Matador Resources Co. (NYSE: MTDR) has completed its joint ventures with certain affiliates of HEYCO Energy Group Inc., the former parent company of Harvey E. Yates Co., before HEYCO’s merger with a wholly owned subsidiary of Matador in February.
Properties that the HEYCO affiliates are contributing are interests in primarily the same acreage formerly owned by HEYCO, increasing Matador’s working interests in many of the assets held by HEYCO in Lea and Eddy counties, New Mexico.
The HEYCO affiliates contributed certain interests primarily in the same properties held by HEYCO, resulting in Matador acquiring additional working interests in properties acquired by it in the HEYCO merger.
Pursuant to the terms of the transaction, the HEYCO affiliates contributed an aggregate of 1,899.6 net acres to two newly formed entities in exchange for a 50% interest in each entity. Matador has agreed to contribute an aggregate of $14.2 million in exchange for the other 50% 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.
With the addition of these interests, the total acreage acquired in Lea and Eddy counties, New Mexico, in the HEYCO merger and from the HEYCO affiliates is approximately 59,100 gross (19,100 net) acres. In addition, Matador announced that it recently acquired an additional 2,610 gross (2,210 net) acres in Lea and Eddy counties, New Mexico, 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.