Matador Resources is expanding its Delaware Basin footprint in West Texas and New Mexico with the acquisition of EnCap-backed operator Ameredev II. (Source: Shutterstock.com)
Matador Resources is expanding its Delaware Basin footprint with a $1.9 billion acquisition.
Dallas-based Matador will acquire a subsidiary of Ameredev II Parent LLC and certain oil and gas properties in West Texas and New Mexico, the company announced June 12.
The deal with Ameredev II, a portfolio company of private equity firm EnCap Investments LP, includes producing assets and undeveloped acreage in Lea County, New Mexico, and Loving and Winkler counties, Texas.
The acquired portfolio includes about 33,500 contiguous net acres in the northern Delaware Basin—adjacent to some of Matador’s core operating areas.
Estimated production from the acquired assets is expected to average 25,000 boe/d to 26,000 boe/d (65% oil) during third-quarter 2024.
The deal also includes 431 gross (371 net) undeveloped locations for future drilling operations across the Wolfcamp and Bone Spring intervals.
Consideration for the Ameredev acquisition will consist of a $1.905 billion cash payment.
On closing, Matador will hold more than 190,000 net acres in the Delaware Basin, production of more than 180,000 boe/d and about 2,000 net undrilled locations.
The Ameredev II deal marks Matador’s second large-scale acquisition from EnCap; Matador acquired EnCap-backed Advance Energy Partners last year.
"Matador is very excited to work with EnCap again on this strategic bolt-on opportunity,” said Joseph Wm. Foran, founder, chairman and CEO of Matador Resources. “As with the successful Advance Energy deal we completed in April of 2023, we view the Ameredev transaction as another unique opportunity to work with EnCap and another value-creating opportunity for Matador and its shareholders.”
The acquisition also includes midstream interests: an approximate 19% stake in Piñon Midstream, which has assets in southern Lea County, New Mexico.
RELATED
Matador CEO: Portfolio ‘Rationalization’ to Yield Permian M&A Opportunities
Recommended Reading
Geopolitical Tensions Complicate Oil Price Predictions
2024-10-14 - Geopolitical tensions around the world are an ongoing wildcard for oil prices in the near-term, according to BOK Financial Securities’ Dennis Kissler. U.S. producers will have to pivot off of whatever hand they are dealt.
Oil Prices Jump 4% on Reports of Iran Preparing to Attack Israel
2024-10-01 - An Israeli attack on Iranian oil production or export facilities could cause a material disruption, potentially more than a 1 MMbbl/d.
What's Affecting Oil Prices This Week? (Oct. 14, 2024)
2024-10-14 - Similar to last week, Stratas Advisors forecast that oil prices will be relatively flat with a downward bias unless there is another military strike of note.
What's Affecting Oil Prices This Week? (Sept. 30, 2024)
2024-09-30 - Based on Stratas Advisors' demand forecast, there is room for Saudi Arabia to increase supply gradually and not collapse oil prices — if there is no dramatic increase in non-OPEC supply and the other members of OPEC+ do not grossly exceed their quotas.
Saudi Signals Willingness to Weaken Oil Prices, Defend Market Share
2024-09-26 - Analysts caution that reports of Saudi Arabia abandoning a philosophy of supporting prices in favor of defending market share could be a move to get OPEC+ members in line rather than to launch a costly oil war with the U.S., among others.
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.