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DJ Northern Oil & Gas Shares Up After Stock Offering Prices

· 02/05/2021 12:39
By Robb M. Stewart

Northern Oil & Gas Inc. shares advanced Friday after the company priced an equity raising to help fund its pending acquisition of natural-gas assets in the Appalachian Basin.

In afternoon trading, the stock was 12% higher at $11.70. It has risen 34% in the new year, though is down 32% over the last 12 months.

A public offering of 12.5 million shares was priced at $9.75 each, Northern said late Thursday. Underwriters have a 30-day option to buy up to almost 1.9 million additional shares.

In the wake of the pricing and Northern's plans to refinance debt, S&P Global Ratings lifted its credit rating on the company to B- from CCC+, with a stable outlook. On Wednesday, Fitch Ratings assigned a first-time long-term issuer default rating of B on Northern, with a stable outlook.

Alongside the sale of shares, Northern earlier this week said it also would sell $500 million in new senior notes due 2028 in a price placement to raise funds to for its planned purchase of certain non-operated gas assets from Reliance Marcellus LLC, repay some outstanding borrowings on a revolving credit facility and repurchase or redeem notes due 2022 and 2023.

The assets in the Appalachian Basin, which Northern said it was buying for $175 million in cash and about 3.25 million warrants to buy shares at a $14 exercise price, cover about 64,000 net acre, with more than 100 producing wells. Northern's strategy is to invest in oil and gas properties in basins in the U.S.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 05, 2021 12:39 ET (17:39 GMT)

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