Matador Resources(MTDR)2025-02-19 19:53Financial 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 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 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 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 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 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]