Matador Resources Company (NYSE: MTDR) has recently announced the sale of its remaining Eagle Ford assets and provided an update on its financial position. The company received over $30 million in proceeds from the sale transactions. Matador applied a portion of its cash flows and over $30 million in proceeds from the sale to reduce the borrowings under its credit facility. As a result, the company repaid $180 million of its borrowings under its credit facility during the first quarter of 2025 and ended the quarter with $405 million outstanding under this credit facility.
Matador finished the first quarter of 2025 with approximately $1.8 billion in liquidity, representing the strongest financial position in its history. The company also entered into additional oil hedges during the first quarter of 2025. It hedged 45,000 barrels per day at a weighted average price floor of $60 per barrel and a weighted average price ceiling of $86 per barrel for the first half of 2025. For the second half of 2025, it hedged 70,000 barrels per day at a weighted average price floor of $52 per barrel and a weighted average price ceiling of $77 per barrel.
In terms of its balance sheet, Matador reported an expected leverage ratio of one time or less as of March 31, 2025. This reflects a significant improvement from the previous period. The company has also taken precautionary actions in preparation for turbulent times, including fortifying its balance sheet by entering into additional hedges and selling non-core assets. It has structured its rig contracts with optionality to quickly decrease or increase its drilling program based on market conditions. Additionally, Matador has secured inventory for the majority of its 2025 drilling program to protect its financial position.
Looking ahead, Matador remains optimistic about its plans and drilling inventory for the remainder of 2025 and beyond. With the recent decrease in its stock price, the company expects that its board of directors will consider implementing a stock repurchase program later this month at its regularly scheduled meeting if present circumstances continue. This would be incremental to the company's current quarterly fixed dividend of $0.3125 per share.
Matador Resources Company is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States, with operations focused 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. Today the company's shares have moved -4.1% to a price of $36.77. If you want to know more, read the company's complete 8-K report here.
