Summary
- Northern's investment in the Mascot Project is not expected to generate free cash flow in 2023 due to heavy development spending.
- As spending tapers off in early 2024, it should start generating significant free cash flow.
- The Mascot Project is projected to generate $315 million in unlevered free cash flow for Northern in 2024 and 2025 combined, versus a $320 million net cash purchase price.
- Northern's credit facility debt is currently elevated (estimated at around $850 million in early January), but it should be able to make significant progress paying it down in 2023.
- Northern's 2023 free cash flow is estimated at $600 million at current strip.
For further details see:
Northern Oil and Gas: Mascot Project Adds To 2024 Free Cash Flow