Matador Resources(MTDR)

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Matador Resources(MTDR) - 2025 Q2 - Quarterly Report
2025-07-25 20:48
FORM 10-Q _________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ (State or other jurisdiction of incorporation or org ...
Matador Resources Company (MTDR) Q2 2025 Presentation Call Transcript
Seeking Alpha· 2025-07-23 18:23
Matador Resources Company (NYSE:MTDR) Q2 2025 Presentation Conference Call July 23, 2025 11:00 AM ET Company Participants Brian J. Willey - Executive Vice President of Midstream Bryan A. Erman - Co-President, Chief Legal Officer & Head of M&A Christopher P. Calvert - Executive VP & COO Gregg Krug - Corporate Participant William D. Lambert - Executive VP, CFO & Head of Strategy Joseph Wm. Foran - Founder, CEO & Chairman of the Board Mac Schmitz - Senior Vice President of Investor Relations Robert T. Macalik ...
Matador Resources(MTDR) - 2025 Q2 - Earnings Call Transcript
2025-07-23 16:02
Financial Data and Key Metrics Changes - The company reported a year-over-year production increase of 31% [18] - Full year guidance for 2026 has been increased for both oil production growth and cash flow [11][12] - The company has a strong balance sheet with a debt ratio of less than one [16] Business Line Data and Key Metrics Changes - The midstream capacity has grown from zero at the time of the IPO to $720 million a day, with expectations to reach full capacity by the end of the year [13][14] - The midstream business recorded a record EBITDA in the second quarter, driven by Matador's production growth [24][26] Market Data and Key Metrics Changes - The company is producing from 20 different zones in the Delaware Basin, indicating a diversified production strategy [12] - The company has identified 200 billion cubic feet of gas in the Cotton Valley formations, awaiting more stable gas prices [12] Company Strategy and Development Direction - The company aims to increase both production and free cash flow in tandem, without compromising one for the other [9][10] - The strategy includes a focus on midstream opportunities to provide flow assurance and balance the asset base [14][15] - The company emphasizes a "brick by brick" approach for land acquisition and reinvestment [88] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for the second half of the year, citing supportive banks and a strong drilling program [10][11] - The management highlighted the importance of maintaining flexibility in a volatile macro environment [92][93] Other Important Information - The company has raised its base dividend six times in four years, reflecting a commitment to returning value to shareholders [15] - The company has a robust insider buying trend, indicating confidence from management in the company's future [95] Q&A Session Summary Question: Midstream EBITDA guidance - The company maintained its midstream EBITDA guidance despite a record second quarter, expecting a range of $275 million to $295 million for the year [22][26] Question: Midstream IPO options - Management acknowledged that the value of the midstream business is not fully reflected in the stock price and is exploring strategic alternatives [30][32] Question: Rig activity and production growth - The company plans to operate eight rigs and is assessing the potential for additional rigs based on market conditions [36][39] Question: D&C cost drivers - The company reported D&C costs below guidance due to efficiencies and is optimistic about maintaining these improvements [47][50] Question: Uses of free cash flow - The company prioritizes free cash flow post-dividend for land acquisition, share repurchase, and debt reduction [82][84]
Matador Resources(MTDR) - 2025 Q2 - Earnings Call Transcript
2025-07-23 16:00
Financial Data and Key Metrics Changes - The company reported a year-over-year production increase of 31% [18] - Full year guidance for 2026 has been increased for both oil production growth and cash flow [11][12] - The company has a strong balance sheet with a debt ratio of less than one [16] Business Line Data and Key Metrics Changes - The midstream capacity has grown from zero at the time of the IPO to $720 million a day, with expectations to reach full capacity by the end of the year [13][14] - The company has successfully recycled over half of its water production, leading to cost savings [15] Market Data and Key Metrics Changes - The company is producing from 20 different zones in the Delaware Basin, indicating a diversified production strategy [12] - The company has 200 billion cubic feet of gas reserves in the Cotton Valley formations, awaiting more stable gas prices [12] Company Strategy and Development Direction - The company aims to increase both production and free cash flow in tandem, without compromising one for the other [8][9] - The strategy includes a focus on midstream operations to provide flow assurance and balance the asset base [14][16] - The company is committed to a "brick by brick" approach for land acquisition and reinvestment [81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for the second half of the year, citing drilling and cash flow opportunities [9][11] - The management emphasized the importance of maintaining flexibility in a volatile macro environment [90] Other Important Information - The company has raised its base dividend six times in four years and plans to review it annually [15] - The company has a strong insider buying trend, indicating confidence from leadership [92] Q&A Session Summary Question: Midstream EBITDA guidance - The company acknowledged a record second quarter for midstream operations but maintained the EBITDA guidance due to expected shifts in drilling focus [22][24] Question: Midstream IPO options - Management discussed the potential value of the midstream business not being reflected in the stock price and the ongoing evaluation of strategic alternatives [28][30] Question: Rig activity and production growth - The company plans to maintain an eight-rig program and is assessing the potential for additional rigs based on market conditions [36][38] Question: D&C cost drivers - The company reported D&C costs below guidance due to efficiencies and improved performance in lower-cost areas [45][49] Question: Uses of free cash flow - Management outlined three main uses for free cash flow: land acquisition, share repurchase, and debt reduction [80][81]
Matador Resources Q2 Earnings Beat on Higher Production Volumes
ZACKS· 2025-07-23 15:40
Core Insights - Matador Resources Company (MTDR) reported second-quarter 2025 adjusted earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.29, but down from $2.05 in the same quarter last year [1][9] - Total revenues reached $895.3 million, falling short of the Zacks Consensus Estimate of $905 million, yet showing an increase from $847.1 million year-over-year [1] Production Performance - The company's record total production volumes and lower operating expenses contributed to better-than-expected quarterly earnings, although these were partially offset by lower commodity price realizations [2] - Average daily oil production was 122,875 barrels, a 0.4% increase from anticipated figures, and significantly higher than 95,488 barrels per day in the prior-year quarter [4][6] - Total oil equivalent production in Q2 was 209,013 BOE/D, reflecting a 30.4% increase from 160,305 BOE/D in the year-ago quarter [7] Commodity Pricing - The average sales price for oil was $64.34 per barrel, down from $81.20 a year ago and lower than the projected $65.55 [5] - Natural gas price was $2.05 per thousand cubic feet (Mcf), up from $2 in the year-ago quarter but below the estimate of $3.28 [5] Operating Expenses - Operating expenses per BOE decreased to $29.91 from $30.64 in the prior year, also below the estimate of $30.54 [10] - Plant and midstream services' operating expenses fell to $2.40 per BOE from $2.55, while lease operating costs increased to $5.56 per BOE from $5.42 [8][10] Financial Position - As of June 30, 2025, MTDR had cash and restricted cash of $86.8 million and long-term debt of $3,286 million [11] - The company spent $367.1 million on well drilling, completion, and equipment in the second quarter [11] Future Outlook - For 2025, Matador Resources expects average daily oil equivalent production to be between 200,000-205,000 BOE/D, indicating a 1.3% increase from previous guidance [12] - The company has reiterated its total capital expenditure forecast for 2025 at $1.30-$1.55 billion [12]
Matador Resources(MTDR) - 2025 Q2 - Earnings Call Presentation
2025-07-23 15:00
Financial Performance - Matador achieved record quarterly oil equivalent production of 209,013 BOE/d in Q2 2025[8, 14] - The company's leverage ratio stood at 096x as of June 30, 2025[26] - Adjusted Free Cash Flow for Q2 2025 was $1327 million[46, 90] - Matador bought back 11 million shares in Q2 2025 at an average repurchase price of $4037, representing approximately 1% of shares outstanding[31] Capital Expenditure and Efficiency - Q2 2025 D/C/E CapEx was $3453 million, $15 million less than the midpoint of guidance[14] - Q2 2025 Midstream CapEx was $562 million, $4 million less than the low end of guidance[14] - Drilling and Completion Cost decreased to $825 per completed lateral foot in Q2 2025[20] Production and Guidance - Oil production guidance for Q3 2025 is 1165 to 1180 MBbl/d, and natural gas production is 4920 to 4980 MMcf/d[62] - Total production guidance for Q3 2025 is 1985 to 2010 MBOE/d[62] - The company expects to turn to sales 135 gross (1063 net) operated horizontal wells in 2025, with an average completed lateral length of approximately 10,300 feet[60, 64] Midstream Operations - San Mateo's Adjusted EBITDA for 2025 is estimated at $285 million[70] - The Marlan Plant expansion was completed on time and on budget in May 2025, with a gas processing capacity of 720 MMcf per day and a water disposal capacity of 475,000 Bbl per day[23]
Matador Resources (MTDR) Tops Q2 Earnings Estimates
ZACKS· 2025-07-22 22:31
Group 1 - Matador Resources (MTDR) reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, but down from $2.05 per share a year ago, representing an earnings surprise of +18.61% [1] - The company posted revenues of $895.31 million for the quarter ended June 2025, which was a 0.81% miss against the Zacks Consensus Estimate, but an increase from $847.14 million year-over-year [2] - Matador has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has underperformed the market, losing about 11.4% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $939.15 million, and for the current fiscal year, it is $6.18 on revenues of $3.8 billion [7] Group 3 - The Zacks Industry Rank indicates that the Oil and Gas - Exploration and Production - United States sector is currently in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - The estimate revisions trend for Matador was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]
Matador Resources(MTDR) - 2025 Q2 - Quarterly Results
2025-07-22 20:24
MATADOR RESOURCES COMPANY REPORTS SECOND QUARTER 2025 RESULTS AND UPDATES FULL YEAR 2025 GUIDANCE DALLAS, Texas, July 22, 2025 -- Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today reported financial and operating results for the second quarter of 2025. A slide presentation summarizing the highlights of Matador's second quarter 2025 earnings release is also included on the Company's website at www.matadorresources.com on the Events and Presentations page under the Investor Relations t ...
Is First Trust Energy AlphaDEX ETF (FXN) a Strong ETF Right Now?
ZACKS· 2025-07-18 11:21
Core Insights - The First Trust Energy AlphaDEX ETF (FXN) is a smart beta ETF that provides broad exposure to the Energy sector, having debuted on May 8, 2007 [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies aim to outperform through stock selection based on fundamental characteristics [2][3] - FXN is sponsored by First Trust Advisors and has assets totaling approximately $278.76 million, positioning it as an average-sized ETF in the Energy category [5] Fund Structure and Strategy - FXN seeks to match the performance of the StrataQuant Energy Index, which is a modified equal-dollar weighted index designed to identify stocks from the Russell 1000 Index that may generate positive alpha [6] - The fund has an annual operating expense ratio of 0.61% and a 12-month trailing dividend yield of 2.92%, which is competitive within its peer group [7] Sector Exposure and Holdings - The fund has a significant allocation to the Energy sector, representing 93.5% of its portfolio [8] - First Solar, Inc. (FSLR) is the largest holding at approximately 5.8%, with the top 10 holdings accounting for about 41.17% of total assets [9] Performance Metrics - Year-to-date, FXN has experienced a loss of approximately -3.71%, and over the last 12 months, it is down about -14.12% as of July 18, 2025 [11] - The fund has a beta of 0.90 and a standard deviation of 28.29% over the trailing three-year period, indicating a higher risk profile compared to peers [11] Alternatives in the Market - For investors seeking to outperform the Energy ETFs segment, alternatives such as the Vanguard Energy ETF (VDE) and the Energy Select Sector SPDR ETF (XLE) are available, with VDE having $7.15 billion in assets and XLE at $27.57 billion [13] - VDE and XLE have lower expense ratios of 0.09% and 0.08% respectively, making them more attractive options for cost-conscious investors [13]
Matador Resources (MTDR) Expected to Beat Earnings Estimates: Should You Buy?
ZACKS· 2025-07-15 15:06
Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Matador Resources despite higher revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - Matador is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year decrease of 36.6%, while revenues are projected to be $915.86 million, an increase of 8.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 4.91% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Matador is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +15.51%, suggesting a strong likelihood of beating the consensus EPS estimate [12]. Historical Performance - Matador has consistently beaten consensus EPS estimates, achieving a surprise of +14.37% in the last reported quarter and surpassing estimates in all of the last four quarters [13][14]. Additional Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15].