Matador Resources Q1 Earnings & Revenues Beat on Higher Production

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]