Matador Resources Company Announces Closing of Private Offering of $175 Million of Additional Senior Notes Due 2023
December 09 2016 - 4:15PM
Business Wire
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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version on businesswire.com: http://www.businesswire.com/news/home/20161209005734/en/
Matador Resources CompanyMac Schmitz, 972-371-5225Capital
Markets Coordinatorinvestors@matadorresources.com
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