Matador Resources Company and its midstream affiliate, San Mateo Midstream, LLC (“San Mateo”) announced the successful start up of San Mateo’s Marlan cryogenic natural gas processing plant (the “Marlan Plant”) expansion in Eddy County, New Mexico. In addition, Matador is pleased to announce a recent upgrade by Fitch Ratings, Inc. (“Fitch”) to the Company’s corporate credit rating to BB and the reaffirmation of the Company’s $3.25 billion borrowing base and $2.25 billion elected commitment under its reserves-based revolving credit facility by its 19-member bank group.
Successful Marlan Plant Expansion On Time and On Budget
The successful expansion of the Marlan Plant on time and on budget adds an incremental 200 million cubic feet per day (“MMcf/d”) of natural gas to the previously existing 60 MMcf/d for a total designed inlet capacity of 260 MMcf/d at the Marlan Plant. The expanded Marlan Plant supports Matador’s development activities in Eddy and northern Lea Counties, New Mexico. The expansion also supports existing third-party producer development plans and allows San Mateo to pursue additional third-party volumes.
San Mateo’s midstream system now has a total gas processing capacity of 720 MMcf/d across Eddy and Lea Counties, New Mexico.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are pleased to announce the start up of the expansion of the Marlan Plant. The increased processing capacity at the Marlan Plant should allow San Mateo to continue to provide Matador with reliable flow assurance in our Ranger and Antelope Ridge asset areas in Lea County, New Mexico. The Board and I congratulate and thank the members of our midstream and operational asset teams – especially the teams in the field – for the significant value they have created through their extra efforts to complete the Marlan Plant expansion on time and on budget.”
Please direct any commercial inquiries about the Marlan Plant or San Mateo’s services to:
Chris Tennant, Senior Vice President and Chief Commercial Officer – Midstream
chris.tennant@matadorresources.com
(972) 629-2165
Fitch Upgrades Matador’s Credit Rating
On May 14, 2025, Fitch upgraded Matador’s Long-Term Issuer Default Rating (IDR) and Matador’s senior unsecured notes from ‘BB-’ to ‘BB’. In its May 14, 2025 press release, Fitch noted, “[t]he upgrade reflects management’s execution on post-acquisition debt reduction initiatives, the company’s large, oil-focused Delaware asset base,…” and Fitch’s view of Matador’s positive free cash flow generation, leverage and ample liquidity. More information regarding Fitch’s upgrade of Matador may be found at www.fitchratings.com.
Mr. Foran added, “We are very pleased to receive Fitch’s upgrade to our corporate credit rating. This upgrade reflects our ongoing commitment to maintaining a resilient asset base and strong balance sheet, as well as improving capital efficiency and increasing free cash flow. We wish to express our appreciation to Fitch for its careful consideration of these factors in making the upgrade determination, and we look forward to working together with each of our rating agencies as Matador continues to build value for its shareholders and bondholders and strengthen its balance sheet.”
Borrowing Base and Elected Commitment Reaffirmation
Matador is pleased to announce that this week all 19 lenders under Matador’s reserves-based revolving credit facility unanimously reaffirmed both the Company’s borrowing base at $3.25 billion and elected commitment at $2.25 billion.
Mr. Foran commented, “We greatly value the strong relationships we enjoy with our lenders, which have been pivotal to the growth and success of both Matador and San Mateo over many years. We wish to express our sincere appreciation to each of our banks for their continued confidence and support, and we look forward to working together in the years ahead as we continue to grow Matador. With a strong balance sheet, nearly $1.8 billion in liquidity and its high-quality asset base, Matador believes it is well positioned to continue to increase shareholder value in 2025 and beyond.
“Matador looks forward to sharing more about our recent progress and accomplishments at our upcoming 2025 Annual Meeting of Shareholders on Thursday, June 12 at 9:30 a.m. Central Time. The Annual Meeting will be held in the Fort Worth Ballroom at The Westin Galleria Dallas hotel, located at 13340 Dallas Parkway, Dallas, Texas 75240. A continental breakfast will be provided beginning at 8:30 a.m. Central Time to provide shareholders with the opportunity to meet and interact with directors, management and employees before the formal meeting. Please join us in person if you are able or via the live webcast, which you can access using the following link https://onlinexperiences.com/Launch/QReg/ShowUUID=BAD980CE-A380-4B64-9D40-14B72B5BFE1B.”
