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Matador Enhances Natural Gas Marketing Through Strategic Agreements
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Key Takeaways
Matador signed natural gas supply and NGL marketing agreements with Energy Transfer affiliates.
The deals support better natural gas price realizations for MTDR ahead of ET's Hugh Brinson Pipeline startup.
MTDR secured 500 BBtu/d of transport capacity on the Hugh Brinson pipeline to access higher-priced markets.
Matador Resources Company (MTDR - Free Report) announced multiple agreements with affiliates of Energy Transfer LP (ET - Free Report) aimed at improving natural gas price realizations and reducing the exposure to the historically weak Waha Hub pricing in the Permian Basin in the second half of 2026. The agreements with ET affiliates include a natural gas supply arrangement and separate natural gas liquid (NGL) marketing agreements designed to dedicate and sell NGLs produced from multiple Delaware Basin sources to Energy Transfer affiliates.
On Oct. 30, 2025, Matador secured firm transportation capacity of 500 billion British thermal units per day (BBtu/d) on Energy Transfer's Hugh Brinson Pipeline to transport natural gas from the Permian Basin to higher-priced markets. Since the Hugh Brinson pipeline is not yet operational, MTDR entered a gas supply agreement with Energy Transfer to bridge the gap. The arrangement will enable Matador to sell part of its natural gas at better prices in the second half of 2026, increasing revenues and cash flow. At the same time, Energy Transfer will use some of this natural gas to meet the surging power requirements of AI-driven data centers and power generation markets.
Management expects the arrangements to strengthen the ties between MTDR and ET as well as increase the value of its natural gas production until the Hugh Brinson Pipeline begins operations. It is also positioning the company to benefit from rising LNG exports and growing electricity demand from AI-driven data centers.
Matador and Energy Transfer currently carry a Zacks Rank #3 (Hold).
The U.S. Energy Information Administration’s short-term energy outlook predicts that U.S. LNG exports will grow from 15.1 billion cubic feet per day (Bcf/d) in 2025 to 18.2 Bcf/d in 2027. This substantial growth in LNG export volumes will increase natural gas demand, thereby benefiting Chevron Corporation (CVX - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and Matador, which deal with the production of natural gas, as well as Energy Transfer, which handles transportation of natural gas.
Chevron is a leading integrated energy giant with a strong presence in the Permian Basin. Driven by strong upstream performance and continued growth across its resource base, CVX achieved first-quarter 2026 international net oil-equivalent production of 1.8 million barrels of oil equivalent per day, up from the prior-year period.
YPF is driving production growth by maximizing its core assets in Argentina’s Vaca Muerta. YPF plans to scale up operational activities in the coming quarters to increase oil and gas output in the second half of 2026.
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Matador Enhances Natural Gas Marketing Through Strategic Agreements
Key Takeaways
Matador Resources Company (MTDR - Free Report) announced multiple agreements with affiliates of Energy Transfer LP (ET - Free Report) aimed at improving natural gas price realizations and reducing the exposure to the historically weak Waha Hub pricing in the Permian Basin in the second half of 2026. The agreements with ET affiliates include a natural gas supply arrangement and separate natural gas liquid (NGL) marketing agreements designed to dedicate and sell NGLs produced from multiple Delaware Basin sources to Energy Transfer affiliates.
On Oct. 30, 2025, Matador secured firm transportation capacity of 500 billion British thermal units per day (BBtu/d) on Energy Transfer's Hugh Brinson Pipeline to transport natural gas from the Permian Basin to higher-priced markets. Since the Hugh Brinson pipeline is not yet operational, MTDR entered a gas supply agreement with Energy Transfer to bridge the gap. The arrangement will enable Matador to sell part of its natural gas at better prices in the second half of 2026, increasing revenues and cash flow. At the same time, Energy Transfer will use some of this natural gas to meet the surging power requirements of AI-driven data centers and power generation markets.
Management expects the arrangements to strengthen the ties between MTDR and ET as well as increase the value of its natural gas production until the Hugh Brinson Pipeline begins operations. It is also positioning the company to benefit from rising LNG exports and growing electricity demand from AI-driven data centers.
Matador and Energy Transfer currently carry a Zacks Rank #3 (Hold).
The U.S. Energy Information Administration’s short-term energy outlook predicts that U.S. LNG exports will grow from 15.1 billion cubic feet per day (Bcf/d) in 2025 to 18.2 Bcf/d in 2027. This substantial growth in LNG export volumes will increase natural gas demand, thereby benefiting Chevron Corporation (CVX - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and Matador, which deal with the production of natural gas, as well as Energy Transfer, which handles transportation of natural gas.
CVX currently has a Zacks Rank #2 (Buy), whereas YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is a leading integrated energy giant with a strong presence in the Permian Basin. Driven by strong upstream performance and continued growth across its resource base, CVX achieved first-quarter 2026 international net oil-equivalent production of 1.8 million barrels of oil equivalent per day, up from the prior-year period.
YPF is driving production growth by maximizing its core assets in Argentina’s Vaca Muerta. YPF plans to scale up operational activities in the coming quarters to increase oil and gas output in the second half of 2026.