Matador to spend $1.91 billion to expand in US shale patch

DALLAS, June 12, 2024 – Matador Resources will invest $1.91 billion to expand in the Delaware shale basin in the USA, the company said on Wednesday.

The company plans to acquire a number of producing oil and gas assets as well as undeveloped acreage in the Delaware Basin from a unit of Ameredev II Parent.

The news comes during a lively period for acquisitions in the shale play, with numerous deals seen in 2023, such as ExxonMobil‘s USD 60-billion purchase of Pioneer Natural Resources.

Matador’s deal with Ameredev also includes a stake of around 19% in Piñon Midstream, which holds midstream assets in southern Lea County, New Mexico.

Consideration for the deal will come via a cash payment.

The deal will bring Matador’s proven reserves in the Deleware Basin to more than 580 million boe of oil and gas and its production to 180,000 boepd.

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