Matador Resources Company
Q2 2026 Earnings
Market Reaction
Did MTDR Beat Earnings? Q2 2026 Results
Matador Resources delivered a blowout second quarter for fiscal 2026, extending its consensus EPS beat streak to five consecutive quarters as adjusted earnings of $2.61 per share cleared the $1.61 analyst estimate by 62.10%, while revenue of $1.19 billion topped expectations by 16.82% and grew 29.6% year over year. The driving force behind the outperformance was record oil production of 126,106 barrels per day, exceeding the top end of Matador's own guidance range, even as negative Waha natural gas prices forced the company to shut in roughly 9,900 BOE/d during the period. Four strategic acquisitions announced or closed in the quarter, including San Mateo's $752 million purchase of Cardinal Midstream, collectively add approximately four years of high-quality drilling inventory and pushed management to raise full-year oil production guidance to 127,500-129,000 Bbl/d, implying up to 7% year-over-year growth. With full-year adjusted free cash flow estimated at approximately $900 million at strip pricing, Matador enters the second half with expanding capacity and a clearer path toward its 1.0x leverage target by end of 2027.
- Record oil production of 126,106 Bbl/d exceeded guidance range of 123,000–125,000 Bbl/d
- Realized oil prices surged 53% YoY to $98.16/Bbl and 35% sequentially
- Net sales of purchased natural gas increased to $80.2 million from $32.0 million YoY
- Outperformance of new wells turned to sales in H1, including 13-well Guss pad batch
- Lease operating expenses of $5.45/BOE were below guidance of $5.60/BOE
- Near-record adjusted free cash flow of $303.2 million, nearly tripling Q1 2026
“The second quarter of 2026 was, in our view, one of the most consequential quarters in Matador's history—not only for what we produced, but also for what we acquired and put in place for the years ahead.”
Matador Resources CEO, on the earnings call
Forward Guidance & Outlook
Matador raised full-year 2026 production guidance: oil to 127,500–129,000 Bbl/d (from 123,000–125,000), total BOE to 218,500–223,500 BOE/d (from 210,500–216,000). The company now expects up to 7% YoY oil production growth versus original 4% target. D/C/E capex guidance increased to $1.48–$1.56 billion (from $1.35–$1.44 billion) and midstream capex to $145–$165 million (from $100–$110 million). Drilling costs per completed lateral foot remain at $785–$805. Q3 2026 estimates include oil production of 128,500–130,500 Bbl/d and total production of 222,000–226,000 BOE/d, with 30–33 net operated wells to be turned to sales. Full-year 2026 adjusted free cash flow is estimated at approximately $900 million at strip pricing. The company expects to approach its 1.0x target leverage ratio by end of 2027. Matador anticipates meaningful improvement in realized natural gas prices in the second half with flow on Energy Transfer's Hugh Brinson pipeline expected by end of Q3 2026, estimating ~$90 million annually in increased gas revenue for each $0.50/MMBtu improvement in realized gas prices.
MTDR YoY Financials
MTDR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.