Northern Oil & Gas (NOG) Update - Dec 2
Posted: Fri Dec 02, 2022 9:16 am
NOG closed at $35.32 on December 1. < My current valuation of NOG is $67.00
The acquisition below adds ~2,500 Boepd. NOG is still working on the Mascot Project Acquisition that should close in January, adding ~6,450 Boepd.
NOG's total production should be ~90,000 BOEPD by the end of Q1 2023, which compares to their Q1 2022 actual production of 71,255 Boepd.
DELAWARE BASIN ACQUISITION
On December 1, 2022, NOG closed its previously announced acquisition of properties from Alpha Energy Partners. The closing settlement was $155.1 million in cash, which includes a $17.5 million deposit paid at signing in September 2022. The closing cash settlement is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between NOG and the seller. More information regarding this acquisition, including potential additional future consideration to be paid by NOG, can be found in NOG’s September 30, 2022 press release announcing the transaction, which is available here.
MANAGEMENT COMMENTS
“These assets are poised to deliver substantial growth over the coming years, with some of the lowest cost inventory we have acquired, tied to our top operators in the Permian,” commented Adam Dirlam, NOG’s President. “We remain focused on our mission to allocate capital efficiently, grow our enterprise to bolster long-term returns on capital employed, and increase shareholder returns in kind.”
ABOUT NORTHERN OIL AND GAS
NOG is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the premier basins within the United States. More information about NOG can be found at www.northernoil.com.
ABOUT ALPHA ENERGY PARTNERS
Alpha Energy Partners is a privately held oil and natural gas company based in Midland, Texas, and is actively acquiring assets across the Permian Basin. More information about Alpha Energy Partners can be found at www.alphapermian.com.
The acquisition below adds ~2,500 Boepd. NOG is still working on the Mascot Project Acquisition that should close in January, adding ~6,450 Boepd.
NOG's total production should be ~90,000 BOEPD by the end of Q1 2023, which compares to their Q1 2022 actual production of 71,255 Boepd.
DELAWARE BASIN ACQUISITION
On December 1, 2022, NOG closed its previously announced acquisition of properties from Alpha Energy Partners. The closing settlement was $155.1 million in cash, which includes a $17.5 million deposit paid at signing in September 2022. The closing cash settlement is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between NOG and the seller. More information regarding this acquisition, including potential additional future consideration to be paid by NOG, can be found in NOG’s September 30, 2022 press release announcing the transaction, which is available here.
MANAGEMENT COMMENTS
“These assets are poised to deliver substantial growth over the coming years, with some of the lowest cost inventory we have acquired, tied to our top operators in the Permian,” commented Adam Dirlam, NOG’s President. “We remain focused on our mission to allocate capital efficiently, grow our enterprise to bolster long-term returns on capital employed, and increase shareholder returns in kind.”
ABOUT NORTHERN OIL AND GAS
NOG is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the premier basins within the United States. More information about NOG can be found at www.northernoil.com.
ABOUT ALPHA ENERGY PARTNERS
Alpha Energy Partners is a privately held oil and natural gas company based in Midland, Texas, and is actively acquiring assets across the Permian Basin. More information about Alpha Energy Partners can be found at www.alphapermian.com.