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's credit measures will deteriorate meaningfully in 2016. Modest hedge position in 2016. Adequate liquidity position. The negative outlook reflects Standard&Poor's Ratings Services' expectation that Northern Oil and Gas Inc.'s debt leverage will increase significantly in 2016, given the current depressed commodity price environment and with only a modest amount of expected 2016 production hedged. Specifically, we expect weighted-average debt to EBITDA will be about 7x, and funds from operations (FFO)-to-debt to drop below 10%. Additionally, we expect that the company's
