Matador Resources is weighing opportunities to sell or trade its Eagle Ford assets.
Executives for Matador Resources reported strong results for the second quarter of 2016, highlighted by ‘milestones and achievements’ including significant production growth and operational efficiencies.
Matador’s Eagle Ford Operations
During an earnings call earlier this month, CEO Joseph Foran said that the company has done virtually no drilling in the region this year and that the area is not as strategic to the company as it has been in the past. He also revealed that the company is open to opportunities to part with some or all of its Eagle Ford assets.
Foran was careful to say that they were not being aggressive in pursuit of a deal, but that if the right opportunity came along they would entertain it. He said that, ideally, they would like to trade property for acreage in the Delaware or Haynesville Basins.
Second Quarter Highlights:
- Record average daily production: 28,000 barrels of oil equivalent (“BOE”) per day (23,800 in Q1)
- Capital expenditures during the first six months of 2016 of approximately $198 million
- Net loss of $105.9 million versus a net loss of $107.7 million in Q1
- Lease operating expenses (“LOE”) of $5.17 per BOE, a decrease of 28% sequentially, as compared to $7.14 per BOE in the first quarter of 2016, and a decrease of 16% year-over-year, as compared to $6.18 per BOE in the second quarter of 2015.