Matador Resources Spends $1.14B to Add 5,154 Core Delaware Basin Acres
Matador Resources acquired 5,154 net acres in the core Delaware Basin for $1.143 billion, securing 87.5% net revenue interest over a 10-year term and adding 141 net operated locations. Funding uses cash on hand and existing credit after reserve-based facility repayment, expecting $1.2 billion in 2026 free cash flow.
1. Acquisition Details
Matador acquired 5,154 net undeveloped acres in the heart of the Delaware Basin for approximately $1.143 billion, gaining 87.5% net revenue interest across a 10-year term. The new acreage sits adjacent to existing operated units in Southeast New Mexico, covering nine identified prospective formations.
2. Financing and Balance Sheet
This bolt-on acquisition is funded through cash on hand and Matador’s existing credit facility following full repayment of its reserve-based lending facility. The company projects adjusted free cash flow of about $1.2 billion for 2026, with plans to retire acquisition debt by year-end and eliminate the RBL by mid-2027.
3. Operational Synergies and Outlook
The deal adds over 141 net operated locations normalized to two-mile laterals, featuring extended reach laterals, U-Turn well designs and multi-well developments. These tracts leverage existing facilities to lower completed cost per lateral foot by 10–20% and are expected to enhance midstream throughput at San Mateo, extending inventory and reserve life.