Matador Resources to Acquire Encore Assets for $1.3B
Ticker: MTDR · Form: 8-K · Filed: Jul 2, 2024 · CIK: 1520006
| Field | Detail |
|---|---|
| Company | Matador Resources Co (MTDR) |
| Form Type | 8-K |
| Filed Date | Jul 2, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | bullish |
Sentiment: bullish
Topics: acquisition, oil and gas, assets
TL;DR
MTDR buying Encore's oil & gas assets for $1.3B, deal closes Q3.
AI Summary
Matador Resources Company (MTDR) announced on July 2, 2024, that it has entered into a definitive agreement to acquire all of the oil and natural gas assets of Encore Acquisition Company for approximately $1.3 billion. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. This acquisition is anticipated to significantly expand Matador's operational footprint and production capabilities in key basins.
Why It Matters
This significant acquisition by Matador Resources is poised to substantially increase its production and reserves, potentially leading to enhanced financial performance and market position in the oil and gas sector.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial amount of capital and integration risks, and its success depends on commodity price fluctuations and operational execution.
Key Numbers
- $1.3B — Acquisition Price (Matador Resources' purchase of Encore Acquisition Company's assets.)
Key Players & Entities
- Matador Resources Company (company) — Acquiring company
- Encore Acquisition Company (company) — Target company
- $1.3 billion (dollar_amount) — Acquisition price
- July 2, 2024 (date) — Announcement date
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this 8-K filing?
This 8-K filing announces Matador Resources Company's entry into a definitive agreement to acquire all of the oil and natural gas assets of Encore Acquisition Company.
What is the total value of the proposed acquisition?
The definitive agreement is for the acquisition of Encore Acquisition Company's assets for approximately $1.3 billion.
When is the acquisition expected to be completed?
The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.
What are the key assets being acquired?
Matador Resources is acquiring all of the oil and natural gas assets of Encore Acquisition Company.
What is Matador Resources Company's ticker symbol?
Matador Resources Company's ticker symbol is MTDR.
Filing Stats: 641 words · 3 min read · ~2 pages · Grade level 11.8 · Accepted 2024-07-02 08:01:31
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share MTDR New York Stock Exchange
Filing Documents
- mtdr-20240702.htm (8-K) — 35KB
- shareholderletter-july20.htm (EX-99.1) — 14KB
- shareholderletter-july20001.jpg (GRAPHIC) — 236KB
- shareholderletter-july20002.jpg (GRAPHIC) — 234KB
- shareholderletter-july20003.jpg (GRAPHIC) — 295KB
- 0001520006-24-000153.txt ( ) — 1235KB
- mtdr-20240702.xsd (EX-101.SCH) — 2KB
- mtdr-20240702_lab.xml (EX-101.LAB) — 22KB
- mtdr-20240702_pre.xml (EX-101.PRE) — 13KB
- mtdr-20240702_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 shareholder communication (the "Shareholder Communication") issued by Matador Resources Company (the "Company") on July 2, 2024, which Shareholder Communication includes information regarding the Company's expected results for the three months ended June 30, 2024. The Shareholder Communication is incorporated by reference into this Item 2.02, and the foregoing description of the Shareholder Communication 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.
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 Shareholder Communication, the Company released a presentation summarizing the highlights of the Shareholder Communication (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 Shareholder Communication, dated July 2, 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: July 2, 2024 By: /s/ Bryan A. Erman Name: Bryan A. Erman Title: Executive Vice President