MTDR - Matador Resources buys Permian Basin producer Advance Energy in $1.6B deal

Matador Resources ( NYSE: MTDR ) said Tuesday it agreed to acquire Advance Energy Partners Holdings, an EnCap Investments portfolio company, for an initial cash payment of $1.6B, plus $7.5M/month during 2023 in which the average oil price exceeds $85/bbl; Advance is a portfolio company of EnCap Investments.

Matador ( MTDR ) said the deal includes oil and natural gas producing properties and undeveloped acreage located in eastern New Mexico and western Texas; it estimates total proved oil and natural gas reserves associated with these properties of 106.4M boe.

The company expects the acquisition will generate forward one-year adjusted EBITDA of $475M-$525M at mid-January strip prices, which represents a 3.2x purchase price multiple.

Matador ( MTDR ) said the deal preserves its strong balance sheet with leverage expected to remain below 1x.

Matador Resources' ( MTDR ) focus on generating economic results over shareholder cash returns will bear fruit over the long term, Volatility Surfer writes in an analysis posted recently on Seeking Alpha .

For further details see: