NOG - NOG to acquire non-operated interests in cash & stock deal

2023-11-21 08:41:23 ET

Northern Oil and Gas ( NYSE: NOG ) on Tuesday announced two bolt-on acquisitions of core non-operated working interest properties in the Northern Delaware and Appalachian basins for a combined initial purchase price of $170M in cash and 107,657 shares of common stock.

The transactions will be funded with cash on hand, operating free cash flow and borrowings under revolving credit facility and are expected to be accretive to key financial metrics in 2024 and on a multi-year basis.

The Northern Delaware basin transaction covers non-operated interests across ~3,000 net acres located primarily in Lea and Eddy Counties, New Mexico. Current production is ~2,800 Boe per day (2-stream, ~67% oil) and NOG expects 2024 production to average ~2,500 Boe per day (2-stream, ~67% oil) but expects significant future growth on the assets.

NOG has existing ownership interests in approximately 90% of the Delaware Basin leasehold.

The Appalachian basin transaction covers non-operated interests in Jefferson, Harrison, Belmont, and Monroe Counties, Ohio, with current production of ~23 MMcfe/day. NOG expects average production in 2024 at slightly higher levels and incur ~$14M of capital expenditures on the assets in 2023.

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