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]

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 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 ...

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]

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].

Core Viewpoint - Matador Resources (MTDR) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in previous quarters [1][6]. Earnings Performance - Matador has consistently exceeded earnings estimates, with an average surprise of 9.77% over the last two quarters [2]. - In the most recent quarter, Matador reported earnings of $1.74 per share against an expectation of $1.99, resulting in a surprise of 14.37%. In the prior quarter, it reported $1.83 per share against an estimate of $1.74, yielding a surprise of 5.17% [3]. Earnings Estimates and Predictions - Recent estimates for Matador have been revised upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6][9]. - The current Earnings ESP for Matador is +13.04%, suggesting analysts are optimistic about the company's earnings prospects [9]. Zacks Rank and Success Rate - Matador holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, historically results in a positive surprise rate of nearly 70% [7][9]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to earnings releases [8].

Group 1 - The core viewpoint is that despite market skepticism regarding the energy transition, Matador's Delaware oil production is expected to grow over 30% year-over-year in 2025, with management guiding for a record 40 new wells to be online this quarter [1] Group 2 - The company focuses on identifying mispriced opportunities in the financial and technology sectors, aiming to uncover asymmetric setups driven by market overreactions, business model shifts, or cyclical inflections [1]

Group 1 - As of June 13, 2025, two stocks in the energy sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] - Major overbought stocks in the energy sector include Matador Resources Co and TotalEnergies SE [3] Group 2 - Matador Resources promoted William Lambert to EVP, CFO, and Head of Strategy, with the stock rising approximately 9% over the past five days and a 52-week high of $66.89 [6] - Matador Resources has an RSI value of 70.8, with shares closing at $49.50, gaining 1% on Thursday [6] - TotalEnergies reported a first-quarter adjusted EPS of $1.83, down 15% year-over-year, and missed the consensus of $1.88 [6] - For Q2 FY25, TotalEnergies expects hydrocarbon production to increase by 2% to 3% year-over-year, impacted by planned maintenance [6] - The average LNG selling price for TotalEnergies is anticipated to be between $9 and $9.5/Mbtu in Q2 2025 [6] - TotalEnergies' stock gained around 7% over the past five days, with a 52-week high of $71.03 and an RSI value of 70.4, closing at $63.07 [6]

Financial Data and Key Metrics Changes - The company reported an increase in assets from $270,000 to over $11,000,000,000, indicating significant growth over the years [4][54]. - The company has achieved a steady increase in dividends, starting from $0.10 to $1.25, with plans to consider further increases based on cash flow and market conditions [60]. Business Line Data and Key Metrics Changes - The midstream processing capacity has expanded from 60 million cubic feet per day to 720 million cubic feet per day, showcasing substantial growth in operational capabilities [44][62]. - The company has added over 17,000 acres through smaller acquisitions in 2024, excluding larger deals, demonstrating active land acquisition strategies [35]. Market Data and Key Metrics Changes - The company ranks highly among peers in profit margins per barrel of oil produced, indicating strong operational efficiency [55][62]. - The company has maintained a high participation rate in its employee share purchase plan, which has grown to over 97%, reflecting strong employee engagement and alignment with company performance [59]. Company Strategy and Development Direction - The company focuses on profitable growth at a measured pace, emphasizing the importance of maintaining high returns on capital and a straightforward balance sheet [90][92]. - The strategy includes both small incremental acquisitions and larger strategic deals, with recent significant acquisitions enhancing the company's market position [61][92]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain high returns and maintain a durable inventory of drilling locations for the next 10 to 15 years [92]. - The company is positioned to leverage free cash flow for dividends, acquisitions, and stock buybacks, indicating a proactive approach to capital management [94]. Other Important Information - The company has received a credit rating upgrade to double B from Fitch, one step away from investment grade, reflecting improved financial stability [93]. - The board of directors and management are aligned with shareholders, emphasizing their commitment to the company's success and performance [96]. Q&A Session Summary Question: What is the company's approach to acquisitions? - The company employs a strategy of both small incremental acquisitions and larger strategic deals, with recent significant acquisitions enhancing its market position [61][92]. Question: How does the company plan to manage its dividends? - The company plans to use free cash flow to support a fixed dividend that will continue to rise, alongside potential stock buybacks when prices are favorable [94]. Question: What is the outlook for the company's drilling inventory? - Management indicated that the company has a durable inventory of drilling locations that can sustain operations for the next 10 to 15 years, ensuring continued production and profitability [92].

Financial Performance & Growth - Matador's "Matador II" asset value reached $113 billion as of December 31, 2024, including proved reserves at PV-10, using SEC pricing of $7196 per Bbl and $213 per MMBtu [13] - Matador estimates savings of $3 million per U-Turn well compared to one-mile lateral wells, potentially reducing project payout timing by up to 40% and lowering the break-even price by 20% [119] - The company anticipates $1 million average savings per well and a 22% reduction in days on well in the Rustler Breaks Asset, compared to the 2024 area average [123, 124] - Matador's Q1 2025 Adjusted EBITDA attributable to Matador Resources Company shareholders was $644223 thousand [169] - Matador's Q1 2025 adjusted free cash flow was $141904 thousand [179] Operational Highlights - Matador's gas processing capacity has increased from 60 MMcf per day in 2016 to 720 MMcf per day today after the Marlan Plant Expansion [22] - Matador's production is projected to reach 200000 BOE/d in 2025 [38] - Total Net Inventory Lateral Length increased to 183 Million Feet as of December 31, 2024 [139] Acreage & Inventory - Matador's acreage has grown from ~7500 net acres at IPO in 2012 to ~198700 net acres today [33] - The company has 10 to 15 years of drilling inventory with average rates of return in excess of 50% [15, 138] Shareholder Alignment - Purchases by Directors and Officers in 2025 totaled $26 million for 55300 shares [28] - Over 95% participation in Employee Stock Purchase Plan (ESPP) [30]