Matador Enters Gas Supply Agreement with Energy Transfer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2026
0mins
Matador (MTDR) has entered into multiple agreements with affiliates of Energy Transfer (ET), including a gas supply agreement. This transaction is an additional step taken by Matador's marketing team to improve all-in pricing netbacks and reduce exposure to Waha Hub pricing in the second half of 2026. In addition to this gas supply agreement, Matador has executed separate natural gas liquid agreements with various ET affiliates to dedicate and sell Matador's NGLs from multiple sources in the Delaware Basin to ET. Matador expects the new gas supply agreement with ET to allow the company to bridge the gap prior to Matador's transportation agreement on the Hugh Brinson Pipeline becoming effective and realize higher natural gas prices for a portion of its natural gas production in the second half of 2026. This agreement is also expected to provide ET with natural gas to feed the growing demand from artificial intelligence driven data centers and power generation markets.
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Analyst Views on MTDR
Wall Street analysts forecast MTDR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 50.400
Low
50.00
Averages
57.08
High
70.00
Current: 50.400
Low
50.00
Averages
57.08
High
70.00
About MTDR
Matador Resources Company is an independent energy company. The Company is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates in the Haynesville shale, and Cotton Valley plays in Northwest Louisiana. Additionally, the Company conducts midstream operations primarily through its midstream joint venture, San Mateo Midstream, LLC and its subsidiaries in support of, and to provide flow assurance for, the Company’s exploration, development and production operations, and San Mateo provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Matador Resources Enters Multiple Agreements with Energy Transfer LP
- Gas Supply Agreement: Matador has entered into a gas supply agreement with Energy Transfer to enhance all-in pricing netbacks and reduce reliance on Waha Hub pricing in the second half of 2026, thereby strengthening its market competitiveness.
- NGL Agreements: In addition to the gas supply agreement, Matador has executed separate natural gas liquid (NGL) agreements with various ET affiliates to dedicate and sell NGLs from multiple sources in the Delaware Basin, further optimizing resource allocation.
- Transportation Capacity Boost: Matador has secured firm transportation on Energy Transfer's Hugh Brinson Pipeline, allowing for the movement of 500,000 MMBtu of natural gas per day, which is expected to significantly enhance sales prices, particularly in markets outside of Waha Hub.
- Market Demand Response: This agreement is anticipated to provide ET with natural gas to meet the growing demand from AI-driven data centers and power generation markets, showcasing Matador's strategic positioning in emerging markets.
See More
Matador Resources Announces 2026 Annual Shareholders Meeting Details
- Meeting Time and Location: Matador Resources will hold its 2026 Annual Shareholders Meeting on June 11, 2026, at 9:30 a.m. Central Time at the Hilton Dallas Lincoln Centre, providing breakfast to facilitate interaction between shareholders and management.
- Live Webcast Arrangement: The meeting will be webcast live, allowing shareholders to participate via the company’s website or the provided link, ensuring all shareholders can stay informed about the proceedings in real-time.
- Company Business Overview: Matador is an independent energy company focused on the exploration, development, and production of oil and gas resources in the U.S., primarily in the Wolfcamp and Bone Spring plays in New Mexico and Texas, showcasing its strength in unconventional oil and gas sectors.
- Midstream Operations Support: In addition to upstream oil and gas activities, Matador conducts midstream operations, offering natural gas processing, oil transportation, and water disposal services, further enhancing its competitive edge in the energy industry.
See More
Matador Resources Expands Delaware Basin Footprint
- Major Expansion: Matador Resources Company has significantly enhanced its position in the Delaware Basin by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion, which is expected to add 141 new drilling opportunities, thereby improving production efficiency and lowering costs.
- Infrastructure Utilization: The newly acquired acreage is strategically located adjacent to Matador's existing operated units, allowing the company to leverage its established infrastructure, with expectations of increased output through longer two-mile wells, shared infrastructure, and enhanced natural gas transportation capacity.
- Financial Outlook: Matador anticipates nearly $1.2 billion in adjusted free cash flow by 2026, with plans to substantially reduce acquisition-related debt by year-end 2026 and fully repay its reserve-based lending facility in the first half of 2027, indicating strong financial health.
- Market Environment: With West Texas Intermediate prices surpassing $90 per barrel, Matador and its peers, including Diamondback Energy and Exxon Mobil, are benefiting from a favorable pricing environment, further solidifying their competitive positions in the market.
See More
Matador Resources Acquires 5,154 Acres in Delaware Basin
- Land Acquisition: Matador Resources acquired 5,154 net undeveloped acres in the Delaware Basin for $1.14 billion during this week's Bureau of Land Management oil and gas lease sale, indicating the company's intent to expand in Texas.
- Resource Potential: The acquired acreage is situated in the most productive areas of the Delaware Basin, featuring nine or more discrete prospective formations, which is expected to add at least 141 net operated locations to the company's asset base.
- Infrastructure Advantage: Key tracts and associated wells and volumes are strategically located near existing infrastructure, anticipated to positively impact San Mateo's volume throughput and revenue streams, thereby enhancing overall business performance.
- Market Reaction: Following the acquisition announcement, Matador Resources' stock rose 1.5% in after-hours trading, reflecting the market's positive perception of its strategic expansion efforts.
See More
Truist Upgrades Matador Resources to Buy with $67 Price Target
- Rating Upgrade: Truist upgraded Matador Resources from Hold to Buy, raising the price target from $60 to $67, believing that the current share price offers an attractive entry point for small-to-midcap leverage, reflecting confidence in the company's future growth.
- Asset Strength: Matador boasts a formidable position in the Delaware Basin with 212.5K net acres and approximately 1,600 gross locations, providing an impressive 12 years of inventory depth, which ranks among the highest for oily small-cap stocks and suggests the potential for a higher valuation multiple.
- Profit Growth Strategy: Management indicated during the Q1 earnings call that the company will remain patient with the potential to accelerate some TILs this year while continuing to adhere to its mantra of “profitable growth at a measured pace,” demonstrating a commitment to sustainable development.
- Cost Control: By leveraging electric and hybrid-electric fracturing fleets, increasing water recycling, and integrating operational AI, Matador maintains well cost guidance between $785 and $805 per foot, among the lowest in the Delaware Basin, further enhancing its competitive edge.
See More
Latest Wall Street Ratings Overview
- Goldman Sachs Bullish on Aevex: Goldman Sachs initiates coverage of Aevex (AVEX) with a Buy rating and a $34 price target, based on a 5.4X CY27 EV/Sales, indicating confidence in the company's unique position in the drone market and its growth potential.
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- JPMorgan Upgrades Braskem: JPMorgan upgrades Braskem to Overweight from Neutral, citing improved market fundamentals, tighter supply, and strengthened governance post-restructuring, which are expected to enhance profit margins in the chemical sector.
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See More
Matador Resources Enters Multiple Agreements with Energy Transfer LP
- Gas Supply Agreement: Matador has entered into a gas supply agreement with Energy Transfer to enhance all-in pricing netbacks and reduce reliance on Waha Hub pricing in the second half of 2026, thereby strengthening its market competitiveness.
- NGL Agreements: In addition to the gas supply agreement, Matador has executed separate natural gas liquid (NGL) agreements with various ET affiliates to dedicate and sell NGLs from multiple sources in the Delaware Basin, further optimizing resource allocation.
- Transportation Capacity Boost: Matador has secured firm transportation on Energy Transfer's Hugh Brinson Pipeline, allowing for the movement of 500,000 MMBtu of natural gas per day, which is expected to significantly enhance sales prices, particularly in markets outside of Waha Hub.
- Market Demand Response: This agreement is anticipated to provide ET with natural gas to meet the growing demand from AI-driven data centers and power generation markets, showcasing Matador's strategic positioning in emerging markets.
See More
Matador Resources Announces 2026 Annual Shareholders Meeting Details
- Meeting Time and Location: Matador Resources will hold its 2026 Annual Shareholders Meeting on June 11, 2026, at 9:30 a.m. Central Time at the Hilton Dallas Lincoln Centre, providing breakfast to facilitate interaction between shareholders and management.
- Live Webcast Arrangement: The meeting will be webcast live, allowing shareholders to participate via the company’s website or the provided link, ensuring all shareholders can stay informed about the proceedings in real-time.
- Company Business Overview: Matador is an independent energy company focused on the exploration, development, and production of oil and gas resources in the U.S., primarily in the Wolfcamp and Bone Spring plays in New Mexico and Texas, showcasing its strength in unconventional oil and gas sectors.
- Midstream Operations Support: In addition to upstream oil and gas activities, Matador conducts midstream operations, offering natural gas processing, oil transportation, and water disposal services, further enhancing its competitive edge in the energy industry.
See More
Matador Resources Expands Delaware Basin Footprint
- Major Expansion: Matador Resources Company has significantly enhanced its position in the Delaware Basin by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion, which is expected to add 141 new drilling opportunities, thereby improving production efficiency and lowering costs.
- Infrastructure Utilization: The newly acquired acreage is strategically located adjacent to Matador's existing operated units, allowing the company to leverage its established infrastructure, with expectations of increased output through longer two-mile wells, shared infrastructure, and enhanced natural gas transportation capacity.
- Financial Outlook: Matador anticipates nearly $1.2 billion in adjusted free cash flow by 2026, with plans to substantially reduce acquisition-related debt by year-end 2026 and fully repay its reserve-based lending facility in the first half of 2027, indicating strong financial health.
- Market Environment: With West Texas Intermediate prices surpassing $90 per barrel, Matador and its peers, including Diamondback Energy and Exxon Mobil, are benefiting from a favorable pricing environment, further solidifying their competitive positions in the market.
See More
Matador Resources Acquires 5,154 Acres in Delaware Basin
- Land Acquisition: Matador Resources acquired 5,154 net undeveloped acres in the Delaware Basin for $1.14 billion during this week's Bureau of Land Management oil and gas lease sale, indicating the company's intent to expand in Texas.
- Resource Potential: The acquired acreage is situated in the most productive areas of the Delaware Basin, featuring nine or more discrete prospective formations, which is expected to add at least 141 net operated locations to the company's asset base.
- Infrastructure Advantage: Key tracts and associated wells and volumes are strategically located near existing infrastructure, anticipated to positively impact San Mateo's volume throughput and revenue streams, thereby enhancing overall business performance.
- Market Reaction: Following the acquisition announcement, Matador Resources' stock rose 1.5% in after-hours trading, reflecting the market's positive perception of its strategic expansion efforts.
See More
Truist Upgrades Matador Resources to Buy with $67 Price Target
- Rating Upgrade: Truist upgraded Matador Resources from Hold to Buy, raising the price target from $60 to $67, believing that the current share price offers an attractive entry point for small-to-midcap leverage, reflecting confidence in the company's future growth.
- Asset Strength: Matador boasts a formidable position in the Delaware Basin with 212.5K net acres and approximately 1,600 gross locations, providing an impressive 12 years of inventory depth, which ranks among the highest for oily small-cap stocks and suggests the potential for a higher valuation multiple.
- Profit Growth Strategy: Management indicated during the Q1 earnings call that the company will remain patient with the potential to accelerate some TILs this year while continuing to adhere to its mantra of “profitable growth at a measured pace,” demonstrating a commitment to sustainable development.
- Cost Control: By leveraging electric and hybrid-electric fracturing fleets, increasing water recycling, and integrating operational AI, Matador maintains well cost guidance between $785 and $805 per foot, among the lowest in the Delaware Basin, further enhancing its competitive edge.
See More
Latest Wall Street Ratings Overview
- Goldman Sachs Bullish on Aevex: Goldman Sachs initiates coverage of Aevex (AVEX) with a Buy rating and a $34 price target, based on a 5.4X CY27 EV/Sales, indicating confidence in the company's unique position in the drone market and its growth potential.
- Citi Raises Broadcom Target: Citi raises Broadcom's price target from $475 to $500, applying a 20x multiple to FY28 EPS of $25, reflecting optimism about the company's earnings visibility and maintaining its status as the #1 semiconductor pick for 2026.
- JPMorgan Upgrades Braskem: JPMorgan upgrades Braskem to Overweight from Neutral, citing improved market fundamentals, tighter supply, and strengthened governance post-restructuring, which are expected to enhance profit margins in the chemical sector.
- Evercore Initiates Benitec Coverage: Evercore initiates coverage of Benitec Biopharma with an Overweight rating, highlighting significant upside potential in the rare disease market, suggesting promising investment opportunities ahead.
See More
