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Northern (NOG) to Buy $330M Stake in the Midland Basin Project
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Northern Oil & Gas (NOG - Free Report) recently announced that it has signed an agreement to acquire a 36.7% working interest in a stacked pay, six-zone development project (the “Mascot Project”) in the core of the Midland Basin. The deal, worth around $330 million, is subject to closing adjustments.
The Minnetonka, MN-based firm expects to fund the acquisition with cash on hand, operating free cash flow and borrowings from its revolving credit facility.
NOG stated that the takeover comprises producing properties and associated midstream assets, plus 62 gross in-process and future wells located in Midland County, TX, with a sub-$40/bbl average breakeven. Moreover, the company expects production from the acquired assets to average 4,400 boe/day in the first quarter of 2023 and 6,450 boe/day for the full-year 2023.
Per Northern Oil and Gas, the acquisition provides a "clear line of sight to significant free cash flow generation with 22.8 net undeveloped and in-process locations, all scheduled to be developed over the next two years." The company anticipates $150 million of expected 2023 unhedged cash flow from operations and about $300 million of unlevered free cash flow through 2025.
Northern Oil and Gas, Inc. is an independent upstream operator. It 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 Par Pacific’s 2022 earnings stands at $5.86 per share, which indicates an increase of about 440.7% from the year-ago loss of $1.72.
The consensus mark for PARR’s 2022 earnings has been revised upward three times over the past 60 days from $4.03 to $5.86 per share.
The Zacks Consensus Estimate for SilverBow’s 2022 earnings stands at $8.72 per share, up 35.8% from the year-ago earnings of $6.42.
SBOW beat estimates for earnings in all the trailing four quarters, the average being 36%.
The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.37 per share, up about 139.3% from the year-ago earnings of $3.08.
EQNR beat estimates for earnings in all the trailing four quarters, the average being around 7.3%.
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Northern (NOG) to Buy $330M Stake in the Midland Basin Project
Northern Oil & Gas (NOG - Free Report) recently announced that it has signed an agreement to acquire a 36.7% working interest in a stacked pay, six-zone development project (the “Mascot Project”) in the core of the Midland Basin. The deal, worth around $330 million, is subject to closing adjustments.
The Minnetonka, MN-based firm expects to fund the acquisition with cash on hand, operating free cash flow and borrowings from its revolving credit facility.
NOG stated that the takeover comprises producing properties and associated midstream assets, plus 62 gross in-process and future wells located in Midland County, TX, with a sub-$40/bbl average breakeven. Moreover, the company expects production from the acquired assets to average 4,400 boe/day in the first quarter of 2023 and 6,450 boe/day for the full-year 2023.
Per Northern Oil and Gas, the acquisition provides a "clear line of sight to significant free cash flow generation with 22.8 net undeveloped and in-process locations, all scheduled to be developed over the next two years." The company anticipates $150 million of expected 2023 unhedged cash flow from operations and about $300 million of unlevered free cash flow through 2025.
Northern Oil and Gas, Inc. is an independent upstream operator. It 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 top-ranked stocks — Par Pacific (PARR - Free Report) , SilverBow Resources (SBOW - Free Report) and Equinor (EQNR - Free Report) — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Par Pacific’s 2022 earnings stands at $5.86 per share, which indicates an increase of about 440.7% from the year-ago loss of $1.72.
The consensus mark for PARR’s 2022 earnings has been revised upward three times over the past 60 days from $4.03 to $5.86 per share.
The Zacks Consensus Estimate for SilverBow’s 2022 earnings stands at $8.72 per share, up 35.8% from the year-ago earnings of $6.42.
SBOW beat estimates for earnings in all the trailing four quarters, the average being 36%.
The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.37 per share, up about 139.3% from the year-ago earnings of $3.08.
EQNR beat estimates for earnings in all the trailing four quarters, the average being around 7.3%.