Matador Resources Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did MTDR Beat Earnings? Q4 2025 Results
Matador Resources delivered a mixed Q4 2025, posting earnings per share of $0.87 against a consensus estimate of $1.00, a 12.93% miss, even as revenue of $847.99 million cleared Wall Street's $758.89 million target by 11.74%. The headline numbers tell only part of the story, though, as total revenue slid 13.3% year-over-year under the weight of collapsing Waha hub natural gas prices, with realized gas prices falling to just $0.91 per Mcf from $2.72 a year earlier and oil realizations dropping to $58.89 per barrel from $70.66. Record quarterly production of 211,290 BOE per day, running 2% above guidance midpoint, demonstrated operational strength but couldn't fully offset the commodity price headwinds that dragged adjusted EBITDA to $489.57 million from $640.85 million in Q4 2024. Looking ahead, the company's Hugh Brinson pipeline, expected online in Q3 2026, is designed to move gas away from the distressed Waha market toward Henry Hub pricing, a strategic move management projects could unlock roughly $90 million in incremental annual revenue per $0.50 per MMBtu improvement, offering meaningful relief as Matador targets 3% oil production growth on an 11% reduction in capital spending for full-year 2026. CEO Joseph Foran's recent open-market share purchase at $49.78 per share added a note of insider confidence to the outlook.
- Record Q4 2025 production of 211,290 BOE/d, 2% above guidance midpoint
- Increased production from new wells in Arrowhead and Ranger asset areas
- Operating expenses per BOE 8% better than expected in Q4 and 4% below Q4 2024
- Full-year 2025 D/C/E CapEx of $1.53 billion within guidance while delivering 129.4 net wells (8.1 more than initial guidance)
- 21% year-over-year production growth in 2025
- Record total proved reserves of 667.0 million BOE, up 9% year-over-year with 173% reserve replacement ratio
“2025 was another record year for Matador and San Mateo. Our team is excited to review our accomplishments as well as share the strategic priorities and expected catalysts for Matador and San Mateo in 2026, which include improving capital efficiency, profitability and reduction in our reserve-based loan, midstream value realization, quality land acquisitions, reserves growth and decreased capital costs, recruiting, retaining and developing high-quality professionals and maintaining a strong balance sheet.”
Matador Resources CEO, on the earnings call
Forward Guidance & Outlook
Matador's 2026 operating plan targets oil production growth of approximately 3% to 122,000-124,000 barrels per day and total production of 209,500-215,000 BOE per day, while reducing total D/C/E and midstream capital expenditures by 11% to $1.45-$1.55 billion. Drilling and completion costs are expected to decline 6% to $785-$805 per lateral foot, with average well cycle times reduced by approximately 13%. Q1 2026 production is expected to be the lowest quarter (201,000-205,000 BOE/d) due to weather impacts, elective shut-ins from weak Waha pricing, and scheduled third-party maintenance. Total operating expenses are guided at $30.00-$31.00 per BOE. The Hugh Brinson pipeline is expected to begin flowing gas in Q3 2026 and be fully in-service in Q4 2026, providing access to Henry Hub markets. Combined midstream Adjusted EBITDA is expected to grow 8% to $360 million in 2026. The company has hedged approximately 50% of projected 2026 oil production with costless collars at a weighted average floor of ~$53/bbl and ceiling of ~$66/bbl.
MTDR YoY Financials
MTDR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.