Northern believes that the best way for it to generate long-term value is the continued capital allocation process that has been fine-tuned over the last several years seeing a high volume of acreage and well participation opportunities with which to make capital allocation decisions. That capital allocation process follows a business model:
- Acquire non-operated positions in high quality acreage about to be drilled, that provide for high internal rates of return on capital.
- Partner with leading E&P operators with a successful track record in the Williston Basin, ensuring reliable performance and diversification of operational risk.
- Maintain the financial flexibility, liquidity and discipline to deploy capital quickly where it will generate the highest rates of return.
- Increase visible growth potential over the long-term, strengthening our ability to deliver on our commitments for decades to come.
This model has successfully grown production and proved reserves since inception. Northern continues to evaluate and expand its acreage footprint and multi-year drilling inventory through selective, bolt-on acquisitions in areas identified by the Company as being prospective for the Bakken and Three Forks plays in the Williston Basin and that will generate high rates of return throughout commodity cycles. Leading operators recognize Northern as the “go to” buyer of non-operated positions in the Bakken oil play.