Matador Resources Company: Delaware Basin Deal Bonanza Continues: Updating Forecasts for Paloma Resources and Ridge Runner Acquisitions

Research evidence excerpt

Matador Resources Company: Delaware Basin Deal Bonanza Continues: Updating Forecasts for Paloma Resources and Ridge Runner Acquisitions

J P M O R G A N North America Equity Research

24 July 2026

Matador Resources Company

Delaware Basin Deal Bonanza Continues: Updating Overweight

Forecasts for Paloma Resources and Ridge Runner MTDR, MTDR US

Acquisitions Price (23 Jul 26):$51.71

Price Target (Dec-26):$63.00

JPM View: MTDR maintained its frenetic pace of A&D activity in the Delaware Oil & Gas Exploration & Production

ACBasin with a bolt-on acquisition as well as a series of acreage capture deals for the Arun Jayaram

emerging Woodford play. MTDR announced the acquisition of Paloma Resources (1-212) 622-8541

for $1.275bn, which holds interests in 16.2K net acres in the Northern Delaware arun.jayaram@jpmchase.com

Basin at a cost of $58K per acre and $6mm per undrilled location. MTDR sees Pankaj Bhatter, CFA

3Q26 production of 11.1 MBoe/d, including 6.3 MBo/d of oil output, and 156 net (1-212) 622-3795

locations from the transaction. In addition, MTDR announced the acquisition 50K pankaj.bhatter@jpmchase.com

net acres, which is prospective for the deeper Woodford interval, for $205mm or Jack Jerusalmi

~$4K per acre from Ridge Runner. This acreage is expected to yield 150 net (1-212) 622-6552

jack.jerusalmi@jpmorgan.com

Woodford locations. The company also announced a successful Woodford test J.P. Morgan Securities LLC

with the Rae’s Creek 25 36 22 Fed Com #095H well delivering an IP-24 of 2,200

Boe/d with a 72% oil mix and a favorable IP-60 production profile. These

transactions come on the heels of MTDR’s $1.14bn leasehold acquisition of 5.2K Key Changes (FYE Dec)

net acres in the May BLM lease sale and $752mm midstream transaction by San Prev Cur Δ