Matador Resources Company (MTDR) Q4 2024 earnings summary

Executive summary

• Achieved record production in Q4 2024, surpassing 200,000 BOE/d, up 30% year-over-year, with full-year production averaging 170,751 BOE/d, also up 30% from 2023.

• Completed and integrated the $2 billion Ameredev acquisition, adding 33,500–50,000 net acres, 371 net locations, and over 25,000 BOE/d in production, driving production 11% above expectations and reducing LOE by 35%.

• Proved reserves grew 33% to 611.5 MMBOE at year-end 2024, with a PV-10 of $9.2 billion and Standardized Measure at $7.38 billion.

• Increased annualized dividend to $1.25 per share, a 56% rise year-over-year and the sixth increase in four years, reflecting confidence in sustained growth and shareholder returns.

• Emphasized disciplined capital allocation, prioritizing year-over-year growth, cost containment, and operational efficiency.

Financial highlights

• Adjusted EBITDA rose 24% to $2.3 billion in 2024; adjusted free cash flow increased 75% to $807 million, with 2025 free cash flow projected to approach $1 billion.

• Q4 2024 adjusted EBITDA was $640.9 million, up from $552.8 million in Q4 2023.

• Adjusted net income for 2024 was $928 million ($7.48 per diluted share); Q4 2024 adjusted net income was $229.9 million ($1.83 per share).

• Realized $30-50 million in cost savings through batch drilling and operational efficiencies, with D&C costs per lateral foot down 3% year-over-year to $865–$895.

• San Mateo Midstream delivered record adjusted EBITDA of $253 million in 2024, with over $100 million in distributions and $175.6 million net income.

Outlook and guidance

• 2025 production guidance: 202,000–208,000 BOE/d (+20% YoY), oil 120,000–124,000 Bbl/d (+22% YoY), natural gas 492–504 MMcf/d (+17% YoY).

• 2025 capital spending expected at $1.28–$1.65 billion, with D&C costs per lateral foot projected to decrease further.

• Anticipates sequential production increases in Q2 and Q4 2025, with temporary Q1 and Q3 declines due to well timing.

• No plans for stock buybacks; focus remains on increasing dividends and reinvesting in growth opportunities.

• Marlan Plant expansion on track for Q2 2025 completion; midstream CapEx to decline 37% in 2025.