Northern Oil & Gas (NOG) Update - June 17

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Northern Oil & Gas (NOG) Update - June 17

Post by dan_s »

I am updating my forecast/valuation model for NOG today. It will be posted to the EPG website this afternoon.

Northern Oil and Gas, Inc. Announces Pricing of Public Offering of Common Stock

MINNEAPOLIS--(BUSINESS WIRE)--June 16, 2021--

Northern Oil and Gas, Inc. (NYSE American: NOG) (the "Company") announced today that it has priced its previously announced underwritten public offering of 5,000,000 shares of its common stock at a price to the public of $17.50 per share (the "Offering"). The Company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock. The Offering is expected to close on June 21, 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 certain non-operated oil and gas properties and interests located in the Permian Basin (the "Permian 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 Permian Acquisition and the consummation of the Offering is not a condition to the completion of the Permian Acquisition. If the Permian 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.

Wells Fargo Securities is acting as lead book-running manager for the Offering. The Offering will be made only by means of a prospectus supplement and the accompanying base prospectus, which was filed as part of an effective shelf registration statement filed with the Securities and Exchange Commission ("SEC") on Form S-3. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering, as well as copies of the final prospectus supplement, once available, may be obtained on the SEC's website at www.sec.gov or by contacting Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, at (800) 326-5897 or emailing a request to cmclientsupport@wellsfargo.com.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Northern Oil & Gas (NOG) Update - June 17

Post by dan_s »

Fresh Report
Northern Oil and Gas' accretive acquisitions a positive, says Stifel
Stifel analyst Derrick Whitfield raised the firm's price target on Northern Oil and Gas to $21 from $20 and keeps a Buy rating on the shares after the company announced the acquisition of 2,900 net Permian acres in Reeves, Lea, and Eddy Counties for $102.2M. The deal is accretive on key metrics and accelerates return of capital initiatives, said Whitfield, who calls the transaction a positive.

From May 10 to June 10 three other analysts rate NOG a BUY with price targets of $25, $25 and $24.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Northern Oil & Gas (NOG) Update - June 17

Post by dan_s »

I have update my forecast/valuation model for NOG and posted it to the EPG website. My current valuation is $26.00.

Thanks to two timely acquisitions, NOG is set to report some very strong 2H 2021 results.

NOG closed on June 17 at $19.32. First Call's price target is $22.21, which is based on oil & gas prices that are much lower than the current NYMEX strip.

I like NOG's production mix and their low cash expense.

If NOG's actual 2H 2021 results confirm my forecast, this stock could go to $50 within a year.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Northern Oil & Gas (NOG) Update - June 17

Post by dan_s »

I just posted our updated profile on NOG to the EPG website.
Dan Steffens
Energy Prospectus Group
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