Matador closes $1.255B Paloma Permian acquisition

Matador Resources Company said on October 1, 2026 that it has closed its acquisition of EnCap-backed Paloma Permian LLC for cash consideration of $1.255 billion, subject to customary post-closing adjustments, adding about 16,500 net acres in Eddy and Lea Counties, New Mexico.

Matador finished buying Paloma Permian on October 1, 2026 — a sealed CLOSE, not an agreement announcement.

$1.255 billion CLOSE

On October 1, 2026, Matador Resources Company (NYSE: MTDR) said it has closed the previously announced acquisition of Paloma Permian LLC (Paloma), a portfolio company of EnCap Investments L.P. (EnCap), for cash consideration of $1.255 billion, subject to customary post-closing adjustments. The Business Wire Completes release, timed 4:15 PM ET, is the sealed close for an acquisition path that earlier disclosures still treated as pending.

What Paloma adds

The Completes release says the Paloma Acquisition adds approximately 16,500 net primarily undeveloped acres in Eddy and Lea Counties, New Mexico, the majority of which is held by production; more than 156 net locations normalized to two-mile laterals across nine or more potential targeted benches; and 59 approved drilling permits on Paloma acreage. Matador said it expects to commence drilling operations on up to 25 wells associated with Paloma acreage by year-end 2027.

Matador Founder, Chairman and CEO Joseph Wm. Foran said the Paloma assets hold some of the highest hydrocarbon resources per acre in the Lower 48 and provide value-creation opportunities for upstream capital efficiencies, Matador's wholly owned midstream system, and its 51%-owned San Mateo Midstream system. He also said that, largely attributable to Paloma's newest wells in Eddy County, New Mexico, production associated with the acquisition has outperformed Matador's underwriting estimates by approximately 10% since June 1, 2026 — a company performance claim in the Completes release, not an independent audit.

Acreage path and balance-sheet framing

Foran said that with the Paloma Acquisition closed today, and acreage additions from the recently announced Ridge Runner Resources II, LLC acquisition expected to close later this month, Matador will have approximately 240,000 net acres in the core of the Delaware Basin in the fourth quarter of 2026. Together with the May 2026 Federal lease sale, those acquisitions increase Matador's net acreage position by almost 20% above its October 2025 position of 203,000 net acres, he said. Ridge Runner remains an expected close later this month — not a completed close in this Completes release.

Matador said it anticipates integrating the acquisition into its operating plans and contributing to free cash flow generation and planned debt repayments. In that regard, Matador expects to pay down its reserves-based lending credit facility led by PNC Bank by approximately $350-400 million following the closings in the fourth quarter, depending on commodity prices — a company expectation, not a completed paydown disclosed as done.

Baker Botts L.L.P. served as legal advisor to Matador. Vinson & Elkins LLP served as legal advisor and RBC Richardson Barr served as financial advisor to Paloma and EnCap.

Why the close matters

A Completes release on October 1 turns the pending Paloma Permian acquisition into a sealed $1.255 billion cash close and adds Delaware Basin undeveloped inventory and permits into Matador's New Mexico position under stated company acreage and paydown framing.

Sources & evidence

- Matador Resources Company Closes Paloma Acquisition and Provides Additional Integration Details (Business Wire; Oct 1, 2026 4:15 PM ET) — https://www.businesswire.com/news/home/20261001380429/en/Matador-Resources-Company-Closes-Paloma-Acquisition-and-Provides-Additional-Integration-Details