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1. Company Snapshot

1.a. Company Description

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States.It operates through two segments, Exploration and Production; and Midstream.The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.


It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana.In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties.As of December 31, 2021, its estimated total proved oil and natural gas reserves were 323.4 million barrels of oil equivalent, including 181.3 million stock tank barrels of oil and 852.5 billion cubic feet of natural gas.


The company was formerly known as Matador Holdco, Inc.and changed its name to Matador Resources Company in August 2011.Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.

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1.b. Last Insights on MTDR

Breaking News: Matador Resources Company reported its Q4 earnings on March 2, 2026, beating estimates on the back of higher production volumes. The company's results were boosted by stronger production and slightly lower costs. However, lower oil prices and a year-over-year profit decline tempered the results. The company's Q4 earnings and revenues surpassed expectations. Some analysts recommend a buy, while others advise to hold. The recent earnings release showed a mixed bag, with both positive and negative trends. Analysts at various firms have given recommendations.

1.c. Company Highlights

2. Matador Resources' Strong Q4 2025 Earnings: A Closer Look

Matador Resources reported a robust financial performance for the fourth quarter and full year 2025, with revenues increasing significantly due to its strong operational execution. The company's actual EPS came out at $0.87, beating estimates of $0.71. The strong earnings were driven by a combination of factors, including a 2-3% increase in organic oil volumes and a 25% reduction in cost per foot, as highlighted by Tom Elsener, EVP for Reservoir Engineering. The company's net income and cash flow from operations also showed significant improvement, underscoring the effectiveness of its operational and financial management strategies.

Publication Date: Feb -26

📋 Highlights
  • Strong Balance Sheet & Debt Reduction: Matador reduced leverage ratio to 1, paying down $200 million in debt in 2025.
  • Reserve Growth: Achieved 9% year-over-year reserve increase, driven by inventory improvements in Delaware Basin.
  • CapEx Efficiency: Forecasted $130 million in 2026 CapEx savings, with 10% well cost reductions and 20% completion efficiency gains.
  • D&C Cost Per Foot Decline: Reduced drilling and completion (D&C) cost per foot to $7.95, a 25% improvement year-over-year.
  • Midstream Value & Flow Assurance: Increased borrowing base from bank group and enhanced midstream capacity through San Mateo collaboration.

Operational Highlights and Guidance

The company's operational performance was marked by notable achievements, including the successful acquisition of new acreage and improvements in well productivity. The management team expressed optimism about the year ahead, citing the potential for further growth and the benefits of its midstream entity, San Mateo, in ensuring flow assurance and reducing costs. For 2026, the company is targeting free cash flow over production growth, with plans to achieve $130 million in CapEx savings and 10% improvements in well costs.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 11.7%, indicating a positive outlook for the company's future performance. With a current P/E Ratio of 8.14 and an EV/EBITDA ratio of 3.4, the stock appears to be reasonably valued. Additionally, the company's Free Cash Flow Yield of 13.4% and ROIC of 10.97% suggest a strong potential for returns. The Net Debt / EBITDA ratio of 0.86 indicates a healthy balance sheet, further supporting the company's growth prospects.

Strategic Focus and Future Plans

Matador Resources is focused on building a solid foundation with good acreage, long-term reserve growth, and capital efficiency. The company is also exploring new opportunities, including the Woodford play, and is working to protect its balance sheet while pursuing good deals. With its strong operational and financial performance, the company is well-positioned for future growth and is expected to continue delivering value to its shareholders.

3. NewsRoom

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Oil Rally Is Temporary - Sell Most Of These Oil Stocks

Mar -03

Source: seekingalpha.com

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MTDR Q4 Earnings & Revenues Beat on Higher Production Volumes

Mar -02

Source: zacks.com

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Matador's Results Were Better Than Feared, But 2026 Headwinds Still Matter

Feb -27

Source: marketbeat.com

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Matador Resources Company Prices Offering of $750 Million of Senior Notes Due 2034

Feb -26

Source: businesswire.com

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Matador Resources Company Announces Cash Tender Offer for Any and All of Its Outstanding 6.875% Senior Notes Due 2028

Feb -26

Source: businesswire.com

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Matador Resources Company (MTDR) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Matador Resources (MTDR) Q4 Earnings and Revenues Top Estimates

Feb -25

Source: zacks.com

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Matador Resources Company Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Operating Plan and Market Guidance

Feb -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.08%)

6. Segments

Exploration and Production

Expected Growth: 8%

Matador Resources Company's Exploration and Production segment growth is driven by increased oil and natural gas production, strategic acreage acquisitions, and improved operational efficiencies. Additionally, the company's focus on the Permian Basin, a region with high oil and gas reserves, contributes to its growth. Furthermore, Matador's hedging strategy and strong balance sheet enable it to capitalize on favorable market conditions, supporting its 8% growth rate.

Midstream

Expected Growth: 9%

Matador Resources Company's midstream segment growth is driven by increasing crude oil and natural gas production, strategic acquisitions, and expansion of gathering and transportation infrastructure. Additionally, the company's focus on operational efficiency, cost savings, and strong relationships with customers contribute to its 9% growth rate.

Consolidations and Eliminations

Expected Growth: 7%

Matador Resources Company's 7% growth is driven by strategic consolidations and eliminations, enhancing operational efficiency and reducing costs. Key drivers include increased oil production, improved well costs, and optimized drilling and completion activities. Additionally, the company's focus on high-return projects, disciplined capital allocation, and strong balance sheet management contribute to its growth momentum.

7. Detailed Products

Oil

Matador Resources Company is an independent oil and natural gas company engaged in the exploration, development, and production of oil and natural gas resources in the United States.

Natural Gas

Matador Resources Company explores, develops, and produces natural gas resources in the United States, with a focus on the Permian Basin and the Eagle Ford Shale.

Natural Gas Liquids (NGLs)

Matador Resources Company produces NGLs, including ethane, propane, and butane, as a byproduct of its natural gas production.

Crude Oil Midstream Services

Matador Resources Company provides midstream services, including crude oil gathering, transportation, and storage, to support its oil production operations.

8. Matador Resources Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Matador Resources Company operates in the oil and gas industry, which has few substitutes. However, the increasing adoption of renewable energy sources and electric vehicles poses a moderate threat to the company's operations.

Bargaining Power Of Customers

Matador Resources Company's customers, primarily oil and gas refineries, have limited bargaining power due to the company's diversified customer base and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Matador Resources Company's suppliers, primarily oilfield service companies, have moderate bargaining power due to the company's dependence on their services and the limited number of suppliers in the market.

Threat Of New Entrants

The threat of new entrants in the oil and gas industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Matador Resources Company faces intense rivalry from its peers, which can lead to downward pressure on prices and profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.46%
Debt Cost 7.57%
Equity Weight 63.54%
Equity Cost 20.57%
WACC 15.83%
Leverage 57.38%

11. Quality Control: Matador Resources Company passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Permian Resources

A-Score: 6.4/10

Value: 7.7

Growth: 7.8

Quality: 6.9

Yield: 6.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Magnolia Oil & Gas

A-Score: 6.0/10

Value: 6.1

Growth: 6.6

Quality: 7.7

Yield: 5.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Matador Resources

A-Score: 5.9/10

Value: 8.5

Growth: 8.8

Quality: 7.5

Yield: 4.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
SM Energy

A-Score: 5.2/10

Value: 9.6

Growth: 5.7

Quality: 6.6

Yield: 5.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Crescent Energy

A-Score: 5.2/10

Value: 7.5

Growth: 4.2

Quality: 5.0

Yield: 9.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Chesapeake Energy

A-Score: 5.0/10

Value: 5.1

Growth: 1.6

Quality: 6.1

Yield: 8.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

53.5$

Current Price

53.5$

Potential

-0.00%

Expected Cash-Flows