Matador Resources Company (NYSE: MTDR) acquired 5,154 net undeveloped acres in the Delaware Basin through a Bureau of Land Management oil and gas lease sale, the company announced. The acquisition cost approximately $1.143 billion.

The acreage is located in Southeast New Mexico and is adjacent to Matador's existing operated units. The company stated the acquisition adds over 141 net operated locations normalized to 2-mile laterals and includes nine or more discrete prospective formations.

The leases carry an 87.5% net revenue interest with 10-year terms across all depths. Matador plans to fund the purchase through cash on hand and its existing credit facility.

"Matador is pleased to announce a $1.1 billion expansion of its premier Delaware Basin asset base in Southeast New Mexico through the recent BLM Lease Sale," said Joseph Wm. Foran, the company's founder, chairman and CEO.

The company stated it has fully repaid its reserve-based lending facility. Matador anticipates full-year 2026 adjusted free cash flow to approach $1.2 billion, assuming strip oil and natural gas pricing as of early May 2026.

Foran referenced the company's 2018 acquisition of State line and Rodney Robinson Federal tracts, stating Matador has recovered all associated capital invested and generated an additional $1.9 billion in returns from those projects.

The acquired acreage is expected to connect with existing infrastructure and be compatible with extended reach laterals of three miles or more. Matador operates primarily in the Wolfcamp and Bone Spring plays in the Delaware Basin and also has operations in Northwest Louisiana.