Matador Resources has completed the sale of its remaining acreage and production positions in the Eagle Ford shale, located in La Salle, Karnes and Atascosa counties in south Texas, US.
This divestiture, completed through a series of transactions, has generated proceeds exceeding $30m.
The Eagle Ford shale has been a significant asset for Matador, serving as a foundation for its growth in the Delaware Basin.
The company used a portion of its cash flows and the $30m proceeds from the Eagle Ford sale to reduce borrowings under its credit facility.
In the first quarter of 2025 (Q1 2025), Matador repaid $180m of its borrowings, ending the quarter with $405m outstanding.
Based on preliminary results, the expected leverage ratio is one times or less as of 31 March 2025.
Matador founder, chairman and CEO Joseph Wm. Foran said: “Matador is excited to continue its primary focus on developing its high-quality acreage in the northern Delaware Basin, which Matador believes is recognised as the most prolific basin in the United States and where Matador owns approximately 200,000 net acres, approximately 80% of which is held by production.”
Matador concluded Q1 2025 in its “strongest” financial position to date, with approximately $1.8bn in liquidity.
The company said it has taken precautionary actions to fortify its balance sheet, including entering additional hedges and selling non-core assets.
Matador has also structured its rig contracts to adapt quickly to market conditions.
Anticipating an increase in steel prices due to recent tariffs, Matador has secured inventory for most of its 2025 drilling programme.
The company does not expect these tariffs to impact well costs until the second half of 2025.
These measures have helped Matador minimise the impact of recent commodity price volatility on its operations.
In December 2024, Matador completed an agreement announced earlier the same month to contribute Pronto Midstream, its wholly owned subsidiary, to San Mateo Midstream, a joint venture in which Matador holds a 51% stake.
The pre-closing valuation of Pronto was approximately $600m, and the transaction increased San Mateo’s total estimated asset value to more than $1.5bn net to Matador.
