Deals
Matador Agrees to Buy Permian Oil Assets Worth $1.9 Billion
- Matador deal will boost New Mexico-West Texas footprint
- CEO touts adding core inventory in western Permian Basin
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Oil producer Matador Resources Co. agreed to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion cash, the latest in a series of shale industry tie-ups.
The deal includes oil and gas producing properties and undeveloped acreage in New Mexico and West Texas owned by Ameredev II Parent LLC, Matador said in a Wednesday statement. Matador, which primarily operates in the region, said the assets will provide more contiguous acreage for the firm to drill longer lateral wells and more efficiently tap the oil-rich rocks in the western Permian. The deal includes a 19% stake in Piñon Midstream LLC, which has pipeline and compression assets in New Mexico.