Matador Resources Company Announces Upgrades to Corporate Credit Rating and Senior Unsecured Notes and $30 Million in Additional Bond Repurchases
September 13 2022 - 6:30AM
Business Wire
Matador Resources Company (NYSE: MTDR) (“Matador” or the
“Company”) today announced (1) recent upgrades by Moody’s Investors
Service (“Moody’s”) to the Company’s corporate credit rating and
senior unsecured notes and (2) $30 million in additional purchases
of the Company’s outstanding senior notes.
Matador’s Credit Rating and Senior Unsecured Debt Upgraded by
Moody’s
On September 9, 2022, Moody’s upgraded Matador’s Corporate
Family Rating (CFR) from ‘B1’ to ‘Ba3’ and upgraded Matador’s
senior unsecured notes from ‘B2’ to ‘B1’. In its September 9, 2022
press release, Moody’s noted, “The upgrade reflects Matador’s
increased scale, reduced debt level and improved free cash flow
generation ability that should provide greater resilience against
volatile commodity prices. Management has taken advantage of higher
oil and gas prices to accelerate growth, pay down debt and
establish a sustainable shareholder return plan enhancing the
company’s overall capital flexibility.” More information regarding
Moody’s upgrade of Matador may be found at www.moodys.com.
$30 Million in Additional Bonds Repurchased
Between July 25, 2022 and September 12, 2022, Matador used a
portion of its free cash flow to repurchase $30 million of its
outstanding senior notes in a series of open market transactions,
reducing its outstanding bonds from $892 million at July 25, 2022
(and $1.05 billion originally) to $862 million today. Over the past
seven quarters, beginning in the fourth quarter of 2020, Matador
has reduced its outstanding debt by $663 million or approximately
44% of Matador’s then total revolving debt and senior notes
outstanding.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are
very pleased with Moody’s upgrades to our corporate family rating
and senior unsecured notes, which reflect our ongoing commitment to
strengthening our balance sheet, repaying debt and returning cash
to shareholders. This upgrade also reflects our strong operational
execution. We expect to make additional progress on our debt
through the opportunistic purchase of bonds during the remainder of
the third quarter of 2022. We look forward to sharing our financial
results, our operational progress and the growth in value of our
oil and natural gas assets as well as our midstream business as
part of our third quarter earnings release in late October.”
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. Additionally,
Matador conducts midstream operations in support of its
exploration, development and production operations and provides
natural gas processing, oil transportation services, natural gas,
oil and produced water gathering services and produced water
disposal services to third parties.
For more information, visit Matador Resources Company at
www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, 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.
Such forward-looking statements include, but are not limited to,
statements about guidance, projected or forecasted financial and
operating results, future liquidity, the payment of dividends,
results in certain basins, objectives, project timing, expectations
and intentions, regulatory and governmental actions and other
statements that are not historical facts. 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; the
operating results of the Company’s midstream’s oil, natural gas and
water gathering and transportation systems, pipelines and
facilities, the acquiring of third-party business and the drilling
of any additional salt water disposal wells; costs of operations;
delays and other difficulties related to producing oil, natural gas
and natural gas liquids; delays and other difficulties related to
regulatory and governmental approvals and restrictions; impact on
the Company’s operations due to seismic events; availability of
sufficient capital to execute its business plan, available
borrowing capacity under its revolving credit facilities and
otherwise; its ability to make acquisitions on economically
acceptable terms; its ability to integrate acquisitions; the
operating results of and the availability of any potential
distributions from our joint ventures; weather and environmental
conditions; the impact of the worldwide spread of the novel
coronavirus, or COVID-19, on oil and natural gas demand, oil and
natural gas prices and its business; and the other 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
(“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 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: https://www.businesswire.com/news/home/20220913005531/en/
Mac Schmitz Vice President - Investor Relations (972) 371-5225
investors@matadorresources.com
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