Core Insights - Matador Resources Company (MTDR) reported first-quarter 2025 adjusted earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.74 and improving from $1.71 in the same quarter last year [1] - Total revenues reached $1.01 billion, surpassing the Zacks Consensus Estimate of $943 million and increasing from $788 million year-over-year [1] - The strong performance was attributed to high total production volume and increased commodity price realizations [1] Upstream Business Performance - Matador Resources is focused on oil and gas exploration and production in the United States, with a significant portion of its production being oil, which constitutes 57.9% of total first-quarter production [2] - The company's financial performance is closely tied to the oil and gas pricing environment [2] Production and Sales Prices - Average daily oil production was 115,030 barrels, reflecting a 1% increase from anticipated figures and up from 84,777 barrels per day in the prior-year quarter [3][5] - The average sales price for oil was $72.38 per barrel, down from $77.58 a year ago but higher than the projected $71.66 [4] - Natural gas sales price was $3.56 per thousand cubic feet, up from $2.96 year-over-year but lower than the estimate of $4.23 [4] Total Production Metrics - Total oil equivalent production in Q1 was 198,631 BOE/D, a 33% increase from 149,760 BOE/D in the prior-year quarter and above the projection of 196,120 BOE/D [6] - Natural gas production was recorded at 501.6 million cubic feet per day, up from 389.9 million cubic feet per day a year ago, exceeding the estimate of 487.3 million cubic feet per day [5] Operating Expenses - Operating expenses for plant and midstream services increased to $2.96 per BOE from $2.91 year-over-year, below the estimate of $3.26 [7] - Lease operating costs rose to $5.96 per BOE from $5.60, slightly above the estimate of $5.85 [7] - Total operating expenses per BOE were $31.83, higher than the prior-year figure of $31.42 but below the estimate of $32.11 [8] Financial Position and Capital Spending - As of March 31, 2025, MTDR had cash and restricted cash of $77.5 million and long-term debt of $3,176.5 million [10] - The company spent $378.4 million on well drilling, completion, and equipment in the first quarter [10] Future Outlook - For 2025, Matador Resources expects average daily oil equivalent production to be in the range of 198,000-202,000 BOE/D, indicating a 2% reduction from previous guidance [11] - The company anticipates average daily total production for Q2 2025 to be between 206,000-208,000 BOE/D and has updated its total capital expenditure forecast for 2025 to $1.30-$1.55 billion [11]

Matador Resources Company (MTDR) Q1 2025 Earnings Call April 24, 2025 11:00 AM ET Company Participants Mac Schmitz - VP, IRJoseph Foran - Founder, Chairman & CEOGregg Krug - EVP, Marketing and Midstream StrategyZach Parham - Executive DirectorVan Singleton - President of Land, Acquisitions, Divestitures & PlanningGabe Daoud - Managing Director, Energy Equity ResearchLeo Mariani - MD & Equity ResearchThomas Elsener - EVP - Reservoir Engineering and Senior Asset ManagerGlenn Stetson - EVP, ProductionKevin Mac ...

Matador Resources (MTDR) shares ended the last trading session 15.9% higher at $42.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22% loss over the past four weeks.Oil prices have bounced back as investors remain hopeful that an energy market downturn is unlikely, thanks to a broader market recovery following President Donald Trump's move to pause "reciprocal" tariff hikes and implement a lower 10% tariff rate ...

Asset Sale - Matador Resources Company announced the sale of its Eagle Ford assets on April 4, 2025[4] Financial Stability - The company provided an update on the strength of its balance sheet, indicating improved financial stability[4] - The press release detailing these updates is incorporated by reference into the current report[4]

Core Insights - Matador Resources Company (MTDR) has divested its remaining acreage in the Eagle Ford Basin, focusing on the northern Delaware Basin for future development [1][3] - The company generated over $30 million from the sale of its assets in La Salle, Karnes, and Atascosa Counties [2] - Matador has reduced its debt by $180 million, currently holding $405 million in outstanding debt, while maintaining approximately $1.8 billion in liquidity [4] Divestment Details - The divestment included highly productive assets that were a key part of MTDR's production base [2] - The company executed the sale through several transactions over the past two quarters [2] - The exit from the Eagle Ford Basin marks a strategic shift towards the more prolific northern Delaware Basin, where MTDR owns 200,000 acres [3] Financial Position - Proceeds from the sale and internal cash flows were used to pay down debt, enhancing the company's financial stability [4] - The company is pursuing a strategy of hedge protection and divestment of non-core assets to strengthen its balance sheet [4] Market Conditions and Strategy - Matador is optimistic about its drilling plans for 2025, despite anticipated increases in steel prices due to tariffs [5] - The company has taken precautionary measures by purchasing necessary inventory for its drilling program [5] - Historically, MTDR has made successful acquisitions during volatile market conditions, contributing to its long-term success [6] Stock Repurchase Program - The board of directors is considering a stock repurchase program in light of declining stock prices, in addition to the existing quarterly dividend of 31.25 cents per share [1][7] Industry Context - Matador Resources holds a Zacks Rank 3 (Hold), indicating a stable outlook within the energy sector [8] - Other energy companies with better rankings include Archrock Inc. (Rank 1), Nine Energy Service (Rank 2), and Kinder Morgan, Inc. (Rank 2) [8]

Financial Performance - The company generated free cash flow in all four quarters of 2024[32]. - The quarterly cash dividend was increased from $0.20 to $0.25 per share in Q4 2024[32]. - A special distribution of approximately $219.8 million was received from San Mateo due to the Pronto Transaction[33]. - The company earned $108.2 million in performance incentives through September 30, 2024, related to the San Mateo II joint venture[80]. - The company has the potential to earn up to $75.0 million in incentive payments from Five Point over a five-year period following the Pronto Transaction[83]. - Total oil equivalent production for the year ended December 31, 2024, was approximately 62.5 million BOE, a 30% increase from 48.1 million BOE in 2023[115]. - Average daily oil equivalent production for 2024 was 170,751 BOE per day, compared to 131,813 BOE per day in 2023, reflecting significant growth[115]. - Average daily oil production for 2024 was 99,808 Bbl per day, a 32% increase from 75,457 Bbl per day in 2023[115]. - Average daily natural gas production for 2024 was 425.7 MMcf per day, a 26% increase from 338.1 MMcf per day in 2023[115]. - The company reported net production volumes of 36,530 MBbl of oil, 155.8 Bcf of natural gas, and a total oil equivalent of 62,495 MBOE, representing increases of 32% for oil and 26% for natural gas compared to 2023[100]. Operational Highlights - Capital expenditures for drilling, completing, and equipping wells in 2024 totaled $1.32 billion, within the estimated range of $1.15 to $1.35 billion[32]. - The company completed the Ameredev Acquisition, adding approximately 180 miles of gas gathering and oil transportation pipeline assets[39]. - The drilling program included the operation of nine drilling rigs, allowing flexibility to adjust based on commodity prices[60]. - The company drilled 262 productive wells in 2024, an increase from 246 in 2023, with 253 development wells and 9 exploration wells[156][157]. - The company has identified 5,361 potential future drilling locations in the Delaware Basin as of December 31, 2024[47]. - The company identified 5,080 gross (1,869 net) engineered locations for potential future drilling, with a total net lateral length of approximately 18.3 million feet, a 22% increase from 2023[59]. - The company had a total of 2,314 producing wells as of December 31, 2024, with 1,800 oil wells and 514 natural gas wells[119]. - The average working interest in operated wells was approximately 85% as of December 31, 2024[118]. Production and Reserves - Total proved oil and natural gas reserves increased by 34% to 606.2 million BOE, with 99% attributable to the Delaware Basin[58]. - Proved oil reserves grew by 33% from approximately 272.3 million Bbl at December 31, 2023 to approximately 361.8 million Bbl at December 31, 2024[127]. - Proved natural gas reserves increased by 33% from 1.13 Tcf at December 31, 2023 to 1.50 Tcf at December 31, 2024[127]. - The proved reserves to production ratio at December 31, 2024 was 9.8, an increase of 2% from 9.6 at December 31, 2023[127]. - The company added 71.5 million BOE in proved undeveloped reserves through extensions and discoveries during 2024[135]. - Total proved reserves as of December 31, 2024, include 361,842 MBbl of oil and 1,498.2 Bcf of natural gas, equating to 611,536 MBOE[140]. Environmental and Regulatory Compliance - The company achieved a 58% reduction in greenhouse gas emissions intensity in 2023 compared to 2019[48]. - The company aims to maximize natural gas capture from wells, utilizing vapor recovery units (VRUs) to reduce emissions and increase sellable volumes of natural gas[168]. - The company has implemented a leak detection and repair program, including the use of optical gas imaging cameras, to monitor and minimize emissions[169]. - The New Mexico Environment Department has implemented rules requiring a 98% natural gas capture rate by the end of 2026, impacting operational strategies[207]. - The company is subject to various environmental laws, including the Clean Water Act and the Oil Pollution Act, which can increase operational costs and impose penalties for noncompliance[200]. - The overall trend in environmental regulation is to impose more restrictions, which could materially affect operations and financial condition[214]. - The company operates underground injection wells for the safe and economical disposal of produced water, adhering to regulations from the Safe Drinking Water Act and state authorities[197]. Market and Competitive Landscape - The prices received for oil and natural gas fluctuate based on various market factors, including supply and demand dynamics and geopolitical conditions[160]. - Competition in the oil and natural gas industry is intense, with larger competitors having greater financial resources and operational capabilities[165]. - The company is subject to seasonal demand fluctuations, with higher demand for natural gas typically occurring in winter months[163]. Workforce and Human Resources - The company had 452 full-time employees as of December 31, 2024, with no employees covered by collective bargaining agreements[217]. - Employees completed approximately 22,500 hours of continuing education in 2024, averaging about 50 hours per employee[219]. Future Outlook and Challenges - The company plans to develop the remaining proved undeveloped reserves within five years of booking as of December 31, 2024[136]. - The company expects to hold or extend portions of certain expiring acreage in the Delaware Basin through future drilling activities[151]. - The outcome of ongoing litigation regarding drilling permits and lease sales remains uncertain, potentially impacting future operations[182]. - Legislative initiatives related to climate change may increase operating costs and reduce demand for oil and natural gas, adversely affecting profits[211].

Group 1 - Matador Resources (NYSE: MTDR) achieved over 200,000 BOEPD in Q4 2024, aided by the Ameredev acquisition despite facing third-party midstream issues [2] - The company announced a rough maintenance capex budget for 2025, which is expected to deliver over 1% growth in oil production [2] - The analyst, Aaron Chow, has over 15 years of analytical experience and focuses on value opportunities and distressed plays, particularly in the energy sector [2]

Financial Data and Key Metrics Changes - The company reported a year-over-year production growth from approximately 4.6 billion BOEs to over 6 billion BOEs, reflecting a growth of around 30% for the first quarter of 2025 compared to the first quarter of 2024 [19][17] - The company raised its dividend, indicating confidence in its financial position, with insider buying activity noted among senior management [20][21] Business Line Data and Key Metrics Changes - The company emphasized the importance of year-over-year growth over sequential growth, particularly in the context of the AmeriDev acquisition, which is expected to contribute significantly to production growth in the long term [11][18] - The company achieved significant cost savings of $30 to $50 million through batch drilling techniques, which will impact future production timing rather than reserves [15][23] Market Data and Key Metrics Changes - The company noted that the midstream operations have grown significantly, with EBITDA increasing from $30 million in the first year to nearly $300 million currently, indicating a strong market position [29][30] - The company is exploring opportunities to enhance flow assurance and expand its midstream infrastructure, particularly in the Delaware Basin [28][32] Company Strategy and Development Direction - The company aims for a measured growth strategy, focusing on profitable growth while maintaining a strong balance sheet and capital efficiency [64][66] - The management highlighted the importance of maintaining a steady dividend growth, which has increased from $0.10 to $1.25 over the years, reflecting a commitment to returning value to shareholders [76][78] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting continued production growth and a strong cash flow outlook for 2025, with a forecast of around $1 billion in free cash flow [62][80] - The management acknowledged the challenges posed by commodity price volatility but emphasized the company's preparedness to navigate such uncertainties [71][72] Other Important Information - The company has a strong financial position with a $3 billion line of credit, indicating ample liquidity for future investments [64][66] - The management team has a long history of shareholder engagement, with a significant portion of employees participating in the stock purchase plan, fostering a culture of ownership [21][70] Q&A Session Summary Question: Inquiry about midstream infrastructure and EBITDA - Management confirmed that the midstream system is largely developed, with ongoing opportunities for expansion and potential partnerships to enhance value [27][30] Question: Discussion on D&C cost guidance - Management noted a reduction in D&C costs to $880 per foot, down 3% year-over-year, and highlighted operational efficiencies contributing to this decrease [35][39] Question: Capital expenditure outlook - Management explained that capital expenditures are focused on improving operating expenses and enhancing production efficiency, with a range of $1.4 billion to $1.7 billion for 2025 [42][44] Question: Cotton Valley assets strategy - Management clarified that there is no urgency to sell Cotton Valley assets, which are seen as valuable, and highlighted the potential for future development [50][56] Question: Uses of cash and free cash flow forecast - Management discussed various opportunities for cash utilization, emphasizing a balanced approach to growth and shareholder returns, with a focus on maintaining a strong financial position [62][66]

Fourth Quarter and Full Year 2024 Earnings Release February 18, 2025 Investor Relations Contact and Disclosure Statements Investor Relations Contact Mac Schmitz Senior Vice President – Investor Relations Phone: (972) 371-5225 E-mail: investors@matadorresources.com Cautionary Note – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. Potential resources are not proved, probable or possible reserves. The SEC's guidelines prohibit Matad ...

Financial Performance - Matador Resources Company (MTDR) reported fourth-quarter 2024 adjusted earnings of $1.83 per share, exceeding the Zacks Consensus Estimate of $1.74, but down from $1.99 in the same quarter last year [1] - Total revenues reached $970.4 million, surpassing the Zacks Consensus Estimate of $955 million and increasing from $836.1 million year-over-year [1] Production and Sales - The better-than-expected quarterly results were driven by high total production volume, including contributions from non-operated assets, although lower commodity prices partially offset these positives [2] - Matador achieved record average daily oil production of 118,440 barrels per day (B/D), up from 88,663 B/D in the prior-year quarter, but slightly below the estimate of 119,200 B/D [7] - Total oil equivalent production in the fourth quarter was 201,116 BOE/D, a significant increase from 154,261 BOE/D in the year-ago quarter, marking the first time average production exceeded 200,000 BOE per day [9] Commodity Prices - The average sales price for oil was reported at $70.66 per barrel, down from $79 a year ago and lower than the projected $71.24 per barrel [6] - Natural gas was sold at an average price of $2.72 per thousand cubic feet (Mcf), down from $3.01 in the year-ago quarter and below the estimate of $2.89 Mcf [6] Operating Expenses - Operating expenses per BOE increased to $30.89, slightly higher than the prior-year figure of $30.52 but below the estimate of $30.95 [12] - Lease operating costs rose to $5.37 per BOE from $5.06 a year ago, while production taxes, transportation, and processing costs decreased to $4.70 per BOE from $5.31 in the year-ago quarter [11] Dividend Announcement - Matador Resources announced a quarterly cash dividend of 31.25 cents per share, representing a 25% increase from the previous level of 25 cents, payable on March 14, 2025 [3] Future Outlook - For 2025, Matador has guided average daily oil equivalent production at 202,000-208,000 BOE/D, indicating a 20% increase from the previous projection [14]