Matador Resources Buys EnCap E&P Ameredev II for $1.9B - Hart Energy
Matador Resources Buys EnCap E&P Ameredev II for $1.9B | Hart Energy
Matador Resources is expanding its Delaware Basin footprint in West Texas and New Mexico with the acquisition of EnCap-backed operator Ameredev II. (Source: Shutterstock.com)
Matador Resources is expanding its Delaware Basin footprint with a $1.9 billion acquisition.
Dallas-based Matador will acquire a subsidiary of Ameredev II Parent LLC and certain oil and gas properties in West Texas and New Mexico, the company announced June 12.
The deal with Ameredev II, a portfolio company of private equity firm EnCap Investments LP, includes producing assets and undeveloped acreage in Lea County, New Mexico, and Loving and Winkler counties, Texas.
The acquired portfolio includes about 33,500 contiguous net acres in the northern Delaware Basin—adjacent to some of Matador’s core operating areas.
Estimated production from the acquired assets is expected to average 25,000 boe/d to 26,000 boe/d (65% oil) during third-quarter 2024.
The deal also includes 431 gross (371 net) undeveloped locations for future drilling operations across the Wolfcamp and Bone Spring intervals.
Consideration for the Ameredev acquisition will consist of a $1.905 billion cash payment.
On closing, Matador will hold more than 190,000 net acres in the Delaware Basin, production of more than 180,000 boe/d and about 2,000 net undrilled locations.
The Ameredev II deal marks Matador’s second large-scale acquisition from EnCap; Matador acquired EnCap-backed Advance Energy Partners last year.
"Matador is very excited to work with EnCap again on this strategic bolt-on opportunity,” said Joseph Wm. Foran, founder, chairman and CEO of Matador Resources. “As with the successful Advance Energy deal we completed in April of 2023, we view the Ameredev transaction as another unique opportunity to work with EnCap and another value-creating opportunity for Matador and its shareholders.”
The acquisition also includes midstream interests: an approximate 19% stake in Piñon Midstream, which has assets in southern Lea County, New Mexico.
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