Matador Resources Company announced that its Board of Directors (the “Board”) adopted a dividend policy pursuant to which the Company intends to pay quarterly cash dividends on its common stock of $0.025 per share. Pursuant to this policy, the Board declared Matador’s first quarterly cash dividend of $0.025 per share of common stock payable on March 31, 2021 to shareholders of record as of March 24, 2021.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are pleased to initiate a quarterly cash dividend policy and announce the payment of Matador’s first cash dividend, which marks another significant step for Matador in returning value to our shareholders and also indicates our confidence in Matador’s financial strength and ability to generate sustained free cash flow going forward. The Board adopted this dividend policy while at the same time Matador repaid $35 million in borrowings outstanding under the Company’s reserves-based credit facility during the fourth quarter of 2020 and repaid an additional $10 million in borrowings outstanding under the Company’s reserves-based credit facility in January 2021.
“Additionally, in recognition of our desire to provide value to Matador’s shareholders and the challenges faced during 2020, the rest of the Company’s Executive Officers and I have elected to forego receiving any bonuses for 2020 performance under Matador’s Annual Cash Incentive Plan, despite the Independent Directors of the Board certifying that Matador met or exceeded each of the maximum performance goals under the plan. The rest of the Company’s Executive Officers and I are committed to continuing to generate profitable growth at a measured pace, and we have elected to forego these bonuses to assist in the strengthening of our balance sheet and the adoption of the dividend policy.
“The Board and I would like to commend the entire Matador team for their positive and professional response to the challenges faced during 2020. We look forward to providing additional information tomorrow regarding our operational and financial results for the fourth quarter and full year 2020 as well as our plans for continued growth and return of value to shareholders in 2021. We remain confident in Matador’s future outlook, especially of our drilling and production inventory. We are excited to have reached this noteworthy point in the Company’s history with the adoption of a dividend policy and payment of our first cash dividend in March 2021 and look forward to the declaration of additional dividends in the future.”