Matador Closes $1.255B Paloma Acquisition; Production Outperforming by 10%

summarizeSummary

Matador Resources closed its $1.255 billion Paloma Permian acquisition on October 1, adding 16,500 net acres in the Delaware Basin. Acquired production is outperforming estimates by 10%, and the company plans to pay down $350-400 million of debt following Q4 closings.

check_boxKey Events · M&A and Partnerships · MTDR

• Paloma Acquisition Closes at $1.255B

  Matador completed the acquisition of Paloma Permian LLC on October 1, 2026, paying approximately $1.255 billion in cash, subject to customary post-closing adjustments.

• Production Outperforming by 10%

  Since June 1, 2026, production associated with the acquisition has outperformed Matador's underwriting estimates by approximately 10%, driven by Paloma's newest wells in Eddy County, New Mexico.

• Debt Repayment Plan Announced

  Matador expects to pay down its reserves-based lending credit facility led by PNC Bank by approximately $350-400 million following Q4 closings, depending on commodity prices.

• Delaware Basin Position Expands

  The acquisition adds 16,500 net primarily undeveloped acres and 156 net drilling locations across nine or more benches, bringing Matador's total to approximately 240,000 net acres in the core Delaware Basin.

auto_awesomeAnalysis · MTDR · Energy & Transportation

Matador completed its $1.255 billion acquisition of Paloma Permian, finalizing the deal announced in July. The closing price came in slightly below the original $1.275 billion headline figure, and management disclosed that acquired production has outperformed underwriting estimates by roughly 10% since June. The company also laid out a concrete deleveraging plan, expecting to pay down $350-400 million of its credit facility after Q4 closings. This transforms Matador's Delaware Basin position, adding 16,500 net acres and 156 net drilling locations, and sets the stage for the Ridge Runner acquisition expected to close later this month.