Minnetonka may be best known for its eponymous moccasins and bedroom slippers, but this western suburb of the bustling Twin Cities is also home to the largest, publicly traded, non-operated oil and gas E&P. Formed in 2007, Northern Oil and Gas (NOG) has steadily catalyzed its investment portfolio of assets in the Permian, Williston, and Marcellus with bolt-on acquisitions that have now brought the company into that sweet territory known as Harvest Mode.
Reese Energy Consulting today is following the latest from Minn.-based NOG, which recently reported 3Q oil and natural gas sales of $511.7 million and 102.3 MBOED in production. The company announced at the time it was working through a multitude of investment opportunities—and voila!—it’s now landed two from separate undisclosed buyers for a combined $170 million and 107,657 shares of common stock.
NOG will add another 3,000 net acres in the Permian’s northern Delaware to its current 37,000 in a deal that also includes 13 producing wells, 2.8 MBOED, and 26+ net undeveloped locations representing 13.5 years of drilling inventory.
The company’s second acquisition expands its natural gas assets in the Marcellus that include 62,000 net acres with an entry into the Ohio Utica shale. The Utica properties, operated by Ascent Resources, currently produce 23 MMCFD. NOG has big expectations and plans in 2024 for its Permian acquisition—now its largest asset—as well as its Utica buy. The company estimates combined production of 6.5 MBOED and up to $62.5 million in cash flow. How sweet it is.