BofA raised the firm’s price target on Northern Oil and Gas to $49 from $48 and keeps a Buy rating on the shares after the company announced it will acquire an undivided 20% of the oil and gas assets of XCL Resources, a private company, for $510M. The deal is expected to add over 97 locations as Northern enters the Uinta basin, the analyst noted. The firm sees the asset as accretive to Northern, assuming flat production of about 10.75 mboed and 10 years of inventory.
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Read More on NOG:
- NOG announces accretive Uinta Basin joint acquisition with SM Energy
- SM Energy says Northern to buy 20% of oil & gas assets of XCL for $510M
- SM Energy to acquire oil & gas assets of XCL Resources for $2.55B
- SM Energy to acquire Uinta Basin oil and gas assets for $2.55B
- SM ENERGY ANNOUNCES HIGHLY ACCRETIVE $2.0 BILLION UINTA BASIN ACQUISITION, 11% INCREASE TO FIXED DIVIDEND AND RELOADED $500 MILLION SHARE REPURCHASE PROGRAM