The agreed consideration (the "Unadjusted Purchase Price") was $1,275,000,000 in cash, subject to customary adjustments for working capital, title defects and environmental defects, with an effective date of June 1, 2026. At signing, Matador deposited $63,750,000 (5% of the unadjusted purchase price) into escrow. The acquired assets included 16,235 net undeveloped acres in Eddy and Lea Counties, New Mexico (majority held by production), more than 156 net drilling locations normalized to two-mile laterals primarily in the Bone Spring and Wolfcamp formations, $816 million of PV-10 as of May 31, 2026 (calculated using $70.00 per barrel of oil and $3.00 per MMBtu of natural gas), total proved oil and natural gas reserves of 55 million BOE, and estimated third-quarter 2026 production of approximately 10,600 to 11,600 BOE per day (57% oil). Joseph Wm. Foran, Matador's Founder, Chairman and CEO, said at announcement that Matador anticipated the acquisition "will be integrated efficiently into Matador's operating plan, contribute to Matador's cash flow generation and deliver significant efficiency gains, increases in oil and natural gas production, and reserve growth."

Purchaser obtained a representation and warranty insurance policy covering certain breaches of the sellers' and target's representations and warranties, since, except for specified representations or fraud, seller and target representations and warranties did not survive closing. The purchase agreement's termination provisions used the escrow deposit as a liquidated-damages mechanism rather than a traditional termination fee: if the deal failed to close due to a material seller/target breach, Matador could elect specific performance or terminate and receive the full deposit plus reimbursement of documented third-party transaction expenses up to $4,000,000; if it failed to close due to a material purchaser-side breach, sellers could elect specific performance or terminate and receive the full deposit as liquidated damages. The agreement set a Target Closing Date of October 1, 2026, with an Outside Date 30 days later, and designated Vinson & Elkins LLP's Houston office as the closing location.

The transaction closed on October 1, 2026, as confirmed in an 8-K filed October 5, 2026 reporting Item 2.01 completion of acquisition, together with a closing press release. At closing, Matador paid an as-adjusted purchase price of approximately $1.255 billion in cash (down from the $1.275 billion unadjusted price), subject to further customary post-closing adjustments. The closing release added that Paloma had 59 approved drilling permits on its acreage, that Matador expected to commence drilling operations on up to 25 wells associated with the acreage by year-end 2027, and that since the June 1, 2026 effective date, production associated with the acquisition had outperformed Matador's underwriting estimates by approximately 10%, driven largely by Paloma's newest wells in Eddy County. Mr. Foran stated that, together with the concurrent, separately announced Ridge Runner Resources II, LLC acquisition (also an EnCap portfolio company, expected to close later in October 2026) and the May 2026 federal lease sale, Matador's net acreage position in the Delaware Basin would reach approximately 240,000 net acres, an increase of almost 20% over its October 2025 position of 203,000 net acres.

On financing, the closing release stated that Matador expects to use free cash flow to pay down approximately $350 million to $400 million on its reserves-based lending credit facility led by PNC Bank following the fourth-quarter 2026 closings (of both the Paloma and Ridge Runner transactions), depending on commodity prices. No new debt issuance or equity financing tied specifically to the Paloma purchase price was disclosed.

On advisors, the closing press release discloses that Baker Botts L.L.P. served as legal advisor to Matador for the Paloma Acquisition, while Vinson & Elkins LLP served as legal advisor and RBC Richardson Barr served as financial advisor to Paloma and EnCap. No financial advisor to Matador was disclosed. This supersedes the prior unresolved summary, which had the target, seller, and legal advisors as undisclosed.