Matador Resources completed its acquisition of approximately 13,600 net acres from EnCap Investments portfolio company Ridge Runner Resources II, expanding Matador’s position in the Woodford play. Most of the acquired acreage is undeveloped.
Combined with approximately 36,000 net acres Matador previously assembled through more than 400 separate transactions, the acquisition expands its core Woodford position to approximately 50,000 net acres.
Matador said the broader acreage position was assembled at an average cost of approximately $4,000 per acre.
The Ridge Runner transaction adds more than 150 net operated Woodford locations when normalized to two-mile laterals.
Those locations were acquired at approximately $1.3 million per net location.
The total does not include additional prospective Barnett formation locations that could be added after further testing and delineation.
Matador’s Rae’s Creek Woodford well has averaged more than 1,000 barrels of oil per day during its first 100 producing days and has produced more than 100,000 barrels cumulatively.
The company now expects that well to outperform its initial estimated ultimate recovery of 800,000 barrels of oil.
Matador plans to drill a second Woodford well during the fourth quarter of 2026 and could drill as many as 15 wells by the end of 2027.
Its 2027 strategy is expected to emphasize multi-well batch drilling, three-mile laterals, and co-development with adjacent formations.
Matador is targeting Woodford well-cost reductions of approximately 30% to 40%.
The company also expects debt repayments to reach approximately $350 million to $400 million by year-end.
KEY QUOTES:
“Matador is excited to close yet another important transaction with EnCap and would like to acknowledge the hard work, dedication and professionalism of the Ridge Runner, EnCap, and Matador teams.”
“Encouraged by these results, we plan to drill a second Woodford well this quarter to help delineate the Woodford play as we transition into an active 2027 development schedule.”
“At present, we expect debt repayments by the end of the year to reach between $350 to $400 million.”
Joseph Wm. Foran, Founder, Chairman and CEO of Matador Resources
