(Source: Matador Resources, Shutterstock.com)
Matador Resources Co. has divested its Eagle Ford Shale assets in a pair of deals for approximately $30 million, the company said April 4.
Proceeds from the South Texas assets, in La Salle, Karnes and Atascosa counties, were receive in the past two quarters, the company said. Matador did not disclose the buyer or buyers.
The company sold the non-core assets and entered into additional hedges to fortify its balance sheet.
“Matador has taken other precautionary actions in preparation for these turbulent times. From experience, we believed it was prudent to fortify Matador’s balance sheet by entering into additional hedges and selling non-core assets,” the company said.
Matador has also structured its rig contracts with the option to decrease or increase its rig program depending on market conditions.
RELATED
Oil Dives More Than 6%, Steepest Fall in 3 Years on Tariffs, OPEC+ Supply Boost
Matador is now focused on developing its acreage in the Delaware Basin. The company holds approximately 200,000 net acres in the basin, approximately 80% HBP.
“The Eagle Ford shale has been a productive asset for Matador and was the steppingstone for Matador as it gained experience and built its acreage position in the Delaware Basin,” said Joseph Wm. Foran, Matador Resources’ founder, chairman and CEO.
Matador used the proceeds from the sale to pay off debt from its credit facility. Combined with cash flows, the company paid off $180 million of its borrowings, leaving $405 million outstanding in the credit facility at the end of first-quarter 2025.
Matador expects recent tariffs to put pressure on steel prices for casing, valves and surface equipment, but does not expect the tariffs to affect well costs until the second half of 2025.
"Over the past 40 years, during volatile times like the one that we are currently experiencing, Matador or its predecessors have made some of their most significant acquisitions, drilled some of their most profitable prospects and hired key individuals that have contributed significantly to Matador's success going forward. Matador remains optimistic about its plans and drilling inventory for the remainder of 2025 and beyond,” Foran said in the press release.
Recommended Reading
Elliott Nominates 7 Directors for Phillips 66 Board in Big Push for Restructuring
2025-03-04 - Elliott Investment Management, which has taken a $2.5 billion stake in Phillips 66, said the nominated directors will bolster accountability and improve oversight of Phillips’ management initiatives.
Phillips 66 Urges Shareholders to Vote Against Elliott at Annual Meeting
2025-04-08 - Phillips 66’s board of directors is again pushing against one of its largest investors—Elliott Investment Management—with a letter to shareholders detailing how to vote against the investment company at its upcoming annual meeting.
Kinetik Chief Strategy Officer to Retire in June
2025-05-01 - Kinetik Holdings Chief Strategy Officer Anne Psencik will continue as in a consulting role after her retirement at the end of June.
Shell Shakes Up Leadership with Upstream and Gas Director to Exit
2025-03-04 - Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, will step down effective March 31.
USA Compression Names Chris Wauson as COO
2025-03-07 - Chris Wauson, currently the leader of natural gas compression company USA Compression Partners’ Permian office, has been chosen as the company’s new COO.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.