Northern Oil and Gas, Inc. Announces Closing of Reliance Marcellus Acquisition
April 06 2021 - 4:10PM
Business Wire
Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”)
announced today that it closed on its previously announced
acquisition of properties owned by Reliance Marcellus, LLC on April
1, 2021.
HIGHLIGHTS
- Extends Northern’s non-operated model to Appalachia – the
leading US natural gas basin – and creates a national non-operated
franchise, diversified by region and commodity mix
- Northern paid closing consideration of $120.9 million in cash
(including previously paid deposit), which is subject to final
post-closing settlement, and 3.25 million common stock
warrants
- The cash closing payment was funded with borrowings under
Northern’s revolving credit facility, which had $263.0 million of
outstanding borrowings as of March 31, 2021, prior to funding the
closing, a reduction of $24.0 million from the previously announced
balance as of March 11, 2021
- 2021 guidance reiterated for the acquired assets, including
production of 75-85 MMcfpd and $20-25MM of CAPEX
- Northern has hedged approximately 66% of forecasted remaining
2021 PDP gas production on the acquired assets at an average price
of $3.00/MMbtu and 36% of forecasted Q1:2022 PDP gas production at
an average price of $3.17/MMbtu
MANAGEMENT COMMENTS
“We are pleased to have closed this transformational
acquisition, which enhances our high-return national non-operated
business model with a key move into the Marcellus,” commented Nick
O’Grady, Northern’s Chief Executive Officer. “Furthermore, this
transaction and our recent balance sheet advancements have
positioned Northern as the natural consolidator of non-operated
assets. With the Board and Management’s substantial ownership of
Northern’s equity, we will only entertain transactions that clearly
add immediate shareholder value and are accretive to our free cash
flow and future dividend potential.”
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. 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
Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.
SAFE HARBOR
This press release contains forward-looking statements regarding
future events and future results that are subject to the safe
harbors created under the Securities Act of 1933, as amended (the
“Securities Act”), and the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). All statements other than statements
of historical facts included in this release regarding Northern’s
financial position, business strategy, plans and objectives of
management for future operations and industry conditions are
forward-looking statements. When used in this press release,
forward-looking statements are generally accompanied by terms or
phrases such as “estimate,” “project,” “predict,” “believe,”
“expect,” “continue,” “anticipate,” “target,” “could,” “plan,”
“intend,” “seek,” “goal,” “will,” “should,” “may” or other words
and similar expressions that convey the uncertainty of future
events or outcomes. Items contemplating or making assumptions about
actual or potential future production and sales, market size,
collaborations, and trends or operating results also constitute
such forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond
Northern’s control) that could cause actual results to differ
materially from those set forth in the forward looking statements,
including the following: changes in crude oil and natural gas
prices; the pace of drilling and completions activity on Northern’s
properties and properties pending acquisition; Northern’s ability
to acquire additional development opportunities; potential or
pending acquisition transactions; changes in Northern’s reserves
estimates or the value thereof; disruptions to Northern’s business
due to acquisitions and other significant transactions; general
economic or industry conditions, nationally and/or in the
communities in which Northern conducts business; changes in the
interest rate environment, legislation or regulatory requirements;
conditions of the securities markets; Northern’s ability to raise
or access capital; changes in accounting principles, policies or
guidelines; financial or political instability, acts of war or
terrorism, and other economic, competitive, governmental,
regulatory and technical factors affecting Northern’s operations,
products and prices; and the COVID-19 pandemic and its related
economic repercussions and effect on the oil and natural gas
industry. Additional information concerning potential factors that
could affect future financial results is included in the section
entitled “Item 1A. Risk Factors” and other sections of Northern’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2020, as updated from time to time in amendments and subsequent
reports filed with the SEC, which describe factors that could cause
Northern’s actual results to differ from those set forth in the
forward looking statements. Northern has based these
forward-looking statements on its current expectations and
assumptions about future events. While management considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory
and other risks, contingencies and uncertainties, most of which are
difficult to predict and many of which are beyond Northern’s
control. Northern does not undertake any duty to update or revise
any forward-looking statements, except as may be required by the
federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210406005942/en/
Mike Kelly, CFA Chief Strategy Officer (952)
476-9800 ir@northernoil.com
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