NOG Announces Closing of Upsized Acquisition In Core Midland Basin Development Project

HIGHLIGHTS

  • NOG closes the previously announced purchase of non-operated interests in a stacked pay, six-zone development project (the “Mascot Project”) in the middle of the Midland Basin. NOG also bought an extra 3.25 percent working interest in the Mascot
  • Project on the same pro rata terms as before.
  • NOG bought a 39.958% working interest in the Mascot Project for an initial closing price of $320.0 million, which included the $43 million deposit paid at signing.
  • NOG thinks that the effects of additional working interests will be proportional to what has already been made public, such as production and related capital expenditures.

MINNEAPOLIS—(BUSINESS WIRE)—Northern Oil and Gas, Inc. (NYSE: NOG) (the “Company” or “NOG”) announced today that it has finished buying non-operated properties in the middle of the Midland Basin.

Midland Basin Acquisition

Midland Petro D.C. Partners, LLC (“MPDC”) sold NOG non-operated interests in the Mascot Project on January 5, 2023. This sale had been planned ahead of time. As part of the closing, NOG increased the size of the deal that had been announced by buying an extra 3.25 percent working interest in the Mascot Project for an extra $29.2 million (identical pro rata economic terms as originally announced).

In total, NOG bought a working interest in the Mascot Project worth 39.958%. The first closing settlement was for $320.0 million in cash, which includes a $43.0 million deposit paid at the signing in October 2022. The closing cash settlement does not include any pre-closing or usual changes to the purchase price, and it is still subject to settlements between NOG and MPDC after the closing. More information about this purchase can be found in NOG’s press release about the deal, which was released on October 19, 2022, and can be found here.

NOG paid for the purchase with cash on hand, free cash flow from operations, and loans from its revolving credit facility.

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About Northern Oil And Gas

NOG’s main goal is to invest in non-operated minority working and mineral interests in oil and gas properties, focusing on the best hydrocarbon-producing basins in the contiguous United States. At www.northernoil.com, you can find out more about NOG.

NOG Announces Closing of Upsized Acquisition In Core
NOG Announces Closing of Upsized Acquisition In Core

Safe Harbor

This press release has statements about future events and future results that look ahead. These statements are subject to the safe harbours set up by the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”), which protect investors. All statements in this release about NOG’s financial position, common stock dividends, business strategy, plans and objectives of management for future operations, industry conditions, capital expenditures, production, cash flow, hedging, and other matters that are not statements of historical facts are forward-looking statements. Forward-looking statements in this release are usually accompanied by words or phrases like “estimate,” “guidance,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other similar words and phrases that show that the future is uncertain. Forward-looking statements also include things that think about or make assumptions about sales, market size, collaborations, trends, or operating results that may or may not happen in the future.

Forward-looking statements include risks and uncertainties, as well as important factors (many of which are out of NOG’s control) that could cause actual results to be very different from what was said in the forward-looking statements. These factors include changes in crude oil and natural gas prices, the rate of drilling and completions activity on NOG’s properties and properties it is trying to buy, the effects of the COVID-19 pandemic and the related slowdown in the economy, and the pace of drilling and completions activity on NO

NOG made these forward-looking statements based on what it knows now and what it thinks will happen in the future. Even though management thinks these expectations and assumptions are reasonable, they are still subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are hard to predict and many of which are out of NOG’s control. NOG doesn’t have to update or change any forward-looking statements unless the federal securities laws say they have to.

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