Matador Resources Co. completed two natural gas pipeline connections and amended its credit agreement, the independent E&P announced in a March 25 press release.
Matador completed natural gas pipeline connections between its subsidiary Pronto Midstream LLC to San Mateo Midstream LLC and to Matador’s newly acquired Delaware Basin acreage from Advance Energy Partners, which the company said will support its growth in the northern Delaware.
The connector pipelines provide flow assurance to Matador and other third-party customers and should contribute to temporary midstream maintenance issues, Matador said.
“Both pipeline additions, which include over 20 miles of natural gas pipeline, will enable Matador to more effectively gather and transport natural gas production from the 21 Dagger Lake South wells, which are expected to be turned-to-sales in the second quarter of 2024,” said Joseph Foran, Matador’s founder, chairman and CEO.
The company and its lenders also amended its credit agreement, which is expected to increase the elected commitment from approximately $1.3 billion to $1.5 billion and increase the maximum facility amount from $2 billion to $3.5 billion. Matador also extended the maturity date by three years to 2029.
Five new banks also joined Matador’s credit facility, bringing the total bank group to 19 banks. The new banks are Capital One, Citizens Bank, Mizuho Bank, The Toronto-Dominion Bank (the New York branch) and Wells Fargo Bank, Matador said in the release.
Recommended Reading
Oil Rises After OPEC+ Extends Output Cuts
2024-03-04 - Rising geopolitical tensions due to the Israel-Hamas conflict and Houthi attacks on Red Sea shipping have supported oil prices in 2024, although concern about economic growth has weighed.
Global Oil Demand to Grow by 1.9 MMbbl/d in 2024, Says Wood Mac
2024-02-29 - Oil prices have found support this year from rising geopolitical tensions including attacks by the Iran-aligned Houthi group on Red Sea shipping.
EIA: Blame Associated Gas Volumes for Sticky Low NatGas Prices
2024-03-14 - Low natural gas prices are forcing U.S. producers to finally pump the brakes on what has been record production. But the pullback in drilling will have muted effects on a market already glutted with too much gas, federal experts say.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
EIA: Oil Prices Could Move Up as Global Tensions Threaten Crude Supply
2024-02-07 - Geopolitical tensions in the Middle East and ongoing risks that threaten global supply have experts questioning where oil prices will move next.