Matador Resources Company to acquire EnCap-backed Paloma Permian for nearly $1.3bn

• Headquartered in Houston, Paloma is an oil and gas exploration and production company
• The acquisition includes certain proved undeveloped acreage and oil and natural gas producing properties located in Southeast New Mexico
• The Paloma acquisition is expected to close in the fourth quarter of 2026

Matador Resources Company, a Dallas-based energy company, has agreed to acquire Paloma Permian, a portfolio company of EnCap Investments, for $1.275 billion.

Headquartered in Houston, Paloma is an oil and gas exploration and production company.

The acquisition includes certain proved undeveloped acreage and oil and natural gas producing properties located in Southeast New Mexico.

The Paloma acquisition is expected to close in the fourth quarter of 2026.

Matador has also agreed to acquire primarily undeveloped acreage in what it believes to be the heart of the Woodford play in West Texas and Southeast New Mexico from Ridge Runner Resources, another portfolio company of EnCap.

On the transaction, Joseph Wm. Foran, Matador’s founder, chairman and CEO, said in a statement, “Matador is excited to announce this catalyst and the expansion of our Delaware Basin asset base with these assets from Paloma, a successful and respected exploration firm in the Permian Basin and other oil and gas areas. Similar to Matador’s previous transactions with EnCap, and its portfolio companies, we anticipate this acquisition will be integrated efficiently into Matador’s operating plan, contribute to Matador’s cash flow generation and deliver significant efficiency gains, increases in oil and natural gas production, and reserve growth.”

Baker Botts L.L.P. served as legal advisor to Matador for the Paloma Acquisition and Ridge Runner Acquisition. Vinson & Elkins LLP served as legal advisor and RBC Richardson Barr served as financial advisor to Paloma, Ridge Runner and EnCap.

Matador was founded in 2003.