Northern Oil and Gas Announces Strategic Entry into the Utica Shale Through $588 Million Joint Acquisition with Infinity Natural Resources
Northern Oil and Gas, Inc. (NYSE: NOG), a leading non-operating energy company focused on the acquisition and development of oil- and gas-producing assets across premier U.S. basins, has unveiled a major expansion into the Utica shale of eastern Ohio. The Company announced that it has signed a definitive agreement to acquire a 49% ownership stake in a package of high-quality upstream and midstream assets, partnering with Infinity Natural Resources in a transaction valued at $588 million in cash, net to NOG, subject to customary closing adjustments.
This highly strategic acquisition marks NOG’s first significant entry into the Utica Basin, one of the most prolific natural gas plays in North America. The investment broadens the Company’s natural gas portfolio and enhances its long-term scale, while providing durable and integrated commercial advantages through access to complementary midstream infrastructure.
High-Growth Upstream Position in the Core Utica Play
The acquisition includes approximately 35,000 net acres located in the most productive core of the Ohio Utica shale, representing one of the few remaining large-scale growth opportunities in the basin capable of supporting a multi-year, continuous development program.
The acreage comes with more than 100 gross, identified undeveloped well locations, offering a long inventory runway and strong potential for future drilling economics. The working interest associated with the upstream position is approximately 43% net to NOG, giving the Company a meaningful stake in a top-tier development asset.
NOG forecasts that net production from the acquired position will reach approximately 65 million cubic feet equivalent (MMcfe) per day in 2026. The production mix is expected to be heavily weighted toward natural gas — roughly 92% gas under a 2-stream reporting basis — supporting NOG’s ongoing strategy to expand its role in the growing U.S. natural gas market.
Significant production ramp-up is anticipated, underpinned by the ongoing drilling program. Management projects a compound annual growth rate (CAGR) exceeding 30% through the end of the decade if a single rig is continuously deployed. These metrics highlight what NOG describes as one of the strongest remaining return-focused growth opportunities in the core Utica.
The asset also features a low base decline profile, with proved developed producing (PDP) decline expectations of approximately 15% over the next 12 months, moderating to around 13% over the following years. This steady decline curve supports reliable cash flow generation while the new development locations ramp into production.
Based on current commodity strip pricing, NOG estimates that the upstream asset will generate around $100 million in unhedged operating cash flow in 2026, net to the Company. Approximately 19% of this value is attributable to the accompanying midstream assets, reinforcing the importance of infrastructure integration in the deal structure.
To support this growth trajectory, the asset is expected to require an average annual capital investment of approximately $100 million, aligning with a disciplined, single-rig cadence. NOG emphasized that capital-efficiency and high-margin production growth are central pillars of the Company’s valuation thesis for the newly acquired position.
Integrated Midstream Provides Margin Advantages and Future Upside
A defining feature of the asset package is its fully integrated, captive midstream system, which enables premium pricing and efficient flow assurance without the need for substantial additional infrastructure spending.
The operational footprint includes:
- Roughly 140 miles of gathering pipeline for both high- and low-pressure gas
- Compression capabilities supporting robust deliverability
- 90 miles of water gathering and delivery systems
- Access to regional natural gas processing through interconnections with MPLX and Blue Racer facilities
- Superior market access through direct interconnectivity with the Tallgrass REX (Rockies Express) pipeline, giving exposure to premium out-of-basin pricing
The system has previously handled throughput levels of approximately 600 MMcfe per day (gross), indicating significant unused capacity and minimal incremental capital needs for growth.
With expected production increases across the acreage, midstream cash flows are projected to grow by approximately 75% by 2028. NOG also sees additional upside potential from third-party volume opportunities, which could generate fee-based revenues and drive enhanced utilization of existing infrastructure.
This combination of upstream productivity and efficient takeaway solutions positions the asset to deliver best-in-class margins, strong cash flow generation, and resilient economics under a range of commodity price environments.
Governance, Operations, and Closing Timeline
Following the transaction closing and related operational transitions, Infinity Natural Resources will serve as operator of substantially all upstream and midstream assets. NOG will participate in development activities under multi-year joint development and cooperation agreements established alongside the acquisition.
The effective date of the transaction is July 1, 2025, and the parties expect to finalize closing by the end of the first quarter of 2026. Because of the effective date, NOG anticipates receiving a material downward purchase price adjustment at closing, which will reflect cash flows accruing from the assets prior to the transaction’s completion.
Upon signing, NOG placed a $58.8 million deposit into escrow, reflecting confidence in the closing process and the long-term strategic benefits of the acquired position. Completion of the transaction remains subject to customary closing conditions, including regulatory approvals as required.
Strengthening NOG’s Gas-Focused Growth Platform
This joint acquisition marks a milestone in NOG’s portfolio evolution — significantly expanding the Company’s natural gas exposure while diversifying its operating basins and establishing a scalable footprint in a top-tier shale play.
With integrated infrastructure in place and robust drilling inventory supporting long-term development, the acquired assets are set to enhance NOG’s growth, cash flow durability, and energy market relevance for years to come.
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