NOG Novo Joint Acquisition June 2023

Northern Oil and Gas (NOG) announced its acquisition of a 33.33% undivided stake in the Novo Assets for $500 million, its largest acquisition to date. The assets include ~5,600 net acres in the Delaware Basin to be jointly developed with Earthstone Energy, with anticipated cash flow from operations exceeding $180 million in the next 12 months. The transaction, effective May 1, 2023 and expected to close in August 2023, represents a <2.8x transaction multiple with sub-$45 per barrel break-even economics.