Northern Oil and Gas has submitted a bid to acquire Granite Ridge Resources, a US producer with operations in basins including the Permian and Eagle Ford, reported Reuters.
The latest offer from the Minneapolis-based company represents an approximately 20% premium over Granite Ridge’s share price, indicating a strategic push to expand its non-operational production (non-op) footprint.
Granite Ridge’s management has rejected Northern Oil and Gas’ offers so far, but sources suggest the company remains interested and may raise its offer next year.
As the news broke, Granite Ridge’s shares surged over 10%, boasting its market value to approximately $809m.
At the end of September, Granite Ridge reported a net debt of around $136m, based on LSEG data.
Meanwhile, Northern Oil and Gas, which has a market capitalisation of approximately $3.6bn, experienced a 1.2% decline in its share price after reversing earlier marginal gains.
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By GlobalDataNorthern Oil and Gas said in a statement: “The company frequently sends expressions of interest to acquire assets or businesses.”
Granite Ridge is predominantly owned by Grey Rock Investment Partners, led by co-chairmen Matt Miller and Griffin Perry. Kirk Lazarine, another co-founder, also holds a board position.
The company’s public trading commenced in 2022 following a merger with a special purpose acquisition company (SPAC) associated with former US House Speaker Paul Ryan. Since its listing, Granite Ridge’s share value has diminished by more than 40%.
Both Northern Oil and Gas and Granite Ridge specialise in non-operated production, a model where they share drilling costs and other expenses to earn a portion of the revenue from hydrocarbon sales.
Both companies operate across multiple shale basins, including the Permian Basin in Texas and New Mexico and the Williston Basin in North Dakota.
Northern Oil and Gas has expanded in recent years through smaller acquisitions, partnerships, and joint ventures. Securing a deal for Granite Ridge would represent Northern’s largest acquisition to date.
Acquiring Granite Ridge would also extend Northern’s footprint into the Eagle Ford, Haynesville, and Denver-Julesburg basins.
