Pronto Midstream, subsidiary of Dallas-based Matador Resources, said Tuesday it agreed to acquire Advance Energy Partners and its oil- and natural gas-producing properties and undeveloped acreage in Delaware Basin for initial cash payment of $1.6 billion. The deal includes about 18,500 net acres (99 percent held by production) in core of northern Delaware Basin in Lea County, N.M., and Ward County. Estimated production in 2023Q1 is 24,500 to 25,500 boed (74 percent oil). Matador said 406 gross (203 net) horizontal locations have been identified for future drilling. Most of the acquisition is in Matador’s Ranger asset area in Lea County near Matador’s existing properties.
Joseph Wm. Foran, chairman and CEO, said, “Matador is very excited by this strategic bolt-on opportunity… We view this transaction as a unique value-creating opportunity for Matador.” He said Matador evaluated the transaction based on rock quality, strong existing production, potential reserves additions, high-quality inventory and available midstream opportunities.