Matador Resources Company Provides Update on 2020 Operational Plan
Updated 2020 Operational Plan
Matador expects to take the following actions over the next several months to reduce its capital spending and protect its balance sheet.
Reduce its operated drilling program from six rigs to three rigs before
June 30, 2020. Matador expects to release one of its six operated rigs by the end of March 2020and expects to release two of its remaining five rigs before the end of the second quarter of 2020, after which Matador expects to operate three rigs for the remainder of the year.
- Reduce its unit operating costs, particularly targeting lease operating (LOE) and general and administrative (G&A) expenses.
Continue to pursue divestitures of portions of its non-core assets, including possible sales of leasehold and mineral interests in
South Texasand in the Haynesvilleshale as well as a possible joint venture or divestiture involving its mineral interests in the Delaware Basin.
Matador intends to provide more specific details regarding the changes to its 2020 operational plan and rig activity and to revise and update its 2020 market guidance in the coming weeks. Matador anticipates suspending its development activities in the Wolf asset area in
The Board, the senior officers and I are large shareholders and recent buyers of Matador stock. Our aim is to generate profitable growth at a measured pace. Towards that end, I have voluntarily agreed to reduce my base salary by 25%, the Board members have agreed to reduce their compensation by 25% and the executive officers and Vice Presidents have agreed to reduce their base salaries by 20% and 10%, respectively. I am also pleased to report that over 140 individuals – nearly 50% of Matador’s workforce – have purchased stock in the most recent trading period."
Spring 2020 Borrowing Base Affirmed and Elected Commitment Increased
Matador and its lenders completed and closed the Company's Spring 2020 borrowing base redetermination on
As a result of this process,
Matador's borrowing base was affirmed at
$900 millionunanimously by all eleven lenders in the Company's commercial banking group.
Matador chose to increase its elected borrowing commitment from
$500 millionto $700 million, with most banks increasing their commitments to the Company's reserves-based credit facility.
- Two additional lenders joined the nine existing members of Matador's commercial bank group.
Matador faces no near-term debt maturities, as the Company's revolving credit facility matures in
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in
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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 guidance, projected or forecasted financial and operating results, future liquidity, 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, 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; 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; 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, increases in its borrowing base and otherwise; weather and environmental conditions; the operating results of the Company’s midstream joint venture’s expansion of the
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