Matador Resources Company Announces Closing of Private Offering of $175 Million of Additional Senior Notes Due 2023
Matador Resources Company (NYSE: MTDR) (“Matador”) announced today that
it has closed the previously announced private offering of $175 million
aggregate principal amount of its 6.875% Senior Notes due 2023 (the
“Additional Notes”). The Additional Notes were issued at 105.5% of par,
plus accrued interest from October 15, 2016. Matador received net
proceeds from this offering of approximately $182 million, after
deducting the initial purchasers’ discounts and estimated offering
expenses but excluding accrued interest paid by buyers of the Additional
Notes.
Matador intends to use the net proceeds from this offering to fund the
aggregate purchase price for approximately 4,600 net leasehold acres and
estimated current net production of approximately 1,150 barrels of oil
equivalent per day from wells producing on this acreage in Eddy and Lea
Counties, New Mexico as well as approximately 475 net mineral acres in
Eddy and Lea Counties, New Mexico, to fund the capital expenditures for
a number of midstream initiatives in the Delaware Basin that are either
in progress or that Matador expects to begin by the end of the first
quarter of 2017, to repay outstanding borrowings under its revolving
credit facility and for general corporate purposes, including capital
expenditures associated with the addition of a fourth drilling rig.
The Additional Notes have not been registered under the Securities Act
of 1933, as amended (the “Securities Act”), or applicable state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
The Additional Notes may be resold by the initial purchasers pursuant to
Rule 144A and Regulation S under the Securities Act.
This press release is neither an offer to sell nor a solicitation of an
offer to buy any of these securities, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Matador Resources Company
Matador is an independent energy company engaged in the exploration,
development, production and acquisition of oil and natural gas resources
in the United States, with an emphasis on oil and natural gas shale and
other unconventional plays. Its current operations are 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.
Matador also operates in the Eagle Ford shale play in South Texas and
the Haynesville shale and Cotton Valley plays in Northwest Louisiana and
East Texas. Additionally, Matador conducts midstream operations in
support of its exploration, development and production operations and
provides natural gas processing, natural gas, oil and salt water
gathering services and salt water disposal services to third parties on
a limited basis.
Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended. “Forward-looking
statements” are statements related to future, not past, events.
Forward-looking statements are based on current expectations and include
any statement that does not directly relate to a current or historical
fact. In this context, forward-looking statements often address expected
future business and financial performance, and often contain words such
as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,”
“expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,”
“project,” “hypothetical,” “forecasted” and similar expressions that are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Actual
results and future events could differ materially from those anticipated
in such statements, and such forward-looking statements may not prove to
be accurate. These forward-looking statements involve certain risks and
uncertainties, including, but not limited to, the following risks
related to financial and operational performance: general economic
conditions; the Company’s ability to execute its business plan,
including whether its drilling program is successful; changes in oil,
natural gas and natural gas liquids prices and the demand for oil,
natural gas and natural gas liquids; its ability to replace reserves and
efficiently develop current reserves; costs of operations; delays and
other difficulties related to producing oil, natural gas and natural gas
liquids; its ability to integrate acquisitions, including the merger
with Harvey E. Yates Company; its ability to make other acquisitions on
economically acceptable terms; availability of sufficient capital to
execute its business plan, including from future cash flows, increases
in its borrowing base and otherwise; weather and environmental
conditions; and other important factors which could cause actual results
to differ materially from those anticipated or implied in the
forward-looking statements. For further discussions of risks and
uncertainties, you should refer to Matador’s filings with the Securities
and Exchange Commission (the “SEC”), including the “Risk Factors”
section of Matador’s most recent Annual Report on Form 10-K and any
subsequent Quarterly Reports on Form 10-Q. Matador undertakes no
obligation and does not intend to update these forward-looking
statements to reflect events or circumstances occurring after the date
of this press release, except as required by law, including the
securities laws of the United States and the rules and regulations of
the SEC. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their
entirety by this cautionary statement.
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