Baker Botts Represents Matador Resources Company in Contribution of Pronto Midstream to San Mateo Midstream
Deal Description: On December 5, 2024, Matador Resources Company (NYSE: MTDR) (“Matador”) announced that it executed a definitive agreement whereby Matador would contribute Pronto Midstream, LLC (“Pronto”), Matador’s wholly-owned midstream subsidiary, to San Mateo Midstream, LLC, Matador’s midstream joint venture (“San Mateo”), for a total implied valuation of Pronto of approximately $600 million. At the closing of the transaction, Matador will receive an up-front cash payment of approximately $220 million for the contribution of Pronto to San Mateo. In addition, Matador may earn up to $75 million in incentive payments from Five Point Energy LLC (“Five Point”) as Matador executes its operational plans in northern Lea County, New Mexico over the next five years. San Mateo will continue to be owned 51% by Matador and 49% by an affiliate of Five Point.
Baker Botts is representing Matador in this transaction.
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.
In-House Counsel for Matador: Bryan Erman, Tara Flume and Derek Gabriel
Outside Commercial Counsel to Matador: O’Melveny &Meyers LLP
Baker Botts Lawyers/Office Involved:
Corporate: Preston Bernhisel (Partner, Dallas); Rusty Shellhorn (Associate, Dallas)
Commercial: Scott Looper (Partner, Houston)
Tax: Steve Marcus (Partner, Dallas)
Finance: Luke Weedon (Partner, Dallas); Morgan Copher (Associate, Dallas)
For more information, please see Matador's news release by clicking here.
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