Texans, TE Dalton Schultz agree to 3-year, $36M extension

HOUSTON, TX - JANUARY 13: Dalton Schultz #86 of the Houston Texans runs across the field during an NFL wild-card playoff football game against the Cleveland Browns at NRG Stadium on January 13, 2024 in Houston, Texas. (Photo by Cooper Neill/Getty Images)

The Houston Texans are keeping tight end Dalton Schultz and star quarterback C.J. Stroud together.

Schultz and the Texans agreed to a three-year contract worth $36 million, including $23.5 million fully guaranteed, a source confirmed to Yahoo Sports' Jori Epstein on Tuesday. The news was first reported by NFL Network's Ian Rapoport.

The 27-year-old arrived to the Texans after spending the first five years of his career with the Dallas Cowboys. He was set for unrestricted free agency after he signed a one-year deal with Houston last offseason.

Schultz recorded 59 receptions for 635 yards and five touchdowns in 15 games last season, averaging a career-high 10.8 yards per catch. His touchdowns tied him for seventh most in the NFL among tight ends. He was one of Stroud's key targets during the campaign, which saw the signal-caller win Offensive Rookie of the Year.

Since being selected in the fourth round of the 2018 draft, Schultz has notched 270 receptions for 2,757 yards and 22 touchdowns over 90 career games. He has missed only four games in the past four years.

He and the Texans are set to build on their momentum after reaching the AFC divisional round of the playoffs last year under first-year head coach DeMeco Ryans. It was a leap from the 2022-23 season, which saw the team win just three games.

With plenty of cap space, the team will keep Schultz as the 11th highest-paid tight end in the league in terms of his adjusted average per year, according to NFL Research.

Now, Houston will likely focus on building an elite defense. Defensive end Jonathan Greenard was not franchise-tagged before the deadline. He is sure to draw interest on the free-agent market, where the Texans will look to fill some of the gaps on their roster.