Terms called for Matador to pay $37.4 million in cash, issue 3.1 million shares of Matador common stock, and issue 150,000 shares of a new series of Matador convertible preferred stock to HEYCO Energy.
Matador acquired 58,600 gross (18,200 net) acres in the northern Delaware basin. The acquired property was "strategically located" between two of Matador’s existing parcels.
BMO Capital Market in January said Matador was the largest Delaware basin acreage holder among small-and mid-cap publicly traded companies.
The acquisition increased Matador’s Permian basin acreage position to 151,300 gross (84,300 net) acres. The boosted operational scale was expected to improve unit-of-production costs and operating efficiencies, Matador said.
Upon closing, Matador assumed operatorship of the acquired operated properties. George M. Yates, HEYCO Energy chief executive officer, joined Matador’s board of directors.
HEYCO, based in Roswell, NM, is privately owned by members of the Yates family, which has been active in the upstream business since production started in the Delaware basin during the 1920s.
