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Matador Resources Company Reports Second Quarter 2025 Results and Updates Full Year 2025 Guidance

DALLAS--(BUSINESS WIRE)-- Matador Resources Company (NYSE: MTDR) (鈥淢atador鈥� or the 鈥淐ompany鈥�) today reported financial and operating results for the second quarter of 2025. A slide presentation summarizing the highlights of Matador鈥檚 second quarter 2025 earnings release is also included on the Company鈥檚 website at on the Events and Presentations page under the Investor Relations tab.

Second Quarter 2025 Financial and Operational Highlights

• Record quarterly production of 209,013 barrels of oil and natural gas equivalent per day (鈥淏OE/d鈥�) including 122,875 barrels of oil per day (鈥淏bl/d鈥�);
• Matador鈥檚 integrated upstream and midstream business generated net cash provided by operating activities of $501 million and adjusted free cash flow of $133 million, representing an industry-leading free cash flow margin;
• Reconfirmation of April 2025 activity guidance with continued operational improvement demonstrated through better-than-expected drilling and completions costs of approximately $825 per completed lateral foot and lease operating expenses of $5.56 per BOE;
• San Mateo Midstream increased its processing capacity 38% from 520 million cubic feet of natural gas per day (鈥淢Mcf/d鈥�) to 720 MMcf/d with the startup of the recently completed Marlan Plant expansion;
• San Mateo Midstream delivered record quarterly net income of $66 million and record quarterly Adjusted EBITDA of $85.5 million;
• Resilient balance sheet with over $1.8 billion of liquidity and a leverage ratio of less than 1.0x as of June 30, 2025;
• Declared quarterly base dividend of $0.3125 per share, representing $1.25 per share on an annualized basis and a yield of approximately 2.5% as of July 21, 2025;
• Balanced allocation of free cash flow (post dividend payment) across share repurchases, brick-by-brick land acquisitions and repayment of credit facility;
• Repurchased 1.1 million shares of the Company鈥檚 common stock, or approximately 1% of total shares of common stock outstanding as of June 30, 2025, at an average price of $40.37 per share, compared to current share price of $49.86 per share as of July 21, 2025; and
• Matador not only anticipates 2025 full year production will be a record for annual production but also is increasing full year 2025 guidance range for total daily production from 198,000 鈥� 202,000 BOE/d to 200,000 鈥� 205,000 BOE/d.

Management Summary Comments

Joseph Wm. Foran, Matador鈥檚 Founder, Chairman and CEO, commented, 鈥淢atador is pleased to report our second quarter where we achieved record production alongside robust free cash flow (see Slide A and B). Throughout Matador鈥檚 40-year history, we have consistently pursued long-term value creation for our shareholders through prudent capital allocation, just as we continue to do today, so that our oil and natural gas production and our free cash flow can grow in tandem. Matador achieves this balanced growth through our integrated team approach across the drilling, completion, production and midstream teams. This integration allows us to profitably develop at a measured pace our over 200,000 net acre position in the Delaware Basin. Matador aims, with a conservative balance sheet, to use our free cash flow to return capital to our shareholders through dividends and share repurchases and to reinvest in our business through our brick-by-brick land acquisition strategy. In the second half of 2025 and into 2026, we expect to continue to increase our ten to 15 years of quality Delaware Basin inventory and to enhance our asset positions in our key asset areas to drive growth and profitability. Matador is excited about the growing upstream and midstream opportunities we can see ahead of us for our business going forward.鈥�

Upstream Operations Summary

Matador delivered record production in the second quarter of 2025 of 209,013 barrels of oil and natural gas equivalent per day including 122,875 barrels of oil per day. These results were above our guidance range for production volumes, and we achieved this record production through outperformance of both wells turned to sales this year and our pre-existing base production (see Slide C). Matador turned to sales 32 gross (22.8 net) operated wells during the second quarter of 2025. Matador鈥檚 reserve growth is expected to be generally consistent with its production growth.

In response to market and commodity price volatility in the beginning of the second quarter, Matador announced in April it would moderate its drilling activity in 2025. Following through with this announcement, Matador contractually released its ninth drilling rig earlier this summer and expects to operate eight drilling rigs by August 1, 2025. Despite this reduced rig activity, Matador plans to turn-to-sales record yearly lateral footage in 2025, which is accomplished by reduced drilling times, higher optimization of simul or trimul-frac and other operational and vendor efficiencies (see Slide D). The Matador team expects to continue to evaluate opportunities to adjust its operated rig count through the remainder of 2025 as it balances production and reserve growth with free cash flow generation for 2025, 2026 and beyond.

San Mateo Summary

San Mateo Midstream increased its processing capacity from 520 MMcf/d to 720 MMcf/d with the successful startup of the Marlan Plant expansion, which was delivered on-time and on-budget in May 2025, especially since the completion of the connector between the Black River and Marlan systems (see Slide E). The system continues to deliver flow assurance to both Matador and third-party producers. We believe the strategic value of this flow assurance contributes to Matador鈥檚 leading free cash flow margin and reduces commodity price volatility. Matador will continue to look for opportunities to highlight the ways this asset is creating value for Matador鈥檚 shareholders.

Financial Summary

Matador鈥檚 integrated upstream and midstream business generated net cash provided by operating activities of $501 million and adjusted free cash flow of $133 million during the second quarter of 2025.

Second quarter 2025 total capital expenditures of $402 million include $345 million of upstream capital expenditures and $56 million of midstream capital expenditures.

Second quarter 2025 net income was $150 million and Adjusted EBITDA was $594 million.

Cash operating costs, inclusive of LOE, production taxes, transportation and processing, plant and other midstream services operating and G&A for the second quarter of 2025 were $13.76 per BOE representing an approximate 13% reduction from first quarter 2025 cash operating costs of $15.84 per BOE.

During the second quarter of 2025, Matador repaid $15 million of credit facility borrowings, resulting in a total leverage ratio of less than 1.0x and liquidity of more than $1.8 billion in accordance with its previously disclosed projection that Matador would reduce leverage below 1.0x by the end of the second quarter of 2025 (see Slide F).

San Mateo Midstream delivered record quarterly net income of $66 million and record quarterly Adjusted EBITDA of $85.5 million in the second quarter, with both amounts being gross to the joint venture. Matador鈥檚 ownership of San Mateo is 51%.

Shareholder Returns Summary

Matador announced on July 15, 2025 that its Board of Directors declared a quarterly cash dividend of $0.3125 per share of common stock payable on September 5, 2025 to shareholders of record as of August 15, 2025. Matador鈥檚 base dividend represents an annualized yield of approximately 2.5% as of July 21, 2025.

During the second quarter of 2025, Matador repurchased 1.1 million shares of our common stock, or approximately 1% of the total shares of common stock outstanding as of June 30, 2025, at an average repurchase price of $40.37 per share (see Slide G). This represents $44 million of total shares repurchased under Matador鈥檚 $400 million share repurchase authorization. Matador expects to be opportunistic and active with regards to any future share repurchases while considering a variety of factors, including Matador鈥檚 share price, market conditions, trading volumes and other uses for Matador鈥檚 free cash flow.

In addition to Matador鈥檚 share repurchase program, over 95% of Matador employees have elected to participate in Matador鈥檚 Employee Stock Purchase Plan, or ESPP. Matador鈥檚 board, management and staff have long been active and regular purchasers of Matador鈥檚 shares in the open market. In fact, Matador鈥檚 directors and executive officers purchased an aggregate amount of 31,100 shares of Matador stock for $1.6 million during the second quarter of 2025 (see Slide H).

Sustainability Report

Matador has published its 2024 Sustainability Report to the Company鈥檚 website, and it is also available in paper copy upon request.

Closing Thoughts

Joseph Wm. Foran, Matador鈥檚 Founder, Chairman and CEO, commented, 鈥淢atador鈥檚 business model is well positioned to deliver superior free cash flow margin and oil production growth through the various commodity cycles. With a strong balance sheet, $1.8 billion in liquidity, a deep inventory of drilling locations and a growing and strategic midstream business, Matador believes it is ready and able to continue to increase its asset base, cash flow and shareholder value while maintaining a resilient balance sheet throughout the remainder of 2025 and beyond (see Slide I).鈥�

All references to Matador鈥檚 net income, adjusted net income, Adjusted EBITDA and adjusted free cash flow reported throughout this earnings release are those values attributable to Matador Resources Company shareholders after giving effect to any net income, adjusted net income, Adjusted EBITDA or adjusted free cash flow, respectively, attributable to third-party non-controlling interests, including in San Mateo. Matador owns 51% of San Mateo. For a definition of adjusted net income, adjusted earnings per diluted common share, Adjusted EBITDA and adjusted free cash flow and reconciliations of such non-GAAP financial metrics to their comparable GAAP metrics, please see 鈥淪upplemental Non-GAAP Financial Measures鈥� below.

Full-Year 2025 Guidance Update

Effective July 22, 2025, Matador increased its full-year 2025 guidance range for total oil and natural gas equivalent production, oil production and natural gas production as set forth in the table below. Notably, Matador is increasing its full-year 2025 production guidance ranges without changing its 2025 capital expenditure guidance, reflecting Matador鈥檚 improving capital efficiency.

Operational and Financial Update

Hedging Update

The following tables summarize Matador鈥檚 oil and natural gas hedges that were in place as of June 30, 2025.

Second Quarter 2025 Oil, Natural Gas and Total Oil and Natural Gas Equivalent Production

As summarized in the table below, Matador鈥檚 total oil and natural gas production averaged 209,013 BOE per day in the second quarter of 2025, which was a 30% year-over-year increase from an average of 160,305 BOE per day in the second quarter of 2024. The better-than-expected oil and natural gas production was primarily due to the continued outperformance of acquired properties from previous years and wells that were turned to sales in the fourth quarter of 2024.

Second Quarter 2025 AG真人官方ized Commodity Prices

The following table summarizes Matador鈥檚 realized commodity prices during the second quarter of 2025, as compared to the first quarter of 2025 and the second quarter of 2024.

Second Quarter 2025 Financial Highlights

The following table summarizes Matador鈥檚 financial highlights during the second quarter of 2025, as compared to the first quarter of 2025 and the second quarter of 2024.

Second Quarter 2025 Capital Expenditures

Matador鈥檚 drilling, completing and equipping (鈥淒/C/E鈥�) capital expenditures for the second quarter of 2025 were $345.3 million, which was 4% below the midpoint of Matador鈥檚 expected range of $330 to $390 million. These lower capital expenditures are primarily due to capital and operational efficiency initiatives. Midstream capital expenditures of $56.2 million for the second quarter of 2025 were below Matador鈥檚 expected range of $60 to $90 million in total midstream capital expenditures for the quarter due to timing of costs incurred for the Marlan Plant expansion that was put in service in May 2025 and the associated gas gathering system.

Midstream Update

San Mateo鈥檚 operations in the second quarter of 2025 were highlighted by better-than-expected operating and financial results including record quarterly net income of $66 million and an all-time high quarterly Adjusted EBITDA of $85.5 million. The table below sets forth San Mateo鈥檚 throughput volumes for the second quarter of 2025, as compared to the first quarter of 2025 and second quarter of 2024. San Mateo鈥檚 natural gas processing capacity increased to 720 MMcf per day from its previous 520 MMcf per day upon completion of the Marlan Plant expansion during the second quarter of 2025, which contributed to record natural gas processing volumes for the quarter.

Third Quarter 2025 Estimates

Third Quarter 2025 Estimated Oil, Natural Gas and Total Oil Equivalent Production Growth

As noted in the table below, Matador anticipates its average daily oil equivalent production of 209,013 BOE per day in the second quarter of 2025 to decline slightly to a midpoint of approximately 199,750 BOE per day in the third quarter of 2025 before increasing again in the fourth quarter of 2025. The decline in quarterly record production from the second quarter of 2025 to the third quarter of 2025 is due to larger batches of wells being co-developed, which creates unevenness in quarterly production. Approximately 50 net operated wells were turned to sales in the latter half of the first quarter and the first half of the second quarter of 2025.

Third Quarter 2025 Estimated Wells Turned to Sales

At July 22, 2025, Matador expects to turn to sales 28 to 32 net operated horizontal wells in the Delaware Basin during the third quarter of 2025. Approximately 60 to 65% of these wells are expected to be in the Antelope Ridge asset area in Lea County, New Mexico. The remaining wells are in the Ranger asset area in Lea County, New Mexico and in the Rustler Breaks and Arrowhead asset areas in Eddy County, New Mexico. Approximately two-thirds of the operated wells expected to be turned to sales in the third quarter are in the second half of the quarter and, as a result, do not contribute to production in the full third quarter of 2025.

Third Quarter 2025 Estimated Capital Expenditures

Matador expects D/C/E capital expenditures for the third quarter of 2025 will be approximately $300 to $370 million, which is a 3% decrease as compared to $345.3 million for the second quarter of 2025, primarily due the reduction in operated rig activity announced in April. Matador expects its proportionate share of midstream capital expenditures will be approximately $25 to $55 million in the third quarter of 2025, which is a 29% decrease as compared to $56.2 million in the second quarter of 2025. Matador expects both D/C/E and midstream capital expenditures to be lower in the second half of the year, primarily due to the reduced pace of activity and increased capital efficiency noted above.

Improved Estimate and Outlook for Cash Taxes in 2025 and Beyond

On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (the 鈥淥BBBA鈥�). The OBBBA makes permanent, extends or modifies certain provisions under the 2017 Tax Cuts and Jobs Act, among other things. As a result, Matador is lowering its expected cash tax payments from a range of 5 to 10% of pre-tax book net income to a range of 0 to 5% of pre-tax book net income for the year ending December 31, 2025. Matador expects to recognize the benefit of the OBBBA in its financial statements for the third quarter of 2025, the quarter in which the law was enacted.

In addition, as a result of these OBBBA provisions, Matador does not expect to be subject to the Corporate Alternative Minimum Tax in 2026. Matador鈥檚 cash tax payments for 2026 will be dependent upon a variety of factors that will impact taxable income, including oil and natural gas prices, allowable deductions and any legislative changes thereon, and any tax credits generated that would offset tax liabilities in future years.

Second Quarter 2025 Earnings Conference Call

The Company will host a live conference call on Wednesday, July 23, 2025, at 10:00 a.m. Central Time to review its second quarter 2025 financial results and operational highlights. To access the live conference call by phone, you can use the following link and you will be provided with dial in details. To avoid delays, it is recommended that participants dial into the conference call 15 minutes ahead of the scheduled start time.

The live conference call will also be available through the Company鈥檚 website at on the Events and Presentations page under the Investor Relations tab. The replay for the event will be available on the Company鈥檚 website at on the Events and Presentations page under the Investor Relations tab for one year.

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 United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.

For more information, visit Matador Resources Company at .

Forward-Looking Statements

This press release includes 鈥渇orward-looking statements鈥� within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 鈥淔orward-looking statements鈥� are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as 鈥渃ould,鈥� 鈥渂elieve,鈥� 鈥渨ould,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渃ontinue,鈥� 鈥減lan,鈥� 鈥減redict,鈥� 鈥減otential,鈥� 鈥減roject,鈥� 鈥渉ypothetical,鈥� 鈥渇orecasted鈥� and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, the amount and timing of share repurchases, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, disruption from Matador鈥檚 acquisitions or dispositions making it more difficult to maintain business and operational relationships; significant transaction costs associated with Matador鈥檚 acquisitions or dispositions; the risk of litigation and/or regulatory actions related to Matador鈥檚 acquisitions or dispositions, as well as the following risks related to financial and operational performance: general economic conditions; Matador鈥檚 ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of Matador鈥檚 midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on Matador鈥檚 operations due to seismic events; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, capital markets, available borrowing capacity under its revolving credit facilities and otherwise; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; the impact of OBBBA; and the other factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador鈥檚 filings with the Securities and Exchange Commission (鈥淪EC鈥�), including the 鈥淩isk Factors鈥� section of Matador鈥檚 most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Selected Financial and Operating Items

Sequential and year-over-year quarterly comparisons of selected financial and operating items are shown in the following table:

Supplemental Non-GAAP Financial Measures

Adjusted EBITDA

This press release includes the non-GAAP financial measure of Adjusted EBITDA. Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company鈥檚 consolidated financial statements, such as securities analysts, investors, lenders and rating agencies. 鈥淕AAP鈥� means Generally Accepted Accounting Principles in the United States of America. The Company believes Adjusted EBITDA helps it evaluate its operating performance and compare its results of operations from period to period without regard to its financing methods or capital structure. The Company defines, on a consolidated basis and for San Mateo, Adjusted EBITDA as earnings before interest expense, income taxes, depletion, depreciation and amortization, accretion of asset retirement obligations, property impairments, unrealized derivative gains and losses, non-recurring transaction costs for certain acquisitions, certain other non-cash items and non-cash stock-based compensation expense and net gain or loss on asset sales and impairment. Adjusted EBITDA is not a measure of net income or net cash provided by operating activities as determined by GAAP. All references to Matador鈥檚 Adjusted EBITDA are those values attributable to Matador Resources Company shareholders after giving effect to Adjusted EBITDA attributable to third-party non-controlling interests, including in San Mateo.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or net cash provided by operating activities as determined in accordance with GAAP or as an indicator of the Company鈥檚 operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components of understanding and assessing a company鈥檚 financial performance, such as a company鈥檚 cost of capital and tax structure. Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner. The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income and net cash provided by operating activities, respectively, that are of a historical nature. Where references are pro forma, forward-looking, preliminary or prospective in nature, and not based on historical fact, the table does not provide a reconciliation. The Company could not provide such reconciliation without undue hardship because such Adjusted EBITDA numbers are estimations, approximations and/or ranges. In addition, it would be difficult for the Company to present a detailed reconciliation on account of many unknown variables for the reconciling items, including future income taxes, full-cost ceiling impairments, unrealized gains or losses on derivatives and gains or losses on asset sales and impairment. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Adjusted EBITDA 鈥� Matador Resources Company

Adjusted EBITDA 鈥� San Mateo (100%)

Adjusted Net Income and Adjusted Earnings Per Diluted Common Share

This press release includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net income attributable to Matador Resources Company shareholders, adjusted for dollar and per share impact of certain items, including unrealized gains or losses on derivatives, the impact of full cost-ceiling impairment charges, if any, and non-recurring transaction costs for certain acquisitions or other non-recurring income or expense items, along with the related tax effect for all periods. This non-GAAP financial information is provided as additional information for investors and is not in accordance with, or an alternative to, GAAP financial measures. Additionally, these non-GAAP financial measures may be different than similar measures used by other companies. The Company believes the presentation of adjusted net income and adjusted earnings per diluted common share provides useful information to investors, as it provides them an additional relevant comparison of the Company鈥檚 performance across periods and to the performance of the Company鈥檚 peers. In addition, these non-GAAP financial measures reflect adjustments for items of income and expense that are often excluded by securities analysts and other users of the Company鈥檚 financial statements in evaluating the Company鈥檚 performance. The table below reconciles adjusted net income and adjusted earnings per diluted common share to their most directly comparable GAAP measure of net income attributable to Matador Resources Company shareholders.

Adjusted Free Cash Flow

This press release includes the non-GAAP financial measure of adjusted free cash flow. This non-GAAP item is measured, on a consolidated basis for the Company and for San Mateo, as net cash provided by operating activities, adjusted for changes in working capital and cash performance incentives that are not included as operating cash flows, less cash flows used for capital expenditures, adjusted for changes in capital accruals. On a consolidated basis, these numbers are also adjusted for the cash flows related to non-controlling interest in subsidiaries that represent cash flows not attributable to Matador shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or an indicator of the Company鈥檚 liquidity. Adjusted free cash flow is used by the Company, securities analysts and investors as an indicator of the Company鈥檚 ability to manage its operating cash flow, internally fund its D/C/E capital expenditures, pay dividends and service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. Additionally, this non-GAAP financial measure may be different than similar measures used by other companies. The Company believes the presentation of adjusted free cash flow provides useful information to investors, as it provides them an additional relevant comparison of the Company鈥檚 performance, sources and uses of capital associated with its operations across periods and to the performance of the Company鈥檚 peers. In addition, this non-GAAP financial measure reflects adjustments for items of cash flows that are often excluded by securities analysts and other users of the Company鈥檚 financial statements in evaluating the Company鈥檚 cash spend.

The table below reconciles adjusted free cash flow to its most directly comparable GAAP measure of net cash provided by operating activities. All references to Matador鈥檚 adjusted free cash flow are those values attributable to Matador shareholders after giving effect to adjusted free cash flow attributable to third-party non-controlling interests, including in San Mateo.

Adjusted Free Cash Flow - Matador Resources Company