Matador Resources Company (MTDR) has announced a significant expansion in the Delaware Basin by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion. This acquisition, made during the Bureau of Land Management Oil and Gas Lease Sale, adds over 141 new drilling opportunities and is expected to enhance production efficiency and reduce costs through various strategic initiatives.
The new acreage is adjacent to Matador’s existing operations, enabling optimized infrastructure use. The company retains 87.5% of the revenues from oil and gas production on this land and plans to develop it over the next decade. With projected 2026 adjusted free cash flow of nearly $1.2 billion, Matador aims to reduce acquisition-related debt by the end of 2026 and fully repay its reserve-based lending facility in the first half of 2027. The effective cost per drilling location stands at approximately $7.3 million.
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