Matador Resources acquires Permian oil and gas drilling properties in $1.9 billion deal

World Oil staff June 12, 2024

(WO) – Matador Resources Company has announced a significant acquisition in the Permian basin. A subsidiary of Matador is set to purchase a subsidiary of Ameredev II Parent, LLC, which includes oil and natural gas properties in Lea County, New Mexico, and Loving and Winkler Counties, Texas.

This deal, valued at $1.905 billion, also includes a 19% stake in Piñon Midstream, LLC, a company with assets in southern Lea County, New Mexico.

Joseph Wm. Foran, Matador’s Founder, Chairman, and CEO, expressed excitement about this strategic opportunity. He highlighted the high-quality assets, strong production, significant reserves, and the strategic fit within Matador’s existing portfolio. Foran noted that this acquisition continues Matador’s history of profitable growth.

Matador expects to have over 190,000 net acres in the Delaware basin, part of the greater Permian basin, producing over 180,000 boed, with proved reserves exceeding 580 MMboe. The enterprise value of the combined company is projected to exceed $10 billion.

The Ameredev properties are expected to produce 25,000 to 26,000 boed in the third quarter of 2024, with 65% oil. The properties include 33,500 net acres, primarily in Matador’s Antelope Ridge and West Texas asset areas. The deal adds 431 gross (371 net) operated drilling locations and increases Matador’s total proved reserves to 578 MMboe.

Foran emphasized the strategic importance of the acquisition, noting the quality of the assets, strong cash flow, and multi-pay potential. He acknowledged the role of PNC Bank in financing the transaction and highlighted the strong relationship with EnCap, the parent company of Ameredev.

This acquisition positions Matador for continued success and growth, enhancing its presence in the Permian’s Delaware basin and providing new commercial opportunities and free cash flow.

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