Matador to fund Delaware Basin growth through 8M common shares

By Luke Geiver | October 09, 2017

Matador Resources Co, an independent exploration and production company with a focus on shale energy developments in the Permian and Eagle Ford shale plays, has announced plans to issue 8 million shares of common stock. The financial move will provide Matador with roughly $210 million for future growth.

The company’s current stock value is approximately $26/share. The offering on its common stock will close this week.

Proceeds from the offering will be used to fund three areas. In the Delaware Basin, part of the funding will be used to acquire an additional 9,800 gross acres around Matador’s existing acreage. Another portion of the funding gained through the common stock offering will be applied to multiple midstream initiatives also in the Delaware Basin that are online or nearing a start to construction next year. The remaining funding will be used for general corporate purposes, the company said.

In Q2, Matador reported a production increase of six percent, giving the company a daily production total of 19,400 barrels—the best oil production in the company’s history.

Earnings per diluted common share to the company’s shareholders were $0.28 in Q2, up from the same quarter one year ago.