Northern Oil & Gas (NOG) Update - Nov 17

Northern Oil & Gas (NOG) Update - Nov 17

Postby dan_s » Wed Nov 17, 2021 9:23 am

Northern Oil and Gas, Inc. Announces Permian Basin Expansion With Significant Transaction

Northern Oil and Gas, Inc. Announces Public Offering of Common Stock
Dan Steffens
Energy Prospectus Group
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Re: Northern Oil & Gas (NOG) Update - Nov 17

Postby dan_s » Wed Nov 17, 2021 5:42 pm

Stifel's take

Northern Oil and Gas, Inc. (NOG, $23.50, Buy; Target $29.00)
Announces significant Permian Basin expansion, common stock offering and increases the base dividend by 50% - Derrick Whitfield
Northern announced the acquisition of non-operated interests in 31.7 net PDP wells, 5.6 net wells in progress, 4.0 AFE'd or permitted net wells, and 40.8 risked net future development locations in the Permian Basin from Veritas Energy, LLC for $406.5 million in cash and ~1.9 million seven-year common equity warrants with an exercise price of $28.30. The company separately announced a public offering of 10 million shares of its common stock to fund a portion of the acquisition. Northern also announced its intent to raise the quarterly dividend by 50% to $0.12/share (2.0% annualized yield). In our view, the purchase is a good deal for NOG due to the attractive price tag (sold for 94% of NOG's PDP PV-10 valuation for the acquired assets), will be accretive on EBITDA, EPS and FCF, and provides the company exposure to top operators in the core of the Delaware
Dan Steffens
Energy Prospectus Group
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Re: Northern Oil & Gas (NOG) Update - Nov 17

Postby Fraser921 » Wed Nov 17, 2021 6:52 pm

I wonder if CLR wanted those assets too. They mentioned inn cc call they had something
else in mind 375-400m

Sounds like a good price

From CLR cc call

And as my follow-up, in the 10-Q, it did highlight that there was, I think, about another $375 million of A&D activity, you all are looking to close in the fourth quarter.

Answer no comment
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Re: Northern Oil & Gas (NOG) Update - Nov 17

Postby dan_s » Thu Nov 18, 2021 9:00 am

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE American: NOG) (the “Company”) announced today that it has priced its previously announced underwritten public offering of 10,000,000 shares of its common stock, which includes 9,500,000 shares being offered by the Company and 500,000 shares being offered by Cresta Investments, LLC and Cresta Greenwood, LLC (collectively, the “Selling Stockholders”), at a price to the public of $20.00 per share (the “Offering”). The Company has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares from the Company. The Company will not receive any proceeds from any sale of shares by the Selling Stockholders. The Selling Stockholders’ participation in the Offering is driven solely by tax planning purposes and 100% of proceeds received by Selling Stockholders from the Offering will be used for charitable purposes. The Offering is expected to close on November 22, 2021, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the Offering and, to the extent necessary, cash on hand and/or borrowings under its revolving credit facility to fund the cash purchase price of the Company’s recently announced pending acquisition of substantially all of the non-operated Permian Basin assets owned by certain entities affiliated with Veritas Energy, LLC (the “Veritas Acquisition”). Pending the use of proceeds as described above, the Company may temporarily apply a portion of the net proceeds from the Offering to repay outstanding borrowings under its revolving credit facility. The consummation of the Offering is not conditioned upon the completion of the Veritas Acquisition and the consummation of the Offering is not a condition to the completion of the Veritas Acquisition. If the Veritas Acquisition is not consummated, the Company intends to use the net proceeds of the Offering for general corporate purposes, which may include the repayment of outstanding indebtedness.
Dan Steffens
Energy Prospectus Group
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