Northern (NOG) to Snap Up Williston Basin Assets for $170M
The Minnetonka, MN-based independent upstream operator, Northern Oil & Gas NOG, recently declared that it has signed an acquisition agreement to take over high oil-cut assets in the Williston Basin. The initial consideration, which is worth around $170 million in cash, is subject to closing adjustments.
The acquired properties are mainly situated in Dunn, McKenzie and Williams Counties in North Dakota and include about 3,500 acres, 9.2 net producing wells, 2.6 net wells in-process and 14.9 net engineered economic undeveloped locations. These assets are operated by Marathon Oil, Continental Resources and ConocoPhillips. However, Northern Oil owns an existing stake in roughly 50% of the takeover property value.
The company anticipates spending around $15 million in capital expenditure after the deal is closed in August 2022.
NOG also updated its guidance for the year along with the announcement of this acquisition and it now expects to produce 73,000 to 77,000 barrels of oil equivalent, up from the earlier estimate in the range of 71,000-76,000 barrels. Total capital expenditure for the year is now anticipated between $405 and $470 million, up from the original guidance in the band of $350-$415 million.
Northern Oil expects to exit the fourth quarter of 2022 with more than 77,000 barrels, the high end of the revised annual production guidance range.
Northern Oil and Gas, Inc. is engaged in the acquisition, exploration, development and production of oil and natural gas properties. The firm is primarily focused on the three leading basins of the United States – Williston, Permian and Appalachian. Founded in 2007, NOG employs a unique strategy, wherein it owns non-operating, minority interests in thousands of oil and gas wells, which are majority-owned and operated by some leading producers.
Northern Oil and Gas currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are Comstock Resources CRK, SilverBow Resources SBOW and Murphy Oil MUR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comstock’s stock price has increased 211.5% in a year. The Zacks Consensus Estimate for Comstock’s 2022 earnings has been revised about 43% upward over the past 60 days from $2.51 per share to $3.59.
The Zacks Consensus Estimate for CRK’s 2022 earnings is pegged at $3.59 per share, up 209.5% from the projected year-ago earnings of $1.16.
SilverBow stock has gone up 91.8% in a year. The Zacks Consensus estimate for Silverbow’s 2022 earnings has been revised 67% upward over the past 60 days.
The Zacks Consensus Estimate for SBOW’s 2022 earnings is projected at $12.69 per share, up about 97.6% from the projected year-ago earnings of $6.42.
Murphy Oil is valued at around $6.86 billion. Murphy Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 49.9%.
The Zacks Consensus Estimate for MUR’s 2022 earnings is projected at $5.75 per share, up approximately 345.7% from the projected year-ago earnings of $1.29.
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