DALLAS--(BUSINESS WIRE)--Nov. 13, 2023--
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.
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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Vice President – Investor Relations
Source: Matador Resources Company