Matador Resources Acquires Paloma Permian LLC in $1.28 Billion Deal to Expand Delaware Basin Holdings
Matador Resources has agreed to acquire privately held Paloma Permian LLC for $1.275 billion, significantly expanding its presence in the Delaware Basin and enhancing long-term inventory through a separate acreage acquisition from Ridge Runner Resources II. The deal includes producing assets expected to deliver approximately 11,100 barrels of oil equivalent per day during Q3 2026, along with an estimated 55 million BOE of proved reserves and over 156 net drilling locations in New Mexico's Bone Spring and Wolfcamp formations. The acquisition also bolsters Matador’s position in the Woodford shale play. The company now holds roughly 50,000 contiguous Woodford acres after acquiring additional acreage from Ridge Runner Resources II. Initial results from a test well showed strong performance with over 2,200 BOE per day and high oil content during its first production test. Matador plans to finance the acquisitions using cash on hand and borrowings under its reserve-based lending facility. The company expects $1 billion in adjusted free cash flow for 2026 based on current guidance and commodity prices, which will help reduce acquisition-related debt and bring leverage back toward a target of 1.0x within 18 months.
Tickers: $MTDR
Topics: acquisition Delaware Basin energy oil Permian Basin