Zacks Investment Research
25 May 2026, 17:51 UTC · 1h ago
Source · https://www.zacks.com/stock/news/2926387/mtdr-strengthens-delaware-basin-footprint-with-lease-acquisition?cid=CS-STOCKNEWSAPI-FT-analyst_blog|company_news_energy_sector-2926387
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Matador Resources (MTDR) is expanding its Delaware Basin footprint by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion. — Significant capital expenditure to increase resource base and adding 141 new drilling opportunities typically drives long-term production growth.
+0.60The acquisition is expected to increase throughput and revenue generation for Matador's San Mateo midstream business. — Synergies between upstream production and midstream infrastructure improve margins and diversify revenue streams.
+0.40MTDR plans to fund the deal via cash on hand and its credit facility, with a goal to substantially reduce acquisition debt by year-end 2026 and fully repay its reserve-based lending facility by H1 2027. — Clear deleveraging timeline supported by projected 2026 free cash flow of $1.2 billion mitigates the financial risk of the $1.1 billion purchase.
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The company announced a major expansion of its Delaware Basin footprint, which is expected to improve production efficiency and lower costs.
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