Matador Resources(MTDR)

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Matador Resources(MTDR) - 2024 Q4 - Earnings Call Transcript
2025-02-19 19:53
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]
Matador Resources(MTDR) - 2024 Q4 - Earnings Call Presentation
2025-02-19 18:18
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 ...
Matador Beats on Q4 Earnings & Revenues, Raises Dividend
ZACKS· 2025-02-19 16:00
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]
Compared to Estimates, Matador (MTDR) Q4 Earnings: A Look at Key Metrics
ZACKS· 2025-02-19 00:30
Financial Performance - Matador Resources reported $970.37 million in revenue for Q4 2024, a year-over-year increase of 16.1% [1] - The EPS for the same period was $1.83, compared to $1.99 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $955.17 million, resulting in a surprise of +1.59% [1] - The company delivered an EPS surprise of +5.17%, with the consensus EPS estimate being $1.74 [1] Key Metrics - Average Daily Production Volumes for total oil equivalent were 201,116 million barrels, slightly above the average estimate of 199,297.3 million barrels [4] - Average Daily Production Volumes for oil were 118,440 BBL/D, compared to the average estimate of 119,487.1 BBL/D [4] - Average Daily Production Volumes for natural gas were 496.1 million cubic feet, exceeding the average estimate of 477.63 million cubic feet [4] Sales Prices and Revenues - Average Sales Prices for natural gas with realized derivatives were $2.81, slightly above the estimated $2.80 [4] - Average Sales Prices for oil with realized derivatives were $70.66, compared to the estimated $70.81 [4] - Oil and natural gas revenues were reported at $893.86 million, exceeding the estimated $881.53 million, representing an 18.7% year-over-year change [4] - Third-party midstream services revenues were $37.70 million, below the average estimate of $43.37 million, but showed a +5.8% year-over-year change [4] Stock Performance - Shares of Matador have returned -10.3% over the past month, while the Zacks S&P 500 composite increased by +4.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]
Matador Resources (MTDR) Q4 Earnings and Revenues Top Estimates
ZACKS· 2025-02-18 23:50
Core Viewpoint - Matador Resources reported quarterly earnings of $1.83 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, although down from $1.99 per share a year ago, indicating a 5.17% earnings surprise [1][2] Financial Performance - The company achieved revenues of $970.37 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.59% and showing an increase from $836.13 million year-over-year [2] - Over the last four quarters, Matador has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Matador shares have increased approximately 1.7% since the beginning of the year, underperforming compared to the S&P 500's gain of 4% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.08 for the coming quarter and $8.53 for the current fiscal year [7] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]
Has Matador Resources (MTDR) Outpaced Other Oils-Energy Stocks This Year?
ZACKS· 2025-02-11 15:46
Group 1 - Matador Resources (MTDR) is part of the Oils-Energy sector, which consists of 247 individual stocks and holds a Zacks Sector Rank of 6, indicating its relative strength among sector groups [2] - The Zacks Rank system highlights stocks with favorable earnings estimates and revisions, with Matador Resources currently holding a Zacks Rank of 2 (Buy) [3] - The consensus estimate for MTDR's full-year earnings has increased by 11.1% in the past quarter, reflecting improved analyst sentiment and a positive earnings outlook [3] Group 2 - Year-to-date, Matador Resources has gained approximately 5.3%, outperforming the Oils-Energy sector's average return of 5% [4] - Another stock in the Oils-Energy sector, Range Resources (RRC), has performed even better with a year-to-date return of 10.4% [4] - Matador Resources is categorized under the Oil and Gas - Exploration and Production - United States industry, which includes 34 stocks and currently ranks 52 in the Zacks Industry Rank, while this industry has seen an average loss of 13% this year [6] Group 3 - Investors in the Oils-Energy sector should monitor Matador Resources and Range Resources for their continued strong performance [7]
Matador (MTDR) Upgraded to Buy: Here's What You Should Know
ZACKS· 2025-02-04 18:01
Matador Resources (MTDR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a chan ...
Why Is Matador (MTDR) Up 16.6% Since Last Earnings Report?
ZACKS· 2024-11-21 17:35
A month has gone by since the last earnings report for Matador Resources (MTDR) . Shares have added about 16.6% 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 catalysts. Matador Q3 Earnings Beat Estimates, Raises '24 O ...
Matador Resources Expects Over 200,000 BOEPD In 2025 Production
Seeking Alpha· 2024-10-25 08:13
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.Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Enterta ...
Matador Resources(MTDR) - 2024 Q3 - Earnings Call Transcript
2024-10-23 21:35
Financial Data and Key Metrics - The company expects to have over 200,000 BOE per day in 2025, driven by the integration of Ameredev assets and the full-year operation of nine rigs [15][16] - CapEx for 2025 is expected to be slightly higher than the $1.25 billion spent in 2024, primarily due to the full-year operation of nine rigs and the high working interest from Ameredev wells [16] - The company reduced its drilling and completion cost per lateral foot from $1,010 to $930, an 8% reduction, driven by operational efficiencies and the use of Trimul-Frac technology [21] Business Line Data and Key Metrics - The Ameredev acquisition is performing better than expected, with production increasing to 31,500 BOE per day in the last 13 days of Q3 2024, up from 26,000 BOE per day at the time of acquisition [29][30] - The company has successfully integrated Trimul-Frac technology, which has saved approximately $20 million by converting over 90 wells into Simul- or Trimul-Frac candidates [48] - Midstream operations achieved record EBITDA, with over 99% uptime for the plant, and the new plant is on track for completion in 2025 [40][42] Market Data and Key Metrics - The company is optimistic about the eastern side of the basin, particularly the Antelope Ridge area, where well results have confirmed the quality of the rock [31] - The company has a significant gas bank in the Cotton Valley, with over 200-300 Bcf of gas opportunities, and 1.4 Tcf of gas reserves in the Delaware Basin, providing flexibility to pivot to gas if needed [60] Company Strategy and Industry Competition - The company emphasizes profitable growth at a measured pace, with a focus on maintaining a 20% annual growth rate, leveraging a portfolio of 2,000 drilling locations with a >50% rate of return [13][14] - The company is open to acquisitions, particularly those that add to its inventory of undeveloped acreage, as seen with the $66 million in acquisitions in Q3 2024, which added minimal production but significant inventory [35][36] - The company is exploring ways to unlock midstream value, with potential opportunities being studied, including partnerships and capital allocation strategies [38][39] Management Commentary on Operating Environment and Future Outlook - Management is confident in the company's ability to continue improving operational efficiencies, particularly through the use of remote operations and produced water for hydraulic fracturing, which reduces costs and environmental impact [22][26] - The company expects to see further LOE reductions in the Ameredev area, with $1 million in monthly savings already identified, primarily from the use of recycled produced water and optimized chemical usage [51] - Management is optimistic about the future, citing strong well results, operational efficiencies, and the successful integration of Ameredev assets as key drivers for growth in 2025 [53] Other Important Information - The company's CEO, Joseph Foran, was awarded the Legacy Award by the CEO Magazine, recognizing his contributions to the industry and the growth of Matador Resources from a $270,000 startup to a $6.5 billion market cap company [61][62] Q&A Session Summary Question: Shareholder returns and potential for stock buybacks - The company prefers fixed dividends over buybacks, as they are more aligned with long-term shareholder interests and do not require additional debt [8][9][10] Question: Capital allocation and rig count for 2025 - The company plans to maintain nine rigs for the full year in 2025, with CapEx expected to be slightly higher than 2024 due to the full-year operation of rigs and the integration of Ameredev assets [15][16] Question: Cash tax expectations for 2025 - The company expects cash taxes to be lower in 2025, with the corporate alternative minimum tax (AMT) not applying, and the actual rate will depend on available deductions [19] Question: Operational efficiencies and cost reductions - The company has achieved significant cost reductions through the use of Trimul-Frac technology, remote operations, and produced water for hydraulic fracturing, with further efficiencies expected in 2025 [21][22][26] Question: Ameredev asset performance and future outlook - The Ameredev assets have outperformed expectations, with production increasing to 31,500 BOE per day, and the company is optimistic about further development in the Antelope Ridge area [29][31] Question: Midstream value and CapEx for 2025 - The company is exploring ways to unlock midstream value, with CapEx expected to decrease in 2025 as the system is built out, moving towards a maintenance capital model [38][42] Question: LOE trends and Ameredev integration - The company expects LOE to decrease in the Ameredev area, with $1 million in monthly savings already identified, primarily from the use of recycled produced water and optimized chemical usage [51] Question: Ground game and M&A opportunities - The company expects to see more M&A opportunities in 2025, particularly from larger companies rationalizing their portfolios and private equity firms turning over assets [55][56]