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Matador keeps buying up the Permian Basin

Matador keeps buying up the Permian Basin

Money Moves

A fourth EnCap-backed driller falls to Matador as public operators absorb private ones

Today: Matador agrees to buy Paloma Permian and Ridge Runner acreage

Overview

Matador Resources will pay $1.275 billion in cash for Paloma Permian, a New Mexico oil driller owned by private equity firm EnCap Investments. It is the fourth time in three years Matador has bought an EnCap-backed company to grow in the Permian Basin.

The deal adds about 11,100 barrels of oil equivalent a day and 16,235 undeveloped acres in the Delaware Basin. A separate acreage purchase from Ridge Runner Resources II pushes Matador's Delaware footprint to roughly 240,000 net acres. The Permian is the most productive US oil field, and public drillers keep absorbing the private operators around them.

Why it matters

The Permian Basin pumps the oil that shapes US gasoline prices, and control of it keeps passing from private drillers to a few public buyers.

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Key Indicators

$1.275B
Paloma purchase price
All-cash price for Paloma Permian, funded with cash on hand and debt.
11,100 boe/d
Production added
Barrels of oil equivalent per day from the Paloma assets, about 57% oil.
~50,000
Net acres added
Contiguous undeveloped net acres from the Paloma and Ridge Runner deals combined.
~240,000
Total Delaware acreage
Matador's net acres in the Delaware Basin after the deals close.
57%
Oil share of Paloma output
Share of Paloma production that is crude oil rather than gas or liquids.

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People Involved

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Timeline

January 2023 July 2026

3 events Latest: Today
  1. Matador agrees to buy Paloma Permian and Ridge Runner acreage

    Today Acquisition

    Matador announces a $1.275 billion cash deal for Paloma Permian plus an acreage purchase from Ridge Runner Resources II, alongside successful Woodford exploration well results.

  2. Matador announces Ameredev II bolt-on

    Acquisition

    Matador agrees to buy Ameredev II for roughly $1.9 billion, adding more Delaware Basin production and acreage.

  3. Matador buys Advance Energy for $1.6 billion

    Acquisition

    Matador agrees to buy EnCap-backed Advance Energy Partners, its largest deal at the time, adding about 18,500 net acres in the northern Delaware Basin.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

October 2023 - May 2024

ExxonMobil buys Pioneer Natural Resources (2023-2024)

ExxonMobil agreed to buy Pioneer Natural Resources for about $60 billion in stock, the largest Permian deal on record. The purchase made Exxon the biggest producer in the basin overnight. It closed in May 2024.

Then

Exxon roughly doubled its Permian output and gained more than a decade of drilling inventory.

Now

The deal set off a wave of consolidation as rivals scrambled to lock up their own Permian acreage.

Why this matters now

It shows the same force driving Matador: in the Permian, scale and contiguous acreage decide who drills cheapest, so buyers keep getting bigger.

February 2024

Diamondback Energy merges with Endeavor (2024)

Diamondback Energy agreed to combine with Endeavor Energy Resources, a large private Permian driller, in a cash-and-stock deal worth about $26 billion. It joined one of the biggest public operators with one of the biggest private ones.

Then

The combined company became a top-three Permian producer with a deep well inventory.

Now

It confirmed that private, family- and PE-owned drillers were the main takeover targets left in the basin.

Why this matters now

Paloma and Ridge Runner are smaller versions of Endeavor: private operators built up and then sold to a public consolidator.

January 2023

Matador buys Advance Energy from EnCap (2023)

Matador agreed to buy EnCap-backed Advance Energy Partners for about $1.6 billion, then its largest deal. It added roughly 18,500 net acres in the northern Delaware Basin.

Then

Matador lifted its production and acreage and took on debt to pay for the cash deal.

Now

It began a repeat relationship in which EnCap became a steady seller to Matador.

Why this matters now

This is the first move in the same arc. Paloma is the fourth EnCap-linked company Matador has bought using the same cash-and-debt playbook.

Sources

(5)