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Matador To Buy A Unit Of Ameredev II Parent For $1.91 Bln

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Matador Resources Company (MTDR) Wednesday said its subsidiary has agreed to acquire a unit of Ameredev II Parent, LLC in a transaction valued at $1.905 billion, to be paid in cash.

The acquisition includes certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Loving and Winkler Counties, Texas. The Ameredev Acquisition also includes about 19% stake in Piñon Midstream, LLC, which has midstream assets in southern Lea County, New Mexico.

The company expects to generate forward one-year adjusted EBITDA of approximately $425 to $475 million at strip prices as of late May 2024, which represents a purchase price multiple of 4.2 times for the upstream assets.

Upon closing the deal, Matador expects to have over 190,000 net acres in the Delaware Basin, approximately 2,000 net locations, production of over 180,000 barrels of oil and natural gas equivalent per day (BOE), proved oil and natural gas reserves of over 580 million BOE and an enterprise value of more than $10 billion.

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