NOG new deal
Re: NOG new deal
NOG Announces Investment in Core Midland Basin Development Project
October 19, 2022 4:15pm EDT
HIGHLIGHTS
NOG enters into agreement to acquire a 36.7% working interest in a stacked pay, six-zone development project (the “Mascot Project”) in the core of the Midland Basin for $330 million
Acquisition includes producing properties and associated midstream assets, plus 62 gross in-process and future wells in Midland County, Texas, with sub-$40 per barrel average breakevens
Average production of 6,450 Boe per day (2-stream, ~80% oil) expected for 2023
Clear line of sight to significant free cash flow generation with 22.8 net undeveloped and in-process locations, all scheduled to be developed over the next two years
~$150 million of expected 2023 unhedged cash flow from operations at strip pricing as of October 13, 2022 (~2.2x transaction multiple)
~$300 million of unlevered free cash flow expected through 2025 (inclusive of cash flows received from effective date but prior to closing)
Transaction expected to be significantly accretive to key financial metrics
Future wells will be developed under a joint operating agreement with defined controls and governance, providing strong alignment
NOG has hedged a substantial portion of the expected production
Acquisition to be financed with cash
October 19, 2022 4:15pm EDT
HIGHLIGHTS
NOG enters into agreement to acquire a 36.7% working interest in a stacked pay, six-zone development project (the “Mascot Project”) in the core of the Midland Basin for $330 million
Acquisition includes producing properties and associated midstream assets, plus 62 gross in-process and future wells in Midland County, Texas, with sub-$40 per barrel average breakevens
Average production of 6,450 Boe per day (2-stream, ~80% oil) expected for 2023
Clear line of sight to significant free cash flow generation with 22.8 net undeveloped and in-process locations, all scheduled to be developed over the next two years
~$150 million of expected 2023 unhedged cash flow from operations at strip pricing as of October 13, 2022 (~2.2x transaction multiple)
~$300 million of unlevered free cash flow expected through 2025 (inclusive of cash flows received from effective date but prior to closing)
Transaction expected to be significantly accretive to key financial metrics
Future wells will be developed under a joint operating agreement with defined controls and governance, providing strong alignment
NOG has hedged a substantial portion of the expected production
Acquisition to be financed with cash
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group