We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northern Oil (NOG) Expands With Uinta Basin Acquisition
Read MoreHide Full Article
Northern Oil and Gas (NOG - Free Report) has announced an important step in its growth strategy by acquiring a 20% stake in the Uinta Basin assets, marking the largest transaction in the independent upstream company's history. Partnering with another energy explorer SM Energy Company (SM - Free Report) , this joint acquisition involves a combined purchase price of $2.55 billion, with NOG's share amounting to $510 million. This transaction promises substantial financial and operational benefits for NOG. The company plans to fund this acquisition through a combination of cash flow from operations, cash on hand, and borrowings under its revolving credit facility.
Strategic Acquisition in a Prime Location
The Uinta Basin, located in Utah, is renowned for its rich hydrocarbon resources. The acquired assets encompass approximately 9,300 net acres and boast a current production of over 10,500 barrels of oil equivalent per day (Boe/d), with more than 85% being oil. This acquisition aligns perfectly with NOG's strategy of investing in high-quality, high-return assets. The assets offer over a decade of Tier 1 drilling opportunities with nearly 98 net undeveloped locations, providing significant future upside.
Financial and Operational Gains
This acquisition is highly accretive to NOG's key financial metrics. It is expected to generate over $170 million in unhedged cash flow from operations in the next 12 months. Additionally, NOG anticipates a strong free cash flow profile with more than $85 million projected over the next year. These robust financial returns will enhance NOG's profitability and free cash flow per share, benefiting shareholders immediately and over the long term.
A Promising Partnership
SM Energy, the operator, will manage the development of the acquired assets. This partnership leverages SM's operational expertise and track record of co-developing multiple geological layers, maximizing the potential of the Uinta Basin assets. NOG's collaboration with SM is expected to enhance operational efficiency and deliver significant cost savings, particularly from an integrated co-owned sand mine facility set to come online within 12 months.
About Northern Oil and Gas
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase free cash flow. NOG carries a Zacks Rank #3 (Hold) at present.
2 Energy Stocks to Buy
Investors interested in the Oil/Energy space could benefit from accumulating stocks like Sunoco LP (SUN - Free Report) and ProPetro Holding (PUMP - Free Report) . Sunoco currently sports a Zacks Rank #1 (Strong Buy), while ProPetro carries a Zacks Rank #2 (Buy).
Image: Bigstock
Northern Oil (NOG) Expands With Uinta Basin Acquisition
Northern Oil and Gas (NOG - Free Report) has announced an important step in its growth strategy by acquiring a 20% stake in the Uinta Basin assets, marking the largest transaction in the independent upstream company's history. Partnering with another energy explorer SM Energy Company (SM - Free Report) , this joint acquisition involves a combined purchase price of $2.55 billion, with NOG's share amounting to $510 million. This transaction promises substantial financial and operational benefits for NOG. The company plans to fund this acquisition through a combination of cash flow from operations, cash on hand, and borrowings under its revolving credit facility.
Strategic Acquisition in a Prime Location
The Uinta Basin, located in Utah, is renowned for its rich hydrocarbon resources. The acquired assets encompass approximately 9,300 net acres and boast a current production of over 10,500 barrels of oil equivalent per day (Boe/d), with more than 85% being oil. This acquisition aligns perfectly with NOG's strategy of investing in high-quality, high-return assets. The assets offer over a decade of Tier 1 drilling opportunities with nearly 98 net undeveloped locations, providing significant future upside.
Financial and Operational Gains
This acquisition is highly accretive to NOG's key financial metrics. It is expected to generate over $170 million in unhedged cash flow from operations in the next 12 months. Additionally, NOG anticipates a strong free cash flow profile with more than $85 million projected over the next year. These robust financial returns will enhance NOG's profitability and free cash flow per share, benefiting shareholders immediately and over the long term.
A Promising Partnership
SM Energy, the operator, will manage the development of the acquired assets. This partnership leverages SM's operational expertise and track record of co-developing multiple geological layers, maximizing the potential of the Uinta Basin assets. NOG's collaboration with SM is expected to enhance operational efficiency and deliver significant cost savings, particularly from an integrated co-owned sand mine facility set to come online within 12 months.
About Northern Oil and Gas
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase free cash flow. NOG carries a Zacks Rank #3 (Hold) at present.
2 Energy Stocks to Buy
Investors interested in the Oil/Energy space could benefit from accumulating stocks like Sunoco LP (SUN - Free Report) and ProPetro Holding (PUMP - Free Report) . Sunoco currently sports a Zacks Rank #1 (Strong Buy), while ProPetro carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP: The Zacks Consensus Estimate for 2024 earnings of Sunoco indicates 99.7% growth.
SUN is valued at around $5.7 billion. Sunoco has seen its stock rise 37.9% in a year.
ProPetro Holding: Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved up 33.3%.
ProPetro Holding is valued at around $932.9 million. PUMP has seen its stock rise 2.8% in a year.