Matador Resources (MTDR)
NYSE:MTDR
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Matador Resources
(NYSE:MTDR)
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Rating:61Neutral
Price Target:
$58.00
▲(4.32% Upside)
Action:DowngradedDate:05/09/26
MTDR’s score is anchored by solid but moderating financial performance (strong margins but weak TTM free-cash-flow conversion) and a constructive earnings call focused on efficiency gains and disciplined growth. These positives are partially offset by weak near-term technical momentum and valuation uncertainty given the negative P/E, despite a supportive dividend yield.
Positive Factors
Large high‑return inventory
A multi‑year inventory (10–15 years) with targeted >50% returns provides durable development optionality. It allows measured, value‑focused drilling pacing, supports long‑term production visibility, and reduces exploration risk versus peers with shorter runway.
Negative Factors
Weak free cash flow conversion
Very low FCF conversion (~2.7% of net income) indicates limited cash after capex despite solid operating cash flow. Structurally this constrains dividends, buybacks, and reinvestment flexibility, making capital returns and balance sheet repair contingent on sustained cost or price improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Large high‑return inventory
A multi‑year inventory (10–15 years) with targeted >50% returns provides durable development optionality. It allows measured, value‑focused drilling pacing, supports long‑term production visibility, and reduces exploration risk versus peers with shorter runway.
Read all positive factors
Matador Resources (MTDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield3.14%
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-2.91%
EPS Growth-47.92%
CountryUS
Employees452
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.89
Shares Outstanding124,249,940
10 Day Avg. Volume1,720,438
30 Day Avg. Volume1,857,661
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 Cap1.49
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda4.31
Forecast
1Y Price Target
$72.43Price Target Upside30.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)7.19
Revenue Forecast (FY)$4.00B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: operational outperformance, meaningful efficiency gains (faster cycle times, D&C cost targets ~6% below prior year), strong midstream strategic value (San Mateo) and tangible cost savings (field gas ~$100k/well), plus a large multi-year inventory base with high expected returns. Key near-term risks noted include macro/price volatility, regional basis (negative Waha) exposure until takeaway catalysts fully mitigate it, and uncertainty around back-half capital cadence and Woodford well results. Overall, positives (production growth, efficiency gains, midstream value, water recycling, and disciplined capital allocation) materially outweigh the documented lowlights.Positive Updates
Production Growth and Strong Balance Sheet
Management reported production is up in Q1 and stated that debt has been reduced and the balance sheet is the strongest in company history; market capitalization mentioned around $8 billion, positioning the company to meet challenges and optionality for measured growth.
Negative Updates
Challenging Macro Environment and Price Volatility
Management described the current period as one of the more challenging in company history with volatile oil prices and a chaotic macro backdrop, which has led to a conservative, measured capital deployment posture rather than aggressive growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Production Growth and Strong Balance Sheet
Management reported production is up in Q1 and stated that debt has been reduced and the balance sheet is the strongest in company history; market capitalization mentioned around $8 billion, positioning the company to meet challenges and optionality for measured growth.
Read all positive updates
Company Guidance
Management reiterated measured, profitable growth with tight capital discipline and provided several specific metrics: full‑year CapEx cadence unchanged with 55–60% of the budget expected in H1 (about 50% of turns‑in‑line in H1, with Q3/Q4 down from Q2); D&C guidance of $785–$805 per lateral foot (≈6% below 2025) with a goal of sub‑$800; inventory of roughly 10–15 years with expected returns of 50%+ at various commodity prices; operational gains including ~13% faster average cycle times year‑over‑year, three‑mile laterals drilled in <16 days (≈40% faster vs. 2025), and 36+ MaxComm records set this quarter; water/midstream metrics of ~30% of Q1 water volumes from San Mateo, >70% of water recycled in 2026, a new recycling facility under construction, and a Hubrinson takeaway uplift of about $0.50/m; plus field‑gas use saving ~$100,000 per well and ~90% diesel reduction with electric fleets, and unbooked Woodford upside.Matador Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.36B | 3.66B | 3.48B | 2.82B | 3.06B | 1.66B |
| Gross Profit | 3.43B | 1.60B | 1.54B | 1.33B | 1.88B | 891.54M |
| EBITDA | 2.37B | 2.45B | 2.42B | 1.93B | 2.23B | 1.14B |
| Net Income | 483.26M | 759.22M | 885.32M | 846.07M | 1.21B | 584.97M |
Balance Sheet | ||||||
| Total Assets | 12.17B | 11.87B | 10.85B | 7.73B | 5.55B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 92.47M | 79.48M | 23.03M | 52.66M | 505.18M | 48.13M |
| Total Debt | 3.47B | 3.55B | 2.11B | 2.27B | 1.23B | 1.56B |
| Total Liabilities | 6.26B | 5.88B | 5.39B | 3.60B | 2.24B | 2.13B |
| Stockholders Equity | 5.58B | 5.66B | 5.09B | 3.91B | 3.11B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 59.41M | 241.64M | 280.04M | 318.02M | 894.75M | 319.88M |
| Operating Cash Flow | 2.17B | 2.43B | 2.25B | 1.87B | 1.98B | 1.05B |
| Investing Cash Flow | -2.10B | -2.16B | -3.67B | -3.21B | -1.04B | -729.26M |
| Financing Cash Flow | -48.77M | -282.60M | 1.41B | 902.33M | -480.85M | -328.55M |
Matador Resources Technical Analysis
Neutral
55.60
Price Trends
55.57
Positive
49.10
Positive
47.16
Positive
Market Momentum
0.47
Positive
42.07
Neutral
20.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Neutral. The current price of 55.6 is below the 20-day moving average (MA) of 60.89, above the 50-day MA of 55.57, and above the 200-day MA of 47.16, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.30B | 14.49 | 16.38% | 2.74% | -1.98% | -14.47% | |
71 Outperform | $12.57B | 8.42 | 24.51% | 3.80% | -17.38% | 54.99% | |
69 Neutral | $7.68B | 18.56 | -0.83% | 5.73% | -0.99% | -107.05% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $5.05B | 3.75 | 27.46% | ― | 38.39% | ― | |
61 Neutral | $6.87B | -54.37 | 13.92% | 3.14% | -2.91% | -47.92% | |
57 Neutral | $4.14B | 11.25 | 16.88% | ― | 44.84% | ― |
* Energy Sector Average
MTDR
Matador Resources
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11.91
27.48%
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Matador Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
Matador Resources Raises 2026 Production Guidance, Boosts Cash Flow
Positive
May 6, 2026
On May 6, 2026, Matador Resources reported first-quarter 2026 production of 207,594 BOE per day, a 5% increase over the prior-year quarter and above guidance, while paying down more than $350 million on its reserve-based lending facility. Manageme...
Business Operations and StrategyExecutive/Board Changes
Matador Resources Promotes New CFO and COO Leadership
Positive
Apr 27, 2026
On April 27, 2026, Matador Resources Company announced that Christopher P. Calvert was promoted to Executive Vice President and Chief Financial Officer and Glenn W. Stetson to Executive Vice President and Chief Operating Officer, with both changes...
Business Operations and StrategyDividends
Matador Resources Declares Quarterly Dividend, Signals Disciplined Returns
Positive
Apr 22, 2026
On April 22, 2026, Matador Resources Company announced that its board declared a quarterly cash dividend of $0.375 per share on its common stock, payable on June 5, 2026, to shareholders of record as of May 8, 2026. The dividend is being paid unde...
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...
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.