Matador Resources Company has issued a private placement of $750 million of 6.000 % senior unsecured notes due 2034, priced at 100 % of face value, with a closing date of March 5, 2026. The company simultaneously launched a cash tender offer to repurchase its outstanding $500 million of 6.875 % senior notes due 2028. Holders of the 2028 notes may tender their bonds for $1,019.75 per $1,000 principal, plus accrued interest, with settlement on March 5, 2026. The tender offer expires on March 4, 2026 and is contingent on Matador raising at least $500 million in gross proceeds from the new notes.
The new 2034 notes carry a 6.000 % coupon and extend the company’s debt maturity profile by a decade, while the 6.875 % 2028 notes are being retired at a premium that reflects the lower cost of the new debt. The offering was priced at par, indicating strong demand and a favorable market environment for Matador’s credit profile.
Proceeds from the new notes will be used to fund the tender offer and to repay borrowings under the company’s revolving credit facility. By replacing higher‑rate, shorter‑term debt with lower‑rate, longer‑term debt, Matador aims to reduce its overall interest expense, lower its debt‑to‑equity ratio, and strengthen its balance sheet. The transaction also frees up liquidity that can be deployed toward future production growth, capital expenditures, and potential shareholder return initiatives.
Matador’s decision to refinance comes shortly after the company reported a Q4 2025 earnings miss, with earnings per share of $0.87 versus an analyst consensus of $0.91 and revenue of $702.82 million versus a forecast of $819.48 million. The miss underscored the need for tighter financial discipline and a more resilient capital structure. CEO Joseph Wm. Foran has emphasized maintaining a strong balance sheet as a core priority, alongside improving capital efficiency, reducing reserve‑based loan exposure, and supporting midstream value realization.
The refinancing aligns with Matador’s broader strategy to grow oil production by roughly 3 % while cutting capital expenditures by 11 % to $1.5 billion in 2026. By extending maturities and lowering borrowing costs, the company positions itself to pursue these growth targets without compromising financial flexibility. The move also signals confidence in the company’s ability to manage debt risk amid a volatile commodity environment.
The transaction reflects a proactive approach to debt management, ensuring that Matador can continue to invest in production and midstream assets while maintaining a healthy debt profile and providing a buffer against future market swings.
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