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Thursday, September 10, 2020

NOG Announces First Acquisition In The Delaware Basin -- September 10, 2020

NOG: announces first acquisition in the Delaware Basin. operational update. Link here to press release.

  • Delaware Basin acquisition includes acreage and proposed wells in Lea County, NM operated by EOG Resources 
  • Northern expects monthly peak production from the acquisition of approximately 1,400 barrels of oil equivalent per day in mid-2021 
  •  Northern expects the transaction to be accretive to EV / EBITDA, corporate return on capital employed, earnings per share, and free cash flow metrics in 2021 and beyond 
  • Northern is providing an operations update, adjusting Q3 2020 production guidance upward to 25,000 – 30,000 Boe per day 

Delaware acquisition:

  • 66 net acres
  • 1.1 initial net wells
  • seller: undisclosed
  • total acquisition costs: $11.9 million
  • $11.9 million / 66 net acres + 1.1 net wells
  • assume $10 million for the 1.1 net wells
  • $1.9 million / 66 net acres = $30,000 / acre

Bakken operators are tracked here. NOG is tracked here.

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