Northern Oil and Gas Inc. (NOG) extended the maturity of its reserves‑based revolving credit facility to November 2030 and reduced the borrowing cost by 60 basis points, while keeping the elected commitment at $1.6 billion and the borrowing base at $1.8 billion. The amendment, administered by Wells Fargo and supported by a syndicate of 20 lenders, replaces the previous maturity of June 2027 and maintains the same credit limits, giving the company a longer window to access working‑capital financing.
Chief financial officer Chad Allen said the cost reduction “is a significant win in an increasingly challenging macro environment.” The 60‑basis‑point cut translates to a lower all‑in cost of debt, improving NOG’s weighted‑average debt maturity to six years and reducing refinancing risk. The facility remains the primary source of working capital for the company’s non‑operated model, which focuses on acquiring minority interests in high‑producing basins.
The amendment follows a series of prior adjustments: in June 2022 the borrowing base was increased to $1.3 billion and the maturity extended to June 2027; in August 2023 the borrowing base was set to $1.8 billion; and in April 2024 the elected commitment was raised to $1.5 billion. With total debt of $2.36 billion as of the most recent quarter, the new terms reinforce NOG’s strategy of de‑risking its balance sheet while preserving flexibility for future acquisitions.
By extending the credit line and lowering its cost, NOG strengthens its liquidity profile and positions itself to fund non‑operated acquisitions without relying on market‑timed debt issuances. The move also signals confidence in the company’s ability to manage its maturity wall, a key concern for investors in the oil and gas sector where commodity price volatility can pressure cash flows. The lower borrowing cost directly reduces interest expense, improving net income and freeing cash for capital allocation.
Overall, the amendment enhances NOG’s financial resilience, supports its growth strategy, and mitigates refinancing risk in a volatile macro environment.
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