Northern Oil and Gas (NYSE:NOG) said on Wednesday it agreed to acquire assets in Texas' Midland Basin from Laredo Petroleum (NYSE:LPI) for $110M in cash.
The non-operated assets comprise ~1,650 net acres and have expected FY 2023 average net production of ~1,800 boe/day (~72% oil).
The assets include 6.4 net producing wells, 1.6 net wells-in-process and ~8 net undeveloped locations; nearly all of the assets are operated by SM Energy (SM).
Northern Oil (NOG) said it expects the deal will be accretive to key valuation metrics, including TEV/EBITDA, earnings per share, free cash flow and cash flow per share, over a multi-year period.
Earlier this year, Northern Oil and Gas (NOG) made a bolt-on acquisition of assets in North Dakota's Williston Basin for $170M.