Energy Transfer, Matador Strike Deal to Boost Permian Gas Prices Ahead of Pipeline Startup

New agreements aim to improve Permian gas pricing before the Hugh Brinson Pipeline enters service.

(P&GJ) — Matador Resources has signed a series of natural gas and natural gas liquids (NGL) agreements with affiliates of Energy Transfer aimed at improving pricing and market access for its Delaware Basin production ahead of the startup of the Hugh Brinson Pipeline.

The agreements include a gas supply arrangement that will help Matador reduce exposure to Waha Hub pricing in the second half of 2026 while providing Energy Transfer with additional supply for growing power generation and data center demand.

The deal builds on Matador's previously announced transportation commitment on Energy Transfer's Hugh Brinson Pipeline, which is expected to move up to 500,000 MMBtu per day of natural gas out of the Permian Basin once it enters service. The new agreement is intended to bridge the period before that transportation capacity becomes available.

Matador also executed separate agreements to market and sell NGL volumes from multiple Delaware Basin sources to Energy Transfer affiliates.

The company said the arrangement is expected to improve realized natural gas prices and strengthen flow assurance for its production until the Hugh Brinson Pipeline begins operations.

"We expect this transaction to improve pricing for a portion of our natural gas production until the Hugh Brinson Pipeline is placed into service," Chairman and CEO Joseph Foran said in a statement. He added that the agreement reflects ongoing efforts to secure market access and reduce pricing volatility.

The Hugh Brinson Pipeline is being developed to connect Permian Basin production to higher-value demand centers outside West Texas, where natural gas prices have historically exceeded those at the Waha Hub.