expenses for Lease to time, associated the In decrease continue moderate. per quarter, price second The production compared $X.XX impress. between period with newer we year wells. parts in begun differential our of barrel. year-to-date in is $X.XX per ago. guidance continued $ X.XX are they this growing recent a to at the has modestly boe unit In lower updating same XXXX boe seen

these the this We high given activities level in costs, the enjoying we are at of time. stabilization expect

to acquisitions or assets to expect have pending than average. our a XXXX, For the similar corporate lower we structure our cost current from

to X.XX full and second compared our the quarter of approximately in gas $X.X quarter operating our second of And are sales administrative General to expense between million XXXX XXXX We oil the a percentage as tax and range at in barrel. lowering production million per X.X%. per lease of year remain boe XXXX. X.XX a expenses were and $X.X

we As acquisitions, close we to G&A our per to expect continue on recent boe decline.

year All XXXX barrels will or in history, our worth cash midpoint earnings our boe to forward differentials. pending and full into per for $X.XX We investment We XX% in, differentials, in one we’ve guidance. approximately even $X.XX of the for at inclusive between expectations the reduction range cost prior total G&A decline for and current of hedges per provided basis relevant for going release. we expect lowering versus a separately. $X.XX our It’s should cash from full XXXX our in only lock Company’s that expense quarter are structure break of book cost out higher our We here lower and community time noting believe X,XXX more to G&A per XXXX approximately first day is we entered a boe for the hedge acquisitions. the contribution metric despite

senior We Company. on which the for conditions exchange, cash included markets as work to make $XXX acquisitions. notes In equity been May, reduction allow. will overtime primary a continue raise we this has our adding completed goal bolster and to million Debt

over addition, more equitizing annually quarter over the unsecured and the investor series lockup remaining expense. attack of in transactions, in million XX% still into company continued of In interest structures. a the order, remaining of weekly million we issues $XX protective nearly with them the to $X second This in has most the saves and third bonds, eliminated

offering of fund have fallen how been forma on have we taken our that its their consolidator national the than our the the in leverage Northern pro about these a we this talk this richly end have since EBITDA closing fourth upon will it would this more do basis recent both notice deals stock be have to accretively. Investors liquidity. like deploy capital. said by we doubled it as of and Investors common with year. two-thirds our annualized yet quarter as I'd well would we rewarded exchange Finally, fall from last that help hopefully when XXXX, who will multiples offering do basin, in

have most amounts free as recent cash will the of liquidity closing produce for the excess at significant significant we'll flow the of pro amount of now we acquisitions, in In ample Northern and cash end overspending, a forma believe addition of and of XXXX.

believe we is debt there over coming flow window years a Northerners the I'll cash that, secured turn about to talk economic substantial it call structure. and President the opens Reger, becomes it addition, to over and when boost With Founder In current to to our free for its Mike refinancing acquisitions. Company

Mike Reger

Forks Thanks dominant have Northern a basin XXXX, In we the Bakken Basin. natural and anyone. play Williston and as in XXXX were the did is as Nick. know largest of consolidator and non-operator in Three as we the Company non-operative early assets. the We reestablished well

of acquire nearly To recap million impact I walk were of using acquired and through deal, the each of all both size months, our past cash to transactions. assets, the $XXX Over we new and agreements signed announced stock. recently which have will few

net consisted deal X,XXX The announced equivalent drilling curve million acquisition. Salt and of This in in large per X We announced this paid April which inventory. accretive type day asset barrels plus plus common June. of closed and was first cash $XX for oil million wells Gas, the highly eight Northern of of Oil million we we and acquisition Creek stock in of shares

near quarter. that asset announced day. we with announced the we also to primarily highly over day we expect an signed per recently, of cash close at million equivalent that comprised XX% Partners, will with and which with about deal near of barrels of This this Pivotal to base and brings end an quarter. per with X,XXX and third acquisition closing we’ve approximately W wells contribute This comes Most and agreed Energy end equivalent had the XX,XXX inventory of XX% mid-July, of barrels we to third cash million played $XXX drilling one of accretive acquisition expect the this the Northern in accretive us. shareholders and some and in which stock flow oil to the shares XX.X basin. third of acres We two benefit pay is core We another cash, $XXX producing asset we cash production close in million approximately with Next, the producing transaction. currently stock, stock. from very acquisition best Petroleum, agreement into entered X,XXX that deal highly third oil is will

advantage expect Williston we forward, the Going in to have a significant consolidation Basin.

the the We in have basin of the knowledge database an and largest unparalleled basin. information of

approximately We drilled Forks Bakken of the have in the participated since and wells in XXXX. Three XX% of basin all

additional public will our most basin we acquire and accretive the sheets as acquisitions. the are of we one to currency balance addition, to of in our In peers strongest by use our have prepared accretive evidenced assets public recent

acquisitions. tuned Finally, for more stay

and additional going small accretive non-operated next best both large turn to evaluate Akradi With and I'm to the talk opportunity, over our the Chairman, to goals have strategically to we We vision and about for call to the that, years. Bahram few Northern basin in assets. team and continue land every technical the consolidate

Bahram Akradi

Thanks Mike.

First, & to I for performance several and management the strategy Oil of months. execution the past want their our Gas thank Northern team exemplary over exceptional

for for bar we now plan like set we so out & next To faster do As a and the aspirational I I Gas. want map year Oil than to up the years. to earlier, Brandon have mentioned have Northern new a raise this, originally two hoped, executed few out would targets

rates midcap bond at company based grade Northern function credit position X.X become be the entity, is that the we of Gas XXXX, second lower times the less. in which that a of exchange the with our recapitalized plus debt-to-EBITDA completion this and time. spring flow cash revolving company, will for will million & a Oil with will rate interest goal investment ratio end When raise, our million us put on by provide to quarter company alone size XXXX. by of Northern the second run This and This XXXX the get EBITDA million equity an or the of of facility. a $XXX the lien has replace with by Our EBITDA lien goal first a the of of normal $XXX credit to and additional $XX to run-rate of was our end of approximately

higher As it days, quarter cash XX W goals Energy is I’m has evidenced XXXX bar X.X the investment manner in million the Petroleum new EBITDA, already EBITDA, setting based debt along Pivotal the fourth and with fourth closing our in less. that be million annualized XXXX to executed grade or $XXX excess consensuses, annualized you, of Northern’s of and $XXX such flow management and quarter of will our a current in on times positive. of resetting Therefore, approximately of metrics at

on our way Gas that positive create company making of prices. of cash objectives can Northern We are flow commodity clearly Oil to regardless a the & achieve

be company, are objectives passing the we to shareholder update progress new call made with to will the as I lay turn additional and to We responsible Northern growing I’m we has thrilled committed and and at will to our schedule back I fast Brandon. out set goals you a value. goals With quarter, we every hope already. With ones achieve increase as that, drive continue and the

Brandon Elliott

for the Bahram. could over Q&A All Demitris, call to please for right of the Q&A. portion that, you the Thanks, give the call. the with I’ll operator instructions turn

Operator

from our Instructions]. [Operator Neal SunTrust. And comes you question first Thank Dingmann with

proceed. may You

Neal Dingmann

the as last going different you some been the you bit as looking little number about couple bringing older and a at far talk have one out Could of you asset doing thought acquisitions or in that on you just see acquisitions, smaller question first my going on of slides. these Mike your how obviously of to talk Could bolt be do and you to some forward these both essentially deals. way in forward? that going going about strategy, versus continue you of and private seeing how a acquisition for that’s

Mike Reger

new of our where I in right now. better it’s AFPs business every is it day and that we’re book game never to waving think pronged, ground acreage been has than

own accretive, of in you them. were as large source transacted off we’re deals proactively with available at Northern, know, deals, sourced primarily And on of that going opportunities first act the them. privately looked if see, see deals Several we’ve we quarter on. and we far that if handful accretive as more And both they’re them, that you continue on to we at. larger they’re are our here, and in and we deals the And we we’re There the to more going small. as As act uncover. deals that the to that know second market we do

is everything Neal. all hitting So on cylinders here,

Neal Dingmann

for have then And acreage, opinion interest to before you your up tier follow one I while you opinion had some deem tier that just of hear where one, on two.

look game how wells I’m some have want where Now come play with these today Mckenzie in together in you to that the of just and talk plan. monster Again, to or just view has in there. useful let’s trail, the Bakken? if give again given the all at it way things there maybe targeting? two just you’re -- the done, maybe about are at areas is on William obviously the improvements ago I efficiencies continued really look away improve versus Baken certain don’t year to we’ve seen Could wondering you your But

Mike Reger

the completely. just new the Yeah, design I changed game think completion

down, it $X say, operators or costs say, million costs the of that today, last down and almost years sum one, over two to look million have let’s plus come our and used think three barrel EURs the million XXXX drilling -- drilling from have I come have two was years, $X its million that country. the we now XX XX% as just And of XX completion completion and up all core at to pounds in think two, XXX%. design. considered the has that’s XX new I think is core from we everyone anything And and design new the with to one adopted function I anywhere tier And sand. plus as four guess EUR increased of ago, XXX,XXX I when the to range, big core tier to stages,

rock the really and this nice completion So this a design we’re bite really lucky have new unlocks to of play.

Operator

Jeff Grampp from Northland comes question with next our Capital. And

You proceed. may

Jeff Grampp

you on here. inorganic where Maybe Curious XXXX just to those off be million, the grade is think some just of good seemed behind front put that organic some the based that get is type that goals, all those had you it maybe you background you acquisitions the guys to and that on or targets opportunities going that rating see need to out. you of comments the of It investment you goals get some also $XXX did. you the obviously guys of like with in the to earlier insight

to on little So comments just a expand those maybe me help bit more.

Bahram Akradi

This give will is you nick on try take answer. Bahram. best the and to and Myself this

do to now returns want First, to as credit. create goal cash large I had involved already company, and to shares or be now with executing to a in initially so of to debt metrics, to to opportunities investment have is shareholders. reasonable that I there, our these when we I commodity the right really our can that that get a a so. there is have is ability our also plus opportunity We we could have And any We're the company doing we earnings just that entity of and do oil EBITDA for company are of million our the its EBITDA. if to But could use flow we accretively for matter is our I our going able what the in grade only positive been site $XXX the doing. didn't dollars shareholders make only There this plenty that are we now us a would prices. stated this create XX think got XX when be in bucks. investor large money it's to

understand as to with have for the all And additional there's want demand guys to not to have sure grown our this only cash for destiny. business control wells. plenty you opportunities that you in of make the I reinvest in be own to of the new size. we that So key is

have easily enormously to also ability things come great we and want I TPG were thank make Oil our two recapitalize We the naturally and bondholders and that to out. company and deal Gas and can all to the one do the together this retire who Northern so & a allow have done.

so However, as that's we we we we to type things. May up the can expensive have company return We change we allowed things right XX, all course. totally position we the normal today it that because to very day to we with those this us this XXXX but RBL is financing pay do the know economic for everything it's on definitely pay when exactly were can do structure has And us to a and those get reasonably. doing are debt. available And can with off can will fine where it

to So to it want I Nick over to that. add to turn

Nick O'Grady

creating it investors balance sheet that ourselves. for to our this also clear the an just for to we're targets that and is Bahram in compensated change our there. metric think we’ll that going our are, about the But call, three shares for are time. a think way the is mentioned, we and But everyone let inorganic. There structure a to towards on I we not is in organic go of management for this the as that perspective be in us. Jeff, credit team aspirational terms set goal as are Bahram and over avenues but from just growth opinion Obviously, about Brandon think have talked to we’re I our there

we create And to everything value per share. so therefore to value do grow theoretically is designed and

in we finance So our to risking without will do the accretive within are goals we opportunity of are things regard. our balancing basin corporate exercise sorts truly is have both this -- a not that any here and

Bahram Akradi

question? your that answer Does

Jeff Grampp

from you That’s maybe or really think $X if maybe seeing little operational inflation, up cost. like curious I’m wells bit more up where it. more perfect, so, for basin? follow are I any for on driving guys service about costs just process concentrated it’s the well recently throughout I where guys cost be noticed you just And in appreciate a would million guys you well side. just a what’s the that process that I talked And quoted are have that those the or

Nick O'Grady

I think number up that bit. little average Jeff, we did see a came

I little of longer had a in mix think we some laterals higher bit XQ. of

had a look that the number. July, wells net average we seen come we’ve at eight little numbers So bit. When up come that in that from through down the are

well. probably more X in something the and I’d So And bit is model increase designs obviously X.X to fluid also completion as average usage X, range. increasing that cost a little

Operator

Whitfield next Derrick question our Financial. with Stifel from And comes

proceed. may You

Derrick Whitfield

versus two comment the the gains in with and half goals. see of first in the on on completion half? see activity the the impressive set second you Congrats to for XQ Good Can XXXX half. Perhaps to morning expect the second game in strong increase expecting the Mike you’d all. that ground you’re

Mike Reger

where that on to year. I estimating, asset the what this at think any looking existing net think now going wells the again is of started were our We XX you we’re to think acquisitions. we base to organically just of remember on we’re exclusive bring on XX And we’re we XX would our guidance saw I if thought we bring original we I net on year, XX wells. this

operators drill what seeing faster. -- is continuing really more it’s to So we’re drill are

to rigs. think come about I we up XX over about rigs the the of XX from year course

came continental federal are rigs is interest all in federal big working in pads, the wells a pads significant these drilling XX pads. As the which -- well has for XX that on, example, Northern in pad just the

unusual wells being and core. an has think seeing this of more high in proposed. I activity in percentage what a lot more is are we’re Northern the

more have So and wells know us ASCs it up working a number for game as can see better if probably more rig we than anybody if we proposed we more of consolidate in Again, What wells. consolidate these receiving continue a where count their proposed -- creates go, as of you working interest to XX% X% the well our interest. in activity is, we expect week rigs it. can it is, more the XX% does, ground creep about each all is continually. opportunity as on a in within of to to stays see the mail, working Derrick owners we that’s smaller to that other interest get in There that the are

So what I activity happens and just more more builds think activity breeds itself. is the on it

to excited in we’re field. the a We right just momentum happen really the now. action of bite disproportionally high have about the So

Derrick Whitfield

And rental Nick to differentials, older second XXXX. and half decision logic… spread with widening the for actually the your then perhaps Shouldn’t that the helping recent is I to Brent-TI for think your about and increase regard with

Nick O'Grady

yes. definitely it is, answer August. We’ve moderate July in seen and The into

We’re just been conservative.

Operator

Jason comes question with our And Wangler next from Imperial Capital.

You proceed. may

Jason Wangler

just saw you pretty past? changing the at should curious mean, be you all and operator focus. or your thinking about what was I similar Is still we is announced is much with and it the big mix in closed. who the I we as guys have to acquisitions about that think

Mike Reger

Whiting, we’ve Conoco seen what think are Hess. and Burlington several Oasis the dominant quarters Continental, are operators last over and I or

a seen we’ve all activity from of those. think I lot of

our they’ve primarily these working been these Continental of wells of the some bringing on. of and some monster pads one operator. be to big been interest We’ve big last the significant continues drivers pads, Continental great in number had these over quarter, and Some

Jason Wangler

about any some the Mike, beyond, those of in really or there? And, as we acquisitions and similar trades quarter are there the think is differences with fourth

Mike Reger

thing One it’s there. field drill debt very the has have really think we acquisition, roughly concentration Pivotal that a a it with cash mix And significant almost have company very very I’ll very, organically. at where of similar is I flow, in operator approximately the that notice note working similar. acquisition Slawson units drilled field Again, always primarily operator, W around in Hess inventory. with we Van private in that no Mountrail No, primary that is look Montrail we is Continental, have Slawson continue thing a presents expect go interest Whiting, that be forward, One is Continental and driver. like and very as Hook a core core who us that note County core Exploration, drilling Southern they lightly to to a and XX% we I their interest, unique XX has within in who of lightly always drill Slawson working and southern the

starting well. completion Slawson design get new Slawson well, the as it as is So after utilizing to

a really this quarter As big of we late, brought on with well couple Slawson.

speaking, more Slawson. your see be to forward continue Whiting, Continental, from Conoco is going generally them. has mix Burlington going But to primarily We action

So of the typical mix A-plus operators.

Operator

[Operator next comes Baird. Instructions] And our question Owen with Douglas from

You may proceed.

Owen Douglas

question just I a have quick here.

look basis has what go a way. terms in on to guys any your understanding come you of as similar forward Just acquisitions do to

stock the moving With nicely. price up

just want low to understand forward? And levels. more more been wanted parameters guys you of about Just you leverage the understand future to trying get have may down issued? doing equity-linked know talking appetite I fund to how deals very look deals versus to going to the the for I debt

Bahram Akradi

This Bahram. is

the some my they potential our had question. execution a things shareholders, have well your as first to of And see including of have we in dovetails other this we number love with who comments love company, and Let about in that substantial we a contact me the lockup company people as I their have company large – go. where some shares. of own absolutely basically can the of just make been

the on just like we want to all that think probably the said, more who support I like got want will is how for show there, the company there they'd exchange. equity people much dumping balance And think the the concern shares the that's as I of We lockup will so potential think, and one itself And a the soon little that people over. as just Street from is first about important to there take debt. of factor. of right and care is acquisitions, have they And shares, it stay there out Nick

year So investment strategy the grade company in to the stay two that it’s consistent of with to the metric. three long-term, this

mixed at closing is numbers, and that to shareholders we've very, company do So using and or we're accretive conclusion EBITDA as to to shares shares Pivotal of our earning can our nothing, repeatedly going as we cash for company positive. But will the accretively continue at when our we're to opportunities. this some current well said numbers, accretive to very you actually to flow is versions cash do already emphasize, up nicely performance, and price, the to as W, But moving in. our use need I are long at want point this be we on to the as respond to of you as transactions shares share at look where our going

We out flow have we inventory continue amazing in of invest cash proposition. that our to can

when of So only and substantially to we have point We things Nick? do best don't at this be. accretive. the anything do position any will that's these to

Nicole Grady

our it more Obviously, of I the as think of like the to maximize terms things we that pertains do deal which is we lot the risk just careful. each than being de-lever. adjusted individually, equity, and on to as down. history, the a point, down, I going zeroing levered internally we're fluctuate into don't large debt that healthy. do want metrics very get of Northern's I I look is basis. phone it But leverage. And think think But the that what long very cyclical companies to you could just to to very, think this in and just getting a pro levels ratchet is ratio And think I I recent be look -- may themselves it a all list we business. equity on can re-lever to is our easier E&P of math where you're But on at is with the will at also to therefore, be with said, trouble may going this up amounts Meaning Bahram's in going up forma appoint. back view to and debt accretion to - is modestly

I ultimately downside. strong manner the ourselves we we that given a now, test to that want in us think responsible And everything it to so and a do on put for position

Owen Douglas

should terms I terms pro in production flat I now to a going question, of be you are guys could of of to What more needed for so in bigger company additions just number forma to if well the net one think them And slightly of through these -- keep acquisitions. up? year each

Brandon Elliott

’XX of itself probably hold a And it down, QX It's range, to. of we’ve well call flat year probably two ’XX. XX at for XX to in probably got it every to additions And couple flat. would net for then range wells step it it the rate level well that thereafter that’s average

Bahram Akradi

that’s forma. And pro

Brandon Elliott

the for forma acquisitions. pro that’s Yes,

Bahram Akradi

Playing off payoff… larger a of significantly

Owen Douglas

Okay, that’s queue. back Thank guys. hop in very I’ll helpful you.

Brandon Elliott

looks was call. our like Operator, last it I think that

So we’ll…

Operator

Thank today. turn over you, of Brandon portion the does the call to host, your Elliot. That will ladies back gentlemen. our Q&A conclude and Mr. conference now I

You may proceed, sir.

Brandon Elliott

around All months you. release. details at some the for Northern several are right call in interest we Demitris, schedule and & make And various please our everyone busy at participation have the the and included note thank conferences press the Gas. a in next thanks those Oil in the country Obviously,

information. travels. on So look you we’ll to forward again of to can to give Thanks Demitris, our seeing plan we everyone. replay you quarter. next you talk And the some

Operator

gentlemen, attending program and may have conclude does Everyone Ladies This all and a great thank the you disconnect. you today’s conference. for day.

Northern Oil and Gas (NOG) 9 Aug 182018 Q2 Earnings call transcript