Matador Resources to Acquire Encore Assets for $1.05B

TL;DR

MTDR buying Encore's oil & gas assets for $1.05B, deal expected Q2 2024.

AI Summary

Matador Resources Company (MTDR) announced on April 23, 2024, that it has entered into a definitive agreement to acquire all of the oil and gas assets of Encore Acquisition Company for approximately $1.05 billion. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.

Why It Matters

This significant acquisition by Matador Resources is poised to expand its operational footprint and production capacity, potentially leading to increased revenue and market share in the oil and gas sector.

Risk Assessment

Risk Level: medium — The acquisition involves a substantial financial commitment and integration risks, and its success depends on market conditions and regulatory approvals.

Key Numbers

• $1.05B — Acquisition Price (Total cost for Encore's oil and gas assets)

Key Players & Entities

• Matador Resources Company (company) — Acquiring company
• Encore Acquisition Company (company) — Target company
• $1.05 billion (dollar_amount) — Acquisition price
• April 23, 2024 (date) — Announcement date
• second quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share MTDR New York Stock Exchange

Filing Documents

• mtdr-20240423.htm (8-K) — 36KB
• a20240331mtdr8ker-ex991.htm (EX-99.1) — 593KB
• 0001520006-24-000095.txt ( ) — 800KB
• mtdr-20240423.xsd (EX-101.SCH) — 2KB
• mtdr-20240423_lab.xml (EX-101.LAB) — 22KB
• mtdr-20240423_pre.xml (EX-101.PRE) — 13KB
• mtdr-20240423_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. Attached hereto as Exhibit 99.1 is a press release (the "Press Release") issued by Matador Resources Company (the "Company") on April 23, 2024 , announcing its financial results for the three months ended March 31, 2024. The Press Release is incorporated by reference into this Item 2.02, and the foregoing description of the Press Release is qualified in its entirety by reference to this exhibit. The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), unless specifically identified therein as being incorporated therein by reference. In the Press Release, the Company has included certain "non-GAAP financial measures," as defined in Item 10 of Regulation S-K of the Exchange Act, including (i) earnings before interest expense, income taxes, depletion, depreciation and amortization, accretion of asset retirement obligations, property impairments, unrealized derivative gains and losses, certain other non-cash items and non-cash stock-based compensation expense, and net gain or loss on asset sales and impairment ("Adjusted EBITDA") attributable to Matador Resources Company shareholders, (ii) Adjusted EBITDA of San Mateo Midstream, LLC, the Company's midstream affiliate ("San Mateo"), (iii) adjusted net income attributable to Matador Resources Company shareholders, (iv) adjusted earnings per diluted common share attributable to Matador Resources Company shareholders and (v) adjusted free cash flow of both the Company and San Mateo. In the Press Release, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with generally-a

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure.

02 above is incorporated herein by reference

Item 2.02 above is incorporated herein by reference. In connection with the Press Release, the Company released a presentation summarizing the highlights of the Press Release (the "Presentation"). The Presentation is available on the Company's website, www.matadorresources.com, on the Events and Presentations page under the Investor Relations tab. The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act and will not be incorporated by reference into any filing under the Securities Act unless specifically identified therein as being incorporated therein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 99.1 Press Release, dated April 23, 2024. 104 Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATADOR RESOURCES COMPANY Date: April 23, 2024 By: /s/ Bryan A. Erman Name: Bryan A. Erman Title: Executive Vice President

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View this 8-K filing on SEC EDGAR