Matador Resources Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.31%.
Did MTDR Beat Earnings? Q3 2025 Results
Matador Resources posted a strong beat on both the top and bottom lines in Q3 2025, with adjusted EPS of $1.36 coming in 10.99% above the $1.23 consensus estimate while revenue of $939.01 million cleared expectations by 8.51% and grew 9.2% year over year. The driving force behind the quarter was a record production rate of 209,184 BOE per day, a 22% year-over-year increase that exceeded the midpoint of the company's own July guidance by 5%, fueled by well outperformance, accelerated operational execution, and meaningful contributions from six non-operated Haynesville shale wells. A 14% year-over-year decline in realized oil prices to $64.91 per barrel weighed on net income, which fell to $176.40 million from $248.30 million a year earlier, though the volume strength more than offset the commodity headwind at the revenue level. Matador raised its full-year 2025 production guidance to 205,500-206,500 BOE per day and outlined 2026 organic production of approximately 210,000 BOE per day alongside an 8-12% reduction in capital spending, while the board approved a 20% dividend increase to $1.50 per share annually.
- Record total production of 209,184 BOE per day, 22% year-over-year increase
- Record natural gas production of 537.8 MMcf per day, 9% above guidance midpoint
- Oil production of 119,556 barrels per day, 19% year-over-year growth
- Drilling and completion costs of approximately $855 per completed lateral foot, 3% below guidance midpoint
- 34.5 net operated wells turned to sales, exceeding 30 net guidance by 15%
- Six non-operated Haynesville shale wells contributed 1.5 Bcf of natural gas production
- San Mateo processed a record 533 MMcf per day, up 10% sequentially
- Completion efficiency improved 20% in 2025 versus 2024 through trimul-frac and remote frac operations
- Net cash provided by operating activities increased 44% sequentially to $722 million
“Last week we were pleased to announce yet another per share cash dividend increase from $1.25 to $1.50 per year. This dividend is to be paid proportionally each quarter. For the record, Matador's Board of Directors has already raised the dividend once this year and, with this raise, Matador's Board raised the dividend seven times in four years. The Board's decision to increase the dividend at this time is based on our positive outlook for the Company going forward, including Matador's strong liquidity position, free cash flow generation, further growth in our midstream asset, and the growing number of engineered inventory locations for drilling.”
Matador Resources CEO, on the earnings call
Forward Guidance & Outlook
Matador increased full-year 2025 production guidance to 205,500-206,500 BOE per day (from 200,000-205,000) and raised the expected operated well count to 118.3 net wells (from 106.3). Full-year 2025 D/C/E CapEx was revised upward to $1.47-$1.55 billion due to accelerated drilling, while cost per lateral foot guidance was lowered to $835-$855. For Q4 2025, the company expects 205,000-208,000 BOE per day production, 119,000-121,000 Bbl/d oil, and D/C/E CapEx of $300-$380 million. For 2026, Matador expects organic production of approximately 210,000 BOE per day with oil production growth of 2-5% year-over-year, while reducing total CapEx by 8-12% compared to 2025 for approximately the same lateral footage. San Mateo is tracking toward anticipated record annual 2025 Adjusted EBITDA of $285-$295 million. Full 2026 guidance is expected with the February 2026 earnings release.
MTDR YoY Financials
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Figures from SEC filings and company reports. Not investment advice.