Matador grows Delaware basin position, reports improved well performance

(WO) - Matador Resources Company said it increased its oil hedging coverage, expanded its Delaware basin acreage position and reported improved well performance from recent development activity in Lea County, New Mexico.

The company now has approximately 35%–40% of its expected 2026 oil production hedged using costless collars, with a weighted-average floor price of about $52/bbl and a ceiling near $65/bbl. The hedges were added during recent commodity price strength to provide greater cash flow visibility.

Matador also continued its incremental acquisition strategy across the Delaware basin during 2025, completing more than 690 transactions for roughly 17,500 net acres. Total consideration for the acquisitions was approximately $245 million, excluding capitalized costs, bringing the company’s Delaware basin position to about 212,500 net acres at year-end. The added acreage included interests in operated units scheduled for near-term drilling, contributing additional inventory.

Operationally, the company reported stronger early results from a large batch development in its Antelope Ridge area of Lea County. A 17-well program targeting the Bone Springs and Wolfcamp formations showed oil recoveries about 8% above the company’s recent averages. Matador attributed the performance to changes in well targeting, completion design and chemical optimization.

The Lea County development also benefited from longer laterals and large-scale completion operations, which reduced average well costs by roughly 10% compared with prior-year projects in the area. Matador said the acreage consolidation strategy improved working interests across the unit, enhancing overall development economics.