Moody’s gives Matador notes B3

Moody's Investors Service said it assigned a B3 rating to Matador Resources Co.’s proposed offering of $350 million senior unsecured notes.

The agency also assigned a B2 corporate family rating, a SGL-3 speculative grade liquidity rating and a stable outlook.

Note proceeds will be used to repay a portion of the borrowings outstanding under Matador’s revolving credit facility and the assumed debt from the company's acquisition of Harvey E. Yates Co. in February 2015. Matador combined assets with Harvey E. Yates, a subsidiary of Heyco Energy Group, Inc., including certain oil and natural gas producing properties and undeveloped acreage located in Lea and Eddy Counties, N.M.

"Matador has demonstrated a consistent track record in its execution of acreage acquisitions, steadily growing production and maintaining a strong balance sheet," Moody's senior analyst Sreedhar Kona said in a news release.

"While the extent of Matador's proved reserves and production constrain the rating, Moody's expects its low leverage will help Matador weather commodity price weakness while modestly growing its production levels."

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