Moody’s lifts Matador, notes

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 rating to B2 from B3.

The agency also upgraded the speculative grade liquidity rating to SGL-2 from SGL-3.

The outlook is stable.

"Matador's ratings upgrade reflects the company's growing production and reserves while improving its cost structure and capital efficiency. Matador maintained its low financial leverage through the commodity price cycle and took advantage of its highly productive Delaware Basin acreage to steadily grow its size and scale," Moody's senior analyst Sreedhar Kona said in a news release.

"Although Matador is projected to outspend its cash flow through 2018, the company's good liquidity and its ability to maintain production by spending within cash flow, if required, contribute to the stable outlook."

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