Matador Resources has announced the acquisition of Paloma Permian, an EnCap Investments portfolio company, for $1.275 billion in cash, significantly expanding its position in the core of the Delaware Basin in southeast New Mexico. The acquisition strengthens Matador’s inventory of premium drilling locations and further consolidates its acreage in one of North America’s most active oil and gas plays.
Key Highlights
- Purchase Price: $1.275 billion (cash)
- Seller: Paloma Permian (EnCap Investments portfolio company)
- Location: Southeast New Mexico, Delaware Basin
- Assets Acquired:
- 16,235 net undeveloped acres
- 11,100 BOE/d estimated third-quarter production
- Approximately 156 net drilling locations
- Primary targets include the Bone Spring and Wolfcamp formations
- Additional Acquisition: Undisclosed purchase of contiguous Woodford formation acreage from Ridge Runner Resources II (also backed by EnCap)
- Resulting Position: Approximately 240,000 net acres across the Delaware Basin
Paloma Resources has drilled 94 wells since 2022, with activity spanning both the Haynesville Shale and the Delaware Basin.
Well Count by Play
| Play | Basis | Wells |
|---|---|---|
| Haynesville Shale | Caddo, De Soto & Bossier Parishes (Louisiana) | 74 |
| Delaware Basin | Eddy County, New Mexico | 20 |
| Total | 94 |
Well Count by County
| County | State | Play | Wells |
|---|---|---|---|
| Caddo | Louisiana | Haynesville Shale | 52 |
| Eddy | New Mexico | Delaware Basin | 20 |
| De Soto | Louisiana | Haynesville Shale | 15 |
| Bossier | Louisiana | Haynesville Shale | 7 |
Key Takeaways
- 94 total wells drilled since 2022.
- Approximately 79% (74 wells) were drilled in the Haynesville Shale, indicating Paloma’s primary focus has been natural gas development in northwest Louisiana.
- 20 wells (21%) were drilled in Eddy County, New Mexico, representing activity in the core Delaware Basin.
- Caddo Parish accounted for more than half of all wells (52 wells), making it the company’s most active operating area during the period.
Why This Matters
This acquisition reinforces several important industry trends:
- Continued consolidation of high-quality Permian acreage by established operators.
- Increased focus on contiguous acreage positions, allowing longer laterals, improved drilling efficiencies, and lower development costs.
- Expansion of multi-zone development, with Bone Spring, Wolfcamp, and Woodford intervals providing decades of drilling inventory.
- Additional production and undeveloped inventory should strengthen Matador’s long-term growth profile.
Sales & Marketing Opportunities
Companies serving Delaware Basin operators may benefit from increased activity associated with this acquisition, including providers of:
- Drilling and completion services
- Directional drilling and MWD/LWD technologies
- Artificial lift and production optimization
- Water management and midstream infrastructure
- Wellsite automation and digital oilfield solutions
- Pressure pumping, proppant, and chemical suppliers
OilGasLeads Insight
The acquisition increases Matador’s exposure to one of the most active development corridors in the Delaware Basin. With approximately 240,000 net acres following the transaction and more than 150 additional premium drilling locations, Matador is positioned to remain a significant source of drilling, completion, facility, and infrastructure opportunities over the coming years. For suppliers targeting upstream operators, this transaction signals continued investment and long-term development activity in southeast New Mexico.
Author: phinds