Northern Oil and Gas plant acquisition of Granite Ridge Resources

The Minneapolis-based company Northern Oil and Gas has made a takeover bid for the smaller U.S. oil and gas company Granite Ridge Resources, according to sources familiar with the matter. Granite Ridge, operating in basins like the Permian and Eagle Ford, has already received at least two offers from Northern. The latest bid, made in recent weeks, is approximately 20% above Granite Ridge's current stock price. Although Granite Ridge's management has rejected previous offers, Northern remains interested and may potentially present an improved offer next year. Granite Ridge declined to comment on the developments, and Northern did not respond to a request for comment. The majority of Granite Ridge shares are held by Grey Rock Investment Partners, a private equity firm founded by Matt Miller and Griffin Perry, who serve as co-chairmen of the Dallas-based company. Kirk Lazarine, another founder of Grey Rock, also sits on the board. Granite Ridge, listed on the New York Stock Exchange since its 2022 merger with a blank-check company backed by Paul Ryan, has lost 12% of its value in the last three months. This is a slight underperformance compared to the S&P 500 Oil & Gas Exploration & Production Index. The shares were last traded at $5.72, equating to a market capitalization of nearly $750 million. Northern, one of the largest non-operating producers in the U.S. shale oil sector, has recently consolidated through smaller acquisitions, partnerships, and joint ventures. Should the acquisition of Granite Ridge succeed, it would be the largest acquisition in Northern's corporate history.