Matador acquires Advance Energy Partners in $1.6B Delaware Basin bolt-on

Matador Resources Co

Initial cash consideration $1.6B, plus contingent $7.5M/month if WTI avg >$85/bbl in 2023.
Acquires 18,500 net acres in Lea County, NM & Ward County, TX; production ~25k BOE/d (74% oil).
Estimated proved reserves 106.4 MMBOE; PV-10 $2.86B at SEC pricing, $1.92B at strip.
Forward 1-yr Adj. EBITDA $475-525M; purchase multiple ~3.2x; leverage expected <1.0x.
Closing expected early Q2 2023; borrowing base increased to $2.25B.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Matador Resources Co entered into Purchase Agreement with AEP EnCap HoldCo, LLC and Ameradvance Management LLC valued at $1,600,000,000 (effective 2023-01-24).

Action: entry
Agreement: asset purchase
Counterparty: AEP EnCap HoldCo, LLC and Ameradvance Management LLC
Value: $1,600,000,000
Effective: 2023-01-24

Exact text from the filing

On January 24, 2023, wholly-owned subsidiaries of Matador Resources Company (“ Matador ”), MRC Hat Mesa, LLC (“ Purchaser ”) and, solely for the purposes of guaranteeing the obligations of Purchaser, MRC Energy Company (“ MRC Energy ”) entered into a Securities Purchase Agreement (the “ Purchase Agreement ”) with AEP EnCap HoldCo, LLC (“ AEP EnCap ”), Ameradvance Management LLC (“ ManagementCo ” and, together with AEP EnCap, each a “ Seller ” and collectively, the “ Sellers ”) and Advance Energy Partners Holdings, LLC (the “ Target ”).

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Matador Resources Co filing history →

Source: SEC EDGAR

accession 0001193125-23-013640

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