Matador Resources Company (MTDR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 operational and financial results, with production reaching 160,305 BOE/d and oil output at 95,488 Bbl/d, up 23% year-over-year.

• Announced $1.905 billion Ameredev acquisition, adding 33,500 net acres, 117–120 million BOE reserves, and a 19% stake in Piñon Midstream, expected to close late Q3 2024.

• Adjusted EBITDA for Q2 2024 was $578.1 million, up 14% sequentially and 37% year-over-year.

• Increased full-year 2024 production guidance for oil, natural gas, and total BOE by 2–5%.

• Strong teamwork, operational efficiencies, and cross-functional collaboration drove performance and cost savings.

Financial highlights

• Q2 2024 net income was $228.8 million ($1.83 per diluted share); adjusted net income was $255.9 million ($2.05 per share).

• Oil and natural gas revenues were $776.3 million; adjusted free cash flow was $167.0 million.

• D/C/E capital expenditures were $314.5 million, 8% below guidance; midstream capex was $45.3 million.

• San Mateo midstream contributed $58 million in adjusted EBITDA, up 36% year-over-year.

• No RBL borrowings as of July 23, 2024; $53 million in letters of credit outstanding.

Outlook and guidance

• 2024 production guidance raised to 158,500–163,500 BOE/d (+22% YoY); oil production guidance 93,500–96,500 Bbl/d (+26% YoY).

• Q3 2024 production expected at 163,000–165,000 BOE/d; D/C/E CapEx $330–$370 million.

• Ameredev expected to add 25,000–26,000 BOE/d (65% oil) in Q3 2024.

• Full-year 2024 D/C/E capex expected between $1.10–$1.30 billion; midstream CapEx $200–$250 million.

• Leverage ratio expected to return below 1.0x in 2025 post-Ameredev acquisition.