Matador Agrees to Buy Permian Oil Assets Worth $1.9 Billion

Oil producer Matador Resources Co. agreed to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion cash, the latest in a series of shale industry tie-ups.

Bloomberg
Published12 Jun 2024, 11:32 PM IST
Matador Agrees to Buy Permian Oil Assets Worth $1.9 Billion
Matador Agrees to Buy Permian Oil Assets Worth $1.9 Billion

(Bloomberg) -- Oil producer Matador Resources Co. agreed to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion cash, the latest in a series of shale industry tie-ups.

The deal includes oil and gas producing properties and undeveloped acreage in New Mexico and West Texas owned by Ameredev II Parent LLC, Matador said in a Wednesday statement. Matador, which primarily operates in the region, said the assets will provide more contiguous acreage for the firm to drill longer lateral wells and more efficiently tap the oil-rich rocks in the western Permian. The deal includes a 19% stake in Piñon Midstream LLC, which has pipeline and compression assets in New Mexico.

Matador shares initially rose as much as 3.6% after the transaction was announced. The stock has since retreated, falling 0.6% as of 11:45 a.m. in New York, tracking declines of industry peers as oil prices eased.

The acquisition, which is expected to close late in the third quarter, is among a wave of deals across the shale patch in the past year. With US shale output likely to peak sometime in the 2030s, producers are keen to capture core acreage in the Permian and other basins to extend their runway of drilling locations.

“As much as people are talking about inventory these days, their inventory fits very well with us,” Matador Chief Executive Officer Joseph Foran said during a conference call with analysts. Foran and his wife founded the predecessor company of Matador in 1983 with $270,000 from friends.

(Adds shares and updates details from second paragraph.)

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Catch all the Budget News , Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:12 Jun 2024, 11:32 PM IST
HomeCompaniesNewsMatador Agrees to Buy Permian Oil Assets Worth $1.9 Billion

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel

    160.90
    02:31 PM | 24 JUL 2024
    0.85 (0.53%)

    NTPC

    391.10
    02:31 PM | 24 JUL 2024
    8.75 (2.29%)

    Bharat Electronics

    300.95
    02:31 PM | 24 JUL 2024
    -0.55 (-0.18%)

    Federal Bank

    200.20
    02:31 PM | 24 JUL 2024
    2.2 (1.11%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    HBL Power Systems

    643.75
    02:21 PM | 24 JUL 2024
    50 (8.42%)

    Alembic Pharmaceuticals

    1,169.20
    02:21 PM | 24 JUL 2024
    83.55 (7.7%)

    ICICI Prudential Life Insurance Company

    685.25
    02:20 PM | 24 JUL 2024
    47.65 (7.47%)

    Borosil Renewables

    556.70
    02:21 PM | 24 JUL 2024
    38.45 (7.42%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      71,412.00-3,783.00
      Chennai
      70,716.00-4,406.00
      Delhi
      70,716.00-4,332.00
      Kolkata
      70,716.00-4,845.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.78/L0.03
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00
      OPEN IN APP
      HomeMarketsCibilPremiumBudget