Delaware Basin acquisition made by Northern Oil and Gas in $157 million deal

Northern Oil and Gas Reveals Permian Basin Acquisitions in Recent Update -  OklahomaMinerals.com

 

 

Northern Oil and Gas recently expanded its holdings in the Delaware Basin of southeast New Mexico and West Texas with a $157.5 million bolt-on acquisition of 2,800 acres.

The acquisition from Alpha Energy Partners of Midland, Texas involved holdings in Lea and Eddy counties of New Mexico and Loving County in Texas. They also included more than 21 net undeveloped locations in addition to 9.6 net producing wells.

The primary operator of the assets is Mewbourne Oil, one of the most cost efficient and active operators in the Northern Delaware Basin. Other operators include Conoco and EOG. NOG explained the acquisition was made with cash on hand, operating free cash flow and borrowings under its revolving credit facility.

NOG expects to close the deal in December of this year.

 

 

 

“NOG continues to execute on creating shareholder value as a proven, reliable and disciplined consolidator of working interests,” commented Nick O’Grady, NOG’s Chief Executive Officer. “These assets are squarely in our core focus area and are poised to deliver substantial growth over the coming years, while delivering significant cash flow to bolster shareholder returns.”

“The Northern Delaware Basin continues to be a key target for our consolidation efforts,” commented Adam Dirlam, NOG’s President. “This asset has some of the highest quality, lowest-cost inventory we have acquired, and is leveraged to NOG’s top operator in the Permian.”

Citigroup Global Markets served as financial advisor to NOG. Kirkland & Ellis LLP is serving as the Company’s legal advisor. TPH&Co, the energy business of Perella Weinberg Partners, served as financial advisor to Alpha Energy Partners. Holland & Knight is serving as the Seller’s legal advisor.

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