Matador signed gas and NGL agreements with Energy Transfer to improve pricing, reduce Waha exposure, and enhance market access.
Matador Resources Company has announced a series of strategic agreements with affiliates of Energy Transfer LP (ET), including a significant natural gas supply agreement designed to enhance the company’s marketing and sales strategy. These arrangements represent another important step in Matador’s ongoing efforts to improve the value it receives for its natural gas production while reducing its exposure to pricing volatility associated with the Waha Hub in West Texas.
The newly signed gas supply agreement is expected to play a key role in improving Matador’s overall pricing realization during the second half of 2026. By securing alternative marketing arrangements, the company aims to obtain stronger price netbacks for its natural gas production and lessen the impact of regional price discounts that have historically affected producers operating in the Permian Basin.
In addition to the natural gas supply agreement, Matador has also finalized several natural gas liquids (NGL) agreements with various Energy Transfer affiliates. These contracts provide for the dedication and sale of Matador’s NGL production from multiple sources across the Delaware Basin. Through these arrangements, Matador seeks to optimize the marketing of its hydrocarbon products while ensuring reliable access to downstream infrastructure and markets.
The latest agreements build upon a previously announced transportation arrangement between Matador and Energy Transfer. On October 30, 2025, Matador disclosed that it had secured firm transportation capacity on Energy Transfer’s Hugh Brinson Pipeline. This transportation agreement will allow the company to move up to 500,000 MMBtu of natural gas per day from the Permian Basin to alternative markets where demand has traditionally been stronger and natural gas prices have been considerably higher than those available at the Waha Hub.
The company believes the newly announced gas supply agreement will effectively bridge the period before the Hugh Brinson Pipeline becomes operational under Matador’s transportation contract. As a result, Matador expects to benefit from improved pricing opportunities for a portion of its natural gas production during the second half of 2026, even before the pipeline transportation arrangement officially takes effect.
Beyond the benefits to Matador, the agreement is also expected to support Energy Transfer’s growing customer demand for natural gas. Increasing electricity requirements from artificial intelligence-driven data centers, as well as expanding power generation needs, are creating substantial demand growth across various energy markets. The additional natural gas supplied under this agreement is anticipated to help Energy Transfer meet these emerging consumption requirements.
Commenting on the transaction, Joseph Wm. Foran, Founder, Chairman, and Chief Executive Officer of Matador Resources, expressed enthusiasm about further strengthening the company’s long-standing relationship with Energy Transfer. He thanked the Energy Transfer team for its collaboration and support in completing the agreements, emphasizing the value of continued cooperation between the two companies.
Foran noted that Matador is looking forward to the eventual startup of the Hugh Brinson Pipeline and expects the current agreement to enhance the prices realized for its natural gas production until that transportation route becomes available. He also highlighted the efforts of Matador’s marketing team, praising their ability to develop innovative solutions that improve flow assurance, expand market access, and secure more favorable pricing for the company’s natural gas volumes.
Overall, these agreements reflect Matador’s proactive approach to marketing its production, strengthening revenue potential, and positioning the company to capitalize on growing natural gas demand while mitigating regional pricing challenges.
