Matador Resources Co. has completed its largest transaction in the Permian Basin with the purchase of Advance Energy Partners Holdings LLC, which has assets in New Mexico and West Texas. 

Matador paid an initial $1.6 billion for the company. In addition, the independent agreed to pay $7.5 million monthly this year if the average West Texas Intermediate (WTI) oil price exceeds $85/bbl. At the end of March, WTI was trading at $75.68, and it has averaged around $80.

“These properties are a unique, value-creating opportunity for Matador and all of its stakeholders,”  said CEO Joseph Foran. “Closing this transaction sets Matador up nicely for a great 2023 and an even better 2024.” 

Houston-based Advance was a portfolio company of private equity giant Encap Investments LP....