Matador Resources Company recently held its 40th annual meeting of shareholders, with approximately 93% of the company's outstanding shares represented. The company's shareholders overwhelmingly approved the election of four director nominees, an advisory vote on the executive compensation program, and the ratification of KPMG as the independent registered public accounting firm for the year ending December 31, 2024.
The company also announced its strategic acquisition of a subsidiary of Ameredev Parent II, LLC, which is expected to close late in the third quarter of 2024. This acquisition will significantly bolster Matador's position, with the company expecting to have 192,000 net acres in the Delaware Basin, approximately 2,000 net locations, and production of over 180,000 barrels of oil and natural gas equivalent per day.
The acquisition highlights include an all-cash purchase price of $1.905 billion, the acquisition of approximately 33,500 highly contiguous net acres in the northern Delaware Basin, and estimated production in the third quarter of 2024 of 25,000 to 26,000 barrels of oil equivalent per day, with 65% of it being oil.
Following the acquisition, Matador expects its pro forma leverage to be approximately 1.3x at closing, with plans to fund the purchase price through commitments from PNC Bank. The company aims to maintain operational and financial flexibility while continuing to return value to shareholders through its fixed quarterly dividend and protecting cash flows through appropriate commodity hedges.
The company is confident in its team's ability to identify potential cost savings and opportunities for increased efficiencies post-acquisition, and it expects the second quarter of 2024 to be another record quarter for Matador.
Today the company's shares have moved 0.4% to a price of $59.94. For the full picture, make sure to review Matador Resources's 8-K report.
