Matador Resources Company (MTDR) Q4 2025 earnings summary

Executive summary

• Achieved record daily production of 211,290 BOE/d in Q4 2025, up 1% sequentially and 5% year-over-year, with a 23% CAGR since 2020.

• Proved reserves increased 9% year-over-year to 667 MMBOE as of December 31, 2025.

• Maintained a high-quality inventory with 10–15 years of drilling locations across 212,500 net acres in the Delaware Basin, expanding in Avalon, Third Bone Spring Carbonate, and Wolfcamp D.

• Fully integrated midstream operations with 720 MMcf/d gas processing capacity, over 900 miles of pipelines, and record natural gas gathering volumes.

• Strategic priorities for 2026 include capital efficiency, midstream growth, quality land acquisitions, and maintaining a strong balance sheet.

Financial highlights

• Full-year 2025 oil and natural gas revenues reached $3.24 billion, with net income attributable to shareholders of $759.2 million and adjusted EBITDA of $2.29 billion.

• Adjusted free cash flow for 2025 totaled $437 million.

• Market capitalization reached $6.5 billion as of February 23, 2026.

• Dividend raised 6x in four years, now yielding 2.9–3%, with $163.1 million paid in 2025 and share buybacks instituted.

• Drilling and completion costs per lateral foot decreased to $795 in 2025, down from $1,075 in 2023, with operating expenses per BOE in Q4 2025 at $29.73.

Outlook and guidance

• 2026 plan targets 3% oil production growth with 11% lower CapEx, focusing on profitability and efficiency, with total CapEx projected at $1.45–$1.55 billion.

• 2026 guidance includes 125 gross (107.6 net) operated wells and 194 gross (11.9 net) non-operated wells to be turned to sales.

• Drilling and completion costs per lateral foot projected to decline 6% in 2026, with a 13% reduction in well cycle times.

• No uplift from surfactant pilot tests included in 2026 production guidance; further expansion possible as results are formation-specific.

• Q1 2026 expected to be the lowest production quarter, with significant increase in Q2 as weather impacts subside.