Matador Resources Company (NYSE:MTDR) has entered into a series of agreements with affiliates of Energy Transfer LP aimed at enhancing the value of its natural gas and natural gas liquids production from the Delaware Basin.
The arrangements include a new gas supply agreement as well as separate contracts covering the sale and transportation of natural gas liquids, strengthening Matador’s market access ahead of planned pipeline capacity coming online.
Agreement Targets Improved Gas Pricing
According to the company, the gas supply agreement is expected to improve realized pricing for its natural gas production during the second half of 2026 while reducing its exposure to pricing at the Waha Hub, a benchmark that has historically traded at a discount due to regional supply constraints.
The deal is intended to serve as an interim solution before Matador’s previously announced transportation commitment on Energy Transfer’s Hugh Brinson Pipeline becomes operational.
Bridge to Long-Term Transportation Capacity
Matador disclosed in October 2025 that it had secured firm transportation rights on the Hugh Brinson Pipeline, enabling the company to move up to 500,000 MMBtu of natural gas per day out of the Permian Basin.
The transportation agreement is designed to provide access to end markets that have historically generated stronger pricing than the Waha Hub, improving the company’s overall marketing strategy.
Expanded Partnership Includes NGL Marketing
In addition to the gas supply arrangement, Matador has signed separate agreements covering natural gas liquids production from multiple sources across its Delaware Basin operations.
Under these contracts, Energy Transfer affiliates will receive and market the NGL volumes, further expanding the commercial relationship between the two companies.
Energy Transfer indicated that the natural gas associated with the agreements is expected to help meet rising demand from power generation projects and artificial intelligence-driven data centers.
Management Highlights Pricing Benefits
“We are excited for the opportunity to continue our working relationship with Energy Transfer,” said Joseph Wm. Foran, Matador’s founder, chairman and CEO. “We anticipate that this transaction is expected to increase the price that Matador realizes for its natural gas production until then.”
Management believes the agreements will strengthen the company’s ability to capture higher-value pricing while positioning it for future production growth.
Focused on Key U.S. Energy Basins
Matador’s core operations are concentrated in the oil- and liquids-rich Wolfcamp and Bone Spring formations within the Delaware Basin, spanning Southeast New Mexico and West Texas.
The company also maintains natural gas operations in the Haynesville Shale and Cotton Valley formations in Northwest Louisiana, providing exposure to several of the most active energy-producing regions in the United States.