Matador Resources has been actively expanding its operations in the Delaware Basin. Recently, they agreed to acquire Advance Energy Partners Holdings for approximately $1.6 billion.
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Matador Resources Wells Drilled Since 2023
This acquisition adds about 18,500 net acres in the northern Delaware Basin, significantly enhancing Matador’s drilling inventory with 406 gross drillable locations. The transaction also includes midstream assets, like pipelines and a saltwater disposal well, which could provide additional value to Matador’s operations.
Matador Resources Company discussed several key aspects related to its operations in the Delaware Basin within the Q1 2024 earnings report:
- Operational Developments: Matador has been actively drilling and developing its assets in the Delaware Basin, including innovations like ‘trimul-frac’ operations which have contributed to increased efficiency and cost savings. This new drilling technique has allowed them to increase daily completed lateral footage by 40% compared to their 2023 ‘simul-frac’ operations.
- Production Contributions: The company has several asset areas within the Delaware Basin, such as the Stateline area, which have shown better-than-expected production results. This has helped the company achieve production volumes above their guidance.
- Midstream Assets: Matador’s ownership of midstream assets like San Mateo Midstream, LLC, and Pronto Midstream, LLC, has been crucial for ensuring consistent flow assurance for their oil and natural gas production. They completed natural gas pipeline connections between Pronto and San Mateo and between Pronto and their Advance acreage, which has helped mitigate third-party midstream constraints.
- Midstream Expansion: The company is expanding the Marlan cryogenic natural gas processing plant, which is on schedule and budget. This expansion is intended to support not only Matador’s growing operations but also the needs of third-party producers in the area.
- Asset Base Growth: Matador has grown its acreage position significantly since becoming a public company, from 7,500 net acres to over 150,000 net acres in the Delaware Basin. This growth has been achieved through a combination of strategic acquisitions and organic development.
These points underscore Matador’s strong focus on and commitment to expanding and optimizing its operations in the Delaware Basin, which continues to be a significant component of their overall strategy and success.
