Limited scale of operations Nonoperator business model that depends on other "operator" companies' drilling plans High geographic concentration of reserves and production High proportion of crude oil in its reserves and production mix The expectation that the company will maintain credit measures that we consider appropriate for the current rating over the next one to two years Hedges limit near-term crude oil price risk "Adequate" liquidity The negative outlook reflects Standard&Poor's Ratings Services' expectation that Northern Oil And Gas Inc.'s 2016 credit measures will weaken to levels that are at the weaker half of the "aggressive" financial risk profile assessment, as the company's hedges begin rolling off. In our base-case scenario, we expect that the company's funds from
