Matador Resources completes $1.255 billion Paloma Permian acquisition
Matador Resources closed its purchase of Paloma Permian LLC for $1.255 billion in cash. The deal adds roughly 16,500 net acres in Eddy and Lea Counties, New Mexico, together with more than 156 net drilling locations and 59 approved permits. Matador plans to begin drilling up to 25 wells on the new acreage by the end of 2027 and to reduce its reserves‑based credit facility by $350‑$400 million after the closing.
Why it matters
The company says the acquisition will boost free‑cash‑flow generation and help fund debt repayment, according to its press release. Investors should expect a lower leverage profile once the $350‑$400 million paydown is completed in the fourth quarter of 2026.
Key facts
- 1Matador paid $1.255 billion in cash for Paloma Permian, subject to customary post‑closing adjustments. investing.com
- 2The purchase adds about 16,500 net acres in Eddy and Lea Counties, New Mexico. energy-pedia.com
- 3The transaction includes more than 156 net drilling locations and 59 approved drilling permits. investing.com
- 4Matador expects to start drilling up to 25 wells on the new acreage by year‑end 2027. investing.com
- 5The company plans to reduce its reserves‑based lending credit facility by $350‑$400 million after the closing. investing.com
- 6With Paloma and the pending Ridge Runner acquisition, Matador will hold roughly 240,000 net acres in the Delaware Basin by Q4 2026. energy-pedia.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.