Matador Resources entered a definitive agreement to acquire Paloma Permian LLC for $1.275 billion in cash. The deal involves 16,235 net undeveloped acres and producing properties in the Delaware Basin of Southeast New Mexico. Matador is purchasing the portfolio company from EnCap Investments L.P.
The acquired assets include more than 156 net drilling locations. Third-quarter 2026 production is estimated between 10,600 and 11,600 barrels of oil equivalent per day. Oil accounts for approximately 57% of the projected output.
Matador also reported successful test results from its first exploratory Woodford formation well. The company separately acquired acreage from Ridge Runner Resources II, LLC to further strengthen its regional position. These moves align with a sector-wide trend of consolidation to secure high-quality inventory.
The company expects to finance the transactions through borrowings. Management intends to prioritize deleveraging within 12 to 18 months post-closing. This debt reduction will be supported by projected strong free cash flow.