Followers | 240 |
Posts | 12051 |
Boards Moderated | 0 |
Alias Born | 04/05/2009 |
Friday, August 26, 2016 9:42:49 AM
TRT Holdings and related companies own almost 20 percent of the firm's stock.
By Mike Hughlett
A billionaire Texas oilman and luxury hotel chain owner might be eyeing an acquisition of troubled Northern Oil and Gas, according to a stock analyst.
TRT Holdings and other firms affiliated with Bob Rowling have built up about a 19 percent stake in Northern Oil and Gas since early 2015. They control a big chunk of the company’s 8 percent unsecured debt, too.
Rowling made his fortune in oil, and TRT owns the Omni hotels, Gold’s Gym and Tana Exploration, an oil and gas company.
Wayzata-based Northern last Wednesday fired its CEO Michael Reger after federal securities regulators indicated they were pursuing an enforcement action against him. The case involves alleged manipulation of the stock of Dakota Plains, a separate company. Northern says it’s cooperating with the investigation.
Reger’s ouster dominated the news that day: The co-founder of Northern was pushed out without any severance — a rarity in CEO circles. But Northern noted in the same news release that it had hired an investment banker — Houston-based Tudor, Pickering, Holt & Co. — and that its board was “evaluating strategic alternatives to increase shareholder value.”
Northern is dealing with historic oil patch woes, and when troubled companies say such things, a sale is usually an alternative.
Given TRT’s extensive holdings in Northern already, the firm would make a likely suitor, said Jason Wangler, an analyst at Wunderlich Securities in Houston.
“You would have to think that is one of the first steps [TRT] would look at: How much more of a stake do they want to take? They have a very vested interest in the company.”
And despite Northern’s troubles, “there is still value there,” Wangler said.
Dallas-based TRT didn’t return phone calls. Northern also didn’t return a call.
Northern invests in oil leases and drilling projects in North Dakota’s oil fields, and has been hammered by a two-year global oil glut. Its stock trades under $4, well below its 2011 oil boom peak of around $30.
The company lost $109 million during its second quarter due to asset impairments, but posted a $6.5 million profit when adjusted for one-time items.
On Aug. 9, Northern Oil’s board appointed Michael Frantz, a TRT vice president, as a director — TRT’s first apparent presence on the company’s board. Then the sequence of events that led to Reger’s termination occurred.
On Aug. 11, Reger notified Northern that he had received a notice from the Securities and Exchange Commission of a preliminary recommendation of an enforcement action against him. On Aug. 16, Northern announced Reger’s exit without severance.
A day later, Reger sued Northern in a Minnesota court for wrongful termination. He claims Northern told him he would be let go, but he would be provided with full severance benefits under his employment agreement for termination with cause. Then Northern switched gears on Aug. 15, Reger’s suit claims.
So could the change in tone be related to Frantz’s arrival at Northern? Wangler said he would doubt that. “TRT has been building a large stake in the company for a long time. And the SEC doesn’t forecast what it’s up to.”
http://www.startribune.com/analyst-texas-company-might-be-suitor-for-northern-oil-and-gas/391082261/
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
Recent NOG News
- NOG Declares $0.40 Quarterly Cash Dividend • Business Wire • 05/02/2024 08:15:00 PM
- NOG Announces First Quarter 2024 Results, Achieves New Quarterly Production Record • Business Wire • 04/30/2024 10:00:00 AM
- NOG Announces Expansion of Revolving Credit Facility • Business Wire • 04/29/2024 09:00:00 PM
- NOG Provides Update on First Quarter Hedging Results and Stock Repurchases • Business Wire • 04/16/2024 08:10:00 PM
- NOG Schedules First Quarter 2024 Earnings Release and Conference Call • Business Wire • 04/04/2024 11:00:00 AM
- NOG Publishes 2022 ESG Report • Business Wire • 04/03/2024 08:45:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:41:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:40:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:40:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:40:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:39:56 PM
- NOG CEO Nick O’Grady to Present at the Raymond James 45th Annual Institutional Investors Conference on March 5, 2024 • Business Wire • 03/01/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:19:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:18:52 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 09:09:08 PM
- NOG Announces Fourth Quarter and Full Year 2023 Results; Provides Detailed 2024 Guidance • Business Wire • 02/22/2024 09:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/16/2024 09:04:46 PM
- NOG Provides Fourth Quarter 2023 Operations Update and Preliminary 2024 Guidance • Business Wire • 02/15/2024 09:05:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/09/2024 11:21:28 PM
- NOG Declares $0.40 Quarterly Cash Dividend, 18% Increase Year-over-Year and Provides Update on Current Hedge Position • Business Wire • 02/06/2024 09:05:00 PM
- NOG Announces Closings of Utica and Northern Delaware Acquisitions • Business Wire • 02/05/2024 09:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/01/2024 08:14:38 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/01/2024 08:05:06 PM
- NOG Schedules Fourth Quarter and Year-End 2023 Earnings Release and Conference Call • Business Wire • 01/31/2024 09:05:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/23/2024 04:52:32 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM