NOG Announces Closing of Permian Basin Acquisition from Veritas Energy

Rhea-AI Summary

Northern Oil and Gas (NOG) has successfully closed its acquisition of non-operated Permian Basin assets from Veritas Energy for a total of $419.4 million. This strategic move, which is the largest in NOG's history, is aimed at diversifying the company's asset base and enhancing shareholder returns. The deal includes approximately 1.94 million common stock warrants with an exercise price of $28.30 per share. CEO Nick O’Grady emphasized the acquisition's significance in achieving a low-leverage, diversified financial structure.

Positive

• Acquisition of Permian Basin assets enhances asset diversification.
• Deal valued at $419.4 million positions NOG for market growth.
• Introduction of common stock warrants potentially increases shareholder value.

Negative

• None.

MINNEAPOLIS--(BUSINESS WIRE)-- Northern Oil and Gas, Inc. (NYSE American: NOG) (“NOG”) today announced the closing of its previously announced acquisition of non-operated Permian Basin assets from Veritas Energy.

MANAGEMENT COMMENT

“The Veritas acquisition caps an incredible twelve months for NOG,” commented Nick O’Grady, NOG’s Chief Executive Officer. “We have grown significantly, diversified into multiple basins, substantially de-levered the balance sheet, and instituted a meaningful shareholder return program. The Veritas acquisition, which is the largest in NOG’s history, furthered all of these goals and represents a high-quality addition to our asset base. We remain dedicated to building a low-leverage, diversified company with growing cash returns for our shareholders.”

VERITAS ACQUISITION

NOG closed the Veritas acquisition on January 27, 2022, with a combination of cash and equity warrants. The closing settlement was $419.4 million in cash, which includes a $40.7 million deposit paid at signing in November 2021, and approximately 1.94 million common stock warrants with a $28.30 per share exercise price. The closing cash settlement is net of preliminary and customary purchase price adjustments and remains subject to final post-closing settlement between NOG and Veritas. Additional information regarding this previously announced acquisition can be found at: www.northernoil.com/news-media/press-releases/detail/301/northern-oil-and-gas-inc-announces-permian-basin.

ABOUT NORTHERN OIL AND GAS

NOG is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the premier basins within the United States. More information about NOG can be found at www.NorthernOil.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005183/en/

Mike Kelly, CFA

Chief Strategy Officer

(952) 476-9800

ir@northernoil.com

Source: Northern Oil and Gas, Inc.

FAQ

What was the value of the Northern Oil and Gas acquisition of Veritas Energy?

The acquisition was valued at $419.4 million.

When did Northern Oil and Gas close the acquisition of Veritas Energy?

The acquisition was closed on January 27, 2022.

What assets did Northern Oil and Gas acquire from Veritas Energy?

NOG acquired non-operated assets in the Permian Basin.

How many common stock warrants were issued in the acquisition?

Approximately 1.94 million common stock warrants were issued.