Matador Resources Co. Commences Public Offering Of 8.5 Mln Common Shares

(RTTNews) - Matador Resources Co. (MTDR) announced that it has commenced an underwritten public offering of 8.5 million shares of its common stock.

Matador said it will also grant the underwriters a 30-day option to purchase up to 1.3 million additional shares of common stock.

The company stated that it expects to use the net proceeds from this offering, including any net proceeds from the underwriters' exercise of their option, primarily to fund a portion of its capital expenditures, including for the addition of a third rig to its current two-rig drilling program, allowing Matador to operate two drilling rigs for the development of its acreage in the Eagle Ford shale play and one drilling rig for the exploration and development of its acreage in the Wolfcamp and Bone Spring plays in the Permian Basin.

Also, Matador intends to use 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.

Pending such uses, Matador said it intends to repay outstanding borrowings under its revolving credit facility, which amounts may be reborrowed in accordance with the terms of that facility.