Northern Oil and Gas Inc. plans to undertake a reverse stock split of Northern’s common stock, which it expects to boost its share price, Minneapolis-based company, which touts itself as being the largest Williston Basin nonoperator, said in a statement on June 23.
The ratio of the reverse stock split of Northern’s common stock will range from any whole number between 1-for-6 to 1-for-10, as determined by Northern’s board of directors. Northern does not anticipate issuing fractional shares as a result of the reverse stock.
Trading of Northern’s stock closed June 23 at about $0.97 per share.
“The reverse stock split will reduce the number of Northern shares of common stock outstanding and is expected to increase the per share trading price of Northern’s common stock, which may improve marketability and facilitate its trading,” the company said.
A special meeting of Northern stockholders will be held in third-quarter 2020 to seek approval of proposals to authorize the reverse stock split and authorized share reduction.
Northern Oil and Gas is an E&P company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana. The company recently agreed to acquire properties operated by WPX Energy Inc. in the core of the Williston. The $1.5 million cash transaction is expected to close July 1.
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