Amarillo friends finalize $1.6 billion acquisition deal between two oil, gas companies
Two Amarillo area graduates, and friends of more than 50 years, have inked the final signatures on a $1.6 billion acquisition deal between two oil and natural gas companies.
The deal resulted in Matador Resources acquiring Advance Energy Partners Holdings, LLC., two companies that produce oil and natural gas across multiple states. The deal included Advance's "oil and natural gas producing properties, undeveloped acreage and midstream assets located in Lea County, New Mexico and Ward County, Texas," according to a company release issued on April 13.
This acquisition placed Matador with more than $10 billion in value of its proved oil and natural gas reserves, placing it in the top ten of New Mexico oil and natural gas producers.
Joe Foran, founder and CEO of Matador Resources, is a 1970 graduate of Amarillo High School. Foran started his career in 1983 by creating Foran Oil Company in Amarillo with $270,000. By 1988, Foran's company became the Matador Petroleum Corporation, which was sold for $388 million in 2003. Matador Resources Company was founded days later with $6 million, and now has a market capitalization of more than $6 billion.
Gary Petersen, founder of EnCap Investments, which is the portfolio company of Advance Energy Partners Holdings, LLC., is a 1965 graduate of Tascosa High School. He founded EnCap in 1988, which has since become a "leading provider of venture capital to the energy industry, raising over $38 billion since inception."
This article originally appeared on Amarillo Globe-News: Amarillo friends ink $1.6 billion acquisition deal of oil, gas company
