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Matador to Buy Advance for $1.6 Billion to Add Permian Asset (2)

Jan. 24, 2023, 4:57 PM

Consolidation in the Texas oil patch is gaining momentum this week after Matador Resources Co. agreed to acquire Advance Energy Partners Holdings LLC for about $1.6 billion in cash, the largest deal in Matador’s 20-year history.

The purchase of Advance, which is currently controlled by private equity firm EnCap Investments LP, is expected to be completed early in the second quarter, Dallas-based Matador said Tuesday in a statement. Matador also agreed to pay an additional cash consideration of $7.5 million for each month this year in which the average oil price exceeds $85 a barrel.

The acquisition comes ...