Matador to reduce South Texas drilling activity
Matador Resources Company provided an update to its 2019 operational plans. Matador plans to focus on continuing its profitable exploration and production activities in the Delaware Basin and continuing to grow the value of its midstream business, while also giving due consideration to the changing financial circumstances in the industry. Accordingly, Matador plans to reduce its operated drilling program by releasing its South Texas rig upon the completion of the Company's South Texas drilling program in February 2019. To further narrow any potential 2019 spending gap, Matador expects to divest portions of its non-core assets, particularly in its Haynesville and in parts of its South Texas positions, as well as to consider monetizing other assets, such as certain mineral, royalty and midstream interests, as value-creating opportunities arise. Matador is also working to implement practices to improve capital efficiency in its 2019 operations, including potential reductions in service costs, additional multi-well pad drilling, increasing the number of longer laterals and increased use of in-basin sand in its fracturing operations.