Matador Resources expands Delaware Basin position with $1.1 billion deal

Matador Resources

21/05/2026 23:22

May 21 (Reuters) - Oil and gas firm Matador Resources MTDR.N said on Thursday it has acquired 5,154 net undeveloped acres in the core of the Delaware Basin in southeast New Mexico for about $1.1 billion, strengthening its position in the region and the prolific shale play.

The acquired acreage is in a highly prospective area of the Delaware Basin, with exposure to nine or more drilling zones, the company said.

Matador said it would add over 141 drilling locations, implying a price of about $7.3 million per location.

It plans to fund the acquisition through cash and its existing credit facility.

The company expects full-year 2026 adjusted free cash flow to approach $1.2 billion.

Earlier on Thursday, shale producer Devon Energy DVN.N said it had acquired 16,300 net undeveloped acres in the core of the Delaware Basin for about $2.6 billion.

 (Reporting by Katha Kalia in Bengaluru; Editing by Diti Pujara)

 ((Katha.Kalia@thomsonreuters.com;))