By Matador Resources, a leading energy company, announced on Tuesday its optimistic outlook for the rest of the year and revised production estimates for the fourth quarter and part of 2024.
Outlook for the Remainder of 2023
Matador is confident that it will end the year on a high note, driven by continued production growth, cost efficiencies, and debt reduction. The company aims to achieve the upper end of its full-year 2023 guidance range for total oil and natural gas equivalent production, oil production, and natural gas production. Furthermore, Matador anticipates lower capital expenditures for the year, primarily due to reduced midstream capital spending amounting to $25 million.
Fourth Quarter 2023 Production Estimates
In the fourth quarter of 2023, Matador now expects to achieve an average daily production of approximately 145,000 barrels of oil equivalent (BOE), marking a 2% increase from the previous estimation of 143,000 BOE per day. Additionally, the company foresees its oil production to reach an average of 86,750 barrels per day during this period, reflecting a 1% rise from the initial projection of 86,000 barrels per day. Moreover, Matador plans to have 47 net wells in various stages of drilling or completion by December 31st.
As Matador Resources surges ahead with robust performance and elevated production projections, it remains committed to delivering value to its stakeholders and maintaining industry leadership.
Progress with Midstream Assets
Matador is making significant strides in enhancing its midstream assets to ensure smooth and uninterrupted flow for its growing production volumes and third-party collaborations in the Delaware Basin. The company has exciting plans in place for the first quarter of 2024.
Integration with San Mateo Midstream’s Natural Gas System
As part of its ongoing efforts, Matador aims to connect Pronto’s natural gas system with the system owned by San Mateo Midstream, LLC, its respected midstream joint venture. This integration is expected to be completed in the first quarter of 2024. By joining forces, Matador will strengthen its capabilities and capitalize on the synergistic opportunities that arise.
Linking Pronto’s Natural Gas System to Advance Acreage
Additionally, Matador intends to establish a connection between Pronto’s natural gas system and its advance acreage during the same period. This crucial development will enable the company to directly deliver natural gas volumes from the advance acreage to the Marlan Plant, facilitating efficiency and streamlining operations.
Expanding Processing Capacity
Alongside these advancements, Matador is actively pursuing plans to expand its processing capacity. The company aims to construct an additional cryogenic natural gas processing plant with a designed inlet capacity of 200 million cubic feet of natural gas per day. This expansion will elevate Matador’s capabilities and bolster its position in the industry. To ensure a well-rounded approach, Matador is evaluating the possibility of including a partner in the construction of the new processing plant.
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