Oil well pumpjacks are scattered about the sparse landscape in Loving County, Texas. Shot on February 17, 2011.
Sonya N. Hebert/Dallas Morning News
One of Dallas’ largest energy giants just sized up its footprint — again.
Matador Resources Co. recently announced two deals totaling nearly $1.5 billion with portfolio companies of Houston-based private equity firm EnCap Investments that will add tens of thousands of acres of undeveloped oil- and natural gas-producing properties to its already substantial profile in the Delaware Basin.
The new acquisitions follow close on the heels of two other Delaware Basin expansions for Matador this summer, supporting the energy exploration and production company’s long-running “brick-by-brick” growth strategy and its foothold in the region.
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First, Matador subsidiaries will acquire Paloma Permian LLC with a cash payment of almost $1.3 billion, bringing 16,235 undeveloped acres in New Mexico’s Eddy and Lea counties under the Dallas-based energy producer’s control, the company announced July 23. The deal took effect June 1 and is expected to close early in the fourth quarter of 2026, according to a recent financial filing.
The properties account for 55 million barrels of oil equivalent in proven reserves, Matador said in a document announcing the deal. The company expects the properties to produce about 11,000 barrels of oil equivalent per day in the third quarter.
“Similar to Matador’s previous transactions with EnCap, and its portfolio companies, we anticipate this acquisition will be integrated efficiently into Matador’s operating plan, contribute to Matador’s cash flow generation and deliver significant efficiency gains, increases in oil and natural gas production, and reserve growth,” Matador CEO Joseph Foran said in a statement.
Complementing the deal, another Matador subsidiary has agreed to buy almost 14,000 acres of primarily undeveloped land in the Woodford Shale formation of the Delaware Basin from Ridge Runner Resources II LLC, encompassing parts of southeast New Mexico and West Texas.
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The company has not disclosed the exact transaction cost but noted in a document accompanying the announcement that the Ridge Runner acquisition and prior acreage additions — totaling about 50,000 acres in the Woodford Shale — together came with a $205 million price tag.
The deal is expected to be funded with a combination of cash on hand and borrowing through an existing reserve-based lending credit facility. Matador said it fully repaid the credit facility in May 2026, giving it more liquidity to work with ahead of the expansions this summer. It expects that production from the new properties will boost its ability to repay the new borrowings.
Matador shares dipped after the acquisitions were announced, dropping from a month-long high of $54.99 at market close on July 22 to $51.71 the following day as trading volume jumped. They have continued to decline in the days since, recently closing at $47.17 on July 27.
Woodford is a new play for Matador, and the move follows promising results from the company’s first exploratory well there: Rae’s Creek. Located in southeast Lea County, New Mexico, the well produced over 2,200 barrels of oil equivalent during a 24-hour test on June 29, which the company said validates its commercial viability.
Matador anticipates “future developments in our Woodford position in upcoming years,” Foran said in a statement.
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Matador is one of the largest energy companies headquartered in the Dallas-Fort Worth region, posting revenues of $3.7 billion and net earnings of $860 million at the end of 2025. Once the Paloma and Ridge Runner transactions close, it will have about 240,000 acres under its belt, augmented by over 1,000 miles of pipeline between Matador and its joint venture, San Mateo Midstream.
Two Delaware Basin transactions earlier in the summer helped flesh out that expansive profile.
The company gained 5,145 undeveloped acres through a federal lease sale in May, coming at a price of $1.1 billion. And its joint venture, San Mateo Midstream, completed an acquisition less than a month ago that earned it a natural gas processing plant and almost 150 miles of pipeline.