$NOG

Northern Oil and Gas Expands Into Canada With $259 Million Duvernay Deal

Northern Oil and Gas (NOG) is expanding into the Canadian market with a $259 million acquisition in Alberta's light-oil Duvernay shale, betting the basin's low-cost inventory can bolster growth amid expectations for stronger long-term crude prices, RBC Capital Markets strategists said on Wednesday.The US energy firm said it agreed to acquire an undivided 25% non-operated interest in assets owned and operated by Parallax Energy Operating, a private equity-backed firm.The deal includes net production of about 4,000 barrels of oil equivalent per day, about 80% of which is light oil, along with 75,000 net acres and about 500 gross drilling locations in the Duvernay East Shale Basin in Alberta.Northern Oil and Gas said the assets contain about 20 years of drilling inventory with breakeven oil prices below $50 per barrel, while operating costs are expected to remain below $7.50 per barrel of oil equivalent.The acquisition marks the energy firm's first expansion into Canada, and provides exposure to what RBC described as "inventory-rich" light-oil acreage in a higher mid-cycle oil price environment.The bank said the sellers will receive about $83.5 million in Northern Oil and Gas common stock as part of the transaction, with the remainder funded in cash.The company also said it plans to hedge currency fluctuations tied to operating costs through multi-year derivative transactions. The transaction is expected to close in Q2.Northern Oil and Gas said updated pro forma guidance tied to the acquisition remains in line with the high end of its previously issued low-activity outlook.Price: $21.33, Change: $-1.02, Percent Change: -4.54%

Sector Update: Energy Stocks Decline Premarket Tuesday

Energy stocks were declining premarket Tuesday, with the State Street Energy Select Sector SPDR ETF (XLE) 1.1% lower.The United States Oil Fund (USO) was down 3.5% and The United States Natural Gas Fund (UNG) was 1.5% higher.Front-month US West Texas Intermediate crude oil was 3.9% lower at $92.80 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 3% to $99.04 per barrel, and natural gas futures were up 2% at $2.97 per 1 million British Thermal Units.BP (BP) stock was down more than 4% after the company said its board unanimously decided to remove Albert Manifold as chair and director.Baker Hughes (BKR) said it has extended its contract with Petrobras (PBR) to provide integrated well construction services in Brazil's Santos Basin. Petrobras shares were down more than 2% premarket.Northern Oil and Gas (NOG) said it is acquiring a 25% stake in Canadian oil-producing assets for about 350 million Canadian dollars ($254 million). Northern Oil and Gas stock was down more than 1% pre-bell.

Northern Oil and Gas to Acquire 25% Stake in Alberta Assets

Northern Oil and Gas (NOG) said Tuesday it is acquiring a 25% stake in Canadian oil-producing assets for about 350 million Canadian dollars ($254 million).The company said it will fund the deal with about CA$113 million in stock issued to the seller at closing, with the rest coming from cash, free cash flow and borrowings.It also agreed to up to CA$25 million in contingent payments tied to oil prices, payable in Q1 2028 if targets are met, the company said.Northern Oil and Gas said the assets include more than 500 drilling locations in Alberta's Duvernay shale basin and are expected to produce about 4,000 barrels of oil equivalent per day in 2027, with operating costs below $7.50 per barrel.Parallax Energy will continue operating the fields under a long-term development agreement, it added.Northern Oil and Gas said it plans to invest $40 million to 45 million in capital spending in 2026 and $45 million to 50 million in 2027, and may hedge currency exposure tied to operating costs. The deal is expected to close in Q2.

Northern Oil and Gas Keeps Quarterly Dividend at $0.45 a Share, Payable July 31 to Holders of Record June 29

Northern Oil and Gas Sees Strong Rise in Gas Output as Crude Production Slips in Q1

Northern Oil and Gas (NOG) produced 10% more hydrocarbons in Q1 than in the same period of 2025, it said in its earnings report, with oil averaging 148,303 barrels per day, while natural gas output rose 33% to 40.4 million cubic feet per day.While produced barrels of oil equivalent increased, within that there was a reduction in crude oil output. Crude production was 6.6 million barrels over the quarter, down 6% from Q1 2025's 7.1 million, but gas output rose to 448.4 billion cubic feet versus 337.7 billion.The company completed 41 ground game transactions that added more than 5,100 net acres and 6.14 net wells at a total cost of $43.6 million, it said.Northern Oil and Gas said the current geopolitical context was generally favorable to its business and it was "well-positioned to navigate it," it said, noting improved price realizations. It said this was also true of 2027 and 2028 forward prices which it said were now higher, giving it confidence to invest.The company said it has added 70 new asset locations in the past year, building "an underappreciated runway of future value" that it said would later differentiate it from its peers.Well performance remains strong across all basins where it operates with Appalachian volumes having set another production record.Interestingly, the statement noted that there was a bottleneck on its gas production due to a lack of "takeaway capacity" in the Permian Basin.

Northern Oil and Gas Q1 Adjusted Earnings, Revenue Decline

Northern Oil and Gas (NOG) Q1 adjusted earnings late Tuesday of $0.74 per diluted share, down from $1.33 a year earlier.Analysts polled by FactSet expected $0.68.Revenue for the quarter ended March 31 was $5 million, compared with $602.1 million a year earlier.Analysts surveyed by FactSet expected $511.4 million.