DALLAS–(BUSINESS WIRE)–Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today reported financial and operating results for the third quarter of 2025 and updated full-year 2025 guidance. A slide presentation summarizing the highlights of Matador’s third 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.
Management Summary Comments
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “Last week we were pleased to announce yet another per share cash dividend increase from $1.25 to $1.50 per year. This dividend is to be paid proportionally each quarter. For the record, Matador’s Board of Directors has already raised the dividend once this year and, with this raise, Matador’s Board raised the dividend seven times in four years. The Board’s decision to increase the dividend at this time is based on our positive outlook for the Company going forward, including Matador’s strong liquidity position, free cash flow generation, further growth in our midstream asset, and the growing number of engineered inventory locations for drilling.
In addition to the increased dividend, as of October 21, 2025, Matador has repurchased 1.3 million of its outstanding shares for approximately $55 million (a weighted average price of approximately $41 per share). Matador’s overall growth and financial progress was recently highlighted in The Dallas Morning News’ listing of the top 150 publicly-traded companies in Dallas-Fort Worth (DFW) by 2024 revenue across all industries. Matador was ranked 36th this year, advancing 11 places from last year’s ranking of 47th. In fact, Matador has now grown to be the largest publicly-traded exploration and production company in DFW by revenue and the most profitable public company per employee in 2024 among the top 50 public companies in the DFW area.”
Third Quarter 2025 Financial and Operational Highlights
Matador is pleased to report today:
- Record production of 209,184 barrels of oil and natural gas equivalent (“BOE”) per day for the quarter, which exceeded the midpoint of July 2025 guidance of 199,750 BOE per day by 5%, which was a 22% year-over-year gain in production from the third quarter of 2024;
- Oil production of 119,556 barrels per day for the quarter, which exceeded the midpoint of July 2025 guidance of 117,250 barrels per day by 2%, which was a 19% year-over-year gain in production from the third quarter of 2024;
- Record quarterly natural gas production of 537.8 million cubic feet (“MMcf”) per day, which exceeded the midpoint of July 2025 guidance of 495 MMcf per day by 9%;
- Drilling and completion costs of approximately $855 per completed lateral foot for the quarter, which was 3% less than the midpoint of July 2025 guidance of $880 per completed lateral foot;
- 34.5 net operated locations turned to sales during the quarter, which exceeded by 15% the midpoint of July 2025 guidance of 30 net operated wells that were estimated to be turned to sales in the quarter; and
- $105 million reduction in the balance outstanding on Matador’s Reserves-Based Loan (“RBL”) from $390 million at June 30, 2025 to $285 million at September 30, 2025.
2025 and 2026 Guidance Updates
- Increased 2025 full-year production guidance range from 200,000 to 205,000 BOE per day to 205,500 to 206,500 BOE per day;
- Increased the number of operated wells expected to be drilled and turned to sales in full-year 2025 from 106.3 net operated wells to 118.3 net operated wells. These 12 additional net operated wells turned to sales in 2025 are expected to increase production rates in the fourth quarter of 2025 and the first quarter of 2026;
- Base case for 2026 organic production is expected to yield approximately 210,000 BOE per day with expected organic oil production growth of 2 to 5% from full-year 2025 to full-year 2026 (exclusive of acquisitions);
- Updated full-year 2025 drilling, completing and equipping (“D/C/E”) capital expenditure (“CapEx”) estimate from $1.18 to $1.37 billion to $1.47 to $1.55 billion primarily due to the drilling and completion of the 12 additional net operated wells noted above, which was made possible by operational efficiencies and historical opportunities to experience lower service pricing during the second half of a production year;
- Decreased expected full-year 2025 drilling and completion cost per lateral foot from a range of $865 to $895 per completed lateral foot to a lower range of $835 to $855 per completed lateral foot;
- Highly capital-efficient program expected for 2026 with flexibility to adjust production and CapEx depending on external factors such as commodity prices and the economy; and
- An improved capital program for full-year 2026, which is expected to result in 8 to 12% lower total capital expenditures in 2026 compared to 2025 for approximately the same amount of lateral footage. The favorable cost per foot expected in 2026 should allow Matador multiple options for ways to make good use of these expected capital savings.
Matador’s Land Program
Mr. Foran continued, “A key component of this growth is Matador’s ‘brick-by-brick’ land acquisition strategy and selective lease acquisition program, which is not only improving the quality and potential of Matador’s over 200,000 net acre land position in the Delaware Basin but also has increased Matador’s various working interests or mineral positions in key areas. During the third quarter of 2025, Matador completed over $125 million in transactions in key areas. All acquisitions made this quarter were in the Delaware Basin and consisted primarily of undeveloped acreage, including working interests in Matador wells turned to sales in the third quarter of 2025. Over time, these targeted acquisitions by our land team have positioned us with over 10 years of engineered locations with average rates of return of approximately 50% at oil price levels even as low as $50 per barrel.”
Upstream Operations Guidance
Matador exceeded the midpoint of July 2025 guidance estimates for BOE volumes for the third quarter of 2025 of 199,750 BOE per day by 5% delivering 209,184 BOE per day. These better-than-expected results reflect the strength and size of Matador’s long-term production base, its accelerated operational execution in the field, the outperformance of recent wells turned online and the responsiveness and the runtimes of its midstream system. These efforts allowed Matador to turn to sales 46 gross (34.5 net) operated wells during the third quarter of 2025, an increase of 4.5 net operated wells above July 2025 guidance estimate of 30 net operated wells to be turned to sales for the same period. As a result of these accelerated operating activities combined with our improved efficiencies and lower well costs, Matador now expects its full-year 2025 D/C/E CapEx to be in the $1.47 to $1.55 billion range for a revised 2025 competed well count of 118.3, up from previous completed well count guidance of 106.3.
Notably, 1.5 billion cubic feet (“Bcf”) (17 MMcf per day) of this third quarter of 2025 production beat was the result of six non-operated wells in the Haynesville Shale in which Matador has working and mineral interests. This production beat demonstrates the value and potential of Matador’s estimated 200 to 300 Bcf “gas bank” in Northwest Louisiana. This asset, which is 100% held-by-production and has high net revenue interests, gives Matador the ability to increase natural gas production whenever natural gas prices increase and stabilize. In light of the positive outcomes of these operations and the outperformance of various operated wells turned to sales, Matador has increased its full-year 2025 production guidance company-wide for both oil and natural gas production.
Matador’s continued operational execution and lower service pricing reduced drilling and completion cost per lateral foot, providing additional confidence in our decision to accelerate certain operating activities during the quarter. In fact, Matador expects not only better well results for full-year 2025 but also expects drilling and completion costs per lateral foot to be below the low end of our guidance range of $865 to $895 per completed lateral foot. Accordingly, Matador is revising its full-year 2025 range down to $835 to $855 per completed lateral foot. Driving factors for these capital efficiency improvements are related to the number of drilling days on wells and the expanded use of trimul-frac, remote frac operations and other targeted performance initiatives. The successful integration of these processes has increased Matador’s overall completion efficiency in 2025 by 20% as compared to the average time required to complete lateral footage in 2024.
2026 Guidance
Matador expects our capital and production successes in 2025, including the acceleration of certain operating activities at lower prices, will lead to high rates of return and an even more capital-efficient operating program in 2026. Matador plans to provide its customary full-year 2026 forecast along with its February 2026 earnings release. Matador has the ability to flex its capital program up or down based upon changes in economic conditions, including commodity and service prices. Given current market conditions, Matador expects an organic increase in production to approximately 210,000 BOE per day in 2026 with expected oil production growth of 2 to 5% from 2025 to 2026. Furthermore, Matador believes it can achieve this growth or more while reducing total CapEx by 8 to 12% from 2025 to 2026 while completing and turning to sales approximately the same lateral footage in 2026 as in 2025. Matador expects that this capital and operating plan will allow it to advance its other top priorities, which include (i) maintaining a strong balance sheet, (ii) continuing to grow its proved reserves in various ways, (iii) increasing engineered inventory locations with new horizons and areas across its asset position, (iv) maintaining its brick-by-brick acreage acquisition strategy and (v) continuing to enhance its midstream businesses to service the growth of Matador and other third-party producers. Yet, Matador is fully prepared to make adjustments and to update our guidance as necessary in today’s volatile times and conditions to keep our shareholders, the public and other interested parties informed of our plans and opportunities.
San Mateo Effect
While the land, engineering and geology teams continue to organically grow our asset positions, Matador’s integrated midstream business, San Mateo, is contributing to Matador’s revenue and production efficiency. In this regard, San Mateo provides critical and timely flow assurance, including gathering and processing optionality, for our production as well as for third-party customers. These services generate a significant and growing revenue stream. This quarter’s excellent midstream operating results reflect the team’s solid technical expertise and extra effort to successfully grow these efficiencies and assets in 2025.
During September 2025, San Mateo turned online the Ranger North Compressor station and associated gathering system. This compressor station is currently designed for 30 MMcf per day and can be expanded to up to 70 MMcf per day and is San Mateo’s first station built to handle sour gas. The ability to accommodate sour gas increases optionality for San Mateo to add additional third-party customers in the northeastern part of San Mateo’s operating area in Lea County, New Mexico.
The Marlan plant expansion was also put into service in the second quarter of 2025. This plant, together with San Mateo’s other facilities, continue to provide increased flow assurance out of the basin for Matador and San Mateo’s third-party customers, many of which are repeat customers. Now that the Marlan plant expansion is online and processing natural gas, San Mateo processed a record 533 MMcf per day during the third quarter of 2025, an increase of 10% from 486 MMcf per day in the second quarter of 2025, contributing to third quarter of 2025 San Mateo net income of $50 million and Adjusted EBITDA of $74 million, which were in line with expectations and sets up San Mateo for anticipated record annual Adjusted 2025 EBITDA of $285 to $295 million.
In light of San Mateo’s significant cash flows and growth potential, Matador continues to believe that the value of San Mateo is not fully realized in Matador’s current share price. The team is continuing to work towards strategic solutions for increasing San Mateo’s value and potential.
Financial Summary
Matador’s integrated upstream and midstream business generated net income of $176 million with earnings per share of $1.42 and adjusted earnings per share of $1.36 in the third quarter of 2025. Net cash provided by operating activities was $722 million, or an increase of 44% from $501 million in the second quarter of 2025, and adjusted EBITDA was $567 million during the third quarter of 2025, leading to adjusted free cash flow of $93 million.
Matador used this $93 million of free cash flow and the benefit from working capital changes of $123 million during the third quarter of 2025 to pay down an additional $105 million of borrowings under its RBL during the third quarter of 2025. This paydown reduced total borrowings under the RBL from $390 million at June 30, 2025 to $285 million as of September 30, 2025. In total, Matador has paid down $311 million in borrowings under the RBL during the first nine months of 2025 and maintains a strong balance sheet with a debt-to-EBITDA leverage ratio under 1.0x and approximately $2 billion in available liquidity under its current RBL as of September 30, 2025.
Shareholder Returns
On October 15, 2025, Matador announced that its Board of Directors approved a 20% increase in Matador’s dividend policy, raising the dividend from $1.25 annually, or $0.3125 per quarter, to $1.50 annually, or $0.375 per quarter. In accordance with this new dividend policy, the Board declared a quarterly cash dividend of $0.375 per share of common stock payable on December 5, 2025 to shareholders of record as of November 10, 2025. Matador’s base dividend represents an increased annualized yield to shareholders of approximately 3.5% as of October 20, 2025 based upon Matador’s current share price.
In addition to our base dividend, in 2025, Matador implemented a share repurchase program to return additional value to shareholders by opportunistically repurchasing shares of our common stock. In total, under Matador’s present share repurchase authorization, Matador has repurchased $55 million, or 1.3 million shares of our common stock at a weighted average price of approximately $41 per share, representing over 1% of the total shares of common stock outstanding as of October 21, 2025.
Matador’s Board of Directors, management, and staff also continue to be regular purchasers of Matador’s shares in the open market further aligning ourselves with our shareholders. Matador’s directors and executive officers purchased approximately 67,000 shares of Matador stock during 2025. In addition, over 95% of Matador employees continued to participate in Matador’s Employee Share Purchase Plan, or ESPP.
Closing Thoughts
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “The combined achievements of Matador’s planning, reservoir, land, operations and midstream teams and the recent completion of the new Marlan plant expansion have helped solidify and widen our asset base as well as round out our growth strategy as we head into 2026. The management team, Board of Directors and staff remain confident in this positive outlook despite occasional headwinds. All of us would like to thank the staff, shareholders, service providers, and board members for their efforts closing out what should be a record year for Matador and for increasing our chances for continuing success going forward.”
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 October 21, 2025, Matador increased its full-year 2025 guidance range for oil production, natural gas production and total BOE production as well as for CapEx as set forth in the table below.
|
Production |
Prior Full-Year 2025 Guidance Range |
New Full-Year 2025 Guidance Range |
|
Total, BOE per day |
200,000 to 205,000 |
205,500 to 206,500 |
|
Oil, Bbl per day |
117,500 to 119,500 |
119,250 to 119,750 |
|
Natural Gas, MMcf per day |
495 to 513 |
517.5 to 520.5 |
|
D/C/E CapEx(1) |
$1.18 to $1.37 billion |
$1.47 to $1.55 billion |
|
Midstream CapEx(2) |
$120 to $180 million |
$155 to $175 million |
|
Total CapEx |
$1.30 to $1.55 billion |
$1.625 to $1.725 billion |
|
|
|
|
|
(1) Capital expenditures associated with drilling, completing and equipping wells. (2) 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
Third Quarter 2025 Oil, Natural Gas and Total BOE Production
As summarized in the table below, Matador’s total BOE production averaged 209,184 BOE per day in the third quarter of 2025, which was a Company record and a 22% year-over-year increase from an average of 171,480 BOE per day in the third quarter of 2024. The better-than-expected oil and natural gas production was primarily due to the continued outperformance of Matador’s producing wells and wells that were turned to sales in the third quarter of 2025, including six non-operated Haynesville shale wells where Matador owned primarily mineral interests, which had combined third quarter of 2025 natural gas production of 1.5 Bcf or 17 MMcf per day, net to Matador.
Another highlight of Matador’s outperformance has been our high quality Avalon wells in Lea County, New Mexico. The Gavilon #104H, which Matador turned online in September 2024, is an excellent example of the potential value and productivity of these wells. In approximately one year, the Gavilon #104H had more than paid out with cumulative production of 280,000 barrels of oil and 358 MMcf of natural gas as of September 30, 2025. Matador currently believes that there are over 85 potential future drilling locations in the Avalon formation in this area.
|
Production |
Q3 2025 Average Daily Volume |
Q3 2025 Guidance Range |
Difference |
YoY(1) |
|
Total, BOE per day |
209,184 |
198,500 to 201,000 |
+5% Better than Guidance |
+22% |
|
Oil, Bbl per day |
119,556 |
116,500 to 118,000 |
+2% Better than Guidance |
+19% |
|
Natural Gas, MMcf per day |
537.8 |
492.0 to 498.0 |
+9% Better than Guidance |
+26% |
|
|
|
|
|
|
|
(1) Represents year-over-year percentage change from the third quarter of 2024. |
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Third Quarter 2025 Realized Commodity Prices
The following table summarizes Matador’s realized commodity prices during the third quarter of 2025, as compared to the second quarter of 2025 and the third quarter of 2024.
|
|
Sequential (Q3 2025 vs. Q2 2025) |
|
YoY (Q3 2025 vs. Q3 2024) |
||||||||
|
Realized Commodity Prices |
Q3 2025 |
|
Q2 2025 |
|
Sequential Change |
|
Q3 2025 |
|
Q3 2024 |
|
YoY Change |
|
Oil Prices, per Bbl |
$64.91 |
|
$64.34 |
|
+1% |
|
$64.91 |
|
$75.67 |
|
-14% |
|
Natural Gas Prices, per Mcf |
$1.95 |
|
$2.05 |
|
-5% |
|
$1.95 |
|
$1.83 |
|
+7% |
Third Quarter 2025 Capital Expenditures
Matador’s D/C/E CapEx guidance range for the third quarter of 2025 was $300 to $370 million with a range of between 28 to 32 net operated wells turned to sales. During the quarter, due to operational efficiencies achieved and in order to capitalize on lower service pricing, Matador elected to accelerate certain operating activities. Matador turned to sales 34.5 net operated wells, or 4.5 net operated wells above the midpoint of our July 2025 guidance estimates. Total third quarter D/C/E CapEx was $430 million, or $95 million above the midpoint of our July 2025 guidance range. Additional CapEx attributable to these incremental 4.5 net operated wells turned to sales was approximately $15 million. The remaining CapEx above our guidance range was attributable to (i) unforecasted non-operated well activity of $15 million, (ii) increased working interest additions on wells turned to sales in the third quarter of 2025 of $9 million and (iii) costs associated with wells that are expected to be turned to sales in the fourth quarter of 2025 of $56 million. Midstream CapEx of $42.8 million for the third quarter of 2025 were consistent with Matador’s expected range of $25 to $55 million in total midstream CapEx.
|
Q3 2025 Capital Expenditures ($ millions) |
Actual |
July 2025 Guidance |
|
D/C/E |
$429.9 |
$300 to $370 |
|
Midstream |
$42.8 |
$25 to $55 |
Midstream Update
San Mateo had quarterly net income of $50 million and quarterly Adjusted EBITDA of $74 million. The table below sets forth San Mateo’s throughput volumes for the third quarter of 2025, as compared to the second quarter of 2025 and third quarter of 2024.
|
|
|
Sequential (Q3 2025 vs. Q2 2025) |
|
YoY (Q3 2025 vs. Q3 2024) |
||||||||
|
San Mateo Throughput Volumes |
|
Q3 2025 |
|
Q2 2025 |
|
Sequential Change |
|
Q3 2025 |
|
Q3 2024 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas gathering, MMcf per day |
|
530 |
|
491 |
|
+8% |
|
530 |
|
431 |
|
+23% |
|
Natural gas processing, MMcf per day |
|
533 |
|
486 |
|
+10% |
|
533 |
|
424 |
|
+26% |
|
Oil gathering and transportation, Bbl per day |
|
58,400 |
|
50,300 |
|
+16% |
|
58,400 |
|
52,300 |
|
+12% |
|
Produced water handling, Bbl per day |
|
413,700 |
|
414,400 |
|
—% |
|
413,700 |
|
513,200 |
|
-19% |
Fourth Quarter 2025 Estimates
Fourth Quarter 2025 Estimated Oil, Natural Gas and Total BOE Production Growth
As noted in the table below, Matador anticipates oil production of 119,556 Bbl per day in the third quarter of 2025 to increase in the fourth quarter of 2025 due to larger well batches that were turned on late in the third quarter of 2025 and will therefore fully contribute to production in the fourth quarter of 2025. Matador anticipates natural gas production of 538 MMcf per day in the third quarter of 2025 to decrease in the fourth quarter of 2025 due to (i) voluntary shut-ins of wells with high natural gas to oil ratios during October 2025 when several long-haul pipelines underwent maintenance causing Waha natural gas prices to be negative and (ii) the natural decline of six non-operated Haynesville shale wells that led to outperformance in the third quarter of 2025. The negative Waha pricing led Matador to shut in approximately 0.9 Bcf of natural gas and 45,000 Bbl of oil to date in October 2025 due to those negative gas prices. These volumes have been removed from our fourth quarter estimates and deferred to future periods.
|
|
Q3 and Q4 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 |
|
Q3 2025 |
209,184 |
119,556 |
537.8 |
57% |
|
Q4 2025E |
205,000 to 208,000 |
119,000 to 121,000 |
516 to 522 |
58% |
Fourth Quarter 2025 Estimated Wells Turned to Sales
At October 21, 2025, Matador expects to turn to sales 27.5 net operated horizontal wells in the Delaware Basin during the fourth quarter of 2025. Due to the acceleration of drilling and completion activities noted above, Matador expects to turn to sales 12 net wells more than previously expected for the full-year 2025.
Contacts
Mac Schmitz
Senior Vice President – Investor Relations
(972) 371-5225
investors@matadorresources.com
Rob Macalik
Executive Vice President and Chief Financial Officer
(972) 371-5413
