DALLAS - Matador Resources Company (NYSE: NYSE:MTDR), an independent energy company, announced its intention to offer $800 million in senior unsecured notes due in 2032, aiming to repurchase its existing 5.875% senior notes due 2026. The announcement, made today, depends on market conditions and is directed to eligible purchasers in a private placement.
According to the company, the net proceeds from the offering will be used primarily to fund the repurchase of the approximately $699.2 million outstanding aggregate principal amount of its 2026 notes.
This will be done through a cash tender offer, along with related premiums, fees, and expenses. Any remaining funds will be allocated for general corporate purposes, which could include acquisitions and repayment of borrowings under Matador's revolving credit facility.
Matador has made it clear that if there are any 2026 notes left after the tender offer, the company plans to satisfy and discharge the remaining notes in compliance with the indenture terms governing them. The tender offer is being made strictly according to the offer to purchase and related notice of guaranteed delivery, both dated as of March 26, 2024.
The new notes and related guarantees have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States without registration or an exemption from registration requirements. The initial purchasers may resell the new notes to qualified institutional buyers or to non-U.S. persons outside the United States under certain conditions.
Matador is primarily engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. The company's operations are concentrated in the oil and liquids-rich regions of the Wolfcamp and Bone Spring plays in the Delaware Basin, the Eagle Ford (NYSE:F) shale in South Texas, and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Matador also runs midstream operations to support its exploration and production activities.
This press release includes forward-looking statements regarding Matador's business and financial prospects, which involve risks and uncertainties that could cause actual results to differ materially from those anticipated. The company has emphasized that this press release is based on current expectations and is not an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Matador Resources Company (NYSE: MTDR) navigates the financial waters with its recent announcement to offer senior unsecured notes, investors are closely monitoring the company's performance metrics. According to InvestingPro data, Matador has a market capitalization of approximately $8.19 billion, reflecting its standing in the energy sector. The company's Price to Earnings (P/E) ratio stands at 9.67, which may appeal to value-oriented investors looking for potentially undervalued stocks in today's market.
Investors are also paying attention to Matador's revenue growth, which shows a quarterly increase of 17.29% in Q1 2023. This could signal a positive trend in the company's operational performance, possibly boosting investor confidence in the context of their recent financial maneuvers. Furthermore, with a Gross Profit Margin of 80.61% for the last twelve months as of Q1 2023, Matador demonstrates its ability to maintain profitability in its operations.
Turning to InvestingPro Tips, it's notable that Matador has raised its dividend for three consecutive years, which may be of particular interest to income-focused investors. Additionally, the company is trading near its 52-week high, with the price at 98.78% of this peak, indicating strong recent performance. For those looking for more in-depth analysis and additional tips, InvestingPro offers further insights on Matador Resources. Currently, there are 11 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/MTDR. To enrich your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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