Adds positions in Delaware, Ohio Utica,and Marcellus
HIGHLIGHTS
Indicative of bullishness on gas
Bolt-on acquisitions of core non-operated working interest properties in the Northern Delaware and Appalachian Basins for a combined initial purchase price of $170 million in cash and 107,657 shares of common stock, subject to typical closing adjustments
Combined average expected 2024 production of ~6,500 Boe per day (26% oil, 2-stream)
Combined cash flow from operations for the acquisitions expected to be $57.5 - $62.5 million in 2024, representing a 2.8 - 3.0x purchase price multiple, based on recent commodity strip pricing
Expecting approximately $33 - $38 million in total 2024 capital expenditures on the combined assets
NOG has existing ownership interests in approximately 90% of the Delaware Basin leasehold
Transactions expected to be accretive to key financial metrics in 2024 and on a multi-year basis
Acquisitions to be financed with cash on hand, operating free cash flow and borrowings under NOG’s revolving credit facility
NOG hedged a portion of the expected production on a multi-year basis, at higher than current pricing levels, prior to signing