The Houston Texans are starting NFL free agency with a bang, inking a Dalton Schultz contract extension to keep quarterback CJ Stroud's favorite tight end target on the team for three more seasons.

“Sources: The #Texans have agreed to terms on a deal to keep TE Dalton Schultz in Houston. He gets a 3-year, $36M new contract with $23.5M fully guaranteed at signing. Schultz is a key weapon for CJ Stroud,” NFL Network insider Ian Rapoport reported on Monday before adding, “The deal was done by TE guru and agent @SteveCaric of @Wass_Football.”

Schultz signed with the Texans last offseason after six seasons with the Dallas Cowboys. In 2023, the tight end caught 59 balls for 635 yards and five touchdowns.

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The veteran tight end is just one of three crucial offensive weapons that the Texans must re-sign this offseason to aid in the development of CJ Stroud. The 2023 Offensive Rookie of the Year is now ensconced as the team's franchise QB, and while he will have a lot of weapons returning in 2024, wide receiver Noah Brown and the team's leading rusher, Devin Singletary, are both still free agents.

The good news for Stroud and the Texans offense is that the franchise has plenty of cap space to not only re-sign Shultz, Brown, and Singletary, but almost any other player they want in NFL free agency as well. After snapping a three-season playoff drought in 2023, Houston has around $70 million in cap space entering the free agent legal tampering period, per Spotrac. That figure represents the sixth-most room in the league at the beginning of March.