Matador Resources' $1.9B Deal Expands Oil And Gas Dominance In Texas And New Mexico: Details
Portfolio Pulse from Lekha Gupta
Matador Resources Company (NYSE:MTDR) has announced a $1.905 billion acquisition of Ameredev II’s oil and gas properties in New Mexico and Texas, including a 19% stake in Piñon Midstream, LLC. The deal, expected to close in Q3 2024, will significantly expand Matador's footprint in the Delaware Basin, increasing its net acres, production, and reserves. The acquisition is projected to generate forward one-year Adjusted EBITDA of $425 to $475 million. Matador has secured financing commitments from PNC Bank for the all-cash transaction.
June 12, 2024 | 2:59 pm
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POSITIVE IMPACT
Investors can gain exposure to Matador Resources through the Invesco S&P MidCap 400 GARP ETF (NYSE:GRPM), which includes MTDR in its portfolio. The positive market reaction to Matador's acquisition may benefit GRPM.
The positive impact on Matador Resources' stock due to the acquisition may benefit GRPM, which includes MTDR in its portfolio.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Matador Resources' $1.905 billion acquisition of Ameredev II’s oil and gas properties will significantly expand its footprint in the Delaware Basin, increasing its net acres, production, and reserves. The deal is expected to close in Q3 2024 and generate forward one-year Adjusted EBITDA of $425 to $475 million.
The acquisition will significantly enhance Matador's production capacity, reserves, and midstream capabilities, positioning it for continued growth. The market has reacted positively, with shares up 1.21%.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Matador Resources through the Nuveen Small Cap Select ETF (NYSE:NSCS), which includes MTDR in its portfolio. The positive market reaction to Matador's acquisition may benefit NSCS.
The positive impact on Matador Resources' stock due to the acquisition may benefit NSCS, which includes MTDR in its portfolio.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50