Matador Resources Inks Strategic Deal with Energy Transfer to Enhance Natural Gas Monetization

Matador Resources Company has recently announced the execution of several agreements with an affiliate of Energy Transfer LP, including a natural gas supply agreement and separate natural gas liquids agreements. This transaction is designed to improve the company's net integrated pricing returns and reduce its pricing exposure to the Waha Hub for the second half of 2026.

Under the agreements, Matador will dedicate and sell natural gas liquids from multiple sources in the Delaware Basin specifically to Energy Transfer. This arrangement represents the company's latest effort to secure pricing in the context of surging natural gas production in the Permian Basin.

The core context for this collaboration lies in the connection of transportation capacity. On October 30, 2025, Matador secured firm transportation capacity of 500,000 MMBtu per day on Energy Transfer's Hugh Brinson pipeline. This capacity will enable the movement of natural gas from the Permian Basin to sales points that have historically exhibited both higher demand and pricing compared to the Waha Hub.

The newly signed natural gas supply agreement is expected to serve as a "bridge" prior to the commencement of the Hugh Brinson pipeline transportation agreement. This bridge will allow the company to achieve higher prices for a portion of its natural gas production during this interim period. The agreement is also anticipated to supply natural gas to Energy Transfer to meet the growing demand from AI-driven data centers and the power generation market.

Joseph Wm. Foran, Founder, Chairman, and CEO of Matador, stated, "We are very pleased to continue deepening our relationship with Energy Transfer. Matador looks forward to the formal commencement of operations on the Hugh Brinson pipeline, and we expect this transaction to effectively enhance the realized price for our natural gas production prior to that event." He also commended the company's marketing team for collaborating with Energy Transfer to find innovative solutions.

Matador Resources is an independent energy company focused on the hydrocarbon-rich Wolfcamp and Bone Spring plays in the Delaware Basin of southeastern New Mexico and West Texas. The company also has operations in the Haynesville shale and Cotton Valley areas of northwestern Louisiana.