Matador Resources Company (NYSE: MTDR) has announced significant amendments to its credit facility and the completion of natural gas pipeline connections. The company's elected commitment has been increased from $1.325 billion to $1.5 billion, with the maximum facility amount raised from $2.0 billion to $3.5 billion. The maturity date has also been extended by three years to 2029, with the total bank group growing to 19 banks, including the addition of five new banks.
The new banks, including Capital One, N.A., Citizens Bank, N.A., Mizuho Bank, Ltd., The Toronto-Dominion Bank, New York Branch, and Wells Fargo Bank, N.A., have joined the credit facility. Matador's founder, chairman, and CEO, Joseph Wm. Foran, expressed gratitude to the banks for their continued support and welcomed the new additions to the high-quality bank group. PNC Bank, N.A. serves as the administrative agent for the bank group.
In addition to the amendments to its credit facility, Matador has successfully completed natural gas pipeline connections between Pronto Midstream and San Mateo, as well as between Pronto Midstream and Matador's acreage obtained in the advance acquisition. These connector pipelines are expected to provide further flow assurance and options for Matador and third-party customer natural gas volumes. They are also anticipated to contribute to resolving temporary midstream third-party maintenance issues experienced in the first quarter of 2024.
The completion of these pipeline projects, which include over 20 miles of natural gas pipeline, is expected to strengthen Matador's midstream infrastructure, enhance its upstream operations, and support its growth objectives in the northern Delaware Basin. The new pipelines will enable Matador to more effectively gather and transport natural gas production from the 21 Dagger Lake South wells, which are expected to be turned-to-sales in the second quarter of 2024.
Matador expects these natural gas pipeline connections to assist in the execution of its strategic priorities for production, including achieving record Matador production in 2024, as indicated in its guidance. As an independent energy company, Matador is engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States, focusing primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in southeast New Mexico and west Texas. The company also operates in the Eagle Ford Shale play in South Texas and the Haynesville Shale and Cotton Valley plays in northwest Louisiana, and conducts midstream operations in support of its exploration, development, and production operations.
These developments mark significant changes for Matador Resources Company, as the amendments to its credit facility and the completion of the natural gas pipeline connections are expected to have a substantial impact on the company's financial and operational capabilities in the coming years. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $68.64. For more information, read the company's full 8-K submission here.
