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Matador to Fund Permian, Eagle Ford Rigs with Stock Offering

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Matador Resources Company has reported the closing of the previously announced underwritten public offering of 7,500,000 shares of the Company’s common stock. Total estimated proceeds of the offering to the Company, before estimated offering expenses, were approximately $182 million.

Matador intends to use the net proceeds from this offering primarily to fund a portion of its capital expenditures, including to continue to operate a fourth rig in the Permian Basin throughout the remainder of 2014, allowing Matador to operate two drilling rigs for the development of its acreage in the Eagle Ford shale play and two drilling rigs for the exploration and development of its acreage in the Wolfcamp and Bone Spring plays in the Permian Basin. Matador also intends to use net proceeds from this offering to fund targeted acquisitions of additional acreage in the Permian Basin, as well as in the Eagle Ford shale and the Haynesville shale, for its participation in additional non-operated Haynesville wells and for other general working capital needs.

Pending such uses, Matador repaid $180.0 million of outstanding borrowings under its revolving credit facility, which amounts may be reborrowed in accordance with the terms of that facility. As of June 5, 2014, the Company had $150.0 million of outstanding borrowings and approximately $0.6 million in outstanding letters of credit with a borrowing base of $385.0 million under its revolving credit facility. The Company intends to seek an increase of the borrowing base under its revolving credit facility in connection with the determination of its June 30, 2014 reserves.