Matador affirms borrowing base at $900 million; San Mateo loan lifted

By Sarah Lizee

Olympia, Wash., Oct. 28 – Matador Resources Co. announced an affirmation of the borrowing base under its reserves-based credit facility at $900 million, as well as a $50 million increase to the San Mateo Midstream, LLC credit facility to $375 million from $325 million.

San Mateo is the company’s midstream joint venture owned 51% by Matador and 49% by Five Point Energy.

As part of the fall 2019 redetermination process, Matador’s lenders recently completed their review of the company’s proved oil and natural gas reserves at June 30, according to a press release.

As a result, Matador’s borrowing base under its reserves-based credit facility was affirmed by its lenders at $900 million, despite lower commodity pricing assumptions being used generally by the lenders in the fall redetermination process.

“The $900 million borrowing base should provide the company with more-than-sufficient liquidity for conducting its current and anticipated future operations for the remainder of 2019 and 2020,” the company said in the release.

Matador said it elected to maintain the lenders’ borrowing commitment at $500 million in order to avoid paying unnecessary fees associated with the standby provisions related to the additional borrowing capacity, but Matador expects that it will be able to access such borrowing capacity at a later date if needed.

At Sept. 30, Matador had about $40.8 million in cash and restricted cash, $215 million in aggregate borrowings outstanding under its reserves-based credit facility and about $13.6 million in outstanding letters of credit issued under the credit facility.

The San Mateo credit facility is non-recourse with respect to Matador and its wholly owned subsidiaries.

At Sept. 30, San Mateo had $260 million in aggregate borrowings outstanding under its facility and $16.2 million in outstanding letters of credit.

Matador’s banking group includes nine institutions, all of which are parties to both the reserves-based credit facility and the San Mateo credit facility.

The energy company is based in Dallas.

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