Matador Resources Company, a Dallas-based energy company heavily invested in the Texas shale oil industry, announced yesterday that it plans to reduce its operation by cutting production from two rigs in Eagle Ford in 2015.
This is a big move for the company considering that their oil, natural gas and total oil production were at record levels at the end of 2014. Management says that their strategy to narrow drilling efforts to three rigs in its Permian Basin operations is necessary in light of lower oil prices, which have dropped from $100 per barrel in June to below $50. But the company insists that it isn’t abandoning the region entirely.
“As a result of the Company’s strong execution in the Eagle Ford over the past three years, this asset has become an “oil bank” that Matador can return to and develop further at a future time when commodity prices are more favorable.”
Related: What Lower Oil Prices Mean for Texas and Eagle Ford
Matador was originally scheduled to release its full operational report by mid January, but have moved it to February 15th in order to have more time to better assess their current situation.Everyone is invited to listen in to this presentation and the details can be accessed through the Company’s website on the Presentations & Webcasts page under the Investors tab.
Find out more at matadorresources.com