Matador Resources Company (MTDR) Q3 2024 earnings summary

Executive summary

• Q3 2024 production reached 171,480 BOE/d, up 27% year-over-year and 7% above guidance, driven by the Ameredev acquisition and strong well performance.

• Closed the $1.83B Ameredev acquisition in September 2024, adding 33,500 net acres, significant reserves, and a 19% stake in Piñon Midstream.

• Record Q3 2024 results with all-time highs in production, net income, and cash flow; adjusted EBITDA was $574.5 million.

• Management and board demonstrated confidence with significant insider stock purchases and a 25% dividend increase to $0.25 per share quarterly.

• Integration of Ameredev assets exceeded expectations, with new wells outperforming and operational synergies targeted at $160 million over five years.

Financial highlights

• Q3 2024 oil production: 100,315 Bbl/d (+5% vs. guidance); natural gas: 427 MMcf/d (+10%); total revenues: $899.8M, up 16% year-over-year.

• Q3 2024 net income: $248.3M ($1.99/diluted share); adjusted net income: $223.4M–$236.0M; adjusted EBITDA: $574.5M.

• Adjusted free cash flow for Q3 2024 was $144.6M–$196.1M; operating cash flow for nine months was $1.67B.

• Drilling, completion, and equipping (D/C/E) CapEx: $329.9M (6% below guidance); midstream CapEx: $48.9M (11% below guidance).

• San Mateo midstream Q3 2024 adjusted EBITDA: $68.5M; record water handling of 513,000 Bbl/d.

Outlook and guidance

• Full-year 2024 oil production guidance raised to 98,500–101,500 Bbl/d; total production 167,500–172,500 BOE/d; 2025 production expected to exceed 200,000 BOE/d.

• Q4 2024 production expected at 197,000–199,000 BOE/d (+15% sequentially); oil at 118,500–119,500 Bbl/d.

• 2024 D/C/E CapEx guidance: $1.10–$1.35B; midstream CapEx: $200–$250M; cash tax payments for 2024 expected at 1–5% of pre-tax book net income.

• Proceeds from the expected Q4 2024 sale of Piñon stake ($110–$120M) will be used to reduce debt.

• Focus remains on Delaware Basin development, with nine operated rigs and flexibility to adjust activity based on market conditions.