The acquired position includes about 16,500 net acres in Eddy and Lea counties, NM, most of which is held by production, along with more than 156 future drilling locations (normalized to 2-mile laterals) across nine or more prospective benches. Matador said 59 drilling permits have already been approved on the Delaware basin acreage.

The company said assets associated with the acquisition are producing an estimated 12,200 boe/d in the third quarter, about 55% of which is oil. Matador added that production from the acquired properties has exceeded underwriting estimates by roughly 10% since June 1, largely due to strong performance from recently drilled wells in Eddy County.

According to company materials, the acquisition adds an estimated 55 MMboe of proved reserves, 67% of which is oil, with a PV-10 value of about $816 million. 

Matador said the Paloma acquisition, together with its pending acquisition of Ridge Runner Resources II LLC acreage and acreage added in the May 2026 federal lease sale, is expected to increase its Delaware basin position to about 240,000 net acres in fourth-quarter 2026, nearly 20% above its October 2025 acreage position.

Chairman and chief executive officer Joseph Wm. Foran said the acquired acreage holds some of the highest hydrocarbon resources per acre in the Lower 48 and is expected to provide opportunities for upstream and midstream value creation as it is integrated into its wholly-owned midstream system and its 51%-owned San Mateo Midstream system.