Darren Barbee, senior managing editor, Hart Energy: I'm Darren Barbee, senior managing editor at Hart Energy, and this is your Hart Energy LIVE Exclusive with Joe Foran, founder, chairman and CEO for Matador Resources.
So I guess the first question I wanted to ask was related to the way the Advance Energy Partners’ assets matched up with Matador's and why that made sense from a deal perspective.
Joseph Foran, founder, chairman and CEO, Matador Resources: It was in our area so that we had the personnel that were pumping the wells and we had the pipeline system, so you just saved a lot of overhead that you didn't have to pay for because you were already there. The most important part of the deal was that their position in that area had really good rock and that they had done substantial work, had a number of DUCs that were ready to come on by completion. So I would say the deal was driven more by the quality of their properties than by any of the midstream. The midstream helped.
DB: So the geology really matches up with what Matador already had in place.
JF: Yeah. We own a lot of the adjoining leases, as you saw from that slide five and six, and so we're able now to drill more two mile laterals. We're able to combine again, the work crews so that we have pumpers coming over all those areas and they're already familiar with the properties.
DB: I know during your presentation you talked about the fact that most of your original deals, you were doing an acre at a time in terms of bolt-ons. Do you think there'd be a situation or can you envision one in which Matador would acquire something of this size and scope again, if the right opportunity came along, or do you think this was a one shot?
JF: No, certainly we'd be open to doing even larger deals, but they've got to have all the parts fit. This one happened to have all those parts and we were able to take it on without having—we offered jobs to many of the Advance people, but they were in Houston. Most of them had families and homes, and so they declined those. We only really picked up one, but that was okay because we had people during this interim while the deal was under contract that came familiar with the properties, and it's been real smooth.
DB: That's your Hart Energy LIVE Exclusive. To learn more, go to hartenergy.com.
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