Matador Resources Boosts Delaware Basin Presence with $1.1 Billion Deal

• The acquisition price translates to approximately $7.3 million per drilling location for the 141 new drilling sites
• Matador expects full-year 2026 adjusted free cash flow to approach $1.2 billion
• The deal follows Devon Energy's acquisition of 16,300 net undeveloped acres in the same Delaware Basin core for about $2.6 billion, announced the same day

Matador Resources Boosts Delaware Basin Presence with $1.1 Billion Deal

Matador Resources announced on May 21st the acquisition of 5,154 net undeveloped acres in the core Delaware Basin in southeast New Mexico for approximately $1.1 billion. The transaction significantly strengthens the oil and gas firm's position in one of the nation's most productive shale plays.

Key Transaction Details:

• The acquired acreage is located in a highly prospective area with exposure to nine or more drilling zones
• The deal adds over 141 drilling locations to Matador's portfolio, equating to roughly $7.3 million per location
• Financing will come from cash reserves and the company's existing credit facility
• Matador projects full-year 2026 adjusted free cash flow to approach $1.2 billion

Market Context:

The acquisition is part of broader consolidation activity in the Delaware Basin. On the same day, Devon Energy announced a significantly larger deal, acquiring 16,300 net undeveloped acres in the same region for approximately $2.6 billion. This wave of acquisitions signals continued industry confidence in the Delaware Basin's long-term production potential.

Strategic Implications:

The transaction positions Matador to expand its drilling operations across multiple geological zones, providing operational flexibility and diversification within the basin. The company's strong anticipated free cash flow suggests robust financial health and capacity to fund development of the newly acquired acreage.

The Delaware Basin, spanning parts of Texas and New Mexico, remains a focal point for oil and gas investment due to its multiple productive formations and attractive well economics, making it a prime target for operators seeking to expand their unconventional resource base.