Matador Resources has agreed to acquire privately held Paloma Permian LLC for $1.275 billion in cash, significantly expanding its footprint in the Delaware Basin while strengthening its long-term inventory through a separate acreage acquisition and a successful Woodford shale test in New Mexico. Separately, Matador agreed to acquire primarily undeveloped acreage from another EnCap portfolio company, Ridge Runner Resources II. The purchase expands the company's position in the emerging Woodford play, bringing its total contiguous Woodford acreage to roughly 50,000 net acres and increasing Matador's overall Delaware Basin holdings to approximately 240,000 net acres. Supporting its confidence in the play, Matador reported strong initial results from its first exploratory Woodford well in southeast Lea County. The company said the results validate the commercial potential of the Woodford formation in this part of the Delaware Basin.