Business
Matador Resources Company Announces Successful Acquisitions in Federal Lease Sale
Matador Resources Company Announces Successful Acquisitions in Federal Lease
About this update from Matador Resources Company
[{"type":"text","content":"\nMatador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) announces the successful bolt-on acquisition of 5,154 net undeveloped acres in the core of the Delaware Basin as part of the Bureau of Land Management (BLM) Oil and Gas Lease Sale this week.\n\n\nJoseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “Matador is pleased to announce a $1.1 billion expansion of its premier Delaware Basin asset base in Southeast New Mexico through the recent BLM Lease Sale. The company acquired 5,154 net undeveloped acres, all of which are in the ‘core-of-the-core’ of the Delaware Basin and are strategic and highly complementary to Matador’s current acreage position. This acquisition not only extends the amount and the duration of Matador’s high-quality inventory and reserve base but also enhances the Company’s current assets with increased operating efficiencies. These lease acquisitions lend themselves to extended reach laterals of three miles or more, leveraging of existing facilities and infrastructure with Matador’s existing field teams, and increased midstream value from potential future volume additions in the Delaware Basin.\n\nHIGHLIGHTSPrime Location: Acquired acreage located in most prolific areas of Delaware Basin, with nine or more discrete prospective formations\n\nStrategic Alignment to Current Asset Base: Acreage directly adjacent to existing operated units, enabling further operating efficiencies in already established cost-advantaged operating areas with current completed cost per lateral foot averages 10-20% below Matador’s corporate average\n\nImproved Economics and Lease Terms: 87.5% net revenue interest with 10-year term across all depths\n\nSan Mateo Connectivity: Key tracts and associated wells and volumes strategically located near existing infrastructure expected to be additive to San Mateo’s volume throughput and growing revenue streams\n\nLocations and Efficiencies: Adds over 141 net operated locations (normalized to 2-mile laterals), including extended reach laterals, U-Turn well designs, multi-well developments and completions, emerging horizons and targets, with opportunities for enhanced water recycling processes and natural gas takeaway capacity\n\nMaintenance of Strong Balance Sheet: Purchase price of approximately $1.143 billion implies approximately $7.3 million per location after ac...