Matador Resources Q2 Earnings Beat on Higher Production Volumes

Core Insights - Matador Resources Company (MTDR) reported second-quarter 2025 adjusted earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.29, but down from $2.05 in the same quarter last year [1][9] - Total revenues reached $895.3 million, falling short of the Zacks Consensus Estimate of $905 million, yet showing an increase from $847.1 million year-over-year [1] Production Performance - The company's record total production volumes and lower operating expenses contributed to better-than-expected quarterly earnings, although these were partially offset by lower commodity price realizations [2] - Average daily oil production was 122,875 barrels, a 0.4% increase from anticipated figures, and significantly higher than 95,488 barrels per day in the prior-year quarter [4][6] - Total oil equivalent production in Q2 was 209,013 BOE/D, reflecting a 30.4% increase from 160,305 BOE/D in the year-ago quarter [7] Commodity Pricing - The average sales price for oil was $64.34 per barrel, down from $81.20 a year ago and lower than the projected $65.55 [5] - Natural gas price was $2.05 per thousand cubic feet (Mcf), up from $2 in the year-ago quarter but below the estimate of $3.28 [5] Operating Expenses - Operating expenses per BOE decreased to $29.91 from $30.64 in the prior year, also below the estimate of $30.54 [10] - Plant and midstream services' operating expenses fell to $2.40 per BOE from $2.55, while lease operating costs increased to $5.56 per BOE from $5.42 [8][10] Financial Position - As of June 30, 2025, MTDR had cash and restricted cash of $86.8 million and long-term debt of $3,286 million [11] - The company spent $367.1 million on well drilling, completion, and equipment in the second quarter [11] Future Outlook - For 2025, Matador Resources expects average daily oil equivalent production to be between 200,000-205,000 BOE/D, indicating a 1.3% increase from previous guidance [12] - The company has reiterated its total capital expenditure forecast for 2025 at $1.30-$1.55 billion [12]