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]

Core Insights - Matador Resources (NYSE: MTDR) reported strong Q2 2025 results, with production approximately 1% above the midpoint of its guidance and a 13% reduction in cash operating costs per BOE compared to Q1 2025 [2]. Company Performance - Matador Resources achieved production levels that exceeded guidance expectations by around 1% [2]. - The company successfully reduced cash operating costs per BOE by 13% when compared to the previous quarter [2]. Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [3]. - Chow co-founded a mobile gaming company that was acquired by PENN Entertainment and has experience in designing economic models for mobile apps with significant user engagement [3].

Core Insights - Matador Resources (MTDR) reported revenue of $895.31 million for Q2 2025, a year-over-year increase of 5.7%, but fell short of the Zacks Consensus Estimate of $902.59 million by -0.81% [1] - The company's EPS for the quarter was $1.53, down from $2.05 a year ago, but exceeded the consensus estimate of $1.29 by +18.61% [1] Financial Performance - Average Daily Production Volumes for natural gas were 516.8 million cubic feet per day, surpassing the analyst estimate of 511.67 million cubic feet per day [4] - Average Daily Production Volumes for oil were 122,875 BBL/D, slightly above the estimate of 122,450.70 BBL/D [4] - Total oil equivalent production was 209,013 million barrels per day, exceeding the estimate of 207,742.5 million barrels [4] Sales Prices and Revenue Breakdown - Average Sales Price for oil without realized derivatives was $64.34, close to the estimate of $64.36 [4] - Average Sales Price for natural gas without realized derivatives was $2.05, significantly lower than the estimate of $3.04 [4] - Revenues from third-party midstream services were $42.01 million, below the estimate of $45.41 million, but showed a year-over-year increase of +28.7% [4] - Oil and natural gas revenues totaled $815.77 million, compared to the estimate of $834.85 million, reflecting a year-over-year increase of +5.1% [4] - Natural gas revenues were reported at $96.39 million, significantly lower than the estimate of $151.33 million, but represented a year-over-year increase of +36.3% [4] - Sales of purchased natural gas generated $67.9 million, slightly above the estimate of $65.29 million, with a year-over-year increase of +46.8% [4] - Oil revenues reached $719.38 million, exceeding the estimate of $699.02 million, with a year-over-year increase of +2% [4] Stock Performance - Matador's shares have returned +5.3% over the past month, outperforming the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

[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]

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 company has successfully recycled over half of its water production, leading to cost savings [15] 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 200 billion cubic feet of gas reserves 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 [8][9] - The strategy includes a focus on midstream operations to provide flow assurance and balance the asset base [14][16] - The company is committed to a "brick by brick" approach for land acquisition and reinvestment [81] 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 drilling and cash flow opportunities [9][11] - The management emphasized the importance of maintaining flexibility in a volatile macro environment [90] Other Important Information - The company has raised its base dividend six times in four years and plans to review it annually [15] - The company has a strong insider buying trend, indicating confidence from leadership [92] Q&A Session Summary Question: Midstream EBITDA guidance - The company acknowledged a record second quarter for midstream operations but maintained the EBITDA guidance due to expected shifts in drilling focus [22][24] Question: Midstream IPO options - Management discussed the potential value of the midstream business not being reflected in the stock price and the ongoing evaluation of strategic alternatives [28][30] Question: Rig activity and production growth - The company plans to maintain an eight-rig program and is assessing the potential for additional rigs based on market conditions [36][38] Question: D&C cost drivers - The company reported D&C costs below guidance due to efficiencies and improved performance in lower-cost areas [45][49] Question: Uses of free cash flow - Management outlined three main uses for free cash flow: land acquisition, share repurchase, and debt reduction [80][81]