Northern Oil and Gas is contemplating the acquisition of Granite Ridge Resources

Northern Oil and Gas, based in Minneapolis, has submitted a takeover bid for the smaller US oil producer Granite Ridge Resources. Granite Ridge, known for its operations in major production areas such as the Permian Basin and the Eagle Ford, appears to be in the sights of the larger rival. According to information from confidential sources, Northern recently offered a price about 20% above the current share price of Granite Ridge. Despite repeated attempts, Granite Ridge's management has thus far shown little interest in a deal. However, there is a possibility that the offer may be improved in the coming year. Granite Ridge, whose stock price has fallen by about 12% in recent months and is currently quoted at $5.72, has declined to comment. The company is among the significant investments of private equity firm Grey Rock Investment Partners, a capital company founded by Matt Miller and Griffin Perry. Both also serve as co-chairs of the company. Granite Ridge is known for its strategic focus on joint-venture-like production methods, in which it shares operating costs with other producers. Northern, on the other hand, has established itself as one of the leading non-operating producers in the US through various acquisitions, partnerships, and joint ventures. A successful acquisition of Granite Ridge would mark the largest in the company's history to date. As both companies operate in key shale areas, an acquisition could further expand Northern's reach and open up new opportunities in the Eagle Ford, Haynesville, and Denver-Julesburg regions.