Matador Sources Co. has offered its remaining Eagle Ford shale property in South Texas for over $30 million.
“Matador is worked up to proceed its major give attention to growing its high-quality acreage within the northern Delaware Basin, which Matador believes is acknowledged as essentially the most prolific basin in the US and the place Matador owns roughly 200,000 internet acres, roughly 80 p.c of which is held by manufacturing”, Joseph Wm. Foran, Matador founder, chair and chief government, stated in an organization assertion.
The divested property are within the counties of Atascosa, Karnes and La Salle. The gross sales came about within the final two quarters.
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“The Eagle Ford shale has been a productive asset for Matador and was the stepping stone for Matador because it gained expertise and constructed its acreage place within the Delaware Basin”, Foran stated.
The Dallas, Taxas-based oil and gasoline exploration and manufacturing firm stated it had used the sale proceeds to cut back borrowings underneath its credit score facility. Matador repaid $180 million of borrowings underneath its credit score facility within the first quarter of 2025 ending the interval with $405 million excellent underneath the credit score facility.
That place leads to a leverage ratio of 1 instances or much less as of March, primarily based on a preliminary evaluate of first-quarter 2025 outcomes, Matador stated.
“Notably, Matador completed the primary quarter of 2025 within the strongest monetary place in its historical past with roughly $1.8 billion in liquidity”, it added.
The corporate additionally stated it entered into further oil hedges within the January-March 2025 quarter. It has hedged 45,000 barrels per day (bpd) for the primary half of the yr at weighted common costs of $60 a barrel ground and $86 a barrel ceiling. For the second half of 2025, Matador has hedged 70,000 bpd at weighted common costs of $52 a barrel ground and $77 a barrel ceiling.
“Matador has taken different precautionary actions in preparation for these turbulent instances”, Foran stated. “From expertise, we believed it was prudent to fortify Matador’s stability sheet by getting into into further hedges and promoting non-core property”.
“Matador additionally structured its rig contracts with optionality to rapidly lower or enhance its drilling program primarily based upon market situations”, Foran stated. “Moreover, Matador expects metal costs for items reminiscent of casing, valves and floor gear will enhance in 2025 on account of latest tariffs. To guard its monetary place, Matador has already secured stock for almost all of its 2025 drilling program. Matador doesn’t count on any latest tariffs to impression its nicely prices till the second half of 2025”.
To contact the creator, e mail jov.onsat@rigzone.com
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