Northern Oil & Gas Inc., Minneapolis, has agreed to acquire Williston basin assets from W Energy Partners, a Crestview Partners portfolio company, for $100 million in cash and 56.37 million shares of Northern common stock. The acquisition, the company said, is the largest in its history.
The assets being acquired comprise 10,600 net acres and, at closing, an estimated 6,750 boe/d of production, adding “robust drilling inventory under some of the best acreage in the Williston basin,” said Northern’s founder and Pres. Mike Reger. The acreage is “highly complementary” to its recent Pivotal acquisition, he said, noting the excess cash flow from the acquisitions puts the company in a position of “the natural consolidator of non-operated working interests in the Williston basin.”
In July, Northern announced plans to acquire a North Dakota asset from Tailwater Capital LLC-backed Pivotal Petroleum Partners (OGJ Online, July 18, 2018). That deal came on the heels of two bolt-on Williston basin acquisitions in June (OGJ Online, June 8, 2018; June 27, 2018).
Northern’s expected second-quarter average production of more than 21,000 boe/d exceeds expectations, increasing 52% year-over-year and nearly 17% sequentially to average 21,045 boe/d in the second quarter, the company said.
The latest deal is expected to close in 60 days.