Matador to buy Paloma Permian for $1.28 billion, bolsters Delaware Basin presence
MTDR•Well results and market reaction
Matador also reported successful results from its Rae's Creek exploratory well in the Woodford formation, with a 24-hour test rate exceeding 2,200 BOE per day, with 72% oil.
Shares of Matador were up 1% in premarket trading.
Assets, reserves and drilling inventory
The deal gives Matador access to 16,235 net undeveloped acres in Eddy and Lea counties in New Mexico, along with properties producing about 11,100 barrels of oil equivalent per day (BOE/d), around 57% of which is oil.
The company said the acquisition would add 55 million BOE of proved reserves and more than 156 net drilling locations, primarily in the Bone Spring and Wolfcamp formations. The transaction is expected to close in the fourth quarter.
Matador to buy Paloma Permian for $1.28 billion
July 23 (Reuters) - Matador Resources said on Thursday it would buy privately held Paloma Permian from EnCap Investments for about $1.28 billion, adding high-quality drilling assets in the oil-rich Delaware Basin.
U.S. shale producers are prioritizing acquisitions that add premium drilling inventory over rapid production growth to maintain capital discipline, allowing them to sustain output and shareholder returns for longer.
