Northern Oil and Gas rises after upsized $175 mln convertible notes sale

Northern Oil and Gas

13/06/2025 14:23

** Shares of Northern Oil and Gas NOG.N up 4.3% premarket to $32.50 after co raises more capital than targeted

** NOG shares also boosted as crude prices soar after Israel strikes Iran O/R

** Minnetonka, Minnesota-based firm late Thurs announced reopening and pricing $175 mln of its 3.625% convertible notes due 2029

** Offering size boosted from $150 mln; initial conversion price of $37.06 represents 19% premium to stock's last close

** The new notes will form part of same series of the $500 mln principal notes that were first issued in Oct 2022

** It plans to use net offering proceeds for general purposes, initially for partial repayment of its revolver

** Co also to use ~$14.8 mln of proceeds to fund capped calls, derivative transactions used to mitigate shareholder dilution, and up to $35 mln to repurchase 1.1 mln of its shares

** NOG, which has roughly $3 bln market cap, says its primary strategy is to acquire and invest in non-operated minority working and mineral interests in the premier hydrocarbon producing basins in the U.S.

** Through Thurs, NOG shares down 16% YTD

** Avg rating among 10 analysts is "buy" with $34 median PT, according to latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))