Matador Resources Issues Stock To Fund Eagle Ford Acquisitions & Capital Budget

Matador Resources Eagle Ford Map | Click to Enlarge

Matador Resources priced a public offering of 8.5 million shares at $15.25/share or for total proceeds of near $130 million on September 4, 2013. The capital raised will be used to fund the company's capital budget and acreage acquisitions in its core operating areas.

Approximately 78% of Matador's 2013 capital budget is allocated to the Eagle Ford. Two rigs will run in the region throughout 2013 and one rig will be added in the Permian Basin of West Texas.

Matador also intends to use net proceeds from this offering to fund the acquisition of additional acreage in the Eagle Ford shale, the Permian Basin and the Haynesville shale and for other general working capital needs.

Read the full press release at matadorresources.com

Retail Workers Are Hard To Find In The Eagle Ford - Dallas Fed

The latest beige book from the Dallas Federal Reserve notes that finding retail workers in the Eagle Ford is becoming more difficult. The economist also highlighted rising commercial lending & real estate development.

“If you are looking for qualified workers, consider a listing on our Eagle Ford Jobs Board. Over 20,000 job seekers search here each month!”

The Federal Reserve Bank expects energy activity to increase in the second half of the year. Activity levels in South Texas and West Texas are expected to remain high as Gulf of Mexico activity increases.

There is difficulty finding workers across the state:

"Difficulty finding qualified workers became more widespread, with scattered reports among accounting, finance, single-family construction, auto sales, and primary metals manufacturing firms, as well as from retailers in the Eagle Ford Shale area."

Moderate growth in loan demand:

"Financial institutions experienced moderate growth in loan demand. Commercial real estate and transactions lending increased solidly, especially in oil and gas areas around the Eagle Ford Shale and West Texas."

Little change in energy, but growth expected:

"Energy activity was little changed at high levels. Global demand held steady, although there was some weakness from Mexico and Canada. Respondents expect improvement in energy activity in the second half of the year, due in part to anticipated increases in rig activity and production from the Gulf of Mexico."

Read the full beige book at dallasfed.org

Comstock Resources Sells West TX Assets to Focus in the Eagle Ford

Comstock Resources Eagle Ford Map

Comstock Resources is selling West Texas assets in Gaines and Reeves counties for $768 million to Rosetta Resources. The sale provides capital that will allow Comstock to speed up Eagle Ford development.

In February, the company planned 42 gross (27.3 net) wells in the Eagle Ford and has now increased it's drilling plans to 72 gross (46.9 net) wells. The company plans to spend $312 million, of its company-wide $410 million budget, in the Eagle Ford. The number of rigs Comstock is utilizing in the play will increase from three in early 2013 to six in the second half of the year.

"This transaction substantially enhances our balance sheet by providing us with an opportunity to improve our liquidity and leverage position. The sale will also yield a strong return for our stockholders on our investment in this region," stated M. Jay Allison, Chief Executive Officer of Comstock. "We will now direct our resources to accelerate the development of our oil properties in the Eagle Ford shale in South Texas."

Read more about the deal at comstockresources.com

Comstock Directs 3 Rigs to the Eagle Ford - Sets Capital Budget

Comstock Resources Eagle Ford Map

Comstock Resources' Eagle Ford assets will account for almost half of the company's activity in 2013. Three of six rigs planned to work throughout the year will be active in South Texas. The other three will be working in West Texas as the company works to shift its production mix to higher valued liquids.

Comstock has set its capital budget at $430 million in 2013. Roughly 27 wells will be drilled in the Eagle Ford, 20 vertical wells targeting the Wolfbone in West Texas, 7 horizontal wells targeting the Wolfcamp in West Texas, and less than 4 net wells in the Haynesville & Bossier shales. The Haynesville wells are being drilled to hold acreage. That's a total of a little more than 58 net wells planned in 2013.

The company's 35,000 gross (28,000 net) Eagle Ford acres are largely spread across Atascosa, La Salle, and McMullen counties. The company estimates wells will produce over 500,000 boe and that its acreage has net resource potential of 78 million boe. CRK's partner KKR has the right to participate in 1/3 of the company's 28,000 net acres.

Comstock Resources Plans $193 Million With Two Rigs Through 2012

Comstock Resources Eagle Ford assets will have $193 million directed their way in 2012. The company will spend over $165 million to drill and complete 24 gross (21.7 net) wells, while also spending $27.7 million to finish 4 gross (3.2 net) wells that were started in 2011. Comstock Resource's Eagle Ford acreage is predominately located in McMullen and Atascosa counties. The company announced an increase in reported reserves of 25%, along with a 16% cut in capex. 2012 spending was lowered from $545 million to $458 million. The change was a direct response to sub-$3 natural gas prices.

Comstock is making a shift to liquids from gas. Current gas prices the Eagle Ford and West Texas make the areas much more attractive than the company's legacy gas properties.