Matador Resources Company (MTDR)
NYSE:MTDR
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Matador Resources
(NYSE:MTDR)
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Rating:78Outperform
Price Target:
$73.00
▲(11.54% Upside)
Action:ReiteratedDate:03/06/26
MTDR scores well on financial performance and valuation, led by strong operating cash flow/free cash flow and a low P/E with a solid dividend. Technicals are constructive but somewhat stretched (near-overbought), while the latest earnings commentary and recent financing actions reinforce a disciplined, efficiency-focused plan with ongoing commodity and execution risks.
Positive Factors
Free Cash Flow & Cash Generation
Matador's strong operating cash flow and a sharp free cash flow surge in 2025 materially improve its ability to self-fund drilling, pay dividends, and reduce debt. Durable cash generation provides flexibility to prioritize value over volume, support shareholder returns, and withstand commodity cycles.
Negative Factors
Commodity Price Exposure
Matador's cash flows and profitability remain inherently tied to volatile oil and gas prices. While hedges protect the near-term balance sheet, they also cap upside in sustained rallies; prolonged low prices would still pressure revenues, financing capacity, and midstream economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow & Cash Generation
Matador's strong operating cash flow and a sharp free cash flow surge in 2025 materially improve its ability to self-fund drilling, pay dividends, and reduce debt. Durable cash generation provides flexibility to prioritize value over volume, support shareholder returns, and withstand commodity cycles.
Read all positive factors
Matador Resources (MTDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.13B
Dividend Yield3.14%
Average Volume (3M)2.03M
Price to Earnings (P/E)7.0
Beta (1Y)0.78
Revenue Growth14.77%
EPS Growth-17.38%
CountryUS
Employees452
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.87
Shares Outstanding124,249,940
10 Day Avg. Volume1,816,040
30 Day Avg. Volume2,033,540
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.93
Price to Sales (P/S)1.45
P/FCF Ratio21.88
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue3.14
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda4.76
Forecast
1Y Price Target
$63.63Price Target Upside-2.78% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)4.23
Revenue Forecast (FY)$3.63B
Matador Resources Business Overview & Revenue Model
Company Description
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and...
How the Company Makes Money
Matador primarily makes money by producing and selling hydrocarbons—crude oil, natural gas, and natural gas liquids (NGLs)—from its operated and non-operated wells. Revenue is generated when produced volumes are sold to third-party purchasers (e.g...
Matador Resources Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial positives: reserve growth (+9%), significant capital-efficiency actions (11% CapEx reduction, ~$130M savings), lower D&C costs (guidance $7.95/ft), completion and productivity gains (EUR improvement ~10%, completion efficiency +20%), strong produced-water usage (72%), and balance-sheet progress (≈$200M debt paydown, leverage ≈1). Lowlights were mainly execution/timing uncertainties (midstream drop-downs tied to partner continuation vehicle), early-stage pilots not yet reflected in guidance (surfactants, Woodford), and macro/commodity volatility (50% oil hedged). Overall, positive operational and financial momentum was communicated, with remaining execution and market uncertainties noted.Positive Updates
Reserves Growth
Company reported a 9% increase in proved reserves (per the reserve report referenced on the call), highlighting successful inventory additions and reserve engineering execution.
Negative Updates
Macroeconomic and Price Volatility
Management emphasized commodity-price and geopolitical uncertainty as headwinds; the company is 50% hedged on oil to protect the balance sheet, reflecting caution about near-term price volatility.
Read all updates
Q4-2025 Updates
Positive
Negative
Reserves Growth
Company reported a 9% increase in proved reserves (per the reserve report referenced on the call), highlighting successful inventory additions and reserve engineering execution.
Read all positive updates
Company Guidance
Management said 2026 will prioritize cash‑flow and value over rapid production growth, targeting roughly 3% oil growth while cutting capital spending ~11% (about $130M of CapEx savings versus 2025) and guiding D&C costs to a midpoint of $7.95/ft; operational tailwinds cited include a 6% increase in average lateral length (including 3.4‑mile laterals), ~10% EUR improvements, ~20% year‑over‑year completion efficiency gains (completed lateral footage/day), ~25% improvement in cost/ft over recent years, and continued longer laterals and faster cycle times, while recent results showed production up ~1%, net proved reserves up 9% (Netherland & Sul), a $200M debt paydown last year lowering leverage to ~1x, 50% oil hedges, 72% of fracturing water sourced from produced water in 2025, and ongoing shareholder returns (dividend up six times in four years, ~3% yield, plus opportunistic buybacks).Matador Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.66B | 3.48B | 2.82B | 3.06B | 1.66B |
| Gross Profit | 1.60B | 1.54B | 1.33B | 1.88B | 891.54M |
| EBITDA | 2.45B | 2.42B | 1.93B | 2.23B | 1.14B |
| Net Income | 759.22M | 885.32M | 846.07M | 1.21B | 584.97M |
Balance Sheet | |||||
| Total Assets | 11.87B | 10.85B | 7.73B | 5.55B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 79.48M | 23.03M | 52.66M | 505.18M | 48.13M |
| Total Debt | 3.55B | 2.11B | 2.27B | 1.23B | 1.56B |
| Total Liabilities | 5.88B | 5.39B | 3.60B | 2.24B | 2.13B |
| Stockholders Equity | 5.66B | 5.09B | 3.91B | 3.11B | 1.91B |
Cash Flow | |||||
| Free Cash Flow | 241.64M | 280.04M | 318.02M | 894.75M | 319.88M |
| Operating Cash Flow | 2.43B | 2.25B | 1.87B | 1.98B | 1.05B |
| Investing Cash Flow | -2.16B | -3.67B | -3.21B | -1.04B | -729.26M |
| Financing Cash Flow | -282.60M | 1.41B | 902.33M | -480.85M | -328.55M |
Matador Resources Technical Analysis
Positive
65.45
Price Trends
50.77
Positive
46.13
Positive
46.30
Positive
Market Momentum
3.47
Negative
81.96
Negative
95.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Positive. The current price of 65.45 is above the 20-day moving average (MA) of 57.51, above the 50-day MA of 50.77, and above the 200-day MA of 46.30, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 81.96 is Negative, neither overbought nor oversold. The STOCH value of 95.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTDR.
Matador Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.13B | 6.96 | 13.92% | 3.14% | 14.77% | -17.38% | |
75 Outperform | $6.03B | 12.49 | 16.76% | 2.74% | 0.68% | -11.13% | |
73 Outperform | $8.26B | 120.54 | 0.54% | 5.73% | 8.43% | -86.63% | |
72 Outperform | $15.68B | 6.12 | 24.51% | 3.80% | 4.88% | -41.34% | |
66 Neutral | $5.78B | 6.35 | 15.52% | ― | 43.30% | -43.07% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | $6.89B | 17.04 | 16.88% | ― | 35.41% | ― |
* Energy Sector Average
MTDR
Matador Resources
65.45
16.49
33.67%
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Matador Resources Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Matador Resources Refinances Debt with New 2034 Notes
Positive
Mar 5, 2026
On March 5, 2026, Matador Resources closed a $750 million private offering of 6.000% senior unsecured notes due 2034, receiving approximately $737.2 million in net proceeds under an indenture that includes typical high-yield covenants, change-of-c...
Business Operations and StrategyPrivate Placements and Financing
Matador Resources Announces $750 Million Senior Notes Offering
Positive
Feb 27, 2026
On February 26, 2026, Matador Resources Company announced it had priced a private placement of $750 million in 6.000% senior unsecured notes due 2034 at par, with closing expected on March 5, 2026, subject to customary conditions. The notes will b...
Business Operations and StrategyPrivate Placements and Financing
Matador Resources Announces $750 Million Senior Notes Offering
Positive
Feb 26, 2026
On February 26, 2026, Matador Resources announced a proposed private placement of $750 million in senior unsecured notes due 2034 to eligible institutional purchasers. The company plans to use the proceeds primarily to fund a cash tender offer for...
Business Operations and StrategyDividendsFinancial Disclosures
Matador Resources Outlines 2026 Growth and Capital Plan
Positive
Feb 24, 2026
Matador Resources reported that 2025 was another record year, highlighted by record fourth-quarter production of 211,290 barrels of oil equivalent per day and year-end proved reserves of 667 million BOE, a 9% increase from 2024 with a 173% reserve...
Dividends
Matador Resources Declares Quarterly Dividend, Signaling Confidence
Positive
Feb 17, 2026
On February 17, 2026, Matador Resources Company announced that its board of directors declared a quarterly cash dividend of $0.375 per share on its common stock, payable on March 10, 2026 to shareholders of record as of February 27, 2026. This pay...
Business Operations and StrategyExecutive/Board Changes
Matador Resources Announces EVP Retirement and Advisory Role
Neutral
Jan 23, 2026
On January 16, 2026, Matador Resources Company announced that G. Gregg Krug, its Executive Vice President – Marketing and Midstream Strategy, plans to retire at age 65 effective February 28, 2026, after nearly 14 years with the company, duri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.