Matador Snaps Up Paloma Permian for $1.28 Billion Delaware Basin Expansion

Matador Resources has announced it will acquire Paloma Permian from EnCap Investments for approximately $1.28 billion, expanding its presence in the oil-rich Delaware Basin.

The deal includes 16,235 net undeveloped acres in Eddy and Lea counties in New Mexico, as well as producing properties that contribute about 11,100 barrels of oil equivalent (BOE) per day to Matador's operations. This represents roughly 57% of the total production.

The acquisition adds significant reserves to Matador's portfolio, with the company estimating an increase of approximately 55 million BOE in proved reserves. Additionally, it provides more than 156 net drilling locations primarily within the Bone Spring and Wolfcamp formations.

Matador also reported positive results from its exploratory well in the Woodford formation, with a 24-hour test rate exceeding 2,200 BOE per day and yielding 72% oil. The company has already been active in the Delaware Basin, having acquired land through previous purchases.