Northern Oil and Gas announces bolt-on acquisitions, expected to be accretive

Northern Oil and Gas announced two acquisition transactions. NOG has entered into a definitive agreement with a private party to acquire non-operated interests across ~3,000 net acres located primarily in Lea and Eddy Counties, New Mexico. NOG owns existing interests in approximately 90% of the leasehold. Current production is ~2,800 Boe per day or 2-stream, ~67% oil. NOG expects 2024 production to average ~2,500 Boe per dayor 2-stream, ~67% oil, but expects significant future growth on the assets, with average production of greater than3,500 Boe per day for 2025 through 2030. Capital expenditures on the assets are expected to be in the range of $25 – $30M to be incurred in 2024, with similar expected levels annually through 2027…The effective date for the transaction is November 1.. NOG has placed a $17.1M deposit for the acquisition with the balance of the funding to occur at closing, which is expected in the first quarter of 2024, subject to the satisfaction of typical closing conditions…”These transactions demonstrate our continued ability to successfully acquire high quality assets in the core of their respective basins, with best-in-class operating parties,” commented Nick O’Grady, Chief Executive Officer of NOG. “We expect the assets to be accretive in 2024 and to accelerate further in future years. We are also pleased to expand our Appalachian presence into some of the best parts of the Ohio Utica Shale as we continue to grow our natural gas portfolio in the region over time. Notably, at the current pricing strip, we still expect to reach our ~1x leverage ratio target in 2024 and cash generating assets such as these should add to dividend capacity over time.” “After closing, our Permian lands will approach ~40,000 net acres and definitively become our most active and largest basin in terms of activity and production,” commented Adam Dirlam, NOG’s President.