Northern Oil & Gas (NOG) Update - March 11

[dan_s]

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE: NOG) (the “Company” or “NOG”) announced today that it has commenced an underwritten public offering of $200,000,000 of its shares of common stock (the “Offering”). Additionally, the Company intends to grant the underwriter a 30-day option to purchase up to an additional $30,000,000 of shares of common stock from the Company. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.

The Company intends to use the net proceeds from the Offering for general corporate purposes, which will include the repayment of a portion of the outstanding borrowings under its revolving credit facility.

BofA Securities is acting as the sole book-running manager for the Offering. BofA Securities may offer the shares of common stock from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

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 BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, email: dg.prospectus_requests@bofa.com.

[KGardiner]

Dan,
Is this a 7% dilution of stock?
Kevin

[dan_s]

Yes.
NOG is an aggressive growth company. The ability to go the equity market for growth capital is a good thing.
It will also lower their interest expense.

NOG has been moved to our High Yield Income portfolio because its dividends of $0.45/quarter are sustainable.

NOG is now up 28% YTD.

[dan_s]

Per TipRanks: Since the stock offering was announced, four energy sector analysts have increased their price targets to $30, $31, $32 and $34

At the time of this post, NOG was trading at $27.77.