Matador Resources Company (NYSE: MTDR) (“Matador” or the
“Company”) today announced initial production results from its 21
Margarita wells that were acquired in connection with the purchase
of Advance Energy Partners Holdings, LLC (“Advance”) in April 2023.
In addition, Matador is pleased to announce that the lenders under
San Mateo Midstream, LLC’s (“San Mateo”) revolving credit facility
have increased their commitments by $50 million from $485 million
to $535 million.
Initial Well Results – 21 Advance Wells
Matador’s record production of over 135,000 barrels of oil
equivalent (“BOE”) per day during the third quarter of 2023 was
driven in part by the 21 Margarita wells that were acquired in
connection with the purchase of Advance in April 2023. These wells
are located in our Ranger asset area in Lea County, New Mexico, and
each has a lateral length of 2.25-miles, resulting in approximately
240,000 completed lateral feet, which is the largest single batch
development project in Matador’s history.
These 21 wells were completed and turned to sales beginning in
mid-August 2023. Matador is pleased to report that the 24-hour
initial production (“IP”) test results from the 21 wells averaged
approximately 1,600 BOE per day with high oil cuts averaging
approximately 84%. These 21 wells were drilled in five different
intervals in the Delaware Basin—the Second Bone Spring Carbonate,
Second Bone Spring Sand, Third Bone Spring Carbonate, Third Bone
Spring Sand and Wolfcamp A.
Billy E. Goodwin, Matador’s President – Operations, commented,
“The Advance transaction was transformational for Matador and for
its positive trajectory. In this transaction, we added
approximately 18,500 net acres in some of the best areas of the
Delaware Basin. We are encouraged by the initial results from the
first set of 21 Margarita wells, which were as good or better than
our expectations. We are particularly pleased with the results from
the wells that were drilled in the Third Bone Spring Carbonate
interval. For example, the Margarita 13 Fed Com #16H well had a
24-hour IP test result of 2,593 BOE/d (86% oil), which places it
among the best Third Bone Spring Carbonate wells in the area
surrounding the Advance acreage in Lea County, New Mexico. All 21
wells are currently producing at restricted flow rates through
Matador’s newly constructed consolidated production facilities
designed to reduce emissions and improve lease operating expenses.
The Margarita facilities were designed to be sufficient to produce
the wells without spending the amount of capital that would have
been necessary to build facilities large enough to produce all 21
wells at their maximum initial rates at the same time. Due to the
initial restriction on production from these wells, we expect they
will have a slower decline rate than similar wells produced in
smaller batches. The initial production from the Margarita wells
contributed to our estimated fourth quarter 2023 average production
of 145,000 BOE per day that we announced late last month. We are
excited to continue drilling and completing wells on the Advance
properties going forward including another batch of 21 wells
expected to be turned to sales during the first half of 2024.”
Lender Commitments Increased Under San Mateo’s Revolving
Credit Facility
Matador is pleased to announce that the lender commitments under
San Mateo’s revolving credit facility have been increased by $50
million from $485 million to $535 million. San Mateo, which is the
Company’s midstream joint venture owned 51% by Matador and 49% by
Five Point Energy LLC, provides essential flow assurance for
Matador and other producers in the Delaware Basin through oil
gathering and transportation, natural gas gathering and processing
and water gathering and disposal services in Eddy County, New
Mexico and Loving County, Texas.
Brian J. Willey, Matador’s Executive Vice President and Chief
Financial Officer, commented, “The $50 million increase in lender
commitments under San Mateo’s revolving credit facility provides
San Mateo with greater operational and financial flexibility. In
connection with this increase, we welcome JPMorgan Chase Bank, N.A.
as the newest member of San Mateo’s nine-member bank group. We
greatly value the strong relationships we enjoy with our lenders,
which have been pivotal to the growth and success of San Mateo
since its formation in 2017. We wish to express our sincere
appreciation to each of our banks for their confidence and support,
and we look forward to continuing to work together to grow San
Mateo’s operations.”
About Matador Resources Company
Matador is an independent energy company engaged in the
exploration, development, production and acquisition of oil and
natural gas resources in the United States, with an emphasis on oil
and natural gas shale and other unconventional plays. Its current
operations are focused primarily on the oil and liquids-rich
portion of the Wolfcamp and Bone Spring plays in the Delaware Basin
in Southeast New Mexico and West Texas. Matador also operates in
the Eagle Ford shale play in South Texas and the Haynesville shale
and Cotton Valley plays in Northwest Louisiana. Additionally,
Matador conducts midstream operations in support of its
exploration, development and production operations and provides
natural gas processing, oil transportation services, natural gas,
oil and produced water gathering services and produced water
disposal services to third parties.
For more information, visit Matador Resources Company at
www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. “Forward-looking statements” are statements related to
future, not past, events. Forward-looking statements are based on
current expectations and include any statement that does not
directly relate to a current or historical fact. In this context,
forward-looking statements often address expected future business
and financial performance, and often contain words such as “could,”
“believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,”
“may,” “should,” “continue,” “plan,” “predict,” “potential,”
“project,” “hypothetical,” “forecasted” and similar expressions
that are intended to identify forward-looking statements, although
not all forward-looking statements contain such identifying words.
Such forward-looking statements include, but are not limited to,
statements about the anticipated benefits, opportunities and
results with respect to the Advance acquisition, including any
expected value creation, reserves additions, midstream
opportunities and other anticipated impacts from the Advance
acquisition, as well as other aspects of the transaction, guidance,
projected or forecasted financial and operating results, future
liquidity, leverage, the payment of dividends, results in certain
basins, objectives, project timing, expectations and intentions,
regulatory and governmental actions and other statements that are
not historical facts. Actual results and future events could differ
materially from those anticipated in such statements, and such
forward-looking statements may not prove to be accurate. These
forward-looking statements involve certain risks and uncertainties,
including, but not limited to, disruption from the Advance
acquisition making it more difficult to maintain business and
operational relationships; significant transaction costs associated
with the Advance acquisition; the risk of litigation and/or
regulatory actions related to the Advance acquisition, as well as
the following risks related to financial and operational
performance: general economic conditions; the Company’s ability to
execute its business plan, including whether its drilling program
is successful; changes in oil, natural gas and natural gas liquids
prices and the demand for oil, natural gas and natural gas liquids;
its ability to replace reserves and efficiently develop current
reserves; the operating results of the Company’s midstream oil,
natural gas and water gathering and transportation systems,
pipelines and facilities, the acquiring of third-party business and
the drilling of any additional salt water disposal wells; costs of
operations; delays and other difficulties related to producing oil,
natural gas and natural gas liquids; delays and other difficulties
related to regulatory and governmental approvals and restrictions;
impact on the Company’s operations due to seismic events; its
ability to make acquisitions on economically acceptable terms; its
ability to integrate acquisitions; availability of sufficient
capital to execute its business plan, including from future cash
flows, available borrowing capacity under its revolving credit
facilities and otherwise; the operating results of and the
availability of any potential distributions from our joint
ventures; weather and environmental conditions; the ongoing impact
of the novel coronavirus, or COVID-19, or variants thereof, on oil
and natural gas demand, oil and natural gas prices and its
business; and the other factors that could cause actual results to
differ materially from those anticipated or implied in the
forward-looking statements. For further discussions of risks and
uncertainties, you should refer to Matador’s filings with the
Securities and Exchange Commission (“SEC”), including the “Risk
Factors” section of Matador’s most recent Annual Report on Form
10-K and any subsequent Quarterly Reports on Form 10-Q. Matador
undertakes no obligation to update these forward-looking statements
to reflect events or circumstances occurring after the date of this
press release, except as required by law, including the securities
laws of the United States and the rules and regulations of the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20231113913691/en/
Mac Schmitz Vice President – Investor Relations
investors@matadorresources.com (972) 371-5225
Matador Resources (NYSE:MTDR)
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