Matador Resources (MTDR) Update - July 8
Posted: Wed Jul 08, 2020 9:58 am
Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today announced the Company’s realized net gain on derivatives for the second quarter of 2020.
Matador expects to report a realized net gain on derivatives of approximately $44.1 million for the second quarter of 2020. These realized gains include approximately $41.9 million attributable to the Company’s various West Texas Intermediate hedges and approximately $2.2 million attributable to the Company’s Midland-Cushing oil basis swaps for the three months ended June 30, 2020. In addition, Matador expects to report a non-cash, unrealized net loss on derivatives of approximately $132.7 million for the second quarter of 2020.
Joseph Wm. Foran, Matador's Chairman and CEO, commented, "The restructuring of our oil hedging positions at the beginning of the second quarter of 2020 helped to protect the Company’s revenues and cash flows against the considerable oil price volatility we experienced in the second quarter. We continue to look for opportunities to add to our hedging positions for 2021 and beyond, both for oil and natural gas. Further, we remain pleased with the progress of our ongoing operations and efforts to reduce our capital spending and operating expenses, particularly lease operating expenses and general and administrative expenses. In late June, we reduced our operated drilling program in the Delaware Basin to three rigs, as previously indicated, and we expect to operate only three rigs there for the remainder of 2020."
Matador expects to report a realized net gain on derivatives of approximately $44.1 million for the second quarter of 2020. These realized gains include approximately $41.9 million attributable to the Company’s various West Texas Intermediate hedges and approximately $2.2 million attributable to the Company’s Midland-Cushing oil basis swaps for the three months ended June 30, 2020. In addition, Matador expects to report a non-cash, unrealized net loss on derivatives of approximately $132.7 million for the second quarter of 2020.
Joseph Wm. Foran, Matador's Chairman and CEO, commented, "The restructuring of our oil hedging positions at the beginning of the second quarter of 2020 helped to protect the Company’s revenues and cash flows against the considerable oil price volatility we experienced in the second quarter. We continue to look for opportunities to add to our hedging positions for 2021 and beyond, both for oil and natural gas. Further, we remain pleased with the progress of our ongoing operations and efforts to reduce our capital spending and operating expenses, particularly lease operating expenses and general and administrative expenses. In late June, we reduced our operated drilling program in the Delaware Basin to three rigs, as previously indicated, and we expect to operate only three rigs there for the remainder of 2020."