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Northern (NOG) to Acquire Northern Delaware Assets for $157.5M
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Northern Oil & Gas (NOG - Free Report) recently declared that it has signed an acquisition agreement to take over certain oil and gas assets in the Northern Delaware Basin in the United States from privately owned Alpha Energy Partners. The initial consideration, which is worth around $157.5 million in cash, is subject to closing adjustments.
The properties are mainly situated in the Lea and Eddy counties in New Mexico and Loving County, TX. These include about 2,800 acres, 9.6 net producing wells, 2.8 net AFEs and wells in process and approximately 21.2 net undeveloped locations. These assets are primarily operated by Mewbourne Oil. Meanwhile, other operators include the likes of Conoco and EOG.
The company expects production between 3,000 and 3,500 barrels of oil equivalent (Boe) per day in 2023 from the acquired assets. Moreover, due to robust growth and a strong free cash flow profile, with $32 million average annual capital spending projected on the assets over the next three years, the assets will deliver an output of more than 4,000 Boe per day in 2024 and 2025.
This acquisition, which NOG intends to fund with cash on hand, operating free cash flow and borrowings under its revolving credit facility, is anticipated to be closed in December 2022.
Northern Oil and Gas, Inc., the Minnetonka, MN-based independent upstream operator, 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. It owns non-operating, minority interests in thousands of oil and gas wells, which are majority-owned and operated by some leading producers.
The Zacks Consensus Estimate for Liberty’s 2022 earnings is pegged at $1.81 per share, up about 277.4% from the year-ago loss of $1.02.
LBRT beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, the average being around 31.7%.
The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.35 per share, suggesting an increase of about 413.9% from the year-ago loss of 43 cents.
NEX beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 269.5%.
The Zacks Consensus Estimate for EnLink’s 2022 earnings stands at 43 cents per share, up 720% from the year-ago earnings of 5 cents.
The Zacks Consensus Estimate for ENLC’s 2022 earnings has been revised upward by about 16.2% over the past 60 days from 37 cents to 43 cents per share.
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Northern (NOG) to Acquire Northern Delaware Assets for $157.5M
Northern Oil & Gas (NOG - Free Report) recently declared that it has signed an acquisition agreement to take over certain oil and gas assets in the Northern Delaware Basin in the United States from privately owned Alpha Energy Partners. The initial consideration, which is worth around $157.5 million in cash, is subject to closing adjustments.
The properties are mainly situated in the Lea and Eddy counties in New Mexico and Loving County, TX. These include about 2,800 acres, 9.6 net producing wells, 2.8 net AFEs and wells in process and approximately 21.2 net undeveloped locations. These assets are primarily operated by Mewbourne Oil. Meanwhile, other operators include the likes of Conoco and EOG.
The company expects production between 3,000 and 3,500 barrels of oil equivalent (Boe) per day in 2023 from the acquired assets. Moreover, due to robust growth and a strong free cash flow profile, with $32 million average annual capital spending projected on the assets over the next three years, the assets will deliver an output of more than 4,000 Boe per day in 2024 and 2025.
This acquisition, which NOG intends to fund with cash on hand, operating free cash flow and borrowings under its revolving credit facility, is anticipated to be closed in December 2022.
Northern Oil and Gas, Inc., the Minnetonka, MN-based independent upstream operator, 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. 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 #2 (Buy). Investors interested in the energy space might also look at some other similar-ranked stocks — Liberty Energy (LBRT - Free Report) , NexTier Oilfield Solutions and EnLink Midstream (ENLC - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Liberty’s 2022 earnings is pegged at $1.81 per share, up about 277.4% from the year-ago loss of $1.02.
LBRT beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, the average being around 31.7%.
The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.35 per share, suggesting an increase of about 413.9% from the year-ago loss of 43 cents.
NEX beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 269.5%.
The Zacks Consensus Estimate for EnLink’s 2022 earnings stands at 43 cents per share, up 720% from the year-ago earnings of 5 cents.
The Zacks Consensus Estimate for ENLC’s 2022 earnings has been revised upward by about 16.2% over the past 60 days from 37 cents to 43 cents per share.