Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $4.93B
• Dividend Yield: 2.44%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.16
• Revenue Growth: 23.47%
• EPS Growth: 0.80%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 7.14
• Shares Outstanding: 125,207,214
• 10 Day Avg. Volume: 2,929,509
• 30 Day Avg. Volume: 2,240,049
• PEG Ratio: 6.94
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.95
• Price to Cash Flow (P/CF): 2.80
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $73.64
• Price Target Upside: 86.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Matador Resources is well-positioned with strong financial performance, attractive valuation, and positive corporate developments. The stock's technical indicators suggest caution, but the company's robust growth prospects and strategic initiatives provide a solid foundation for future performance.

Positive Factors

Shareholder Confidence

MTDR's senior management and board have been active buying the stock recently, indicating confidence in the company's prospects.

Shareholder Value

MTDR plans to establish a buyback program, signaling a change in messaging and potentially boosting shareholder value.

Negative Factors

Financial Performance

1Q25 volume guidance is over 5% below expectations, which is disappointing.

Quarterly Results

MTDR reported disappointing fourth quarter results with an oil production miss and higher capital expenditure resulting in lower free cash flow.

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 Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. As of December 31, 2021, its estimated total proved oil and natural gas reserves were 323.4 million barrels of oil equivalent, including 181.3 million stock tank barrels of oil and 852.5 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.

How the Company Makes Money

Matador Resources generates revenue primarily through the production and sale of oil, natural gas, and natural gas liquids (NGLs). The company derives its income from the volume of these commodities it produces and the prevailing market prices. Key revenue streams include the sale of crude oil, which typically commands a higher price and thus contributes significantly to overall earnings, followed by sales of natural gas and NGLs. Matador Resources’ earnings are influenced by factors such as production volumes, commodity prices, operational efficiency, and cost management. The company may also engage in strategic partnerships and joint ventures to enhance its exploration and production capabilities, which can contribute to its revenue growth.

Matador Resources Financial Statement Overview

Summary

Matador Resources shows strong revenue and profit growth with efficient cost management and robust cash flows. The balance sheet is solid, though increasing liabilities warrant monitoring.

Income Statement

Matador Resources shows strong revenue growth with a significant increase from $2.82 billion in 2023 to $3.47 billion in TTM (Trailing-Twelve-Months) 2024. The gross profit margin remains robust at 57.6%, and the net profit margin improved to 25.5%. Both EBIT and EBITDA margins are solid, highlighting efficient operations and cost management. However, the net income growth rate is moderate compared to revenue growth, suggesting some pressure on net profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.42, indicating a well-balanced capital structure with a healthy equity base. The equity ratio stands at 46.9%, reflecting a strong equity position relative to total assets. Return on Equity (ROE) is impressive at 17.4%, showcasing effective utilization of shareholder funds. However, total liabilities have grown, which warrants monitoring for potential leverage risks.

Cash Flow

Matador Resources demonstrates excellent cash flow management with a significant increase in operating cash flow to $2.25 billion in TTM 2024. Free cash flow improved considerably, growing by 150.3% from 2023, indicating strong cash generation capability. The operating cash flow to net income ratio is 2.54, emphasizing robust cash conversion. However, high capital expenditures remain a point of consideration for future cash flow sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.48B	2.82B	3.06B	1.66B	862.13M
	Gross Profit
1.54B	1.33B	1.88B	891.54M	227.77M
	EBIT
1.43B	1.21B	1.76B	793.08M	165.11M
	EBITDA
2.41B	1.94B	2.23B	1.14B	-353.67M
	Net Income Common Stockholders
885.32M	846.07M	1.21B	584.97M	-553.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.03M	52.66M	505.18M	48.13M	57.92M
	Total Assets
10.85B	7.73B	5.55B	4.26B	3.69B
	Total Debt
2.11B	2.27B	1.16B	1.53B	1.81B
	Net Debt
2.09B	2.22B	655.07M	1.48B	1.76B
	Total Liabilities
5.39B	3.60B	2.24B	2.13B	2.17B
	Stockholders Equity
5.09B	3.91B	3.11B	1.91B	1.29B
Cash Flow		Free Cash Flow
280.04M	318.02M	894.75M	319.88M	-302.87M
	Operating Cash Flow
2.25B	1.87B	1.98B	1.05B	477.58M
	Investing Cash Flow
-3.67B	-3.21B	-1.04B	-729.26M	-775.67M
	Financing Cash Flow
1.41B	902.33M	-480.85M	-328.55M	324.34M

Matador Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Negative. The current price of 39.41 is below the 20-day moving average (MA) of 46.89, below the 50-day MA of 50.23, and below the 200-day MA of 54.48, indicating a bearish trend. The MACD of -3.41 indicates Positive momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTDR.

Matador Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	80 Outperform	$4.93B	5.52	19.67%	2.44%	23.47%	0.80%
CHRD	78 Outperform	$5.31B	5.58	12.27%	5.65%	34.76%	-34.10%
MGY	75 Outperform	$3.95B	10.51	20.06%	2.65%	7.25%	-4.99%
MUR	74 Outperform	$2.98B	7.74	7.77%	5.87%	-12.48%	-36.47%
Sector *	57 Neutral	$7.57B	4.34	-4.83%	6.50%	-0.19%	-64.60%
CRK	50 Neutral	$5.67B	―	-9.51%	0.66%	-22.76%	-199.21%
PTEN	47 Neutral	$2.23B	―	-23.39%	5.55%	29.70%	-341.43%

Matador Resources Corporate Events

Matador Resources Announces Shareholder Update and Town Hall

On April 8, 2025, Matador Resources Company announced a shareholder communication update on its website, along with a scheduled ‘Town Hall’ conference call for April 28, 2025. This announcement provides stakeholders with an opportunity to engage with the company and gain insights into its current operations and future plans.

Spark’s Take on MTDR Stock

According to Spark, TipRanks’ AI Analyst, MTDR is a Outperform.

Matador Resources receives a strong overall stock score, driven by robust financial performance, attractive valuation, and positive earnings call insights. The company’s strategic moves in corporate events further bolster its growth prospects. However, technical analysis suggests caution due to bearish momentum, a factor that slightly tempers the overall score.

To see Spark’s full report on MTDR stock, click here.

Matador Resources Sells Eagle Ford Assets for $30M

Matador Resources Company announced the sale of its remaining Eagle Ford shale assets in South Texas, generating over $30 million in proceeds, which were used to reduce its credit facility borrowings. This strategic move allows Matador to concentrate on its high-quality acreage in the Delaware Basin, where it holds approximately 200,000 net acres. The company also reported a strong financial position at the end of the first quarter of 2025, with $1.8 billion in liquidity and a leverage ratio of one times or less. Additionally, Matador has taken precautionary measures, including entering into new oil hedges and securing inventory for its 2025 drilling program, to mitigate the impact of market volatility and potential tariff-related cost increases.

Spark’s Take on MTDR Stock

According to Spark, TipRanks’ AI Analyst, MTDR is a Outperform.

Matador Resources exhibits strong financial health with growth in revenue, profits, and cash flow, supported by efficient cost management. Although technical indicators suggest caution, the company’s valuation appears attractive, with a low P/E ratio and solid dividend yield. The positive earnings call reinforces confidence in future growth, despite minor operational challenges.

To see Spark’s full report on MTDR stock, click here.

Matador Resources Reports Strong 2024 Financial Results

Matador Resources reported its financial and operational results for the fourth quarter and the entire year of 2024, highlighting a 25% dividend increase, record production levels, and strategic operational advancements. The company announced successful acquisitions and integrations, along with significant improvements in operational efficiencies that contribute to its strong financial outlook for 2025, including expectations of increased cash flow and reduced leverage.

Matador Resources Strengthens Board with New Appointment

On January 27, 2025, Matador Resources appointed Paul W. Harvey as a director on its Board. Mr. Harvey brings over four decades of investment experience, including significant involvement in the oil and gas sector. He will serve on various committees, providing valuable insights due to his extensive experience and long-standing affiliation with Matador. The appointment of Mr. Harvey is expected to strengthen Matador’s board with his expertise in working with high-net-worth individuals and his historical connection as a long-time shareholder.