Matador Resources Co., Dallas, has sold its two remaining acreage and production positions in the Eagle Ford shale in South Texas.
The sale is part of 'precautionary actions' taken by the company to help 'fortify' its balance sheet in preparation for 'turbulent times,, the company said in a release Apr. 4.
While neither a purchase price nor a seller was disclosed, Joseph Wm. Foran, Matador’s founder, chairman, and chief executive officer said the sales, for non-core assets in La Salle, Karnes, and Atascosa Counties, were sold in a series of transactions, and that “over the last two quarters, Matador received proceeds of over $30 million from these sale transactions.”
At yearend 2024, the operator held 2,900 net acres in the Eagle Ford with average production of 700 boe/d in the year's fourth quarter (76% oil), according to a February 2025 company presentation.
The operator will remain focused on developing its acreage in the northern Delaware basin, where it owns about 200,000 net acres (~ 80% held by production), Foran said. In fourth-quarter 2024, Matador completed and turned to sales 33 operated wells (gross) in the Delaware basin (OGJ Online, Feb. 19, 2025; Jan. 24, 2023).
‘Turbulent times’
Aiming to shore up its balance sheet, the company said it has applied a portion of its cash flows and over $30 million in proceeds from Eagle Ford asset sales to reduce debt.
The company repaid $180 million in first-quarter 2025, ending the period with $405 million outstanding under this credit facility. Then operator ended the quarter with about $1.8 billion in liquidity, it said.
Elsewhere, Matador has taken other precautionary actions "in preparation for these turbulent times," Foran said.
The company has entered into additional hedges and has “structured its rig contracts with optionality to quickly decrease or increase its drilling program based upon market conditions.”
The company expects steel prices for goods such as casing, valves, and surface equipment to increase this year due to tariffs. While the company said it has already secured inventory for the majority of its 2025 drilling program, recent tariffs could impact well costs in second-half 2025.
“Over the past 40 years, during volatile times like the one that we are currently experiencing, Matador or its predecessors have made some of their most significant acquisitions, drilled some of their most profitable prospects, and hired key individuals that have contributed significantly to Matador’s success going forward. Matador remains optimistic about its plans and drilling inventory for the remainder of 2025 and beyond,” Foran said.
