Under the larger of the two deals, a Matador subsidiary will acquire Paloma Permian LLC for $1.275 billion in cash. The acquisition includes 16,235 net acres (70% held by production) in Eddy and Lea counties, NM, with estimated third-quarter production of about 11,100 boe/d (57% oil). Matador said the assets add more than 156 net drilling locations, primarily targeting the Bone Spring and Wolfcamp formations. The transaction is expected to close in fourth-quarter 2026.

Separately, Matador agreed to acquire primarily undeveloped acreage from Ridge Runner Resources II LLC in the emerging Woodford play of the Delaware basin. The deal adds more than 150 net operated Woodford drilling locations at an acquisition cost of about $1.3 million per net location, the company said.

Following the Ridge Runner acquisition and earlier acreage additions—that the company said totaled about $205 million—Matador expects its Woodford position to total about 50,000 contiguous net acres, primarily in its Antelope Ridge asset area in Lea County, NM, and West Texas.

Matador said results from its Rae's Creek well, the company's first exploratory Woodford well in southeast Lea County, further validate the commercial viability of the formation in the area.

The well recorded initial production of more than 2,200 boe/d (72% oil) during a 24-hr test on June 29, 2026, and continues to outperform the average Woodford well in Texas by about 20% on a 60-day cumulative oil production basis, according to the company.

Looking ahead, Matador expects drilling and completion teams to apply operational efficiencies across the development area that could reduce well costs by 30-40% over the next 12-18 months.

Such results would be “similar to the incremental improvements we made at both our Stateline and Rodney Robinson assets acquired in 2018," said Joseph Wm. Foran, founder, chairman, and chief executive officer.