Bloomberg Law
Jan. 24, 2023, 4:57 PM

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

Simon Casey
Simon Casey
Bloomberg News

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 ...