Business Context and Reporting Period
Company: Matador Resources Company
Filing Type: Form 8-K (Current Report)
Date of Report: October 31, 2018
Reporting Period: The filing primarily addresses a material definitive agreement executed on October 31, 2018, and incorporates by reference financial results for the three and nine months ended September 30, 2018.
Key Financial Metrics and Capital Structure
This filing details a significant amendment to the Company's credit facility rather than providing a full set of GAAP financial statements. Specific revenue, profit, and cash flow figures for the period are contained in the referenced Press Release (Exhibit 99.1) and are not explicitly stated in the text of this 8-K. Key capital structure metrics from the amendment include:
- Maximum Facility Amount: Increased to $1.5 billion.
- Borrowing Base: Increased to $850.0 million.
- Elected Borrowing Commitment: Increased to $500.0 million.
- Maturity Date: Extended to October 31, 2023.
- Borrowing Rates: Reduced by 0.25% per annum.
- Leverage Ratio: Set at 4.00 to 1.00.
Material Changes Versus Prior Period
The primary material change reported is the execution of the Thirteenth Amendment to the Third Amended and Restated Credit Agreement. Compared to the prior terms of the Revolving Credit Agreement, the Company has:
- Expanded total available liquidity capacity.
- Extended the debt maturity horizon by approximately five years.
- Lowered the cost of borrowing.
- Adjusted the leverage covenant to 4.00:1.00.
Operational and financial performance changes for the three and nine months ended September 30, 2018, are referenced but not detailed in this document text.
Guidance, Outlook, and Risks
Management Commentary: The Company released a press release and presentation (Exhibit 99.1) containing an operational update and financial results. These materials include non-GAAP measures such as Adjusted EBITDA and adjusted net income, with reconciliations to GAAP measures provided in the referenced exhibits.
Risks and Contingencies: The filing notes that certain lenders or their affiliates may perform investment banking, advisory, or commercial banking services for the Company, for which they receive customary fees. The description of the credit amendment is qualified by reference to the full legal agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific revenue, earnings, and production data for the three and nine months ended September 30, 2018.
- Examine Exhibit 10.1 for the full legal terms, covenants, and conditions of the amended Credit Agreement.
- Verify the reconciliation of non-GAAP financial measures (Adjusted EBITDA) to GAAP net income in the referenced materials.
- Confirm the impact of the 0.25% rate reduction on future interest expense projections.