Matador Resources Company (NYSE: MTDR) has closed its acquisition of Paloma Permian LLC, a portfolio company of EnCap Investments L.P., for $1.255 billion in cash, subject to customary post-closing adjustments.

The acquisition adds approximately 16,500 net primarily undeveloped acres in Eddy and Lea Counties, New Mexico, along with more than 156 net drilling locations normalized to two-mile laterals across nine or more potential targeted benches. Paloma held 59 approved drilling permits on the acreage at closing.

Matador said production from the acquired wells has outperformed its underwriting estimates by approximately 10% since June 1, 2026, attributing the performance largely to Paloma's newest wells in Eddy County. The company expects to commence drilling on up to 25 wells associated with the Paloma acreage by year-end 2027.

Combined with the pending acquisition of Ridge Runner Resources II, LLC, expected to close later in October, and a May 2026 federal lease sale, Matador said it will hold approximately 240,000 net acres in the Delaware Basin in the fourth quarter of 2026. That figure represents a roughly 20% increase from its October 2025 position of 203,000 net acres.

Following the closings expected in the fourth quarter, Matador said it plans to pay down its reserves-based lending credit facility, led by PNC Bank, by approximately $350 million to $400 million, depending on commodity prices.

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