Matador Resources has entered into a new natural‑gas transportation and marketing agreement that will move 500,000 MMBtu per day of Permian Basin production through Energy Transfer’s Hugh Brinson Pipeline. The pipeline will transport gas to Maypearl, Texas, and then to East Texas and Gulf Coast markets, providing access to LNG export facilities and key trading hubs.
The Hugh Brinson Pipeline, formerly the Warrior Pipeline, is expected to be operational in the fourth quarter of 2026. The agreement also extends a separate gas‑transport contract to the Southern California market, where pricing historically exceeds Texas and Louisiana rates. By securing firm transportation to these higher‑priced markets, Matador reduces its exposure to the Waha Hub and gains exposure to NYMEX Henry Hub and LNG markets.
Management estimates that a $0.50 per MMBtu increase in realized gas prices will translate into an approximate $90 million increase in annual revenue. This projection is based on the company’s current production profile and the new transport capacity. For context, Matador reported Q3 2025 revenue of $939.02 million, up 4.4% from the prior year, and adjusted earnings per share of $1.36, down from $1.89 in the same quarter last year. The new agreements are expected to strengthen free‑cash‑flow generation and support the company’s integrated upstream and midstream model.
The agreements position Matador as one of the Delaware Basin’s highest‑margin operators by diversifying its gas marketing portfolio. The company’s strategy to move away from reliance on Waha Hub pricing aligns with broader industry trends, as Permian producers face increasing takeaway constraints that depress local hub prices. By accessing Gulf Coast and Southern California markets, Matador can capture premium pricing and mitigate regional price volatility.
Matador’s CEO highlighted that the new pipeline agreements are part of a broader effort to enhance operational resilience and secure stable revenue streams. The company has also expanded its acreage through acquisitions, including a $1.83 billion purchase of a subsidiary of Ameredev II Parent, LLC in June 2024 and a $1.6 billion acquisition of Advance Energy Partners Holdings, LLC in April 2023. These moves, combined with the new transport agreements, reinforce Matador’s integrated model and support its long‑term growth objectives.
The company’s midstream operations, including its San Mateo Midstream subsidiary, contribute additional revenue and synergies, further strengthening the integrated approach. The new agreements are expected to enhance Matador’s ability to capture premium pricing for its natural‑gas production and provide a stable revenue stream that can help offset commodity price volatility.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.