The Harvey E. Yates Co., started more than four decades ago by an eastern New Mexico oilman of the same name, will be sold to the Dallas-based Matador Resources Co.
Harvey E. Yates, which has an office in Roswell, has 45 employees in New Mexico, and no layoffs are planned, Lauren Yates, board director of the HEYCO Energy Group, said Wednesday. Harvey E. Yates is a subsidiary of HEYCO.
As part of the $37.5 million sale, Matador will acquire 8,200 acres Harvey E. Yates holds in Lea and Eddy counties, according to a news release. The property is “strategically located” between two of Matador’s existing parcels, and will bring the company’s total acreage in the New Mexico/Texas Permian Basin to 84,300 acres.
George Yates, CEO of HEYCO, said both Matador and the Harvey E. Yates Co. will benefit because the move will open the land to horizontal drilling, in which Matador has experience.
Also, HEYCO will become the largest owner of Matador stock, at 6 or 7 percent of all holdings, and George Yates will serve on the Matador board.
Lauren Yates said Harvey E. Yates Co. hadn’t officially been for sale, but it had been looking for the “best way to develop that acreage.” She said the company had “interesting offers” from several parties, but Matador has a culture similar to Harvey E. Yates and it “just seemed to fit the best.”
Matador focuses primarily on fields in south Texas and in the Permian Basin. It also operates in northwest Louisiana and East Texas, and adjacent areas of Utah and Idaho, according to its website.
The HEYCO parent company is privately owned by members of the prominent Yates family, who have been involved in the oil and natural gas business in southeastern New Mexico since the 1920s.
In another change for the eastern New Mexico oil patch, Apache Corp. has announced it will lay off about 250 workers worldwide. The firm has about 1,000 workers in the Permian Basin, an Apache spokeswoman said. The company would not give a breakdown of where the layoffs occurred.
The industry in general has been rocked in recent weeks by the slump in oil and gas prices, with a barrel of oil dropping from about $100 per barrel last summer to $46.35 on Wednesday.
This article was from Albuquerque Journal and was legally licensed through the NewsCred publisher network.