Matador Resources Acquires Paloma for $1.275 Billion

Matador Resources Company has announced the acquisition of Paloma Partners IV LLC in a deal valued at approximately $1.275 billion. The acquisition aims to expand Matador's assets in the Delaware Basin. Under the terms of the agreement, Matador will acquire approximately 38,000 net acres and daily production of about 20,000 barrels of oil equivalent from Paloma. Matador stated that this acquisition will provide low-cost, high-quality locations and create significant synergies when integrated into its existing operations. The deal is expected to contribute to Matador's 2024 production targets and enhance the company's cash flow. The purchase consideration will be paid partly in cash and partly in Matador shares. The transaction is expected to close in the first quarter of 2024. Matador indicated that its leverage ratio will remain low following the transaction, and it will increase shareholder value. This is not investment advice.