Matador Resources increases acreage in New Mexico with Yates deal

Matador Resources grows Permian Basin holdings in SE New Mexico, West Texas to 155,500 gross acres

Matador Resources continued its expansion into the Delaware Basin by announcing another deal involving HEYCO Energy Group, Inc., owned by the Yates family of Roswell, New Mexico.

Joseph Wm. Foran, CEO of Matador Resources.

Matador Resources says that on June 5 it completed previously announced joint ventures with HEYCO Energy Group affiliates, which resulted in Matador acquiring additional working interests in properties acquired by it in the HEYCO merger that closed in Feb., according to a Matador Resources press release.

The HEYCO Affiliates contributed an aggregate of 1,899.6 net acres to two newly-formed entities in exchange for a 50 per cent interest in each entity. Matador Resources has agreed to contribute an aggregate of $14.2 million in exchange for the other 50 per cent interest in both entities.

Matador’s contribution will be used to fund future capital expenditures associated with the interests being acquired as well as to fund other non-operated opportunities.

“The properties they are contributing are interests in primarily the same acreage formerly owned by HEYCO, increasing Matador’s working interests in many of the high-quality assets held by HEYCO in Lea and Eddy Counties, New Mexico,” said Joseph Wm. Foran, chairman and CEO of Matador.

The total acreage acquired in Lea and Eddy counties in the HEYCO merger and from the HEYCO affiliates is approximately 59,100 gross (19,100 net) acres, according to Matador Resources.

HEYCO Energy Group is the former parent company of Harvey E. Yates Company (HEYCO), before HEYCO’s merger with a wholly-owned subsidiary of Matador.

Matador also announced that it recently acquired an additional 2,610 gross (2,210 net) acres in the Lea and Eddy Counties in unrelated transactions.

Following these acquisitions, Matador’s acreage position in the Permian Basin in Southeast New Mexico and West Texas increased to approximately 155,500 gross (88,535 net) acres as of June 8.

Matador Resources produces oil and natural gas shale and other unconventional plays. The company’s current focus is on its Permian Basin operations in Southeast New Mexico and West Texas, as well as its Eagle Ford operations in South Texas.