Investor Presentaiton
Hedging Helps Stabilize Margins Despite Volatility in Commodity Prices
NOG has achieved stable margins through multiple cycles by a carefully construed hedging process, averaging about 100% of
unhedged pricing per BOE through cycle since 2018.
$75
Average Period Commodity Price / Realized
Margin per Barrel Equivalent
$65
$55
$45
$35
$25
$15
$5
170%
150%
2
130%
110%
3
90%
70%
2018
2019
2020
2021
2022
Q1-2023
Q2-2023
-$5
50%
Hedged Capture Rate
KEY POINTS
1) "Peak Shaving," as NOG
has tended to earn better
than market prices during
troughs and less during
market peaks
2) Strategy drives consistent
high margins in a volatile
marketplace
3) Average of >100%
capture rate since 2018
Realized Price per BOE
Hedged Capture Rate
Unhedged Price per BOE
Notes: Unhedged and Realized Price per Boe are disclosed in the Results of Operations in Forms 10-Q and 10-K. "Hedged Capture Rate" is defined as (Realized Price on a Boe Basis Including
Settled Commodity Derivatives / Realized Price on a Boe Basis Excluding Settled Commodity Derivatives) as shown in public filings.
See Appendix for details on current hedges.
Investor Presentation September 2023 | 21
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