Northern Oil and Gas Inc. (NOG - Free Report) announced that it has signed a legally binding agreement with another oil explorer company Earthstone Energy Inc., . Per the terms of the deal, NOG, along with ESTE, will buy a 33.33% undivided ownership in the privately held Novo Oil & Gas Holdings assets for a price of $500 million in cash, subject to customary closing adjustments. The purchase will result in a net acquisition price of $1 billion for ESTE's retained two-thirds interest.
The acquired assets, mostly located in Eddy County, New Mexico and eastern Culberson County, TX, consist of around 5,600 net acres, 29.2 net producing wells, 7.2 net wells-in-process and 59.9 low-breakeven net undeveloped locations. With a revenue interest of 77%, NOG's net working interest in the acquired assets will be roughly 29%.
ESTE expects near-term production level to reach 135K barrels of oil equivalent per day and free cash flow to rise dramatically, owing to high production from the Novo transaction.
According to Northern’s CEO Nick O'Grady, Novo is NOG's largest transaction to date and is among the most accretive long-dated inventory (with significant high quality). The deal is expected to close in August 2023.
Zacks Rank & Key Picks
NOG currently carries a Zack Rank #3 (Hold).
A couple of better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation (EPM - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
Eni SpA is a leading integrated energy major, which operates primarily through three business segments —Exploration & Production, Gas & Power, and Refining & Marketing and Chemicals. E has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
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Northern Oil and Gas Inc. (NOG - Free Report) announced that it has signed a legally binding agreement with another oil explorer company Earthstone Energy Inc., . Per the terms of the deal, NOG, along with ESTE, will buy a 33.33% undivided ownership in the privately held Novo Oil & Gas Holdings assets for a price of $500 million in cash, subject to customary closing adjustments. The purchase will result in a net acquisition price of $1 billion for ESTE's retained two-thirds interest.
The acquired assets, mostly located in Eddy County, New Mexico and eastern Culberson County, TX, consist of around 5,600 net acres, 29.2 net producing wells, 7.2 net wells-in-process and 59.9 low-breakeven net undeveloped locations. With a revenue interest of 77%, NOG's net working interest in the acquired assets will be roughly 29%.
ESTE expects near-term production level to reach 135K barrels of oil equivalent per day and free cash flow to rise dramatically, owing to high production from the Novo transaction.
According to Northern’s CEO Nick O'Grady, Novo is NOG's largest transaction to date and is among the most accretive long-dated inventory (with significant high quality). The deal is expected to close in August 2023.
Zacks Rank & Key Picks
NOG currently carries a Zack Rank #3 (Hold).
A couple of better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation (EPM - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
Eni SpA is a leading integrated energy major, which operates primarily through three business segments —Exploration & Production, Gas & Power, and Refining & Marketing and Chemicals. E has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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