Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Matador Expands In Delaware; Purchases Acreage from Advance Energy at $1.6 Billion
02/21/2023
Advance Energy Partners Holdings LLC in the northern Delaware Basin is acquired by Matador Resources Co. for at least $1.6 billion cash.
On January 24, Matador spread the word that it will add oil- and gas-producing assets in Lea County, N.M., and Ward County, Texas, and some midstream infrastructure. Most of the acreage is strategically situated in Matador’s Ranger asset area in Lea County.
The bolt-on includes about 18,500 net acres, 99% held by production, in the core of northern Delaware. The deal would also extend Matador’s inventory by 406 gross (203 net) drillable horizontal locations with prospective targets in the Wolfcamp, Bone Spring, and Avalon formations.
Advance Energy is now operating one drilling rig to drill 21 gross (19 net) wells in the northern portion of Matador’s Antelope Ridge asset area in Lea County, but the wells are not anticipated being turned to sales until early 2024. Additionally to the initial cash payment, Matador agreed to pay an additional $7.5 million for every month in which the average oil price surpasses $85/bbl.
Matador anticipates the Advance Energy assets producing one-year adjusted EBITDA of almost $475 million to $525 million at strip prices as of mid-January 2023, which represents an acquisition price multiple of 3.2x.
According to Matador’s estimation, the PV-10 value of the assets at $1.92 billion, depended on proved oil and natural gas reserves at mid-January strip price. Moreover, the company admitted that the PV-10 of proved developed oil and natural gas reserves on December 31, 2022, is $1.14 billion, or roughly $45,600 per flowing boe, utilizing strip pricing as of mid-January 2023.
Matador will maintain a strong balance sheet with leverage anticipated resting below 1.0x. Matador’s disclosed production value of $45,600 per boe/d implies about $25,000 to $30,000 per acre (depending on monthly cash payments), and MTDR’s disclosed forward EBITDA of $475 million to 525 million implies a 3.2x multiple.
The Advance Energy deal adds about 35 miles of in-field gas and water gathering pipelines to Matador. The company is purchasing an active Devonian Salt Water Disposal well with a strong injection capacity.
For Matador it is the potential connection of undedicated acreage to Matador’s midstream subsidiary, Pronto Midstream LLC, to enhance flow assurance and provide upside midstream value.
In late November 2022, as part of the fall 2022 redetermination process, Matador’s lenders finished their review of the company’s proven oil and natural gas reserves on June 30, 2022. As a result, the borrowing base under Matador’s credit agreement was increased by 13% from $2 billion to $2.25 billion.
The acquisition should not importantly impact Matador’s leverage profile, as it is anticipated maintaining a pro forma leverage ratio below 1.0x throughout 2023. Baker Botts is representing Matador in the Advance transaction.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Grand Prix Pipeline Will Be Completely Owned by Targa: To Buy Remaining Stake For $1.05 Billion
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/115Blog_Grand_Prix_NGL_Pipeline_Purchased_by_Targa_01_2023 (1).png)
On January 3, Targa Resources Corp asserted that it is purchasing the remaining stake for $1.05 billion in cash from BlackstoneInc's energy unit in its Grand Prix NGL Pipeline that it does not already own. Targa, which is going to acquire a 25% stake from Blackstone Energy Partners, purchased 75% interest in the pipeline last year when it repurchased interests in its development company joint ventures from investment firm Stonepeak Partners LP for almost $925 million. The Stonepeak agreement also included 100% interest in its Train 6 fractionator in Mont Belvieu, Texas, and a 25% equity interest in the Gulf Coast Express Pipeline. Grand Prix has the capacity to transfer up to 1 MMbbl/d of NGL to the NGL market hub at Mont Belvieu. The same day Targa maintained the price of the Blackstone Energy Partners agreement, which is anticipated closing in the first quarter of 2023, representing roughly 8.75 times Grand Prix's valued 2023 adjusted EBITDA multiple.
Tokyo Gas Is Set to Buy Rockcliff Energy: One of the Top Haynesville's Producers
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/114Blog_Tokyo_Gas_Wants_to_Acquire_Rockcliff_Energy_01_2023.png)
On January 3, U.S. natural gas producer Rockcliff Energy from private equity firm Quantum Energy Partners was set to be sold to a unit of Tokyo Gas Co. Ltd. for roughly $4.6 billion, including debt. The all-cash agreement with Houston-based TG Natural Resources, which is 70% possessed by the Japanese energy firm, is decided to be claimed this month, according to anonymous resources, as the discussions were requested to be confidential. Castleton Commodities International (CCI) owns the rest of TG Natural Resources.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/184Blog_Rangeland Energy Divests Canadian Pipeline to Kingston Midstream.png)
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/187Blog_ONEOK Completes Acquisition of Magellan Midstream.png)
The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/186Blog_Viper Energy Secures $1 Billion in Permian.png)
Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.