Business Context and Reporting Period
Company: Matador Resources Company
Filing Type: Form 8-K (Current Report)
Date of Report: June 4, 2013
Reporting Period: The filing reports on events occurring on June 4, 2013, specifically regarding amendments to the Company's credit agreement and an operational update issued June 5, 2013.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or margins. It focuses on debt capacity adjustments.
- Borrowing Base: Increased from $255 million to $280 million.
- Conforming Borrowing Base: Increased from $220 million to $245 million.
- Debt Instrument: Amended and Restated Senior Secured Revolving Credit Agreement.
- Borrower: MRC Energy Company (wholly-owned subsidiary).
- Guarantor: Matador Resources Company.
Material Changes Versus Prior Period
The primary material change is the execution of the "Second Amendment" to the Credit Agreement on June 4, 2013. This amendment increased the borrowing base and conforming borrowing base. The increase was based on:
- Lenders' review of proved oil and natural gas reserves as of March 31, 2013.
- Results from several recently completed wells.
The Company reaffirmed its guaranty of the subsidiary's obligations under the amended agreement.
Guidance, Outlook, and Management Commentary
Operational Update: The filing incorporates a press release (Exhibit 99.1) issued on June 5, 2013, providing an operational update. The text of the press release is not included in this summary; only its existence is noted.
Investor Presentations: The Company expects to make presentations to potential investors. Presentation materials are furnished as Exhibit 99.2.
Legal Disclaimer: Information furnished under Item 7.01 (including the press release and presentation materials) is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be incorporated by reference into other filings unless specifically identified.
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 summary of the Second Amendment is qualified by the full text of the agreement filed as Exhibit 10.1.
Important Facts for Investor Verification
- Verify the specific terms of the Second Amendment to the Credit Agreement in Exhibit 10.1.
- Review the operational update details in the Press Release (Exhibit 99.1) to understand the context of the reserve review.
- Confirm the impact of the increased borrowing base on the Company's liquidity and leverage ratios.
- Note that the increased borrowing base is contingent on the lenders' review of reserves as of March 31, 2013.