Matador Expands Delaware Basin Position in $1.1 Billion Deal

Matador Resources acquired 5,154 net undeveloped acres in the core of New Mexico’s Delaware Basin through a federal lease sale valued at roughly $1.1 billion.

(P&GJ) — Matador Resources has acquired 5,154 net undeveloped acres in the core of the Delaware Basin through this week’s Bureau of Land Management oil and gas lease sale, expanding the company’s position in Southeast New Mexico.

The acquisition, valued at roughly $1.1 billion, adds acreage adjacent to Matador’s existing operations and is expected to support longer lateral drilling opportunities and increased operating efficiencies.

According to the company, the newly acquired acreage includes more than 141 net operated drilling locations normalized to two-mile laterals. The properties also provide opportunities for expanded natural gas takeaway capacity, water recycling and additional throughput for Matador’s San Mateo midstream system.

Matador said the leases carry a 10-year term and an 87.5% net revenue interest across all depths, terms the company described as favorable compared to many traditional acreage agreements.

CEO Joseph Foran said the acreage strengthens Matador’s inventory position in some of the most productive areas of the Delaware Basin and complements the company’s existing infrastructure footprint.

The company said it plans to fund the acquisition through cash on hand and its existing credit facility. Matador also noted that it expects strong free cash flow generation through 2026, which it anticipates will help reduce acquisition-related debt over time.