Matador Resources Co. (MTDR) announced June 8 it completed its joint ventures in the Delaware Basin with certain affiliates of HEYCO Energy Group Inc., the former parent company of Harvey E. Yates Co. (HEYCO).
HEYCO merged with a Matador subsidiary in February. The HEYCO affiliates contributed certain interests primarily in the same properties held by HEYCO, resulting in Dallas-based Matador acquiring additional working interests in properties acquired by it in the HEYCO merger.
Pursuant to the terms of the transaction, the HEYCO affiliates sold 1,899.6 net acres to two newly-formed entities in exchange for a 50% interest in each entity.
Matador has agreed to pay $14.2 million in exchange for the other 50% interest in both entities. Matador’s contribution will be used to fund future capital expenditures associated with the interests being acquired as well as to fund other nonoperated opportunities.
With the addition of these interests, the total acreage acquired in New Mexico's Lea and Eddy counties in the HEYCO merger and from the HEYCO affiliates is roughly 59,100 gross (19,100 net) acres. In addition, Matador announced that it recently acquired an additional 2,610 gross (2,210 net) acres in Lea and Eddy counties in unrelated transactions.
Following the acquisitions, the company said its acreage position in the Permian Basin in southeast New Mexico and West Texas increased to about 155,500 gross (88,535 net) acres as of June 8.
Joseph Wm. Foran, chairman and CEO of Matador, said in the release, “We are pleased to have successfully closed these joint ventures with the HEYCO affiliates. The properties they are contributing are interests in primarily the same acreage formerly owned by HEYCO, increasing Matador’s working interests in many of the high-quality assets held by HEYCO in Lea and Eddy counties, New Mexico.”
Recommended Reading
Wayangankar: Golden Era for US Natural Gas Storage – Version 2.0
2024-04-19 - While the current resurgence in gas storage is reminiscent of the 2000s —an era that saw ~400 Bcf of storage capacity additions — the market drivers providing the tailwinds today are drastically different from that cycle.
Biden Administration Criticized for Limits to Arctic Oil, Gas Drilling
2024-04-19 - The Bureau of Land Management is limiting new oil and gas leasing in the Arctic and also shut down a road proposal for industrial mining purposes.
PHX Minerals’ Borrowing Base Reaffirmed
2024-04-19 - PHX Minerals said the company’s credit facility was extended through Sept. 1, 2028.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-19 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
Exclusive: The Politics, Realities and Benefits of Natural Gas
2024-04-19 - Replacing just 5% of coal-fired power plants with U.S. LNG — even at average methane and greenhouse-gas emissions intensity — could reduce energy sector emissions by 30% globally, says Chris Treanor, PAGE Coalition executive director.