Matador Resources boosts borrowing base to $3.25 billion

In the United States, Matador Resources Company recently announced a significant increase in its borrowing capacity under its credit agreement. The company's lenders unanimously approved a 30% increase in the borrowing base, raising it from $2.50 billion to $3.25 billion. This adjustment, part of a semi-annual review, allows Matador to potentially increase its borrowings while maintaining current commitments at $2.25 billion. As of November 30, 2024, Matador had $830 million outstanding under its revolving credit facility and approximately $1.4 billion in liquidity excluding the recent increase in borrowing power. Furthermore, Matador's midstream joint venture, San Mateo Midstream, also saw significant improvements in its financial backing. The credit agreement for San Mateo was amended and restated, which led to a remarkable 50% increase in lender commitments from $535 million to $800 million. Additionally, the maturity of this credit facility has been extended to November 2029, which provides San Mateo with enhanced stability for its operations. There is also a new accordion feature that could expand the commitments to $1.05 billion if needed. These changes are expected to reduce San Mateo's borrowing costs, likely saving around $1.5 million annually. The backing from six new banks as lenders signifies a growing confidence in both Matador's and San Mateo's operations and future prospects. These enhancements in borrowing capabilities and financial support reflect the lenders' confidence in Matador’s operational performance and the value of its oil and natural gas reserves. The company actively participates in oil and natural gas exploration and production, focusing primarily on shale and unconventional plays within these sectors. Alongside these financial advancements, Matador recognizes the crucial role that banks play in its ongoing operations and future growth, expressing gratitude towards its bank groups for their continued support. In summary, the recent changes in borrowing limits for both Matador Resources and its joint venture San Mateo Midstream showcase a strategic effort to secure additional funds that could facilitate future growth and operational efficiency. As the energy landscape evolves, these financial maneuvers could provide Matador with the necessary liquidity to navigate challenges while capitalizing on opportunities for expansion and acquisition in the competitive oil and natural gas market.