Matador Resources’ lenders increased the borrowing base under the company’s credit agreement by 30% from $2.50 billion to $3.25 billion._x000D_
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This increase of the borrowing base resulted from the regularly scheduled semi-annual borrowing base redetermination, although Matador elected to keep the borrowing commitments at $2.25 billion at present but appreciates the potential to increase its borrowings to $3.25 billion at a later date. The borrowing base increase was supported and approved by each of the 19 lenders under Matador’s credit facility._x000D_
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Matador’s midstream joint venture, San Mateo Midstream, amended and restated its credit agreement to provide for the following:_x000D_
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- Increase the lender commitments by approximately 50% from $535 million to $800 million
- Extend the maturity date of San Mateo’s credit agreement to November 2029
- Provide for a $250 million accordion feature that could expand the lender commitments to up to $1.05 billion
- Decrease San Mateo’s borrowing costs, which is expected to save approximately $1.5 million per year
- Add six new banks as lenders under San Mateo’s credit facility.
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“We are very pleased with the $750 million increase in our borrowing base to $3.25 billion,” Joseph Wm. Foran, founder, chairman and CEO of Matador, said. “This increase was unanimously supported by all 19 banks in Matador’s bank group, which we believe reflects confidence in the increasing value and quality of Matador’s oil and natural gas reserves. We are grateful to PNC Bank, as the lead bank under our credit agreement, and each of the other lenders under our credit agreement for their continued support and confidence in us. As of November 30, 2024, Matador had $830 million outstanding under its revolving credit facility with approximately $1.4 billion in liquidity (not including the $750 million increase in the borrowing base). This amount compares favorably to the prior amount of $955 million that was outstanding under Matador’s revolving credit facility at the end of the third quarter of 2024 two months ago. Matador remains committed to maintaining a strong balance sheet, growing our production and increasing our operational efficiencies while also returning value to shareholders through our steadily increasing fixed dividend._x000D_
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“As to San Mateo’s credit facility, we are also very pleased to announce a $265 million increase in the size of this facility from $535 million to $800 million,” Foran said. “This increase should provide San Mateo with greater operating and financial flexibility as it continues to provide flow assurance and meet increasing demand from Matador and other third-party customers over the coming years. We express our appreciation to Truist Bank, as the lead bank under San Mateo’s credit facility, and each of the other lenders under San Mateo’s credit facility. In addition, we welcome each of KeyBank, Wells Fargo, Mizuho Bank, TD Securities, Capital One and MUFG Bank to San Mateo’s bank group. Each of these banks has been supportive of Matador’s operations and growth, and we are pleased to have them join San Mateo’s bank group and expand our relationship to support San Mateo’s current operations and future growth as well.”
