Northern Oil & Gas to Acquire Reliance's Non-Operated Appalachian Assets

Updated 7 months 2 weeks ago

Northern has entered a definitive agreement to acquire certain non-operated assets in the Appalachian Basin from Reliance Industries for $175 million in cash and 3.25 million warrants for NOG stock at $14.00 per share. This includes 120 million cubic feet equivalent per day of production and 493 billion cubic feet of proved reserves. EQT operates 95% of these assets after its recent acquisition of Chevron's Appalachian assets. Northern estimates 1,200 gross undeveloped locations with an inventory of 94 work-in-progress wells slated for completion over the next five years by EQT.

Nick O'Grady, Northern Oil & Gas CEO

This transaction furthers our goal of becoming a national non-operated franchise with low leverage, strong free cash flow and a path towards returning capital to shareholders. With this transaction, we expect increased opportunities to efficiently allocate capital and diversify risk, our commodity mix and geographic footprint.