Matador Resources Completed Two Delaware Basin Acquisitions
The Dallas-based energy firm finalized the purchase of Ridge Runner Resources 2 LLC and Paloma Permian LLC.
Updated on Oct. 12, 2026 in Oil and Gas
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Matador Resources has expanded its footprint in the Delaware Basin through the acquisition of two EnCap Investments portfolio companies. These deals, which include Ridge Runner Resources 2 LLC and Paloma Permian LLC, add significant acreage in the Woodford shale and Southeast New Mexico.
Why it matters
These strategic acquisitions represent key catalysts for Matador to strengthen its regional inventory and bolster long-term production. The firm intends to leverage these new assets to improve its drilling efficiency and accelerate debt reduction targets.
Matador acquired 50,000 net acres in the Woodford shale at an average cost of $4,000 per acre. Additionally, the company added 16,500 net undeveloped acres in Eddy and Lea counties via its purchase of Paloma Permian LLC.
The players
Matador Resources
Headquartered in Dallas, this independent energy company focuses on the exploration and development of oil and natural gas in the United States.
Ridge Runner Resources 2 LLC
This former EnCap Investments portfolio company held significant acreage and operated locations within the Woodford shale formation.
Paloma Permian LLC
This oil and gas firm operated assets in Eddy and Lea counties before its acquisition by Matador Resources.
The details
Matador assembled this acreage through a methodical strategy involving over 400 individual transactions. The company plans to deploy multi-well batch drilling with three-mile laterals in the Woodford formation, following initial exploration results showing recoveries topping 800,000 barrels of oil per well.
Timeline
June 1, 2026: Paloma assets began outperforming underwriting estimates by 10 percent.
Last week: Matador concluded the acquisition of Paloma Permian LLC.
October 1, 2026: Matador released public comments regarding the value of its Paloma assets.
October 12, 2026: Matador announced the completion of the Ridge Runner acquisition.
End of 2027: The company set a deadline to drill up to 25 wells on the newly acquired Paloma acreage.
Market Landscape
This deal marks a continuation of the consolidation trend sweeping the Delaware Basin as mid-cap firms seek to scale operations. Matador is positioning itself to compete with larger producers by rapidly expanding its inventory of high-recovery drilling locations.
These acquisitions signal a move toward more efficient, large-scale drilling that could bolster Matador's financial health by year-end. Shareholders and stakeholders may track the company's progress on its goal to reduce debt by up to $400 million through these operational improvements.
The takeaway
Matador is aggressively scaling its Delaware Basin presence by using a high-volume, granular acquisition strategy. Investors should watch whether the company hits its projected debt reduction targets by the end of the year as these new assets come online.
What happens next
Matador Resources plans to drill a second Woodford exploration well during the current quarter.
Further reading
For more on industry developments, visit the Oil and Gas section.
Source note: This article includes information reported by Rigzone.
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