Matador Resources shares rose 1.0% in pre-open trading after the company disclosed a definitive agreement to purchase Paloma Permian LLC from EnCap Investments for $1.275 billion in cash. The transaction is slated to close in the fourth quarter of 2026 and is concentrated in Matador’s primary operating region, the Delaware Basin.
The assets being acquired comprise 16,235 net undeveloped acres located in Eddy and Lea Counties, New Mexico. The deal includes in excess of 156 net drilling locations and roughly 55 million barrels of oil equivalent (BOE) in proved reserves, materially broadening Matador’s development inventory within its core basin operations.
Operationally, Paloma was producing an estimated 11,100 BOE per day in the third quarter, with an oil weighting of 57%. That production profile and oil-heavy mix are consistent with Matador’s existing production composition and its stated growth strategy, strengthening the company’s inventory and near-term development opportunities.
Alongside the acquisition announcement, Matador’s board declared a quarterly cash dividend of $0.375 per share, equal to a $1.50 annualized payout. The dividend is payable on September 8, 2026, to shareholders of record as of August 10, 2026, indicating the company’s intent to continue returning capital while pursuing acreage expansion through M&A.
Market context for the move was muted. Major indices - the S&P 500, Dow Jones and Nasdaq - were trading modestly lower in pre-market trade, suggesting that Matador’s share gain was driven primarily by the company-specific news rather than wider market strength.
Investors will have an additional catalyst in the near term: Matador is scheduled to report second-quarter 2026 earnings after the market close on August 5, 2026. That release will be the first set of financials following the company’s upward revision to its production guidance after the first quarter.
Taken together, the Paloma acquisition and the affirmed dividend signal Matador’s dual focus on expanding acreage in the Delaware Basin while continuing shareholder distributions. The announced deal increases the company’s development inventory and proved reserves, while the dividend declaration underscores management’s ongoing capital-return policy as the company moves toward closing the acquisition later in 2026.