Moody's raises Matador Resources

Moody's Investors Service said it upgraded Matador Resources Co.'s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD and senior unsecured notes to B2 from B3. Moody's also boosted the company's speculative grade liquidity rating to SGL-2 from SGL-3 to reflect good liquidity.

"The upgrade reflects Matador's improved cost structure and enhanced free cash flow generation capabilities that should facilitate further deleveraging and volume growth through 2022 in a supportive oil price environment," said Sajjad Alam, Moody's senior analyst, in a press release.

Matador's senior unsecured notes due 2026 are rated B2, a notch below the B1 CFR, reflecting the significant size of the revolver, which has a priority claim to Matador's assets over the notes, the agency said. The revolver is secured by substantially all of Matador's oil and gas reserves.

The outlook is stable.

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