Northern Oil & Gas Acquires 25% Stake in Alberta’s Duvernay Light-Oil Assets, Marking Entry into Canada

Northern Oil & Gas, Inc. (NYSE: NOG) agreed on May 26 2026 to purchase an undivided 25 % non-operated interest in light-oil assets located in Alberta’s Duvernay East Shale Basin from Parallax Energy Operating Inc. The transaction, effective April 1 2026, carries an unadjusted price of CA$350 million (?US$259 million) and is slated to close in the late second quarter of 2026. Payment consists of CA$113 million of NOG common stock issued to Parallax at closing, with the balance funded by cash, operating free cash flow and borrowings under NOG’s revolving credit facility. A contingent payment of up to CA$25 million may be made in Q1 2028 if average oil prices meet specified thresholds. NOG formed a wholly-owned Canadian subsidiary, NOG Energy Canada Ltd., to hold the interest. The assets comprise roughly 75,000 net acres, more than 500 gross drilling locations and net production of about 4,000 boe per day (?80 % light oil) expected in full-year 2027. Parallax will continue to operate the properties under a long-term Joint Development Agreement with multi-year drilling commitments.

NOG acquires Duvernay shale position in AlbertaNorthern Oil and Gas Reaches First Deal for Canadian Energy Assets – Strategic Duvernay Entry Strengthens Scale, Diversification, and Long-Term InventoryNOG: CA$350 Million Duvernay Acquisition Marks Strategic Entry Into CanadaNOG to acquire 25% Duvernay light oil stake for $253mNorthern Oil and Gas enters Canada with CA$350M Duvernay dealNOG buys stake in Parallax Duvernay assets

NOG’s scaled non-operator model seeks high-quality, low-cost inventory as light-oil supplies become scarcer. The Duvernay play is regarded as a premier North-American light-oil resource with breakeven costs below $50 per barrel WTI and an estimated 20-year production runway. Acquiring the stake diversifies NOG’s geographic exposure beyond U.S. basins, adds low-cost oil, and aligns with its disciplined capital-allocation strategy. Parallax’s backing by Carnelian Energy Capital provides an experienced operator for the development program.

Northern Oil and Gas Reaches First Deal for Canadian Energy Assets – Strategic Duvernay Entry Strengthens Scale, Diversification, and Long-Term Inventory

Net to NOG, the acquisition adds ~4,000 boe/d of production, operating costs under $7.50 per boe (below NOG’s corporate average), and capital-expenditure requirements of US$40-45 million in 2026 and US$45-50 million in 2027. The transaction multiple is under 3.0× projected twelve-month unhedged cash flow, described as leverage-neutral at signing and accretive over the longer term. NOG plans to hedge Canadian currency exposure on operating costs and may repurchase a portion of the issued stock opportunistically.

Northern Oil and Gas Reaches First Deal for Canadian Energy Assets – Strategic Duvernay Entry Strengthens Scale, Diversification, and Long-Term Inventory

Pro forma 2026 guidance was raised to 143,000-148,000 boe/d total production (up from 139,000-143,000) and 71,500-73,500 bbl/d oil (up from 68,000-72,000). Capital spending remains flat at $850-900 million. Management expects lower LOE per boe, tighter oil differentials and unchanged cash G&A, resulting in improved TEV/EBITDA, EPS, free cash flow and cash-flow-per-share metrics.

Northern Oil and Gas Reaches First Deal for Canadian Energy Assets – Strategic Duvernay Entry Strengthens Scale, Diversification, and Long-Term Inventory

NOG management said the deal reflects disciplined evaluation of a scarce, high-quality asset and that the equity component aligns seller interests while enhancing per-share metrics. Parallax’s leadership, supported by Carnelian Energy Capital, was highlighted as a proven operator capable of unlocking the Duvernay’s upside. Investor-relations vice-president Evelyn Infurna noted the acquisition “checked off every single box” regarding resource quality, governmental stability and strategic fit, and affirmed confidence in Canada as an investment destination.

NOG: CA$350 Million Duvernay Acquisition Marks Strategic Entry Into Canada

• “Quality oil inventory is becoming increasingly scarce, and NOG’s scaled non-operated model positions us to access opportunities that most in our sector cannot,” — Northern Oil & Gas, Management

NOG acquires Duvernay shale position in Alberta

• “Parallax is led by a team with a demonstrated track record of developing Duvernay assets, backed by Carnelian Energy Capital, one of North America’s leading energy investors.” — Northern Oil & Gas, Management

NOG Announces Strategic Entry into Canada with Light Oil Duvernay Acquisition; Takes 25% Undivided Stake in Assets with Long-Term Joint Development Agreement

• “this deal just screened positively on so many different fronts,” — Evelyn Infurna, Vice-President, Investor Relations, Northern Oil & Gas

The Globe and Mail (Toronto)

• “The deal with Parallax “checked off every single box,” from the amount and quality of the resource to a stable government with very little geopolitical risk, she said.” — Evelyn Infurna, Vice-President, Investor Relations, Northern Oil & Gas

The Globe and Mail (Toronto)

• “It gives us the assurance that Canada is a great place to invest,” — Evelyn Infurna, Vice-President, Investor Relations, Northern Oil & Gas

The Globe and Mail (Toronto)

The transaction is expected to close by late Q2 2026, after which NOG Energy Canada will assume ownership and begin joint development with Parallax. Capital spending will be allocated to drilling and completions in 2026-27, while currency hedges and optional stock repurchases will manage financial risk. Monitoring of oil-price thresholds will determine whether the contingent CA$25 million payment is triggered in early 2028. Successful execution will expand NOG’s low-cost light-oil inventory and reinforce its non-operator growth model.

NOG acquires Duvernay shale position in Alberta