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DALLAS - Matador Resources Company (NYSE: NYSE:MTDR), an independent energy firm, announced it has priced a private offering of $750 million in senior unsecured notes with a 6.250% interest rate, due in 2033. The transaction is scheduled to close on September 25, 2024, subject to standard closing conditions.
The Dallas-based company stated that the proceeds from the notes will be used primarily to repay existing debt, including the full amount of $250 million from its term loan. This move is intended to keep the company's overall debt levels unchanged.
These notes have not been registered under the Securities Act of 1933 or any state securities laws and will be offered only to qualified institutional buyers and to non-U.S. persons outside the United States. The issuance of these securities follows Rule 135c under the Securities Act, and the company has clarified that this is not a public offer or a solicitation to buy these securities.
Matador is engaged in oil and natural gas exploration, development, production, and acquisition, with a focus on unconventional plays in the United States. Its operations are primarily in the Delaware Basin in Southeast New Mexico and West Texas, but it also has interests in South Texas and Northwest Louisiana. In addition to its exploration and production activities, Matador operates midstream services, including natural gas processing and oil transportation.
The press release includes forward-looking statements, which are based on current expectations and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
This article is based on a press release statement from Matador Resources Company.
In other recent news, Matador Resources has announced a private offering of $750 million in senior unsecured notes due in 2033, with the funds aimed at repaying existing borrowings, including a $250 million term loan. The energy firm also completed a $1.83 billion acquisition of a subsidiary of Ameredev II Parent, LLC, which is expected to expand Matador's presence in the Delaware Basin to over 190,000 net acres. JPMorgan has raised its price target for Matador Resources shares to $83.00, maintaining an Overweight rating, and anticipates that the company will generate approximately $1,080 million in free cash flow in fiscal year 2025. In other company developments, Matador Resources is constructing a cryogenic gas processing facility at the Marlan plant, expected to be operational in the first half of the next year, and has welcomed Susan Ward to the board. These are among the recent developments shaping the future of Matador Resources.
InvestingPro Insights
As Matador Resources Company (NYSE: MTDR) makes strategic moves to manage its debt by issuing senior unsecured notes, the company's financial health and market position become focal points for investors. An analysis of real-time data from InvestingPro reveals several key metrics that may influence investor sentiment:
- The company's market capitalization stands at $6.52 billion, reflecting its size and significance in the energy sector.
- Matador Resources is trading at a price-to-earnings (P/E) ratio of 6.67, which adjusts to 6.96 based on the last twelve months as of Q2 2024. This valuation metric suggests that the stock may be priced attractively relative to its earnings.
- With a robust revenue growth of 16.81% over the last twelve months as of Q2 2024, the company demonstrates its ability to increase its top-line figures, an essential factor for long-term sustainability.
InvestingPro Tips also provide insights into the company's performance and future outlook:
- Matador Resources has been able to consistently reward its shareholders by raising its dividend for 3 consecutive years, indicating a commitment to returning value to investors.
- Despite a strong track record of profitability over the last twelve months and a positive forecast from analysts for this year, it's important to note that 5 analysts have revised their earnings estimates downwards for the upcoming period. This could suggest that there are some headwinds or challenges anticipated in the near future.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on Matador Resources Company. These insights can help build a more detailed investment thesis and inform decision-making. To explore further, visit InvestingPro's dedicated section for MTDR, where additional tips are available for review.
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