Matador Resources Closes $1.6 Billion Acquisition of Advance Energy Partners
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Matador Resources’ wholly-owned subsidiary has closed on the acquisition of Advance Energy Partners Holdings from EnCap Investments, including Advance’s oil and natural gas producing properties, undeveloped acreage, and midstream assets located in Lea County, New Mexico and Ward County, Texas.
The consideration paid upon the closing of the Advance transaction consisted of an initial as-adjusted cash purchase price of approximately $1.6 billion, which amount is subject to customary post-closing adjustments. The Advance transaction may also include potential additional cash consideration of $7.5 million for each month of 2023 in which the average oil price, as defined in the securities purchase agreement, exceeds $85 per barrel.
“On behalf of the board and management, I would like to congratulate and thank everyone at Matador and EnCap for their professionalism and for everyone’s efforts to close this transaction. These properties are a unique, value-creating opportunity for Matador and all of its stakeholders. Closing this transaction sets Matador up nicely for a great 2023 and an even better 2024,” said Joseph Wm. Foran, Matador’s founder, chairman, and CEO.
“We look forward to further discussing the advance acquisition and our plans for 2023 during our first quarter 2023 earnings release update call,” added Foran.
The Advance transaction includes approximately 18,500 net acres (99 percent held by production) in the core of the northern Delaware Basin, most of which is adjacent to or very close to some of Matador’s best acreage where wells with an estimated ultimate recovery of over one million barrels of oil equivalent have been drilled. It also provides a significant increase to Matador’s inventory in primary development zones, with 206 gross (174 net) operated locations in core target formations and an additional 38 gross (35 net) upside operated locations in the Wolfcamp D formation. This new acreage also provides further expansion opportunities for Pronto Midstream, Matador’s wholly-owned midstream subsidiary.
Matador Resources 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.
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