Core Viewpoint - Matador Resources Company (NYSE:MTDR) has experienced a significant decline in share price, attributed to falling oil prices and market conditions, despite a recent leadership change that provided a slight rebound [1][3][4]. Company Overview - Matador Resources is an independent energy company focused on the exploration, development, production, and acquisition of oil and natural gas resources in the United States, particularly in shale and unconventional plays [2]. Recent Performance - The share price of Matador Resources fell by 8.14% from September 26 to October 3, 2025, and has decreased over 22% since the beginning of 2025 [1][4]. - The decline in share price is linked to a drop in global oil prices, with WTI crude oil reaching a four-month low [3]. Market Conditions - The downturn in oil prices is influenced by expectations that OPEC+ may increase supply and concerns over a potential US government shutdown [3]. - Despite the challenges, the stock saw a slight recovery following the announcement of a leadership change, with Mr. Robert T. Macalik being promoted to Executive Vice Chairman and Chief Financial Officer [3].

Core Points - Matador Resources Company plans to release its third quarter 2025 operational and financial results after the market closes on October 21, 2025 [1] - A live conference call will be held on October 22, 2025, at 10:00 a.m. Central Time to discuss the financial results and operational highlights [1] Company Information - The announcement pertains to Matador Resources Company, which is listed on the NYSE under the ticker MTDR [1] - The company is preparing to provide insights into its performance for the third quarter of 2025 [1]

Core Viewpoint - Matador Resources Company has announced the promotion of Robert T. Macalik to Executive Vice President and Chief Financial Officer, indicating a strategic move in leadership to enhance financial oversight and management [1] Group 1: Leadership Changes - Robert T. Macalik has been promoted to Executive Vice President and Chief Financial Officer of Matador Resources Company [1] - Mr. Macalik will continue his role as Chief Financial Officer of San Mateo Midstream, LLC, which is Matador's midstream joint venture [1] - Mr. Macalik joined Matador in July 2015 as Vice President and Chief Accounting Officer and has held various leadership positions within the company [1]

Industry Overview - The energy sector is experiencing a potential transformation due to slowing demand growth for certain energy products and a shift away from fossil fuels by investors, leading companies to cut exploration budgets [1][2] - Geopolitical conflicts in major fossil fuel regions, such as the Middle East and Venezuela, are exacerbating the situation, with analysts focusing on mid-size energy companies that may emerge as significant players [2] Company Highlights: Crescent Energy - Crescent Energy, with a market capitalization of over $2 billion, is focused on sustainable cash flow generation through high-quality reservoirs and disciplined capital efficiency [3][4] - The company reported a second-quarter earnings beat, exceeding EPS estimates by $0.20 and generating revenue that surpassed predictions by nearly $30 million, driven by record production of 263 kboe/d [4] - Crescent achieved $171 million in free cash flow for the latest quarter while reducing operational costs at its largest mines [5] - The firm is strategically positioned in the nutrient-rich Permian Basin, benefiting from favorable regulations, and has seen a decrease in short interest by over 7% in the last month [6] Company Highlights: Matador Resources - Matador Resources, with a market cap under $6 billion, focuses on upstream operations in the Permian Basin and has seen a 31% year-over-year production increase [7][8] - The company has achieved record free cash flow and increased its full-year guidance, alongside cost reductions that contributed to a nearly 5% stock gain over the past six months [8] - Matador is expanding its midstream operations, with its San Mateo operation achieving 99% uptime in the last quarter, and analysts rate the stock as a Buy with a consensus price target suggesting about 43% upside potential [9] Company Highlights: Northern Oil and Gas - Northern Oil and Gas operates in the Williston Basin and reported a strong second quarter with a 26% year-over-year revenue growth and $126 million in free cash flow [11][12] - The company has increased its net wells in process by 70% sequentially and closed on approximately 2,600 net acres, indicating rapid expansion [12] - Six out of eleven analysts view Northern Oil and Gas shares as a Buy, with potential upside of 49% based on price estimates [13]

Core Insights - Matador Resources (NYSE: MTDR) has been on the target list for 6-7 years, indicating a long-term interest in the company despite previous missed opportunities for investment [1] - The investment group, The Daily Drilling Report, provides comprehensive analysis and updates on the oil and gas industry, covering various segments of upstream oilfield activity [1] Company Overview - Matador Resources is positioned within the oil and gas sector, specifically focusing on upstream activities [1] - The company is part of a model portfolio that includes both U.S. and international energy companies, showcasing its relevance in a global context [1] Industry Expertise - The article references an industry veteran with 40 years of experience in the oil sector, emphasizing the depth of knowledge available for analysis [2] - The expertise covers a wide geographical range, having worked in over twenty countries, which adds credibility to the insights provided [2]

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various energy companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. Matador Resources (NYSE: MTDR ) delivered strong results in Q2 2025 , with production around 1% above the midpoint of its guidance and cash operating costs per BOE that were reduced by 13% per BOE compared to ...

Matador Resources (MTDR) reported $895.31 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 5.7%. EPS of $1.53 for the same period compares to $2.05 a year ago. Shares of Matador have returned +5.3% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Average Daily Production Volumes - Natural gas: 516.8 millions of c ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements — Unaudited](index=3&type=section&id=Item%201.%20Financial%20Statements%20%E2%80%94%20Unaudited) Unaudited financial statements for Q2 2025 detail the company's financial position, performance, and cash flows [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Financial statements reflect asset growth to $11.28 billion, lower net income, and increased operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$11,279,910** | **$10,850,109** | | Total Current Assets | $915,854 | $927,345 | | Net Property and Equipment | $10,201,951 | $9,764,096 | | **Total Liabilities** | **$5,553,388** | **$5,392,677** | | Total Current Liabilities | $1,071,846 | $995,357 | | Total Long-term Liabilities | $4,481,542 | $4,397,320 | | **Total Shareholders' Equity** | **$5,726,522** | **$5,457,432** | Condensed Consolidated Statement of Income Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $895,312 | $847,136 | $1,909,270 | $1,634,829 | | Operating Income | $288,664 | $363,620 | $677,815 | $682,573 | | Net Income Attributable to Matador | $150,225 | $228,769 | $390,310 | $422,498 | | Diluted EPS | $1.21 | $1.83 | $3.12 | $3.45 | Condensed Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,228,906 | $1,061,489 | | Net Cash Used in Investing Activities | ($1,006,674) | ($1,120,147) | | Net Cash (Used in) Provided by Financing Activities | ($230,188) | $16,263 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the Ameredev acquisition, debt structure, and segment performance - The company's operations are focused on oil and gas exploration and production in the Delaware Basin and Haynesville shale, supported by its midstream joint venture, San Mateo[20](index=20&type=chunk) - The acquisition of Ameredev in September 2024 was completed for cash consideration of **$1.83 billion**, with the purchase price allocated primarily to oil and natural gas properties[34](index=34&type=chunk)[36](index=36&type=chunk) - In April 2025, the Board authorized a **$400 million share repurchase program**, and during Q2 2025, the company repurchased 1,095,667 shares for **$44.2 million**[60](index=60&type=chunk)[61](index=61&type=chunk) - The company has significant minimum volume commitments with third parties and its San Mateo joint venture, totaling approximately **$719.4 million** and **$773.3 million**, respectively[85](index=85&type=chunk)[87](index=87&type=chunk) Total Long-Term Debt Components (as of June 30, 2025, in thousands) | Debt Instrument | Amount | | :--- | :--- | | Credit Agreement due 2029 | $390,000 | | San Mateo Credit Facility due 2029 | $778,000 | | 6.875% senior notes due 2028 | $500,000 | | 6.500% senior notes due 2032 | $900,000 | | 6.250% senior notes due 2033 | $750,000 | | **Total Long-Term Debt (Principal)** | **$3,318,000** | Segment Operating Income (Three Months Ended June 30, 2025, in thousands) | Segment | Operating Income | | :--- | :--- | | Exploration and Production | $233,671 | | Midstream | $81,788 | | Corporate | ($26,795) | | **Consolidated Total** | **$288,664** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes increased production, revenue growth despite lower prices, and capital plans [Overview and Highlights](index=24&type=section&id=Overview%20and%20Highlights) Q2 2025 saw higher production and Adjusted EBITDA, though net income declined due to lower prices Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Avg. Daily Oil Production (Bbl/day) | 122,875 | 95,488 | +29% | | Avg. Daily Nat Gas Production (MMcf/day) | 516.8 | 388.9 | +33% | | Net Income (attributable to Matador) | $150.2M | $228.8M | -34% | | Diluted EPS | $1.21 | $1.83 | -34% | | Adjusted EBITDA | $594.2M | $578.1M | +3% | - The company began 2025 with nine drilling rigs in the Delaware Basin and plans to reduce this to eight by August 1, 2025, maintaining flexibility in its drilling program[128](index=128&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 revenue grew 5% on higher production, which offset lower prices and was met with rising operating costs - Q2 2025 oil revenues increased **2% YoY to $719.4 million**, as a **29% production increase** was largely offset by a **21% decrease in realized oil prices** ($64.34/Bbl vs $81.20/Bbl)[137](index=137&type=chunk) - Q2 2025 natural gas revenues increased **36% YoY to $96.4 million**, driven by a **33% increase in production volume**[137](index=137&type=chunk) - Lease operating expenses for Q2 2025 rose **34% to $105.7 million**, primarily due to an increased number of operated wells, including those from the Ameredev Acquisition[150](index=150&type=chunk) - Depletion, depreciation, and amortization (DD&A) expense for Q2 2025 increased **34% to $302.6 million**, corresponding with a **30% increase in total oil equivalent production**[152](index=152&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Capital resources are primarily funded by operating cash flow to support development expenditures - The company expects to fund its 2025 capital expenditures of **$1.18 to $1.37 billion** for D/C/E and **$120 to $180 million** for midstream primarily through cash flow from operations[163](index=163&type=chunk)[171](index=171&type=chunk) - Net cash from operating activities increased by **$167.4 million to $1.23 billion** for the six months ended June 30, 2025, compared to the same period in 2024, mainly due to higher production[177](index=177&type=chunk) - At June 30, 2025, the company had total contractual obligations of approximately **$5.2 billion**, primarily consisting of senior notes, credit facility borrowings, and transportation agreements[192](index=192&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Six Months Ended June 30, in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $444,606 | $460,717 | | Interest expense | $102,834 | $75,548 | | Total income tax provision | $139,383 | $144,764 | | Depletion, depreciation and amortization | $584,493 | $438,245 | | Unrealized gain on derivatives | $32,242 | $9,754 | | Other adjustments | $6,368 | $11,347 | | **Consolidated Adjusted EBITDA** | **$1,309,926** | **$1,140,375** | [General Outlook and Trends](index=37&type=section&id=General%20Outlook%20and%20Trends) The outlook is shaped by commodity price volatility, tax legislation benefits, and Permian Basin differentials - The newly signed 'One Big Beautiful Bill Act' (OBBBA) is expected to significantly benefit the company by making 100% bonus depreciation permanent, reducing expected 2025 cash tax payments to **0% to 5% of pre-tax income**[194](index=194&type=chunk) - Commodity price volatility remains a key factor, with the average WTI oil price lower in Q2 2025 ($63.68/Bbl) compared to Q2 2024 ($80.66/Bbl), while average Henry Hub natural gas prices were higher ($3.51/MMBtu vs $2.27/MMBtu)[197](index=197&type=chunk)[198](index=198&type=chunk) - The Waha-Henry Hub natural gas basis differential remains wide, though the company mitigates this exposure by selling a significant portion of its gas at Houston Ship Channel pricing[201](index=201&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, managed through derivative instruments - The company's main market risk is commodity price exposure, which it manages by entering into derivative financial instruments to hedge a significant portion of its anticipated future production[211](index=211&type=chunk) - As of June 30, 2025, the company had open costless collar contracts for oil and natural gas, as well as natural gas basis differential swap contracts, to manage price volatility[214](index=214&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of the quarter-end - Based on an evaluation by management, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective as of June 30, 2025**[216](index=216&type=chunk) - No changes in internal control over financial reporting occurred during the three months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[217](index=217&type=chunk) [PART II — OTHER INFORMATION](index=41&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse impact on the company - The company is party to several legal proceedings in the ordinary course of business, but management believes it is remote that these will have a material adverse impact[219](index=219&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's Annual Report on Form 10-K for a full discussion of risk factors - For a discussion of risks and uncertainties, the report refers to "Item 1A. Risk Factors" in the company's Annual Report on Form 10-K[221](index=221&type=chunk) [Item 2. Repurchase of Equity by the Company or Affiliates](index=41&type=section&id=Item%202.%20Repurchase%20of%20Equity%20by%20the%20Company%20or%20Affiliates) The company repurchased 1,095,667 shares for $44.2 million under its new share buyback program Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | Total Cost of Program Purchases | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 745,667 | $40.61 | 745,667 | ~$30.3M | | May 2025 | 357,533 | $39.84 | 350,000 | ~$13.9M | | June 2025 | 2,410 | $46.40 | 0 | $0 | | **Total Q2** | **1,105,610** | **$40.37** | **1,095,667** | **$44.2M** | [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No director or officer initiated, modified, or terminated a Rule 10b5-1 trading plan in Q2 2025 - During the three months ended June 30, 2025, no director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement[224](index=224&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required SOX certifications - The report includes a list of filed exhibits, such as the CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and financial data formatted in Inline XBRL[226](index=226&type=chunk)

Core Viewpoint - Matador Resources Company held its Q2 2025 earnings conference call on July 23, 2025, to discuss financial performance and strategic initiatives [1][3]. Group 1: Company Overview - The conference call featured key participants including the Executive Vice President of Midstream, Co-President and Chief Legal Officer, Executive VP & COO, and the CEO [1]. - The call was hosted by Mac Schmitz, Senior Vice President of Investor Relations, who welcomed attendees and outlined the agenda for the discussion [4][5]. Group 2: Conference Call Logistics - The operator announced that the conference call was being recorded for replay purposes, which will be available on the company's website for one year [3].

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]