Matador Resources Company completed the previously announced joint ventures with certain affiliates of HEYCO Energy Group, Inc., the former parent company of Harvey E. Yates Company, before HEYCO's merger with a wholly-owned subsidiary of Matador in February 2015.
The HEYCO Affiliates contributed certain interests primarily in the same properties held by HEYCO, resulting in Matador acquiring additional working interests in properties acquired by it in the HEYCO Merger. Pursuant to the terms of the transaction, the HEYCO Affiliates contributed an aggregate of 1,899.6 net acres to two newly-formed entities in exchange for a 50% interest in each entity.
Matador has agreed to contribute an aggregate of $14.2 million in exchange for the other 50% interest in both entities. Matador's contribution will be used to fund future capital expenditures associated with the interests being acquired as well as to fund other non-operated opportunities.