Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 19, 2018

 

 

NORTHERN OIL AND GAS, INC.

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware   001-33999   95-3848122

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

601 Carlson Parkway, Suite 990

Minnetonka, Minnesota

  55305
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code (952) 476-9800

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01.

Regulation FD Disclosure.

Operational Update

In connection with its previously announced private offering of 8.50% Senior Secured Second Lien Notes due 2023 (the “Senior Secured Notes”), Northern Oil and Gas, Inc. (the “Company”) provided additional information to investors regarding its reserves, swap positions and certain pro forma financial statements as described below (including, where indicated, (i) assets acquired from affiliates of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP (the “Pivotal Acquisition”), namely Pivotal Williston Basin, LP and Pivotal Williston Basin II, LP (together, the “Pivotal Entities”) and (ii) assets subject to our pending acquisition from WR Operating LLC (“W Energy”) that is expected to close no later than October 11, 2018).

******

The following table provides a summary of certain information regarding our assets:

 

     Operational Data
(as of June 30, 2018)
     Reserves
(as of June 30, 2018)
 
     Net
Acres
     Gross
Wells
     Net
Wells
     Proved
Reserves
(MMBoe)

(2)
     % Oil     % Proved
Developed
    PV-10
SEC
Pricing (in
thousands)

(1)
     PV-10 Strip
Pricing (in
thousands)

(2)
     PV-10 of
PDP
Reserves (in
thousands)

(2)
 

Northern Historical

     142,248        3,510        248.3        87.4        81     67     1,175,633        1,187,475        767,342  

Pivotal

     444        334        20.8        8.3        83     87     144,344        149,236        108,475  

W Energy

     10,633        910        27.2        19.5        79     60     290,551        292,907        150,082  
  

 

 

       

 

 

    

 

 

        

 

 

    

 

 

    

 

 

 

Total

     153,325        4,408        296.3        115.2        81     67     1,610,528        1,629,618        1,025,899  
  

 

 

       

 

 

    

 

 

        

 

 

    

 

 

    

 

 

 

 

(1)

PV-10 is a non-GAAP financial measure. The prices used to calculate this measure were $57.67 per barrel of oil (WTI-Cushing spot price) and $2.92 per MMBtu of natural gas (Henry Hub price), which prices were then further adjusted for transportation, quality and basis differentials.

(2)

The prices used to calculate this measure were based on NYMEX strip prices as of June 29, 2018.

(3)

The total gross wells reflects our total gross well count, pro forma for the Salt Creek Acquisition, Pivotal Acquisition and W Energy Acquisition, due to our holding a prior interest in 346 gross wells that were acquired.

******


Our acreage position, as of June 30, 2018 is presented in the following table:

 

     Net Acres  

Location

   Developed      Undeveloped      Total      %
Developed
 

North Dakota:

           

Mountrail County

     26,506        923        27,429        97

Dunn County

     16,370        668        17,038        96

McKenzie County

     27,182        1,885        29,067        94

Williams County

     17,844        1,656        19,500        92

Divide County

     15,532        1,157        16,689        93

Other

     14,039        3,712        17,751        79
  

 

 

    

 

 

    

 

 

    

North Dakota

     117,473        10,001        127,474        92

Montana

     11,238        3,536        14,774        76
  

 

 

    

 

 

    

 

 

    

Northern Historical

     128,711        13,537        142,248        90
  

 

 

    

 

 

    

 

 

    

Pivotal

     444        —          444        100

W Energy

     10,592        41        10,633        100
  

 

 

    

 

 

    

 

 

    

Total(1)

     139,747        13,578        153,325        91
  

 

 

    

 

 

    

 

 

    

 

(1)

Pro forma for the net acreage attributed to the Pivotal and W Energy acquisitions.

******

The following table summarizes the open oil derivative contracts that we have entered into that settle after June 30, 2018, by year:

 

Open Contracts

 
Year    Swap Volume (Bbls)      Weighted Average Swap
Price ($ per Bbl)
 

2018

     2,858,760        60.53  

2019

     4,130,580        57.94  

2020

     2,013,080        53.82  

2021 and beyond

     631,600        55.67  

******

The unaudited pro forma financial statements of the Company for the year ended December 31, 2017 and six months ended June 30, 2018 and 2017, giving effect to the Pivotal Acquisitions and the acquisition of certain oil and gas properties and interests from W Energy, are furnished as Exhibit 99.1 and incorporated by reference herein.

The consolidated financial statements of W Energy for the year ended December 31, 2017 and the period from May 17, 2016 (inception) through December 31, 2016 are furnished as Exhibit 99.2 and incorporated by reference herein.

The consolidated financial statements of W Energy for the three and six month period ended June 30, 2018 and 2017 and the year ended December 31, 2017 are furnished as Exhibit 99.3 and incorporated by reference herein.

The statement of revenues and direct operating expenses of the Pivotal Entities for the year ended December 31, 2017 and six months ended June 30, 2018 and 2017 are furnished as Exhibit 99.4 and incorporated by reference herein.

The information in this Item 7.01, including Exhibits 99.1, 99.2, 99.3 and 99.4, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as set forth by specific reference in such filing.


Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit

    No.    

  

Description

99.1    Unaudited Pro Forma Financial Statements for the Year Ended December 31, 2017 and Six Months Ended June 30, 2018 and 2017.
99.2    Consolidated Financial Statements of W Energy for the Year Ended December 31, 2017 and the period from May 17, 2016 through December 31, 2016
99.3    Consolidated Financial Statements of W Energy for the Three and Six Month Periods Ended June 30, 2018 and 2017 and the Year Ended December 31, 2017
99.4    Statement of Revenue and Direct Operating Expenses of the Pivotal Entities for the Year Ended December 31, 2017 and Six Months Ended June 30, 2018 and 2017


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: September 19, 2018     NORTHERN OIL AND GAS, INC.
    By  

/s/ Erik J. Romslo

     

Erik J. Romslo

Executive Vice President, General Counsel and Secretary