A joint venture between Northern Oil and Gas and Vital Energy will pay $1.1 billion for the rights to U.S. shale assets from private equity-owned Point Energy Partners. Those assets include the Delaware patch of the Permian Basin, which runs through Texas and New Mexico.
According to a news release, Vital Energy will buy an 80% stake in the Point Energy assets, while Northern Oil and Gas will acquire the remaining 20%. These assets encompass 4,000 leasehold and mineral acres, 26.4 producing wells, and 1.6 wells-in-process, located primarily southwest of Midland County in Ward County.
"This transaction further emphasizes NOG’s position as the most reliable and consistent partner for the purchase and development of high-quality properties," commented Nick O’Grady, CEO of Northern Oil and Gas. "We are very excited to again work alongside our partners at Vital to develop the Point Assets with strong alignment and cooperation. These assets will be easily funded on-balance sheet and their strong cash flows should provide for immediate growth and significant accretion to per share metrics, shareholder returns and the potential for compounding of growth in the years to come."
According to Northern Oil and Gas' website, the company already operates on 39,600 acres in the Permian Basin, 178,200 acres in the Williston Basin (which includes eastern Montana, western North Dakota, South Dakota, and portions of Canada), and 54,200 acres in the Appalachian Basin (spanning parts of New York, Pennsylvania, Ohio, Maryland, Kentucky, Tennessee, Virginia, and West Virginia).