Northern Oil and Gas (NOG) Investor presentation summary

Acquisition overview

• Agreement to acquire a 25% non-operated stake in a high-quality, light-oil Duvernay asset in Alberta, Canada for $259 million USD, with an effective date of April 1, 2026 and expected closing in late Q2 2026.

• Asset includes ~75,000 net acres and ~500 gross identified drilling locations, with decades of inventory and significant upside potential.

• Fully integrated infrastructure, including 100% jointly owned gathering and gas processing, supports low cash costs below $7.50/boe.

• Production estimated at 4,000 boe/day net by 2027, with 80% oil and 20% natural gas.

• Acquisition funded through a mix of common stock, cash, free cash flow, and credit facility, with a potential $18.5 million contingent payment in 2028 based on oil prices.

Asset and operational advantages

• Located in the overpressured oil window, the asset receives premium light oil pricing and has a well-delineated, derisked fairway.

• Shallower reservoir depths reduce drilling costs, and the asset produces premium ~40° API sweet light oil with historical differentials to WTI of $2–5/bbl, currently trading at a premium.

• Owned infrastructure network provides ample takeaway capacity and connectivity to premium markets, with 70% utilization and low expansion costs.

• Construction of owned water disposal system continues to drive cost reductions.

Financial and economic highlights

• Transaction multiple is less than 3.0x next twelve months (NTM) expected unhedged cash flow from operations.

• Capital expenditures post-closing expected at $40–45 million in 2026 and $45–50 million in 2027.

• Asset is self-funding, leverage-neutral, and accretive to TEV/EBITDA, EPS, FCF, and FCF/share over multiple years.

• Average breakevens below $50 WTI, with less than $0.6 million per net location.

• Parallax Duvernay asset features North American leading netbacks and competitive well breakevens, with realized prices at $55/boe and cash costs at $7.5/boe in Q1 2026.