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July 23 (Reuters) - Matador Resources MTDR.N said on Thursday it would acquire privately held Paloma Permian LLC from EnCap Investments for about $1.28 billion in cash.

The deal gives Matador access to 16,235 net undeveloped acres in Eddy and Lea counties in New Mexico, along with properties producing about 11,100 barrels of oil equivalent per day, around 57% of which is oil.

Shares of Matador Resources were up 1% in premarket trading.

Separately, Matador also agreed to acquire primarily undeveloped acreage in the emerging Woodford play from another EnCap-backed company, Ridge Runner Resources II, though it did not disclose the purchase price.

The Paloma acquisition is expected to close in the fourth quarter of 2026.