Northern Oil and Gas (NOG) partners with Infinity Natural Resources to purchase Ohio Utica assets for a combined unadjusted purchase price of $1.2 billion in cash.
NOG's interest in the acquisition represents a 49% undivided ownership in the Utica Assets, with $588 million allocated to NOG.
The acquisition includes upstream assets with exposure to dry gas, rich gas, and condensate production, as well as midstream assets with over 140 miles of gathering pipelines and compression systems.
Acquisition Details
Purchase of Ohio Utica assets from Antero Resources Corporation and Antero Midstream Corporation for $1.2 billion in cash.
Production Outlook
Estimated 2026 production of ~65 MMcfe per day with a 30%+ CAGR through the decade and over 100 gross undeveloped locations.
Financial Impact
Assets expected to generate $100 million in cash flow from operations in 2026, with significant growth expected through the end of the decade.
Midstream Growth
Midstream free cash flow expected to grow 140% by the end of the decade with over $100 million in annual capital spending.
Borrowing Base Increase
Assets expected to support a significant increase in Borrowing Base and Elected Commitment under NOG's Reserves Based Lending Facility.
- The acquisition strengthens NOG's natural gas profile with significant production and growth potential.
- The assets acquired provide a resilient inventory with low breakeven prices and high margins, supporting cash flow growth.
- Midstream assets offer strong growth potential with ample capacity and connections to premium markets.
- The transaction is expected to enhance NOG's financial position and competitiveness in the natural gas sector.
The joint acquisition with Infinity Natural Resources positions Northern Oil and Gas for substantial growth and cash flow generation in the natural gas sector. The company's diversification through the acquisition of Utica assets contributes to its strategic expansion plans.