Northern Oil's Strategic Play for Granite Ridge: A Game-Changing Acquisition

Northern Oil and Gas has offered to acquire Granite Ridge Resources, a smaller U.S. producer, with proposals including a 20% premium over Granite Ridge's share price. Despite initial rejections, Northern is persistent and plans to potentially improve their offer. The deal could become Northern's largest acquisition, expanding its operations across several U.S. shale basins.

Northern Oil and Gas is eyeing a bold acquisition of Granite Ridge Resources, according to insiders familiar with the proceedings. The potential deal signifies a strategic expansion for Northern across key U.S. shale basins.

Minneapolis-based Northern has repeatedly approached Granite Ridge with offers, the latest being 20% above the company's share price. Despite initial rejections, Northern plans to continue negotiations and may increase its bid next year, say the sources, who wish to remain anonymous due to the confidential nature of the talks.

Granite Ridge's shares, having traded since a 2022 merger, have dipped 12% recently, valuing the company at $750 million. The acquisition, if successful, would not only be Northern's largest but also extend its reach into significant basins such as the Eagle Ford and Haynesville.

(With inputs from agencies.)