Northern Oil and Gas down as co plans sale of additional $150 mln convertible notes

Shares of Northern Oil and Gas NOG.N down 2.8% in extended trading to $30.29 as it looks to raise more capital

Minnetonka, Minnesota-based firm says intends to offer an additional $150 mln of its 3.625% convertible notes due 2029

New notes will form part of same series of the $500 mln principal notes that were issued in Oct 2022

It plans to use net offering proceeds for general purposes, initially for partial repayment of its revolver

Co also to use portion of proceeds to pay for capped calls, derivative transactions used to mitigate shareholder dilution

NOG says its primary strategy is to acquire and invest in non-operated minority working and mineral interests in the premier hydrocarbon producing basins in the U.S.

With 98.7 mln shares outstanding, co has ~$3 bln market cap

NOG shares on Thurs edged up 6 cents to close at $31.15. YTD, stock down 16%

Avg rating among 11 analysts is "buy" with $34 median PT, according to LSEG data