A month has gone by since the last earnings report for Matador Resources (MTDR) . Shares have added about 7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Matador due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out ...

美国银行的Noah Hungness表示，Matador Resources"在需要时能够灵活应对"，其强大的执行力反映在过 去12个月令人印象深刻的21.7%的营收增长上。此外，该公司最近表示，由于油价暴跌和需求前景黯 淡，到今年年中，其钻井平台数量将从9个减少到8个。此举将节省约1亿美元的资本支出，并有助于在 WTI原油价格为每桶60美元的情况下产生额外的7100万美元自由现金流。 智通财经APP获悉，美国银行最近首次覆盖Matador Resources(MTDR.US)，予"买入"评级，目标价为56 美元。美国银行分析师对Matador Resources的前景持乐观看法，原因包括该公司的勘探生产资产(在WTI 价格为37-43美元区间实现盈亏平衡)、股票回购、中游业务扩张以及实现外延式增长。 Matador Resources上个月公布了强劲的2025年第一季度业绩。数据显示，该公司Q1营收同比增长逾 28%，至10亿美元左右，超出市场预期;调整后每股收益为0.99美元，也超出市场预期。 截至周二收盘，Matador Resources跌0.02%，报44.28美元。该股本月以来上涨了近13%。 据 ...

Matador Resources (MTDR) reported $1.01 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 28.7%. EPS of $1.99 for the same period compares to $1.71 a year ago.The reported revenue represents a surprise of +7.54% over the Zacks Consensus Estimate of $942.86 million. With the consensus EPS estimate being $1.74, the EPS surprise was +14.37%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Financial Data and Key Metrics Changes - The company reported a capital expenditure (CapEx) reduction of $100 million, representing a 7% decrease, while still achieving a 17% year-over-year increase in production [9][10] - The company reduced its debt by $190 million, bringing the total debt to approximately $400 million, with a projected free cash flow of 1.5 to 2 times that debt this year [26][27] Business Line Data and Key Metrics Changes - The company is prioritizing capital efficiency, with a focus on high grading operational equipment and drilling efficiencies, which is expected to maintain a 17% year-over-year growth in barrels of oil equivalent (BOE) per day [11][12] - The midstream business is projected to have an unrealized value of approximately $1.5 billion that is not reflected in the stock price, with plans for an initial public offering and other strategic transactions [13][14] Market Data and Key Metrics Changes - The company has identified a potential gas bank in the Haynesville and Cotton Valley formations, estimating between 200 to 300 billion cubic feet (Bcf) of gas potential that can be accessed when prices stabilize [33][34] Company Strategy and Development Direction - The company is focused on a balanced approach, maintaining a strong balance sheet while exploring opportunities for share buybacks, acquisitions, and increasing dividends, which have been raised six times in four years [25][26] - The company is committed to a "brick by brick" acquisition strategy, closing deals weekly and maintaining a pipeline of opportunities [21][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting a 17% increase in reserves while managing costs effectively [30][31] - The company is hedging production to protect against price volatility, while also preparing for potential opportunities if commodity prices rise [27][28] Other Important Information - The company has initiated a share repurchase program, buying back 250,000 shares at approximately $41.5 each, with plans to continue as long as the buying opportunity exists [5][6] - The annual shareholders meeting is scheduled for June 12, providing an opportunity for shareholders to engage directly with the management team [7] Q&A Session Summary Question: What adjustments are being made to activity levels? - The company is reducing CapEx by 7% while still achieving a 17% year-over-year growth in production, indicating a more capital-efficient program [9][10] Question: What is the outlook for the midstream business? - The midstream business is expected to have significant unrealized value, with plans for strategic transactions to help shareholders realize this value [13][14] Question: Can you explain the gas bank concept? - The gas bank refers to the potential in the Haynesville and Cotton Valley formations, with significant gas reserves that can be accessed when market conditions are favorable [33][34]

PART I — FINANCIAL INFORMATION This section details the company's unaudited financial statements and management's discussion and analysis of operations [Financial Statements — Unaudited](index=3&type=section&id=Item%201.%20Financial%20Statements%20%E2%80%94%20Unaudited) This section presents the unaudited condensed consolidated financial statements for Matador Resources Company for the quarter ended March 31, 2025 - The company's **primary operations are focused** on oil and liquids-rich plays in the Delaware Basin (Southeast New Mexico and West Texas) and the Haynesville shale in Northwest Louisiana. It also conducts midstream operations through its joint venture, San Mateo Midstream, LLC[22](index=22&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an **increase** in total assets to **$11.08 billion** as of March 31, 2025, from **$10.85 billion** at year-end 2024, driven by growth in net property and equipment, while total liabilities **decreased** slightly and total shareholders' equity **increased** to **$5.64 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $891,134 | $927,345 | | **Net Property and Equipment** | $10,011,888 | $9,764,096 | | **Total Assets** | **$11,082,041** | **$10,850,109** | | **Total Current Liabilities** | $1,129,616 | $995,357 | | **Total Long-Term Liabilities** | $4,308,298 | $4,397,320 | | **Total Liabilities** | **$5,437,914** | **$5,392,677** | | **Total Shareholders' Equity** | $5,644,127 | $5,457,432 | | **Total Liabilities and Shareholders' Equity** | **$11,082,041** | **$10,850,109** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the first quarter of 2025, the company reported a net income of **$262.2 million**, a **significant increase** from **$213.2 million** in the same period of 2024, driven by a **29% rise** in total revenues to over **$1 billion**, primarily from higher oil and natural gas revenues, with diluted earnings per share **increased** to **$1.92** from **$1.61** year-over-year Condensed Consolidated Statement of Income Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $1,013,958 | $787,693 | | **Total Expenses** | $624,807 | $468,740 | | **Operating Income** | $389,151 | $318,953 | | **Net Income** | $262,247 | $213,190 | | **Net Income Attributable to Matador Shareholders** | $240,085 | $193,729 | | **Diluted Earnings Per Share** | $1.92 | $1.61 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities **increased substantially** to **$727.9 million** in Q1 2025 from **$468.6 million** in Q1 2024, while investing activities used **$511.7 million** and financing activities used **$233.4 million**, resulting in a net **decrease** in cash and restricted cash of **$17.2 million** Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $727,879 | $468,562 | | **Net Cash Used in Investing Activities** | ($511,662) | ($543,315) | | **Net Cash (Used in) Provided by Financing Activities** | ($233,443) | $42,781 | | **Change in Cash and Restricted Cash** | ($17,226) | ($31,972) | | **Cash and Restricted Cash at End of Period** | $77,516 | $74,326 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide crucial context to the financial statements, covering significant accounting policies, details on the Ameredev acquisition, debt structure, equity transactions, derivative instruments, commitments, and segment performance - The company **completed** the Ameredev Acquisition on September 18, 2024, for cash consideration of **$1.83 billion**. The preliminary purchase price allocation is **ongoing**[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - During Q1 2025, the company **sold** its remaining South Texas assets in the Eagle Ford shale for **$22.2 million**[40](index=40&type=chunk) Total Long-Term Debt (in thousands) | Debt Component | March 31, 2025 | | :--- | :--- | | Credit Agreement due 2029 | $405,000 | | San Mateo Credit Facility due 2029 | $655,000 | | 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** | **$3,176,456** | - The Board **declared** a quarterly cash dividend of **$0.3125 per share** in February 2025, totaling **$39.2 million**. A subsequent dividend of the same amount was **declared** in April 2025[55](index=55&type=chunk) Segment Operating Income (in thousands) | Segment | Three Months Ended March 31, 2025 | | :--- | :--- | | Exploration and Production | $362,087 | | Midstream | $55,919 | | Corporate | ($28,855) | | **Consolidated Operating Income** | **$389,151** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial performance and condition for Q1 2025, highlighting a **33% year-over-year increase** in average daily production, strong net income of **$240.1 million**, and Adjusted EBITDA of **$644.2 million** [First Quarter Highlights and Operations Update](index=23&type=section&id=First%20Quarter%20Highlights%20and%20Operations%20Update) In Q1 2025, average daily oil equivalent production **rose to 198,631 BOE/day**, a **33% increase** YoY, driven by a **36% increase** in oil production, with net income attributable to shareholders at **$240.1 million** (**$1.92/share**), **up from $193.7 million** (**$1.61/share**) in Q1 2024 Q1 2025 Performance vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Avg. Daily Oil Production (Bbl/day) | 115,030 | 84,777 | +36% | | Avg. Daily Natural Gas Production (MMcf/day) | 501.6 | 389.9 | +29% | | Net Income (attributable to MTDR) | $240.1M | $193.7M | +24% | | Adjusted EBITDA (non-GAAP) | $644.2M | $505.4M | +27% | - The company plans to **reduce** its drilling rig count from **nine to eight** in the Delaware Basin by mid-2025[112](index=112&type=chunk) [Capital Plans and Shareholder Returns](index=23&type=section&id=Capital%20Plans%20and%20Shareholder%20Returns) The company has **decreased** its 2025 D/C/E capital expenditure estimate to a range of **$1.18-$1.37 billion**, while midstream capital expenditures remain at **$120-$180 million**, and continues its shareholder return program with a quarterly dividend of **$0.3125 per share** and a new **$400 million** share repurchase program - Estimated 2025 drilling, completing, and equipping (D/C/E) capital expenditures were **decreased to a range** of **$1.18 to $1.37 billion**[113](index=113&type=chunk)[143](index=143&type=chunk) - The Board **declared** a quarterly cash dividend of **$0.3125 per share**, payable in June 2025[114](index=114&type=chunk)[137](index=137&type=chunk) - On April 16, 2025, the Board **authorized** a **new share repurchase program** of **up to $400.0 million**. Subsequently, on April 28, 2025, the company **repurchased 250,000 shares** for **$10.4 million**[98](index=98&type=chunk)[138](index=138&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenues for Q1 2025 **increased 29%** YoY to **$1.01 billion**, with oil and gas revenues **rising 29%** to **$909.9 million**, driven by a **34% increase** in oil production and a **27% increase** in natural gas production, offsetting a **7% decrease** in realized oil prices Revenue Breakdown (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Oil Revenues | $749,322 | $598,514 | | Natural Gas Revenues | $160,596 | $105,026 | | **Total Oil & Gas Revenues** | **$909,918** | **$703,540** | | Third-party Midstream Services | $33,499 | $32,357 | | **Total Revenues** | **$1,013,958** | **$787,693** | Key Expenses per BOE | Expense per BOE | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Production taxes, transportation and processing | $5.25 | $5.15 | | Lease operating | $5.96 | $5.60 | | Depletion, depreciation and amortization | $15.77 | $15.58 | | General and administrative | $1.89 | $2.18 | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by strong operating cash flow, which reached **$727.9 million** in Q1 2025, with total long-term debt at **$3.18 billion** as of March 31, 2025, and Adjusted EBITDA **increased 27%** YoY to **$644.2 million** Cash Flow Summary (in thousands) | Cash Flow | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $727,879 | $468,562 | | Net Cash from Investing Activities | ($511,662) | ($543,315) | | Net Cash from Financing Activities | ($233,443) | $42,781 | Adjusted EBITDA Reconciliation (in thousands) | Reconciliation Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $262,247 | $213,190 | | Interest Expense | $49,489 | $39,562 | | Income Tax Provision | $82,921 | $66,778 | | DD&A | $281,891 | $212,311 | | Other Adjustments | ($2,942) | $2,036 | | **Consolidated Adjusted EBITDA** | **$673,806** | **$533,877** | | Attributable to Non-controlling Interest | ($29,583) | ($28,507) | | **Adjusted EBITDA Attributable to Matador** | **$644,223** | **$505,370** | [General Outlook and Trends](index=33&type=section&id=General%20Outlook%20and%20Trends) Management notes that commodity price volatility remains a significant risk, with Q1 2025 realized oil prices lower YoY (**$72.38/Bbl** vs **$77.58/Bbl**) and natural gas prices higher (**$3.56/Mcf** vs **$2.96/Mcf**), and the company uses derivatives to mitigate price differential risks - The company's business is **subject to commodity price volatility**, geopolitical instability, and regulatory changes. The recent election of President Trump and a Republican-controlled Congress may alter the regulatory framework[164](index=164&type=chunk) Average Realized Prices (before derivatives) | Commodity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Oil (per Bbl) | $72.38 | $77.58 | | Natural Gas (per Mcf) | $3.56 | $2.96 | - The Waha-Henry Hub natural gas basis differential averaged (**$2.46**) per MMBtu for Q1 2025. The company **has derivative contracts in place** to mitigate exposure for a portion of its anticipated 2025 and 2026 natural gas production[170](index=170&type=chunk)[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, primarily from fluctuating oil, natural gas, and NGL prices, which Matador manages using derivative financial instruments like costless collars and swap contracts - The company is exposed to market risk from commodity price fluctuations and **uses derivative instruments** like costless collars and swaps to partially **reduce** this risk[180](index=180&type=chunk)[181](index=181&type=chunk) - As of March 31, 2025, the company **had open costless collar contracts** for oil and natural gas, and natural gas basis differential swap contracts. It **had no open contracts** for NGL prices[183](index=183&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company concluded that its disclosure controls and procedures were **effective** as of March 31, 2025, with **no material changes were made** in internal control over financial reporting during the first quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[185](index=185&type=chunk) - **No material changes were made** to the company's internal control over financial reporting during the three months ended March 31, 2025[186](index=186&type=chunk) PART II — OTHER INFORMATION This section provides information on legal proceedings, risk factors, equity repurchases, and other disclosures [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal proceedings that arise in the ordinary course of business, and management believes **it is remote** that these will have a material adverse impact on the company's financial condition, results of operations, or cash flows - The company states that **it is remote** that ongoing legal proceedings will have a material adverse impact on its financial condition[188](index=188&type=chunk) [Risk Factors](index=37&type=page&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed discussion of risks and uncertainties in 'Item 1A. Risk Factors' of the company's Annual Report on Form 10-K - For a discussion of risks and uncertainties, the report refers to 'Item 1A. Risk Factors' in the Annual Report[190](index=190&type=chunk) [Repurchase of Equity by the Company or Affiliates](index=37&type=section&id=Item%202.%20Repurchase%20of%20Equity%20by%20the%20Company%20or%20Affiliates) During the first quarter of 2025, the company **re-acquired 58,599 shares** of common stock at an average price of **$57.15 per share**, from employees to satisfy tax liabilities related to restricted stock vesting, not as part of a publicly announced repurchase program Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 1,764 | $60.47 | | Feb 1 - Feb 28, 2025 | 55,627 | $57.16 | | Mar 1 - Mar 31, 2028 | 1,208 | $51.89 | | **Total** | **58,599** | **$57.15** | - The shares were **re-acquired** from employees to satisfy tax liabilities in connection with the vesting of restricted stock, **not as part of a formal repurchase plan**[191](index=191&type=chunk)[192](index=192&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) The company reports that during the first quarter of 2025, **no director or officer adopted, modified, or terminated** a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - **No director or officer adopted, modified, or terminated** a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025[193](index=193&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including supplemental indentures related to debt and certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act - The report includes several exhibits, such as supplemental indentures (Exhibits 4.1, 4.2, 4.3) and officer certifications required by the Sarbanes-Oxley Act (Exhibits 31.1, 31.2, 32.1, 32.2)[195](index=195&type=chunk)

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various 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 ) reported solid Q1 2025 results with production around expectations. It intends to trim its capex budget by $100 million due to weaker commodity prices and still appears capable of gene ...

Matador Resources Company (NYSE:MTDR) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Mac Schmitz – Senior Vice President-Investor Relations Joe Foran – Chairman and Chief Executive Officer Brian Willey – Executive Vice President and Chief Financial Officer Gregg Krug – Executive Vice President-Marketing and Midstream Strategy Van Singleton – President-Land, Acquisitions and Divestitures and Planning Tom Elsener – Executive Vice President-Reservoir Engineering and Senior As ...

First Quarter 2025 Earnings Release April 23, 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 Matador from including ...

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]

Financial Data and Key Metrics Changes - The company reported a revenue growth that enabled the repayment of $190 million in debt, indicating strong financial performance [7] - The processing capacity increased significantly to $720 million, compared to the previous capacity of $60 million at the Black River plant, enhancing flow assurance [8] Business Line Data and Key Metrics Changes - The company experienced a slight production slowdown due to maintenance and force majeure events, resulting in a 1% to 2% decrease in production, but anticipates a 17% increase by year-end [11] - The company successfully turned on 40 wells in the second quarter, which is expected to lead to record production levels [30] Market Data and Key Metrics Changes - The company is actively exploring options for its midstream segment, including potential IPOs, as it sees growth opportunities in third-party gas inquiries [18] - The company has hedged oil prices to protect against market volatility, indicating a proactive approach to market conditions [36] Company Strategy and Development Direction - The company emphasizes a strategy of profitable growth at a measured pace, focusing on flexibility and optionality in its operations [22] - The management team has shown alignment with shareholders by authorizing share repurchases and actively buying shares themselves [9][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenging times, highlighting past experiences of emerging stronger from difficulties [6] - The company is optimistic about the second quarter being a record quarter and anticipates strong performance in the third quarter as well [58] Other Important Information - The company has a significant inventory of 10 to 15 years of drilling locations, ensuring a steady pipeline for future growth [24] - The management team has consistently generated profits, with no losing quarters since going public, showcasing operational excellence [25] Q&A Session Summary Question: Discussion on midstream segment and potential IPO - The company is exploring various options for its midstream segment, including the possibility of an IPO, while focusing on growth opportunities [18] Question: Long-term outlook and production levels - Management confirmed intentions to grow production, with a projected 17% increase by year-end, emphasizing a measured approach to growth [21] Question: Criteria for share buyback and prioritization - The company is evaluating multiple options for cash flow utilization, including share buybacks, debt repayment, and potential acquisitions, to maximize shareholder value [51] Question: Activity reductions and production expectations - The company is optimizing its operations by adjusting the timing of wells and expects Q3 production to be lower than Q2, with Q4 projected to be slightly higher [45]