Matador Resources to buy Advance Energy for $1.6 billion (updated)
24/01/2023 12:24
(Updates with details on the deal)
Jan 24 (Reuters) - Matador Resources Co MTDR.N said on
Tuesday it would buy Advance Energy Partners Holdings LLC for
$1.6 billion, in a deal that includes certain oil and natural
gas-producing properties and undeveloped acreage located in Lea
County, New Mexico and Ward County, Texas.
Matador would have to pay an additional $7.5 million of
cash per month during 2023 if the average oil price exceeds $85
per barrel.
Crude prices surged last year to multi-year highs and
have remained elevated this year, prompting energy producers to
buy assets and take advantage of higher prices.
The deal is expected to close early in the second
quarter of 2023, Matador said in a statement.
Advance Energy Partners is a portfolio company of buyout
firm EnCap Investments L.P.
(Reporting by Ankit Kumar; Editing by Eileen Soreng)
((Ankit.Kumar2@thomsonreuters.com;))