Northern Oil and Gas Pursues Acquisition of Granite Ridge Resources

By David French

(Reuters) – Northern Oil and Gas has made an acquisition offer for Granite Ridge Resources, a smaller U.S. producer operating in basins such as the Permian and Eagle Ford (NYSE:F), according to sources familiar with the matter.

Minneapolis-based Northern has reportedly submitted at least two offers for Granite Ridge, with the most recent bid being about 20% above the target's share price.

Although Granite Ridge's management has declined the proposals thus far, Northern continues to express interest and may enhance its offer next year, the sources shared, requesting anonymity due to the confidential nature of the discussions.

Following the acquisition news, Granite Ridge's shares surged over 10% on Friday, bringing the company’s market value to approximately $809 million. As of the end of September this year, it had a net debt of about $136 million, according to LSEG data.

Northern, with a market cap of roughly $3.6 billion, saw a slight decrease of 1.2% in its stock price.

In a statement, Northern conveyed that it often sends expressions of interest for asset acquisitions but many are rejected, adding, “it is not currently engaged in formal negotiations to acquire Granite Ridge.” Granite Ridge did not provide a comment on the matter.

Granite Ridge is primarily owned by entities under Grey Rock Investment Partners, co-chaired by Matt Miller and Griffin Perry. Co-founder Kirk Lazarine also serves on the board.

The company, listed in New York since its 2022 merger with a blank-check firm linked to former U.S. House Speaker Paul Ryan, has seen its shares decline over 40% since the listing until Thursday's close.

Both Northern and Granite Ridge focus on non-op production, meaning they contribute to drilling costs and share revenue from hydrocarbon sales, while another producer handles the operations of the wells.

Northern is among the largest non-op producers in the U.S. shale sector, expanding through various smaller acquisitions, partnerships, and joint ventures.

A successful acquisition of Granite Ridge would mark Northern's largest acquisition to date, enhancing its footprint across multiple shale basins including the Permian, Williston, Eagle Ford, Haynesville, and Denver-Julesburg.