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Matador Resources Company (MTDR - Free Report) announced the completion of its $1.832 billion acquisition of a subsidiary of Ameredev II Parent, LLC, adding significant assets in the Delaware Basin to its portfolio. This acquisition aligns with Matador’s strategic expansion and enhances its position in a key U.S. oil and gas region.
MTDR Expands Delaware Basin Footprint
The Ameredev acquisition adds approximately 33,500 contiguous net acres in the Delaware Basin to MTDR’s portfolio, with 82% of the acreage held by production and more than 99% operated. This prime asset is located between two of MTDR's existing asset areas, positioning the company to optimize its operations.
The acquired assets are expected to produce between 25,500 and 26,500 barrels of oil equivalent per day for the remainder of the third quarter of 2024. While production may temporarily decline in the fourth quarter due to well shut-ins and natural declines, MTDR expects a production boost in early 2025. In addition to production, MTDR gains 118 million barrels of oil equivalent in proved reserves, of which 60% is oil.
MTDR to Leverage Operational Efficiencies Post-Acquisition
Matador plans to integrate the Ameredev assets using operational efficiencies like simul-frac and trimul-frac completion techniques. The company projects that these efficiencies will generate approximately $160 million in synergies over the next five years.
With the Ameredev acquisition, MTDR now holds more than 190,000 net acres in the Delaware Basin and has increased its production capacity and reserves. Matador financed the Ameredev Acquisition through its credit facility, which was recently expanded from $1.5 billion to $2.5 billion. This acquisition marks a significant step for MTDR, positioning it for continued growth in 2024 and beyond.
MTDR’s Zacks Rank & Key Picks
MTDR currently carries a Zack Rank #5 (Strong Sell).
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Zacks Style Score of B for Value and A for Growth. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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Matador Closes $1.83B Ameredev Deal, Expands Delaware Footprint
Matador Resources Company (MTDR - Free Report) announced the completion of its $1.832 billion acquisition of a subsidiary of Ameredev II Parent, LLC, adding significant assets in the Delaware Basin to its portfolio. This acquisition aligns with Matador’s strategic expansion and enhances its position in a key U.S. oil and gas region.
MTDR Expands Delaware Basin Footprint
The Ameredev acquisition adds approximately 33,500 contiguous net acres in the Delaware Basin to MTDR’s portfolio, with 82% of the acreage held by production and more than 99% operated. This prime asset is located between two of MTDR's existing asset areas, positioning the company to optimize its operations.
The acquired assets are expected to produce between 25,500 and 26,500 barrels of oil equivalent per day for the remainder of the third quarter of 2024. While production may temporarily decline in the fourth quarter due to well shut-ins and natural declines, MTDR expects a production boost in early 2025. In addition to production, MTDR gains 118 million barrels of oil equivalent in proved reserves, of which 60% is oil.
MTDR to Leverage Operational Efficiencies Post-Acquisition
Matador plans to integrate the Ameredev assets using operational efficiencies like simul-frac and trimul-frac completion techniques. The company projects that these efficiencies will generate approximately $160 million in synergies over the next five years.
With the Ameredev acquisition, MTDR now holds more than 190,000 net acres in the Delaware Basin and has increased its production capacity and reserves. Matador financed the Ameredev Acquisition through its credit facility, which was recently expanded from $1.5 billion to $2.5 billion. This acquisition marks a significant step for MTDR, positioning it for continued growth in 2024 and beyond.
MTDR’s Zacks Rank & Key Picks
MTDR currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc (FTI - Free Report) , Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Zacks Style Score of B for Value and A for Growth. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.