Business Context and Reporting Period
Company: Matador Resources Company
Filing Type: Form 8-K (Current Report)
Date of Report: October 4, 2017
Event: Entry into a Material Definitive Agreement for an underwritten public offering of common stock.
Key Financial Metrics
This filing reports on a capital raising event rather than operational financial performance. Specific metrics include:
- Shares Issued: 8,000,000 shares of common stock.
- Offering Price: $26.09 per share.
- Total Proceeds (Gross): Approximately $208.72 million (calculated as 8,000,000 shares x $26.09).
- Expected Closing Date: October 10, 2017.
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity positions as this is a transactional report, not a periodic financial statement.
Material Changes
The primary material change is the execution of an Underwriting Agreement with BMO Capital Markets Corp. as representative of the underwriters. This agreement facilitates the issuance of new equity, which will increase the company's share count and cash assets upon closing, subject to customary conditions.
Guidance, Outlook, and Risks
Management Commentary: The company issued a press release on October 5, 2017, announcing the pricing of the offering. The offering was registered under a shelf registration statement (Form S-3) effective August 11, 2017.
Risks and Contingencies: The closing of the offering is subject to the satisfaction of customary closing conditions. The company agreed to indemnify the underwriters against certain liabilities under the Securities Act and to contribute to payments the underwriters may be required to make.
Investor Verification Checklist
- Verify the final closing date of the offering (expected October 10, 2017) and confirmation of fund receipt.
- Review the full text of the Underwriting Agreement (Exhibit 1.1) for specific indemnification terms and underwriting discounts.
- Confirm the updated share count and dilution impact post-closing.
- Check subsequent filings for the actual use of proceeds from the $208.72 million gross offering.