Matador Resources Co. (NYSE:MTDR) has priced an upsized underwritten public offering of 6,000,000 shares of its common stock. Total gross proceeds of the offering, before estimated offering fees and expenses, are approximately $147.9 million. The offering is expected to close on December 9, 2016, subject to customary closing conditions.
Matador intends to use the net proceeds from this offering to fund the aggregate purchase price for approximately 4,600 net leasehold acres and estimated current net production of approximately 1,150 barrels of oil equivalent per day from wells producing on this acreage in Eddy and Lea Counties, New Mexico, as well as approximately 475 net mineral acres in Eddy and Lea Counties, New Mexico, to fund the capital expenditures for a number of midstream initiatives in the Delaware Basin that are either in progress or that the company expects to begin by the end of the first quarter of 2017, to repay outstanding borrowings under its revolving credit facility and for general corporate purposes, including capital expenditures associated with the addition of a fourth drilling rig.
BofA Merrill Lynch is acting as book-running manager for the offering.