Matador Resources announced on 23 July a definitive agreement to acquire Paloma Permian, a portfolio company of EnCap Investments, for $1.275bn in cash.
Why Matador Resources Company is buying Paloma Permian LLC
The deal adds 16,235 net undeveloped acres, mostly held by production, more than 156 net drilling locations in the Bone Spring and Wolfcamp formations and 55m boe of proved reserves with a PV-10 of $816m. Founder and chief executive Joseph Wm. Foran said the assets would contribute to cash flow and deliver efficiency gains, production and reserve growth.
“Matador is excited to announce this catalyst and the expansion of our Delaware Basin asset base with these assets from Paloma”
Deal terms and financing
Matador agreed to pay $1.275bn in cash, subject to customary adjustments. Alongside it, Matador agreed to buy Woodford acreage from Ridge Runner Resources II, taking its contiguous Woodford position to about 50,000 net acres and its Delaware Basin total to about 240,000 net acres.
Regulatory approvals and timing
Matador closed the Paloma acquisition on 1 October 2026 for cash of $1.255bn, subject to post-closing adjustments.
Market context
Paloma is part of Houston-based Paloma Resources, an EnCap-backed private oil and gas company founded in 2004. Matador also reported its first Woodford exploration well, Rae's Creek, tested at more than 2,200 boe a day.
