Matador Resources Company announced the signing of new natural gas transportation and marketing agreements aimed at improving net realised prices for its production. The operation seeks to increase the company’s exposure to markets indexed to the Henry Hub, as well as to liquefied natural gas (LNG) export routes from the U.S. Gulf Coast.
A central part of this strategy is the firm reservation of 500,000 million British thermal units (MMBtu) per day on the future Hugh Brinson pipeline, operated by Energy Transfer. This pipeline will connect the Permian Basin to Maypearl, in the southern part of the Dallas/Fort Worth metropolitan area, and then to markets in East Texas and along the Gulf Coast. Commissioning is expected in the fourth quarter of 2026.
Reduced exposure to Waha Hub
According to Matador, the target markets have recorded, since 2024, an average price differential of more than $2 per MMBtu compared to the Waha Hub. By securing access to these high-demand zones—linked notably to LNG exports and power-intensive data centres—the company anticipates a significant increase in gas-derived revenue.
Matador Resources Chairman and Chief Executive Officer Joseph Wm. Foran stated that securing takeaway capacity from the Permian Basin is a critical part of long-term planning. He also praised the marketing team’s efforts in opening access to new markets and reducing the company’s exposure to the Waha Hub, while acknowledging Energy Transfer’s cooperation on the transaction.
Extension to California and expected financial impact
In addition to this major deal, Matador extended an existing agreement with another pipeline operator to deliver part of its production to Southern California, a market that has historically offered higher prices than Texas and Louisiana. This setup allows the company to diversify its sales channels while securing flow reliability.
Financially, Matador estimates that for every $0.50 per MMBtu increase in realised price through these agreements, its annual revenue would grow by approximately $90mn (EUR84.6mn). The company thus expects to strengthen its free cash flow generation, reinforcing its position as one of the Delaware Basin’s highest-margin operators.
