Matador Resources(MTDR) - 2024 Q2 - Quarterly Results

Executive Summary & Full-Year 2024 Guidance Update Matador Resources Company updated its full-year 2024 production guidance and provided management commentary on record Q2 performance and the significant Ameredev acquisition Full-Year 2024 Production Guidance Update Matador Resources Company raised its full-year 2024 total oil and natural gas equivalent, oil, and natural gas production guidance, reflecting confidence in future production capacity, but this guidance does not include production from the upcoming Ameredev acquisition | Production | Prior Full-Year 2024 Guidance Range | New Full-Year 2024 Guidance (1) Range | (2) Difference | |:---|:---|:---|:---| | Total, BOE per day | 153,000 to 159,000 | 158,500 to 163,500 | +3.2% | | Oil, Bbl per day | 91,000 to 95,000 | 93,500 to 96,500 | +2.2% | | Natural Gas, MMcf per day | 370.0 to 386.0 | 390.0 to 402.0 | +4.8% | - The new production guidance does not include any production from the Ameredev acquisition, which is expected to close by the end of the third quarter of 2024[15][16] Management Commentary CEO Joseph Wm. Foran highlighted Q2 2024 as one of the most significant quarters in company history, achieving record production and significant cost savings, and announced the largest acquisition to date, Ameredev, expected to substantially increase the company's Delaware Basin assets and reserves - Matador achieved record production performance and significant cost savings in Q2 2024, and announced the $1.905 billion acquisition of Ameredev, expected to close by the end of Q3[5] - The Ameredev acquisition is expected to increase Matador's net acreage in the northern Delaware Basin to 191,900 acres and total proved reserves to over 600 million BOE[5] - The company successfully completed its first 'trimul-frac' completion, estimated to save approximately $350,000 per well, with plans for a second 'trimul-frac' and first 'remote trimul-frac' test in H2 2024[9] - Matador anticipates full-year 2024 drilling and completion costs to decrease to $960 per completed lateral foot, an 11% reduction from 2023[9] - U-Turn wells drilled in 2023 exceeded expectations, with five additional U-Turn wells expected to be turned to sales in H2 2024, resulting in over $15 million in total drilling cost savings[21] Pending Ameredev Acquisition Matador announced the $1.905 billion acquisition of Ameredev, expected to close by the end of Q3 2024, significantly expanding its core Delaware Basin assets, including 33,500 net high-quality acres, an estimated Q3 average production of 25,500 BOE per day, over 117 million BOE in reserves, and a 19% equity investment in Piñon Midstream - Matador is acquiring Ameredev for $1.905 billion, expected to close by the end of Q3 2024, adding 33,500 net high-quality acres[5][6] - Ameredev is expected to average 25,500 BOE per day in Q3, with over 117 million BOE in reserves and 371 net high-quality drilling locations[6] - The acquisition also includes an approximately 19% equity investment in Piñon Midstream[6] - Matador plans to implement operational efficiencies such as 'simul-frac' and 'trimul-frac' on Ameredev assets post-acquisition[19] Record Production and Wells Turned to Sales In Q2 2024, Matador achieved a record average total production of 160,305 BOE per day, exceeding expectations by 2%, with oil production at 95,488 Bbl per day, exceeding expectations by 3%, driven by a record 47 (38.6 net) horizontal wells turned to sales and strong performance from Dagger Lake South wells - In Q2 2024, Matador's average total production reached 160,305 BOE per day, exceeding expectations by 2%[24][49] - Average oil production reached 95,488 Bbl per day, exceeding expectations by 3%[49] - Record production was partly attributed to 47 (38.6 net) horizontal wells turned to sales in Q2, the most in company history[49] - The Dagger Lake South wells (part of the Advance acquisition) averaged 1,728 BOE per day (83% oil) in 24-hour initial test production, exceeding expectations[49] Continued Operational Efficiencies and Teamwork Matador achieved lower-than-expected costs in Q2 2024, with D/C/E capital expenditure savings of approximately $25.5 million, including $10 million from operational efficiencies, successfully implementing its first 'trimul-frac' completion, and anticipating $15 million in total savings from five U-Turn wells in H2 2024 - Q2 2024 D/C/E capital expenditures were $314.5 million, $25.5 million (8%) below expectations, with $10 million from operational efficiencies and cost savings[50] - The operations team set 20 drilling records in Q2, with estimated savings of $6 million, accumulating approximately $50 million since the MaxCom Operations Center's inception in 2018[50] - The company successfully completed its first 'trimul-frac' completion, estimated to save approximately $350,000 per well, with plans for continued implementation in H2 2024[9] - Drilling of U-Turn wells is expected to result in five wells turned to sales in H2 2024, with total cost savings of $15 million[21] 40th Annual Meeting and Looking Ahead Matador successfully held its 40th Annual Meeting of Shareholders on June 13, 2024, with all proposals passing with nearly 90% or higher support, and management remains optimistic about drilling and acquisition opportunities in H2 2024 and beyond - Matador held its 40th Annual Meeting of Shareholders on June 13, 2024, with all proposals passing with nearly 90% or higher support[22] - Company management is optimistic about drilling and acquisition opportunities in H2 2024 and 2025[22] Second Quarter 2024 Operational and Financial Highlights Matador achieved strong operational and financial results in Q2 2024, including record average production, robust cash flow, and significant net income, with capital expenditures below expectations Matador Operational and Financial Highlights Matador achieved strong operational and financial results in Q2 2024, including record average production, robust cash flow from operations and adjusted free cash flow, and significant net income and adjusted EBITDA, with both D/C/E and midstream capital expenditures below expectations | Metric | Amount (Millions USD) | |:---|:---| | Average Production (BOE per day) | 160,305 | | Net Cash Provided by Operating Activities | 592.9 | | Adjusted Free Cash Flow | 167.0 | | Net Income | 228.8 | | Adjusted Net Income | 255.9 | | Adjusted EBITDA | 578.1 | | San Mateo Net Income | 38.3 | | San Mateo Adjusted EBITDA | 58.0 | | D/C/E Capital Expenditures | 314.5 | | Midstream Capital Expenditures | 45.3 | - Diluted earnings per share were $1.83, and adjusted diluted earnings per share were $2.05[52] Production Performance In Q2 2024, Matador's total oil and gas production averaged 160,305 BOE per day, up 7% sequentially and 23% year-over-year, exceeding company guidance by 2%, with oil production averaging 95,488 Bbl per day, up 13% sequentially and 25% year-over-year, exceeding guidance by 3% | Production | Q2 2024 Average Daily Volume | Q2 2024 Guidance Range (1) | Difference (2) | Sequential (3) | YoY (4) | |:---|:---|:---|:---|:---|:---| | Total, BOE per day | 160,305 | 156,500 to 158,000 | +2% Better than Guidance | +7% | +23% | | Oil, Bbl per day | 95,488 | 92,500 to 93,500 | +3% Better than Guidance | +13% | +25% | | Natural Gas, MMcf per day | 388.9 | 384.0 to 387.0 | +1% Better than Guidance | Flat | +19% | - Total oil and gas production increased 7% sequentially and 23% year-over-year, primarily due to the 2023 Advance acquisition and increased production from new wells in existing and undeveloped areas[24] Realized Commodity Prices In Q2 2024, Matador's realized oil price increased 5% sequentially to $81.20 per Bbl and 11% year-over-year, while realized natural gas price decreased 32% sequentially to $2.00 per Mcf and 23% year-over-year | Realized Commodity Prices | Sequential Q2 2024 | (Q2 2024 vs. Q1 2024) Sequential (1) Change | YoY Q2 2024 | (Q2 2024 vs. Q2 2023) (2) YoY Change | |:---|:---|:---|:---|:---| | Oil Prices, per Bbl | $81.20 | +5% | $81.20 | +11% | | Natural Gas Prices, per Mcf | $2.00 | -32% | $2.00 | -23% | Operating Expenses In Q2 2024, Matador's G&A expenses decreased 12% sequentially to a record low of $1.91 per BOE, driven by increased production and lower cash-settled stock award values, while LOE decreased 3% sequentially to $5.42 per BOE, consistent with full-year expectations - G&A expenses decreased 12% sequentially to a record low of $1.91 per BOE, partly due to increased production and lower cash-settled stock award values[26] - LOE decreased 3% sequentially to $5.42 per BOE, consistent with the company's full-year 2024 guidance range of $5.25 to $5.75 per BOE[55] - Matador expects full-year 2024 G&A expenses to be at the midpoint to low end of its prior guidance range of $2.00 to $2.50 per BOE[26] Capital Expenditures In Q2 2024, Matador's D/C/E capital expenditures were $314.5 million, approximately $25 million below expectations, with $10 million in actual cost savings, and midstream capital expenditures were $45.3 million, below the $60 million estimate, primarily due to the timing of the Pronto midstream project | Q2 2024 Capital Expenditures (Millions USD) | Actual | (1) Guidance | (2) Difference vs. Guidance | |:---|:---|:---|:---| | D/C/E | $314.5 | $340.0 | -8% | | Midstream | $45.3 | $60.0 | -25% | - D/C/E capital expenditures were approximately $25 million below expectations, with about $10 million in actual cost savings[27] - Midstream capital expenditures were approximately $15 million below expectations, primarily due to the timing of the Pronto midstream project[27] Midstream Update (San Mateo) San Mateo exceeded expectations in Q2 2024 with $38.3 million in net income and $58.0 million in adjusted EBITDA, driven by increased third-party throughput, despite natural gas gathering volumes decreasing 8% sequentially but increasing 19% year-over-year - San Mateo achieved $38.3 million in net income and $58.0 million in adjusted EBITDA in Q2 2024, both exceeding expectations[29] | San Mateo Throughput Volumes | Sequential Q2 2024 | (Q2 2024 vs. Q1 2024) (1) Change | YoY Q2 2024 | (Q2 2024 vs. Q2 2023) (2) YoY Change | |:---|:---|:---|:---|:---| | Natural gas gathering, MMcf per day | 393 | -8% | 393 | +19% | | Natural gas processing, MMcf per day | 355 | -11% | 355 | -5% | | Oil gathering and transportation, Bbl per day | 46,300 | -5% | 46,300 | +12% | | Produced water handling, Bbl per day | 429,800 | -1% | 429,800 | +28% | Third Quarter 2024 Estimates Matador provides its Q3 2024 estimates for production growth, wells turned to sales, capital expenditures, and cash taxes, excluding the Ameredev acquisition Estimated Production Growth Matador expects average daily BOE production in Q3 2024 to increase 2% sequentially from 160,305 BOE per day in Q2 to approximately 164,000 BOE per day, with oil production estimated between 96,500 to 97,500 Bbl per day and natural gas production between 399.0 to 405.0 MMcf per day | Period | Average Daily Total Production, BOE per day | Q2 and Q3 2024 Production Average Daily Oil Production, Bbl per day | Comparison Average Daily Natural Gas Production, MMcf per day | % Oil | |:---|:---|:---|:---|:---| | Q2 2024 | 160,305 | 95,488 | 388.9 | 60% | | Q3 2024E | 163,000 to 165,000 | 96,500 to 97,500 | 399.0 to 405.0 | 59% | - Average daily BOE production is expected to increase 2% sequentially in Q3 to approximately 164,000 BOE per day[58] Estimated Wells Turned to Sales Matador anticipates turning 32 gross (26.5 net) operated horizontal wells to sales in the Delaware Basin during Q3 2024, across its Antelope Ridge, Arrowhead, Ranger, and Rustler Breaks asset areas - Matador expects to turn 32 gross (26.5 net) operated horizontal wells to sales in the Delaware Basin in Q3 2024[31] Estimated Capital Expenditures Matador estimates Q3 2024 D/C/E capital expenditures to be approximately $330 million to $370 million, an 11% sequential increase, and midstream capital expenditures to be approximately $45 million to $65 million, a 21% sequential increase, primarily due to the timing of the Pronto project, excluding Ameredev assets - Matador estimates Q3 2024 D/C/E capital expenditures to be approximately $330 million to $370 million, an 11% sequential increase[61] - Full-year 2024 D/C/E capital expenditures are expected to be at the midpoint to high end of the prior guidance range of $1.10 billion to $1.30 billion[61] - Q3 midstream capital expenditures are estimated at approximately $45 million to $65 million, a 21% sequential increase, primarily due to the timing of the Pronto project[61] - These capital expenditure estimates do not include capital expenditures associated with Ameredev assets[61] Estimated Cash Taxes Matador anticipates full-year 2024 cash tax payments to be approximately 5% to 10% of book net income before taxes, with actual payments subject to commodity prices, weather, tax deductions, legislative changes, the Ameredev transaction, and other acquisitions - Matador expects full-year 2024 cash tax payments to be approximately 5% to 10% of book net income before taxes[62] - Cash tax payments will be influenced by commodity prices, weather, tax deductions, legislative changes, the Ameredev transaction, and other acquisitions[62] Company Information & Forward-Looking Statements This section provides details on Matador's conference call, company overview, forward-looking statements, and investor contact information Conference Call Information Matador will host a conference call on Wednesday, July 24, 2024, at 10:00 AM CT to review Q2 2024 operational and financial results, accessible via the company website or a dedicated link, with a replay available for one year - The conference call will be held on Wednesday, July 24, 2024, at 10:00 AM CT[63] - Live and replay access is available via the 'Events and Presentations' page on the company's website, www.matadorresources.com[34](index=34&type=chunk)[63] About Matador Resources Company Matador is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the U.S., primarily focusing on the Wolfcamp and Bone Spring shales in the Delaware Basin, with additional operations in the Eagle Ford and Haynesville shales, and Cotton Valley plays - Matador is an independent energy company focused on the exploration, development, production, and acquisition of oil and natural gas resources in the U.S[35] - Primary operations are concentrated in the Wolfcamp and Bone Spring shales of the Delaware Basin, with additional operations in the Eagle Ford, Haynesville, and Cotton Valley plays[35] - The company also provides midstream services, including natural gas processing, oil transportation, oil and natural gas and produced water gathering, and produced water disposal services[35] Forward-Looking Statements This press release contains forward-looking statements regarding future events and business performance, including the completion and timing of the Ameredev acquisition, anticipated benefits, production guidance, and future liquidity, which are based on current expectations but may differ materially due to various risks and uncertainties - Forward-looking statements cover the completion and timing of the Ameredev acquisition, anticipated benefits, production guidance, future liquidity, dividend payments, and regulatory actions[37] - Actual results and future events may differ materially due to various risks and uncertainties, including the ability to complete acquisitions, commodity prices, ability to execute business plans, reserve replacement, operating costs, and regulatory approvals[37] - The company undertakes no obligation to update these forward-looking statements, and investors should not place undue reliance on them[37] Contact Information Investor Relations contact: Mac Schmitz, Senior Vice President - Investor Relations, Phone: (972) 371-5225, Email: investors@matadorresources.com - Investor Relations contact: Mac Schmitz, Senior Vice President - Investor Relations[38] - Contact phone: (972) 371-5225, email: investors@matadorresources.com[38] Selected Financial and Operating Items This section presents Matador Resources Company's key financial and operating metrics for Q2 2024, Q1 2024, and Q2 2023, including production, prices, revenues, expenses, and cash flows Key Financial and Operating Metrics This section provides selected financial and operating metrics for Matador Resources Company for Q2 2024, Q1 2024, and Q2 2023, covering net production, average daily production, average realized prices, revenues, operating expenses, and key financial data | Metric | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 2023 | |:---|:---|:---|:---| | Net Production: | | | | | Oil (MBbl) | 8,689 | 7,715 | 6,947 | | Natural Gas (Bcf) | 35.4 | 35.5 | 29.7 | | Total Oil Equivalent (MBOE) | 14,588 | 13,628 | 11,892 | | Average Daily Production: | | | | | Oil (Bbl/d) | 95,488 | 84,777 | 76,345 | | Natural Gas (MMcf/d) | 388.9 | 389.9 | 326.0 | | Total Oil Equivalent (BOE/d) | 160,305 | 149,760 | 130,683 | | Average Realized Prices: | | | | | Oil (Excluding Derivatives) (per Bbl) | $81.20 | $77.58 | $73.46 | | Natural Gas (Excluding Derivatives) (per Mcf) | $2.00 | $2.96 | $2.61 | | Revenue (Millions USD): | | | | | Oil and Natural Gas Revenue | $776.3 | $703.5 | $587.9 | | Third-Party Midstream Services Revenue | $32.7 | $32.4 | $30.1 | | Operating Expenses (per BOE): | | | | | Production Taxes, Transportation and Processing | $5.27 | $5.15 | $5.21 | | Lease Operating | $5.42 | $5.60 | $5.13 | | General and Administrative | $1.91 | $2.18 | $2.25 | | Other (Millions USD): | | | | | Net Income | $228.8 | $193.7 | $164.7 | | Diluted Earnings Per Share | $1.83 | $1.61 | $1.37 | | Adjusted Net Income | $255.9 | $206.2 | $170.1 | | Adjusted Diluted Earnings Per Share | $2.05 | $1.71 | $1.42 | | Adjusted EBITDA | $578.1 | $505.4 | $423.3 | | Net Cash Provided by Operating Activities | $592.9 | $468.6 | $449.0 | | Adjusted Free Cash Flow | $167.0 | $28.6 | $77.7 | | D/C/E Capital Expenditures | $314.5 | $350.7 | $309.6 | | Midstream Capital Expenditures | $45.3 | $79.3 | $11.7 | Condensed Consolidated Financial Statements (Unaudited) This section presents Matador's unaudited condensed consolidated financial statements, including balance sheets, statements of income, and statements of cash flows Condensed Consolidated Balance Sheets As of June 30, 2024, Matador's total assets increased to $8.518 billion from $7.727 billion on December 31, 2023, with a slight decrease in total liabilities and a significant increase in total stockholders' equity, reflecting an expanded asset base and improved financial position | Metric (Thousands USD) | June 30, 2024 | December 31, 2023 | |:---|:---|:---| | Assets: | | | | Total Current Assets | 738,440 | 715,872 | | Property and Equipment, Net | 7,677,788 | 6,956,441 | | Total Assets | 8,518,391 | 7,726,996 | | Liabilities and Stockholders' Equity: | | | | Total Current Liabilities | 856,541 | 685,275 | | Total Long-Term Liabilities | 2,806,245 | 2,914,033 | | Total Matador Resources Company Stockholders' Equity | 4,631,626 | 3,910,862 | | Noncontrolling Interests | 223,979 | 216,826 | | Total Stockholders' Equity | 4,855,605 | 4,127,688 | | Total Liabilities and Stockholders' Equity | 8,518,391 | 7,726,996 | Condensed Consolidated Statements of Income In Q2 2024, Matador's total revenue significantly increased to $847.1 million from $638.1 million in the prior year, with growth in both oil and natural gas revenue and third-party midstream services revenue, resulting in $228.8 million in net income and $1.83 diluted earnings per share | Metric (Thousands USD) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |:---|:---|:---| | Oil and Natural Gas Revenue | 776,279 | 587,917 | | Third-Party Midstream Services Revenue | 32,651 | 30,075 | | Sales of Purchased Natural Gas | 46,265 | 31,898 | | Gain (Loss) on Realized Derivatives | 3,770 | (3,148) | | Loss on Unrealized Derivatives | (11,829) | (8,659) | | Total Revenue | 847,136 | 638,083 | | Total Expenses | 483,516 | 385,815 | | Operating Income | 363,620 | 252,268 | | Income Tax Expense | 77,986 | 57,306 | | Net Income Attributable to Matador Resources Company Stockholders | 228,769 | 164,666 | | Diluted Earnings Per Share | 1.83 | 1.37 | Condensed Consolidated Statements of Cash Flows In Q2 2024, Matador's net cash provided by operating activities was $592.9 million, up from $449.0 million in the prior year, with cash outflows for investing activities primarily driven by D/C/E capital expenditures and acquisitions, and financing activities influenced by credit agreement borrowings and repayments | Metric (Thousands USD) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |:---|:---|:---| | Net Cash Provided by Operating Activities | 592,927 | 449,011 | | Net Cash Used in Investing Activities: | | | | Drilling, Completion and Equipment Capital Expenditures | (375,076) | (315,367) | | Ameredev Acquisition | (95,250) | — | | Oil and Natural Gas Asset Acquisitions | (53,846) | (32,034) | | Midstream Capital Expenditures | (52,115) | (18,730) | | Total Net Cash Used in Investing Activities | (576,832) | (1,895,267) | | Net Cash Used in Financing Activities | (26,518) | 1,008,666 | | Change in Cash and Restricted Cash | (10,423) | (437,590) | | Cash and Restricted Cash at End of Period | 63,903 | 65,838 | Supplemental Non-GAAP Financial Measures This section provides reconciliations and definitions for Matador's non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Diluted Common Share, and Adjusted Free Cash Flow Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure used to assess operational performance, excluding interest expense, income taxes, depreciation, amortization, accretion of asset retirement obligations, impairment of assets, unrealized derivative gains/losses, non-recurring transaction costs, non-cash equity compensation, and gains/losses on asset sales and impairments - Adjusted EBITDA is a non-GAAP financial measure used to assess operational performance, excluding the impact of financing methods or capital structure[44][86] - Defined as earnings before interest expense, income taxes, depreciation, amortization, accretion of asset retirement obligations, impairment of assets, unrealized derivative gains/losses, non-recurring transaction costs, non-cash equity compensation expense, and gains/losses on asset sales and impairments[44] Adjusted EBITDA – Matador Resources Company In Q2 2024, Matador Resources Company's adjusted EBITDA attributable to stockholders was $578.1 million, a significant increase from $505.4 million in the prior quarter and $423.3 million in the prior year, reflecting enhanced core business profitability | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Income Attributable to Matador Resources Company Stockholders | 228,769 | 193,729 | 164,666 | | Net Income | 247,527 | 213,190 | 177,095 | | Interest Expense | 35,986 | 39,562 | 34,229 | | Total Income Tax Expense | 77,986 | 66,778 | 57,306 | | Depreciation, Amortization and Depletion | 225,934 | 212,311 | 177,514 | | Accretion of Asset Retirement Obligations | 1,329 | 1,273 | 792 | | Unrealized Derivative Loss (Gain) | 11,829 | (2,075) | 8,659 | | Non-Cash Equity Compensation Expense | 2,974 | 2,838 | 3,931 | | Consolidated Adjusted EBITDA | 606,498 | 533,877 | 444,151 | | Adjusted EBITDA Attributable to Noncontrolling Interests | (28,425) | (28,507) | (20,900) | | Adjusted EBITDA Attributable to Matador Resources Company Stockholders | 578,073 | 505,370 | 423,251 | | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Cash Provided by Operating Activities | 592,927 | 468,562 | 449,011 | | Net Change in Operating Assets and Liabilities | (50,841) | 12,792 | (32,410) | | Interest Expense, Net of Non-Cash Portion | 31,044 | 34,918 | 32,172 | | Current Income Tax Expense (Benefit) | 30,104 | 17,272 | (4,929) | | Other Non-Cash and Non-Recurring Expenses | 3,264 | 333 | 307 | | Adjusted EBITDA Attributable to Noncontrolling Interests | (28,425) | (28,507) | (20,900) | | Adjusted EBITDA Attributable to Matador Resources Company Stockholders | 578,073 | 505,370 | 423,251 | Adjusted EBITDA – San Mateo (100%) San Mateo achieved $58.01 million in adjusted EBITDA in Q2 2024, slightly below $58.18 million in the prior quarter but significantly higher than $42.65 million in the prior year, demonstrating continued strong performance in its midstream operations | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Income | 38,285 | 39,718 | 25,365 | | Depreciation, Amortization and Depletion | 9,237 | 9,170 | 8,675 | | Interest Expense | 9,189 | 9,193 | 8,533 | | Accretion of Asset Retirement Obligations | 99 | 97 | 80 | | Non-Recurring Expenses | 1,200 | — | — | | Adjusted EBITDA | 58,010 | 58,178 | 42,653 | | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Cash Provided by Operating Activities | 48,052 | 54,005 | 17,326 | | Net Change in Operating Assets and Liabilities | (154) | (4,746) | 17,043 | | Interest Expense, Net of Non-Cash Portion | 8,912 | 8,919 | 8,284 | | Non-Recurring Expenses | 1,200 | — | — | | Adjusted EBITDA | 58,010 | 58,178 | 42,653 | Adjusted Net Income and Adjusted Earnings Per Diluted Common Share Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that provide a more relevant comparison of company performance by adjusting for items such as unrealized derivative gains/losses, asset impairment charges, and non-recurring transaction costs - Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that provide a more relevant comparison of performance by adjusting for unrealized derivative gains/losses, asset impairment charges, and non-recurring transaction costs[89] | Metric (Thousands USD, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Income Attributable to Matador Resources Company Stockholders | 228,769 | 193,729 | 164,666 | | Adjusted Net Income Attributable to Matador Resources Company Stockholders (Non-GAAP) | 255,915 | 206,199 | 170,052 | | Weighted Average Common Shares Outstanding - Diluted | 124,896 | 120,253 | 119,842 | | Adjusted Earnings Per Diluted Common Share Attributable to Matador Resources Company Stockholders (Non-GAAP) - Diluted | $2.05 | $1.71 | $1.42 | Adjusted Free Cash Flow Adjusted free cash flow is a non-GAAP financial measure that assesses the company's ability to manage operating cash flow, internally fund capital expenditures, pay dividends, and repay debt, calculated by adjusting net cash provided by operating activities for working capital changes, noncontrolling interest cash flows, and capital accruals - Adjusted free cash flow is a non-GAAP financial measure that assesses the company's ability to manage operating cash flow, internally fund capital expenditures, pay dividends, and repay debt[91] - This metric is calculated by adjusting net cash provided by operating activities for changes in working capital, noncontrolling interest cash flows, and capital accruals within capital expenditures[90] Adjusted Free Cash Flow - Matador Resources Company In Q2 2024, Matador Resources Company's adjusted free cash flow was $167.0 million, a substantial increase from $28.6 million in the prior quarter and $77.7 million in the prior year, demonstrating strong cash generation capabilities | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | Net Cash Provided by Operating Activities | 592,927 | 468,562 | 449,011 | | Net Change in Operating Assets and Liabilities | (50,841) | 12,792 | (32,410) | | San Mateo Distributable Cash Flow Attributable to Noncontrolling Interests | (23,470) | (24,137) | (16,841) | | Total Distributable Cash Flow | 527,366 | 458,717 | 399,760 | | Drilling, Completion and Equipment Capital Expenditures | 375,076 | 236,639 | 315,367 | | Midstream Capital Expenditures | 52,115 | 105,086 | 18,730 | | Net Change in Capital Accruals | (61,168) | 95,342 | (5,985) | | San Mateo Accrued Capital Expenditures Attributable to Noncontrolling Interests | (6,220) | (7,138) | (6,752) | | Total Accrued Capital Expenditures | 360,348 | 430,155 | 322,069 | | Adjusted Free Cash Flow | 167,018 | 28,562 | 77,691 | Adjusted Free Cash Flow - San Mateo (100%) In Q2 2024, San Mateo's adjusted free cash flow was $35.2 million, slightly above $34.7 million in the prior quarter and significantly higher than $20.6 million in the prior year, indicating healthy cash flow from its midstream operations | Metric (Thousands USD) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |:---|:---|:---|:---| | San Mateo Net Cash Provided by Operating Activities | 48,052 | 54,005 | 17,326 | | San Mateo Net Change in Operating Assets and Liabilities | (154) | (4,746) | 17,043 | | Total San Mateo Distributable Cash Flow | 47,898 | 49,259 | 34,369 | | San Mateo Capital Expenditures | 11,215 | 23,211 | 12,006 | | San Mateo Net Change in Capital Accruals | 1,479 | (8,644) | 1,774 | | San Mateo Accrued Capital Expenditures | 12,694 | 14,567 | 13,780 | | San Mateo Adjusted Free Cash Flow | 35,204 | 34,692 | 20,589 |