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Matador to sell 7 million shares in public offering

Matador Resources Co. (NYSE:MTDR) announced today that it has decided to make a big leap in business and start a public offering of common stock.

In order to repay outstanding debt and fund future capital expenditures in a market that is being forced to tighten its belt several notches at a time, Matador is offering 7 million shares of common stock. The company is considering supplementing its operations in the Permian Basin by adding a third rig and acquiring more acreage at some point in 2015. Additional land acquisitions are also a possibility for Matador’s operations in the Eagle Ford and Haynesville shale plays.

Until the company has decided precisely what changes to make to its portfolio, Matador stated that it “intends to invest the funds in short-term marketable securities or apply them to the reduction of other short-term indebtedness.”

RBC Capital Markets is serving as the sole underwriter of the offering and has control over transactions of any stock sales, including when those sales take place and what price stocks are sold for.

In related news, Hiatus announced for Matador rigs in Eagle Ford, Permian operations keep chugging.

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