Business Context and Reporting Period
Company: Matador Resources Company
Filing Type: Form 8-K (Current Report)
Date of Report: September 5, 2014
Event: Entry into a Material Definitive Agreement regarding credit facilities.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt capacity adjustments.
- Borrowing Base Increase: Raised from $385 million to $450 million.
- Conforming Borrowing Base Increase: Raised from $310 million to $375 million.
- Valuation Basis: Adjustments based on lenders' review of proved oil and natural gas reserves as of July 31, 2014.
Material Changes
On September 5, 2014, MRC Energy Company, a wholly-owned subsidiary, entered into an amendment to its Third Amended and Restated Senior Secured Revolving Credit Agreement. The primary material change is the expansion of available liquidity through the increased borrowing base limits noted above. The Company reaffirmed its guaranty of the subsidiary's obligations under the agreement.
Guidance, Outlook, and Risks
Operational Update: The filing references a press release (Exhibit 99.1) issued on September 8, 2014, containing updated operational information, though specific operational metrics are not detailed in the text of this 8-K.
Risks and Contingencies: The filing notes that lenders or their affiliates may perform investment banking or financial services for the Company in the ordinary course of business, for which they receive customary fees. No specific new risks or contingencies were disclosed in the text of this report.
Investor Verification Checklist
- Verify the full text of the Fifth Amendment to the Credit Agreement (Exhibit 10.1) for covenants and interest rate terms.
- Review the September 8, 2014 Press Release (Exhibit 99.1) for specific operational data supporting the reserve valuation.
- Confirm the Company's current utilization of the revolving credit facility against the new $450 million borrowing base.
- Check the most recent Form 10-Q (filed August 8, 2014) for baseline debt and liquidity positions prior to this amendment.