NOG finalises $464.5m acquisition of Utica Shale assets

Core Viewpoint - Northern Oil and Gas (NOG) has successfully completed the acquisition of non-operated interests in the Utica Shale in Ohio for $464.5 million, marking a significant expansion of its asset base in the region [1][2]. Group 1: Acquisition Details - NOG acquired a 40% interest in the Utica Shale, while Infinity Natural Resources (INR) obtained a 60% stake, with a total transaction value of $1.2 billion [1][2]. - The acquisition covers approximately 35,000 net acres in eastern Ohio's Utica Shale, including over 100 gross identified undeveloped locations [2]. Group 2: Financial Projections - The acquired assets are projected to produce around 65 million cubic feet (mcf) equivalent per day in 2026, primarily from gas, with an expected compound annual growth rate exceeding 30% through the end of the decade [3]. - NOG anticipates generating unhedged cash flow from operations of approximately $100 million in 2026 at current strip prices [3]. Group 3: Financing and Credit Facility - In conjunction with the acquisition, NOG amended its reserves-based lending facility, increasing its elected commitment to $1.8 billion from $1.6 billion, with the borrowing base rising to $1.97 billion [4]. - The expansion of the credit facility was executed with Wells Fargo and a syndicate of 18 lenders, maintaining largely unchanged terms [4].