Matador Resources Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did MTDR Beat Earnings? Q2 2025 Results
Matador Resources posted a mixed but largely encouraging second quarter, beating Wall Street's profit expectations while falling just short on revenue as record production volumes cushioned the blow from sharply lower commodity prices. The Permian Basin independent earned adjusted EPS of $1.53 for Q2 2025, clearing the $1.41 consensus estimate by 8.83%, even as revenue of $895.31 million came in 0.28% below expectations, rising 4.7% year over year. The headline story was a 30% surge in production to a record 209,013 BOE/d, which helped offset oil prices that fell 21% year over year to $64.34 per barrel, keeping adjusted EBITDA up a modest 3% at $594.20 million. Capital discipline was equally notable, with D/C/E spending coming in 4% below guidance midpoint and total cash operating costs falling 13% sequentially to $13.76 per BOE. Looking ahead, Matador raised its full-year production guidance to 200,000-205,000 BOE/d without lifting its capital budget, signaling confidence that operational efficiencies will sustain momentum even as the company trims its rig count to eight by August 2025.
- Record quarterly production of 209,013 BOE/d, up 30% year-over-year
- Outperformance of acquired properties and wells turned to sales in Q4 2024
- Capital and operational efficiency with D/C/E costs approximately $825 per completed lateral foot
- Cash operating costs declined 13% sequentially to $13.76 per BOE
- San Mateo Midstream processing capacity expanded 38% to 720 MMcf/d with Marlan Plant expansion
- San Mateo delivered record quarterly net income of $66 million and record Adjusted EBITDA of $85.5 million
- Net sales of purchased natural gas increased to $32 million from $11 million year-over-year
“Matador is pleased to report our second quarter where we achieved record production alongside robust free cash flow. Throughout Matador's 40-year history, we have consistently pursued long-term value creation for our shareholders through prudent capital allocation, just as we continue to do today, so that our oil and natural gas production and our free cash flow can grow in tandem. Matador achieves this balanced growth through our integrated team approach across the drilling, completion, production and midstream teams. This integration allows us to profitably develop at a measured pace our over 200,000 net acre position in the Delaware Basin. Matador aims, with a conservative balance sheet, to use our free cash flow to return capital to our shareholders through dividends and share repurchases and to reinvest in our business through our brick-by-brick land acquisition strategy. In the second half of 2025 and into 2026, we expect to continue to increase our ten to 15 years of quality Delaware Basin inventory and to enhance our asset positions in our key asset areas to drive growth and profitability. Matador is excited about the growing upstream and midstream opportunities we can see ahead of us for our business going forward.”
Matador Resources CEO, on the earnings call
Forward Guidance & Outlook
Matador raised its full-year 2025 total production guidance to 200,000–205,000 BOE/d from the prior range of 198,000–202,000 BOE/d, with oil production guidance increased to 117,500–119,500 Bbl/d and natural gas to 495–513 MMcf/d, all without any change to capital expenditure guidance of $1.18–$1.37 billion for D/C/E and $120–$180 million for midstream ($1.30–$1.55 billion total). Q3 2025 production is expected at 198,500–201,000 BOE/d, declining slightly from Q2's record before recovering in Q4. D/C/E capex for Q3 is expected at $300–$370 million (3% decrease from Q2) and midstream capex at $25–$55 million (29% decrease). The company lowered its 2025 cash tax estimate to 0–5% of pre-tax book net income following the One Big Beautiful Bill Act, and does not expect to be subject to the Corporate Alternative Minimum Tax in 2026. Matador expects to continue reducing its operated rig count to eight rigs by August 2025 while still achieving record yearly lateral footage through efficiency gains.
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Figures from SEC filings and company reports. Not investment advice.