Matador Resources to Acquire Paloma Permian for $1.275B, Expands Woodford Position
MTDR sits 51% above its 52-week low of $37.14 on elevated volume (2.1× avg).
Summary
Matador Resources announced a $1.275 billion acquisition of Paloma Permian and a separate Woodford acreage acquisition, alongside successful Woodford well results, marking a major expansion of its Delaware Basin footprint.
Key Events · M&A and Partnerships · MTDR
-
Paloma Permian Acquisition
Matador agreed to acquire Paloma Permian LLC for $1.275 billion in cash, adding 16,235 net undeveloped acres, 55 million BOE of proved reserves, and estimated Q3 2026 production of ~11,100 BOE per day (57% oil).
-
Ridge Runner Woodford Acquisition
Matador will acquire primarily undeveloped Woodford acreage from Ridge Runner Resources, expanding its Woodford position to approximately 50,000 net acres at an average cost of $4,000 per acre.
-
Woodford Exploration Success
The Rae's Creek Woodford well achieved initial production exceeding 2,200 BOE per day (72% oil), validating the commercial viability of the Woodford formation in Southeast New Mexico.
-
Financing and Balance Sheet Impact
The acquisitions will be funded with cash on hand and borrowings under Matador's RBL credit facility. The company expects to generate ~$1 billion in adjusted free cash flow in 2026 and aims to reduce leverage to ~1.0x within 12-18 months post-closing.
Analysis · MTDR · Energy & Transportation
Two transformative acquisitions headline Matador Resources' latest move: a $1.275 billion cash purchase of Paloma Permian, which brings 16,235 net undeveloped acres and 55 million BOE of proved reserves in the Delaware Basin, and a bolt-on of primarily undeveloped Woodford acreage from Ridge Runner Resources. The Paloma deal alone represents a substantial capital commitment relative to the company's size, funded through cash and credit facility borrowings. Adding to the momentum, a successful Woodford exploration well validates the commercial viability of the expanded acreage position. These moves significantly scale Matador's inventory and production potential, though the debt financing introduces leverage that the company aims to reduce within 12–18 months using free cash flow.
At the time of this filing, MTDR was trading at $56.15 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $37.14 to $66.84. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.