Matador Resources has acquired 5,154 net undeveloped acres in the Delaware Basin for approximately $1.14bn during the latest US Bureau of Land Management (BLM) Oil and Gas Lease Sale.
The company said that the newly acquired acreage is strategically situated in productive areas of the Delaware Basin, with exposure to nine or more separate prospective formations.
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Positioned next to Matador’s existing operated units, this acquisition aims to increase operational efficiency, with current completed cost per lateral foot averaging 10–20% lower than the company’s usual expenses.
The lease includes an 87.5% net revenue interest over a ten-year term, applicable across all depths.
The tracts offer connectivity to San Mateo’s infrastructure, potentially enhancing throughput volumes and revenue streams.
Matador Resources founder, chairman and CEO Joseph Wm. Foran said: “We believe our proven track record of value creation over the years de-risks this transaction, as evidenced by our 2018 acquisition of the State line and Rodney Robinson Federal tracts.
“To date, Matador has already recovered all associated capital invested in lease acquisitions, drilling and completions associated with those tracts, as well as generating an additional $1.9bn in returns from these projects.
“We have full confidence that our reservoir, geology, midstream and operating teams will maximise the value of these new tracts in a similar manner.”
Furthermore, the acquisition adds more than 141 net operated locations, standardised to two-mile laterals.
It includes extended reach laterals, U-Turn well designs, and multi-well developments and completions, alongside potential for advanced water recycling and increased natural gas takeaway capacity.
The purchase, valued at around $7.3m per location, is expected to be financed through existing cash reserves and a credit facility.
Matador’s operations are mainly in the Wolfcamp and Bone Spring plays of the Delaware Basin in south-east New Mexico and West Texas. The company also has activities in the Haynesville shale and Cotton Valley plays in north-west Louisiana.
In addition, Matador provides midstream services including natural gas processing, oil transport, gathering and produced water disposal.
In April 2025, Matador sold its remaining acreage and production assets in the Eagle Ford shale in La Salle, Karnes and Atascosa counties in South Texas. The sale, completed through multiple transactions, brought in proceeds of more than $30m.
