Matador Resources "Post-BLM Lease Acquisition Views: High Quality Inventory..."

Research evidence excerpt

Matador Resources "Post-BLM Lease Acquisition Views: High Quality Inventory..."

Global Research

25 May 2026ab

Matador Resources Equities

United StatesPost-BLM Lease Acquisition Views: High Quality

Inventory At A Price Oil Companies, Secondary

12-month rating Neutral *

12m price target US$62.00An Expensive Investment In More Inventory

Last week, MTDR announced the $1.14Bn acquisition of ~5k net acres, with ~141 net

locations, from the BLM lease sale in New Mexico. At a ~$7.3mm/net location Price (22 May 2026) US$56.64

transaction price, the acquisition came at a premium for high-quality acreage that offers RIC: MTDR.N BBG: MTDR US

favorable economics and improved capital efficiency through lower well costs. We see

these as the key positives for the acquisition, offset by added debt that, while Trading data and key metrics

manageable, will limit near-term capital returns upside. Maintain Neutral. 52-wk range US$65.45-37.19

Market cap. US$7.07b

Key Highlights Of MTDR's BLM Lease Acquisition: Shares o/s 125m (COM)

Economic Inventory Additions. MTDR added 141 net operated locations on the Free float 92%

acquired 5.1k net undeveloped acres, lifting its net operated well inventory by 9%. Avg. daily volume ('000) 578

MTDR's location count's normalized to 2-mile laterals, and already includes long Avg. daily value (m) US$33.7

laterals, U-turns, multi-well pads, and emerging horizons, suggesting potentially Common s/h equity (12/26E) US$6.08b

limited inventory upside. The 87.5% NRI provides an economic uplift, given a P/BV (12/26E) 1.2x

lower royalty burden on the acreage, while an estimated well cost that's 10- Net debt to EBITDA (12/26E) 1.8x

20% below MTDR's corporate average gives a further boost to its returns.

EPS (UBS, diluted) (USD)

Near-Term Leverage Rises.