Matador Locks in Pipeline Capacity on Energy Transfer’s Hugh Brinson System

Matador Resources signed new natural gas transportation and marketing agreements, including firm capacity on Energy Transfer’s Hugh Brinson Pipeline, to move 500,000 MMBtu/day from the Permian basin to Gulf Coast markets. The deal enhances exposure to NYMEX Henry Hub and LNG export pricing starting in 2026.

Matador Resources Company announced a series of new natural gas transportation and marketing agreements designed to expand access to higher-value markets and enhance exposure to NYMEX Henry Hub and Gulf Coast LNG pricing.

The company has secured firm transportation on Energy Transfer’s Hugh Brinson Pipeline for up to 500,000 MMBtu per day of natural gas from the Permian basin. The pipeline, expected online in late 2026, will move gas from West Texas to Maypearl, Texas, south of the Dallas–Fort Worth Metroplex. From there, gas will flow eastward toward Gulf Coast markets and LNG export terminals, where demand and pricing have historically exceeded Waha Hub levels by more than $2.00 per MMBtu.

Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, said the new agreements are part of the company’s long-term strategy to mitigate regional bottlenecks and strengthen market optionality.

“With takeaway constraints increasingly visible across the Permian basin, locking in firm transportation is an important part of our planning,” Foran said. “When the Hugh Brinson Pipeline comes online, we expect access to new markets will increase realized gas prices and free cash flow.”

Matador expects every $0.50 per MMBtu increase in realized price through its expanded transportation and marketing strategy to add approximately $90 million in annual revenue.

The agreements position Matador to capture higher margins by diversifying beyond the constrained Waha Hub and linking production directly to Gulf Coast hubs tied to LNG exports and industrial demand. The move comes as LNG developers and gas-fired power projects—including new data center and AI-driven electricity loads—are expected to drive long-term natural gas consumption growth.

In addition to the Gulf Coast firm capacity, Matador has also extended a transportation agreement with another pipeline operator to move part of its production into the Southern California market, where regional pricing typically exceeds that of Texas and Louisiana.

The company said its expanded midstream footprint reflects a broader strategy to optimize value chain integration across its Delaware basin operations and maintain one of the highest-margin positions among Permian gas producers.