Matador expands Delaware Basin holdings with Paloma deal

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Matador completes $1.255B Paloma Permian deal, adding 16,500 acres and 156+ drilling locations in New Mexico.

Matador Resources has completed its $1.255 billion purchase of Paloma Permian LLC from EnCap Investments, World Oil reported on October 1. The transaction adds about 16,500 net acres in New Mexico’s Eddy and Lea counties, with most of the land held by production. The company identified more than 156 net drilling locations, measured on a two-mile lateral basis, across at least nine potential target intervals, plus 59 approved drilling permits.

Matador intends to start drilling up to 25 wells on the acquired acreage by the end of 2027. Since June 1, 2026, the properties’ production has been approximately 10% higher than the estimates used to evaluate the acquisition, mainly because of newer Eddy County wells. Management sees opportunities to improve development efficiency and increase use of its existing midstream systems.

If its separate Ridge Runner Resources II purchase closes as expected in October, Matador anticipates a core Delaware Basin position of roughly 240,000 net acres during the fourth quarter. Together with acreage obtained in a May federal lease sale, these additions would represent nearly 20% growth from October 2025.

Source: World Oil
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