Matador Resources Company Announces Credit Rating Upgrade and Increase to San Mateo Credit Facility

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced (1) recent upgrades by S&P Global Ratings (“S&P”) to the Company’s corporate credit rating and senior unsecured notes and (2) the closing of an amendment to the credit facility of its midstream affiliate, San Mateo Midstream, LLC (“San Mateo”), providing for increased lender commitments.

Matador’s Credit Rating and Senior Unsecured Notes Upgraded by S&P Global Ratings

Matador is pleased to announce that on June 28, 2021 S&P raised Matador’s issuer credit rating from ‘B-’ to ‘B’ and raised the issue-level rating on Matador’s senior unsecured notes from ‘B’ to ‘B+’. In its June 28, 2021 press release, S&P noted, “We expect credit measures to improve on a sustained basis for Matador Resources Co., a Dallas-based crude oil and natural gas exploration and production (E&P) company, based on our revised commodity price assumptions, the Company’s disciplined capital spending program, and recent debt repayments.” More information regarding S&P’s upgrade of Matador may be found at www.spglobal.com/ratingsdirect.

Lender Commitments Increased Under San Mateo’s Revolving Credit Facility

Matador is also pleased to announce a $75 million increase in the lender commitments under San Mateo’s revolving credit facility (the “San Mateo Credit Facility”) from $375 million to $450 million. San Mateo is the Company’s midstream joint venture owned 51% by Matador and 49% by Five Point Energy LLC.

In addition to increasing their commitments in the San Mateo Credit Facility from $375 million to $450 million, the lenders also agreed to refresh and increase the San Mateo Credit Facility’s accordion feature to $250 million. This accordion feature could expand lender commitments to up to $700 million.

At March 31, 2021, San Mateo had $334 million in aggregate borrowings outstanding under the San Mateo Credit Facility and $9 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. For accounting purposes, all borrowings outstanding under the San Mateo Credit Facility and all interest payments made pursuant thereto are recorded at 100% of their carrying value in the Company’s consolidated financial statements, even though the San Mateo Credit Facility is non-recourse to Matador.