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- NOG Acquires 20% Stake in XCL Assets for $510M
NOG Acquires 20% Stake in XCL Assets for $510M
Slice of Energy Team
July 07, 2024
Key Highlights:
NOG acquires 20% stake in XCL Assets for $510M.
Assets located in Uintah and Duchesne Counties, Utah.
Includes 9,300 net acres and 97.6 underwritten net undeveloped locations.
Expected production >10,000 Boe per day post-closing.
Substantial return upside from extended lateral lengths and cost savings.
Source (Business Wire)
Notable Quotes:
“NOG continues to further define itself as the preeminent national, non-operated franchise, with low leverage, growing cash returns, diversified by both region and commodity mix. The XCL acquisition is consistent with our strategy of investing in the highest quality assets, with significant upside and long-dated inventory, developed and run by leading operators.”
“With XCL, we are acquiring a multi-stacked pay acreage position with significant long-term upside. These assets are exemplary of our returns-focused strategy: delivering immediately while offering significant exploration potential further enhancing NOG’s optionality.”
Our Take:
This acquisition marks a significant strategic move for Northern Oil and Gas, Inc., aligning with their focus on high-quality assets and strong operator partnerships. The transaction enhances NOG's portfolio with substantial upside potential in the Uinta Basin, known for its robust oil resources. By leveraging extended lateral lengths and cost efficiencies, NOG is poised to achieve impressive returns and sustained production levels. This move underscores NOG's commitment to driving growth and delivering value to its shareholders. The collaboration with SM Energy, a reputable operator, further strengthens the operational and developmental outlook of the acquired assets.