Matador Resources said Tuesday it expects to finish the year “strong” and offered higher production estimates for the fourth quarter and part of 2024.
On the remainder of 2023:
“Matador expects to finish the year strong with continued production increases, cost efficiencies and debt repayment. We anticipate achieving the mid-to-high end of our full-year 2023 guidance range for total oil and natural-gas equivalent production, oil production and natural-gas production. We also expect lower capital expenditures for full-year 2023, primarily due to lower midstream capital expenditures of $25 million.
“For the fourth quarter of 2023, we now expect to produce an average of approximately 145,000 BOE per day, which is a 2% increase from our previous expectation of 143,000 BOE per day. In addition, we anticipate our oil production to average 86,750 barrels of oil per day at the midpoint of our guidance during the fourth quarter, which is a 1% increase from our previous expectation of 86,000 barrels of oil per day. In addition to the increased production during the fourth quarter of 2023, we also anticipate having 47 net wells in some stage of drilling or completion on Dec. 31.”
On progress with midstream assets:
“Matador also continues to make progress with its midstream assets to increase the ‘flow assurance’ essential for its growing production volumes and third-party relationships in the Delaware Basin. We expect to connect Pronto’s natural-gas system with the natural-gas system owned by San Mateo Midstream, LLC, our midstream joint venture, in the first quarter of 2024. We also expect to connect Pronto’s natural-gas system to our advance acreage in the first quarter of 2024, which will allow us to directly deliver natural-gas volumes from the advance acreage to the Marlan Plant.
“In addition to these connections, we continue to move forward with our plans to expand our processing capacity by adding an additional cryogenic natural-gas processing plant with a designed inlet capacity of 200 million cubic feet of natural gas per day and are evaluating whether to include a partner in building the processing plant.”
Write to Matt Walker at [email protected]
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