Matador Resources Co. has divested its Eagle Ford Shale assets in a pair of deals for approximately $30 million, the company said April 4.
Proceeds from the South Texas assets, in La Salle, Karnes and Atascosa counties, were receive in the past two quarters, the company said. Matador did not disclose the buyer or buyers.
The company sold the non-core assets and entered into additional hedges to fortify its balance sheet.
“Matador has taken other precautionary actions in preparation for these turbulent times. From experience, we believed it was prudent to fortify Matador’s balance sheet by entering into additional hedges and selling non-core assets,” the company said.
Matador has also structured its rig contracts with the option to decrease or increase its rig program depending on market conditions.
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Matador is now focused on developing its acreage in the Delaware Basin. The company holds approximately 200,000 net acres in the basin, approximately 80% HBP.
“The Eagle Ford shale has been a productive asset for Matador and was the steppingstone for Matador as it gained experience and built its acreage position in the Delaware Basin,” said Joseph Wm. Foran, Matador Resources’ founder, chairman and CEO.
Matador used the proceeds from the sale to pay off debt from its credit facility. Combined with cash flows, the company paid off $180 million of its borrowings, leaving $405 million outstanding in the credit facility at the end of first-quarter 2025.
Matador expects recent tariffs to put pressure on steel prices for casing, valves and surface equipment, but does not expect the tariffs to affect well costs until the second half of 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 in the press release.