Matador Resources Company Reports Second Quarter 2025 Results and Updates Full Year 2025 Guidance
DALLAS–(BUSINESS WIRE)–Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today reported financial and operating results for the second quarter of 2025. A slide presentation summarizing the highlights of Matador’s second quarter 2025 earnings release is also included on the Company’s website at www.matadorresources.com 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 (“BOE/d”) including 122,875 barrels of oil per day (“Bbl/d”);
- Matador’s 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 (“MMcf/d”) 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’s 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 – 202,000 BOE/d to 200,000 – 205,000 BOE/d.
Management Summary Comments
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “Matador is pleased to report our second quarter where we achieved record production alongside robust free cash flow (see Slide A and B). Throughout Matador’s 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.”
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’s 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’s 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’s shareholders.
Financial Summary
Matador’s 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’s 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’s 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’s $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’s share price, market conditions, trading volumes and other uses for Matador’s free cash flow.
In addition to Matador’s share repurchase program, over 95% of Matador employees have elected to participate in Matador’s Employee Stock Purchase Plan, or ESPP. Matador’s board, management and staff have long been active and regular purchasers of Matador’s shares in the open market. In fact, Matador’s 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’s website, and it is also available in paper copy upon request.
Closing Thoughts
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “Matador’s 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).”
All references to Matador’s 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 “Supplemental Non-GAAP Financial Measures” 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’s improving capital efficiency.
|
Production |
Prior Full-Year 2025 Guidance Range |
New Full-Year 2025 Guidance Range |
Difference(1) |
|
Total, BOE per day |
198,000 to 202,000 |
200,000 to 205,000 |
+1.3% |
|
Oil, Bbl per day |
117,000 to 119,000 |
117,500 to 119,500 |
+0.4% |
|
Natural Gas, MMcf per day |
486 to 498 |
495 to 513 |
+2.4% |
|
D/C/E CapEx(2) |
$1.18 to $1.37 billion |
$1.18 to $1.37 billion |
No Change |
|
Midstream CapEx(3) |
$120 to $180 million |
$120 to $180 million |
No Change |
|
Total CapEx |
$1.30 to $1.55 billion |
$1.30 to $1.55 billion |
No Change |
|
|
|
|
|
|
(1) The midpoint of guidance as updated on July 22, 2025 as compared to the midpoint of guidance provided on April 23, 2025. (2) Capital expenditures associated with drilling, completing and equipping wells. (3) Includes Matador’s share of estimated capital expenditures for San Mateo and other wholly-owned midstream projects. |
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Operational and Financial Update
Hedging Update
The following tables summarize Matador’s oil and natural gas hedges that were in place as of June 30, 2025.
|
Oil Costless Collars |
Volume Hedged (Bbl per day) |
Weighted Average Price Floor ($/Bbl) |
Weighted Average Price Ceiling ($/Bbl) |
|
H2 2025 |
70,000 |
$52 |
$77 |
|
Natural Gas Costless Collars |
Volume Hedged (MMcf per day) |
Weighted Average Price Floor ($/MMBtu) |
Weighted Average Price Ceiling ($/MMBtu) |
|
2026 |
150.0 |
$3.50 |
$6.70 |
|
Waha Basis Differential Swaps |
Volume Hedged (MMcf per day) |
Weighted Average Swap Price ($/MMBtu) |
|
|
2025 |
30.0 |
-$0.59 |
|
|
2026 |
150.0 |
-$2.52 |
Second Quarter 2025 Oil, Natural Gas and Total Oil and Natural Gas Equivalent Production
As summarized in the table below, Matador’s 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.
|
Production |
Q2 2025 Average Daily Volume |
Q2 2025 Guidance Range(1) |
Difference(2) |
Sequential(3) |
YoY(4) |
|
Total, BOE per day |
209,013 |
206,000 to 208,000 |
+1% Better than Guidance |
+5% |
+30% |
|
Oil, Bbl per day |
122,875 |
121,500 to 122,500 |
+1% Better than Guidance |
+7% |
+29% |
|
Natural Gas, MMcf per day |
516.8 |
507.0 to 513.0 |
+1% Better than Guidance |
+3% |
+33% |
|
|
|
|
|
|
|
|
(1) Production range previously projected, as provided on April 23, 2025. (2) As compared to midpoint of guidance provided on April 23, 2025. (3) Represents sequential percentage change from the first quarter of 2025. (4) Represents year-over-year percentage change from the second quarter of 2024. |
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Second Quarter 2025 Realized Commodity Prices
The following table summarizes Matador’s realized commodity prices during the second quarter of 2025, as compared to the first quarter of 2025 and the second quarter of 2024.
|
|
Sequential (Q2 2025 vs. Q1 2025) |
|
YoY (Q2 2025 vs. Q2 2024) |
||||||||
|
Realized Commodity Prices |
Q2 2025 |
|
Q1 2025 |
|
Sequential Change(1) |
|
Q2 2025 |
|
Q2 2024 |
|
YoY Change(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Prices, per Bbl |
$64.34 |
|
$72.38 |
|
-11% |
|
$64.34 |
|
$81.20 |
|
-21% |
|
Natural Gas Prices, per Mcf |
$2.05 |
|
$3.56 |
|
-42% |
|
$2.05 |
|
$2.00 |
|
+3% |
|
(1) Second quarter 2025 as compared to first quarter 2025. (2) Second quarter 2025 as compared to second quarter 2024. |
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Second Quarter 2025 Financial Highlights
The following table summarizes Matador’s financial highlights during the second quarter of 2025, as compared to the first quarter of 2025 and the second quarter of 2024.
|
|
Sequential (Q2 2025 vs. Q1 2025) |
|
YoY (Q2 2025 vs. Q2 2024) |
||||||||||||
|
(In millions, except per share data) |
Q2 2025 |
|
Q1 2025 |
|
Sequential Change(1) |
|
Q2 2025 |
|
Q2 2024 |
|
YoY Change(2) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income(3) |
$ |
150.2 |
|
$ |
240.1 |
|
-37% |
|
$ |
150.2 |
|
$ |
228.8 |
|
-34% |
|
Earnings per common share (diluted)(3) |
$ |
1.21 |
|
$ |
1.92 |
|
-37% |
|
$ |
1.21 |
|
$ |
1.83 |
|
-34% |
|
Adjusted net income(3) |
$ |
190.9 |
|
$ |
249.3 |
|
-23% |
|
$ |
190.9 |
|
$ |
255.9 |
|
-25% |
|
Adjusted earnings per common share (diluted)(3) |
$ |
1.53 |
|
$ |
1.99 |
|
-23% |
|
$ |
1.53 |
|
$ |
2.05 |
|
-25% |
|
Adjusted EBITDA(3) |
$ |
594.2 |
|
$ |
644.2 |
|
-8% |
|
$ |
594.2 |
|
$ |
578.1 |
|
+3% |
|
Net cash provided by operating activities(4) |
$ |
501.0 |
|
$ |
727.9 |
|
-31% |
|
$ |
501.0 |
|
$ |
592.9 |
|
-17% |
|
Adjusted free cash flow(3) |
$ |
132.7 |
|
$ |
141.9 |
|
-7% |
|
$ |
132.7 |
|
$ |
167.0 |
|
-21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
San Mateo net income(5) |
$ |
65.6 |
|
$ |
45.2 |
|
+45% |
|
$ |
65.6 |
|
$ |
38.3 |
|
+71% |
|
San Mateo Adjusted EBITDA(5) |
$ |
85.5 |
|
$ |
60.4 |
|
+42% |
|
$ |
85.5 |
|
$ |
58.0 |
|
+47% |
|
(1) Second quarter 2025 as compared to first quarter 2025. (2) Second quarter 2025 as compared to second quarter 2024. (3) Attributable to Matador Resources Company shareholders. (4) As reported for each period on a consolidated basis, including 100% of San Mateo’s net cash provided by operating activities. (5) Represents 100% of San Mateo’s net income, Adjusted EBITDA, net cash provided by operating activities or adjusted free cash flow for each period reported. |
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Second Quarter 2025 Capital Expenditures
Matador’s drilling, completing and equipping (“D/C/E”) capital expenditures for the second quarter of 2025 were $345.3 million, which was 4% below the midpoint of Matador’s 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’s expected range of $60 to $90 million in total midstream capital expenditures for the quarter due to timing of costs incurred for the Marlan Plant expansion that was put in service in May 2025 and the associated gas gathering system.
|
Q2 2025 Capital Expenditures ($ millions) |
Actual |
Guidance(1) |
Difference vs. Guidance(2) |
|
D/C/E |
$345.3 |
$360.0 |
-4% |
|
Midstream |
$56.2 |
$75.0 |
-25% |
|
(1) Midpoint of guidance as provided on April 23, 2025. (2) As compared to the midpoint of guidance provided on April 23, 2025. |
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Midstream Update
San Mateo’s 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’s throughput volumes for the second quarter of 2025, as compared to the first quarter of 2025 and second quarter of 2024. San Mateo’s 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.
|
|
|
Sequential (Q2 2025 vs. Q1 2025) |
|
YoY (Q2 2025 vs. Q2 2024) |
||||||||
|
San Mateo Throughput Volumes |
|
Q2 2025 |
|
Q1 2025 |
|
Sequential Change(1) |
|
Q2 2025 |
|
Q2 2024 |
|
Change(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas gathering, MMcf per day |
|
491 |
|
470 |
|
+4% |
|
491 |
|
393 |
|
+25% |
|
Natural gas processing, MMcf per day |
|
486 |
|
456 |
|
+7% |
|
486 |
|
355 |
|
+37% |
|
Oil gathering and transportation, Bbl per day |
|
50,300 |
|
48,800 |
|
+3% |
|
50,300 |
|
46,300 |
|
+9% |
|
Produced water handling, Bbl per day |
|
414,400 |
|
420,800 |
|
-2 % |
|
414,400 |
|
429,800 |
|
-4 % |
|
(1) Second quarter 2025 as compared to first quarter 2025. (2) Second quarter 2025 as compared to second quarter 2024. |
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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.
|
|
Q2 and Q3 2025 Production Comparison |
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|
Period |
Average Daily Total Production, BOE per day |
Average Daily Oil Production, Bbl per day |
Average Daily Natural Gas Production, MMcf per day |
% Oil |
|
Q2 2025 |
209,013 |
122,875 |
516.8 |
59% |
|
Q3 2025E |
198,500 to 201,000 |
116,500 to 118,000 |
492.0 to 498.0 |
59% |
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 “OBBBA”). 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’s 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 https://register-conf.media-server.com/register/BI5cabb52f24cf496aa14cb36e45fefe1c 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’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab. The replay for the event will be available on the Company’s website at www.matadorresources.com 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 www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” 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. “Forward-looking statements” 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 “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.
Contacts
Mac Schmitz
Senior Vice President – Investor Relations
(972) 371-5225
investors@matadorresources.com
