Matador Resources Company (MTDR) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 production, with oil and natural gas output up 33% year-over-year to 198,631 BOE/d, exceeding guidance midpoint by 1%.

• Net income attributable to shareholders rose 24% year-over-year to $240.1 million ($1.92 per diluted share) for Q1 2025, driven by higher oil and natural gas production and improved realized natural gas prices.

• Adjusted EBITDA increased 27% year-over-year to $644.2 million, reflecting strong operational performance and production growth.

• Authorized $400 million share repurchase program and increased annualized dividend to $1.25, marking six increases in four years.

• Maintained strong balance sheet with leverage ratio below 1.0x and $1.8 billion in RBL liquidity as of March 31, 2025.

Financial highlights

• Q1 2025 oil production increased 36% year-over-year to 115,030 Bbl/d; natural gas up 29% to 501.6 MMcf/d.

• Q1 2025 Adjusted EBITDA was $644.2 million; net income attributable to shareholders was $240.1 million.

• Adjusted free cash flow for Q1 2025 was $415.5 million; net cash from operations up 55% to $727.9 million.

• Realized oil price was $72.38/Bbl (down 7% year-over-year); natural gas $3.56/Mcf (up 20% year-over-year).

• Lease operating expenses increased to $5.96/BOE, while G&A expenses fell to $1.89/BOE.

Outlook and guidance

• 2025 production guidance raised to 198,000–202,000 BOE/d, a 17% increase over 2024 actuals; oil production guidance 117,000–119,000 Bbl/d (+18% YoY).

• Full-year D/C/E CapEx revised down to $1.18–$1.37 billion, a 7% reduction from prior guidance; midstream CapEx $120–$180 million.

• Q2 2025 production expected to reach 206,000–208,000 BOE/d, up 4% sequentially.

• Flexibility to adjust rig count further in response to market conditions; D&C costs per lateral foot expected to decline 3% to $865–$895.

• 2025 hedges: 35–40% of oil production hedged in H1, 55–60% in H2; natural gas hedges in place.