Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $5.50B
• Dividend Yield: 2.97%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.96
• Revenue Growth: 14.77%
• EPS Growth: -17.38%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.36
• Shares Outstanding: 124,270,676
• 10 Day Avg. Volume: 1,350,026
• 30 Day Avg. Volume: 1,566,815
• PEG Ratio: 9.29
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 24.82
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $57.08
• Price Target Upside: 28.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $50.00 ▲(12.99% Upside)

Matador Resources scores highly due to its strong financial performance and strategic initiatives, including enhanced liquidity and operational efficiency. The stock's attractive valuation and positive earnings call further bolster its appeal. However, technical indicators suggest caution due to potential overbought conditions, and market risks such as oil oversupply and natural gas pricing volatility should be monitored.

Positive Factors

Operational Efficiency

Improved operational efficiency through cost reductions enhances profitability and supports sustainable growth, strengthening competitive positioning.

Financial Flexibility

Increased credit facility enhances financial flexibility, allowing for strategic investments and operational growth, underpinning long-term stability.

Dividend Growth

Consistent dividend growth reflects strong financial health and commitment to shareholder returns, indicating confidence in future cash flow generation.

Negative Factors

Net Profit Margin Decline

Declining net profit margins suggest increased expenses or financial pressures, potentially impacting long-term profitability and operational efficiency.

Natural Gas Pricing Volatility

Volatility in natural gas pricing can lead to unpredictable revenue streams, affecting cash flow stability and financial planning.

Potential Oversupply Risks

Potential oversupply in the oil market could pressure prices, impacting revenue and profitability, necessitating strategic adjustments.

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 exploration, production, and sale of crude oil, natural gas, and natural gas liquids (NGLs). The company sells its products to various customers, including large integrated oil companies, midstream companies, and other independent oil and gas producers. Key revenue streams include oil sales, natural gas sales, and NGL sales, with oil typically representing the majority of their revenue. Matador also benefits from favorable pricing conditions and operational efficiencies within its production processes. The company may engage in hedging strategies to protect against volatile commodity prices, which can stabilize cash flows. Additionally, partnerships with midstream companies for the transportation and processing of its hydrocarbons further enhance their revenue potential and operational capabilities.

Matador Resources Financial Statement Overview

Summary

Matador Resources demonstrates strong financial health with impressive revenue and cash flow growth. The company has effectively managed its leverage, reflected in the improved debt-to-equity ratio. However, the decline in net profit margin and ROE suggests potential areas for improvement. Overall, the company is well-positioned for future growth, but maintaining profitability and efficiency will be crucial.

Income Statement

Matador Resources shows strong revenue growth with a 2.1% increase in TTM, following a robust 23.5% annual growth in 2024. The gross profit margin improved significantly to 76.3% in TTM, indicating efficient cost management. However, the net profit margin decreased to 20.3% from 25.4% in 2024, suggesting increased expenses or other financial pressures. Overall, the company demonstrates solid profitability and growth, but the declining net profit margin is a concern.

Balance Sheet

The company's debt-to-equity ratio improved to 0.38 in TTM from 0.68 in 2024, reflecting better leverage management. Return on equity decreased to 14.7% in TTM from 17.4% in 2024, indicating slightly reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure. While leverage has improved, the decline in ROE warrants attention.

Cash Flow

Matador Resources achieved a remarkable 121.5% growth in free cash flow in TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio remains robust at 2.01, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio improved to 38.7%, reflecting enhanced cash conversion efficiency. Overall, the cash flow position is very strong, supporting future investments and debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.83B	3.48B	2.82B	3.06B	1.66B	855.20M
Gross Profit	1.50B	1.54B	1.33B	1.88B	891.54M	220.84M
EBITDA	2.54B	2.42B	1.93B	2.23B	1.14B	-160.64M
Net Income	781.21M	885.32M	846.07M	1.21B	584.97M	-593.21M
Balance Sheet
Total Assets	11.65B	10.85B	7.73B	5.55B	4.26B	3.69B
Cash, Cash Equivalents and Short-Term Investments	20.15M	23.03M	52.66M	505.18M	48.13M	57.92M
Total Debt	3.33B	2.11B	2.27B	1.23B	1.56B	1.87B
Total Liabilities	5.79B	5.39B	3.60B	2.24B	2.13B	2.17B
Stockholders Equity	5.51B	5.09B	3.91B	3.11B	1.91B	1.29B
Cash Flow
Free Cash Flow	413.76M	280.04M	318.02M	894.75M	319.88M	-302.87M
Operating Cash Flow	2.53B	2.25B	1.87B	1.98B	1.05B	477.58M
Investing Cash Flow	-1.96B	-3.67B	-3.21B	-1.04B	-729.26M	-775.67M
Financing Cash Flow	-545.13M	1.41B	902.33M	-480.85M	-328.55M	324.34M

Matador Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 44.25 is above the 20-day moving average (MA) of 42.81, above the 50-day MA of 41.70, and below the 200-day MA of 45.02, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 69.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	82 Outperform	$5.50B	7.08	15.06%	2.97%	14.77%	-17.38%
CHRD	76 Outperform	$5.54B	37.68	2.02%	5.34%	8.43%	-86.63%
APA	73 Outperform	$9.20B	6.24	27.24%	3.80%	4.88%	-41.34%
CNX	70 Outperform	$5.19B	26.88	6.98%	―	43.30%	-43.07%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MGY	65 Neutral	$4.30B	12.68	17.51%	2.63%	0.68%	-11.13%
CRK	59 Neutral	$6.35B	97.26	2.86%	―	35.41%	―

Matador Resources Corporate Events

Matador Resources Enhances Credit Facility and Liquidity

On December 9, 2025, Matador Resources announced a Seventh Amendment to its Credit Agreement, reaffirming its borrowing base at $3.25 billion and maintaining elected commitments at $2.25 billion. Additionally, Matador’s San Mateo Midstream, LLC received unanimous lender support to increase its revolving credit facility by $250 million to $1.10 billion, enhancing operational and financial flexibility. These developments reflect Matador’s commitment to debt repayment, capital efficiency, and operational growth, with a significant reduction in its debt-to-EBITDA leverage ratio and increased liquidity.

Matador Resources Reports Record Q3 Production, Raises Guidance

On October 21, 2025, Matador Resources reported its third-quarter results, highlighting record production levels and increased full-year guidance for 2025. The company announced a dividend increase and share repurchase, reflecting strong financial performance and growth. Matador’s strategic land acquisitions and operational efficiencies have positioned it as a leading exploration and production company in the Dallas-Fort Worth area. The company also provided a positive outlook for 2026, expecting continued production growth and capital efficiency.

Matador Resources Increases Quarterly Dividend by 20%

On October 15, 2025, Matador Resources Company announced an amendment to its dividend policy, resulting in a 20% increase in its quarterly cash dividend to $0.375 per share, effective from the fourth quarter of 2025. This marks the seventh increase in four years, reflecting the company’s confidence in its financial stability and commitment to returning value to shareholders.

Matador Resources Promotes Robert Macalik to CFO Role

Matador Resources Company announced the promotion of Robert T. Macalik to Executive Vice President and Chief Financial Officer, effective September 29, 2025. Mr. Macalik, who has been with Matador since 2015, will continue his role as CFO of San Mateo Midstream, LLC. His promotion follows the cessation of William D. Lambert as CFO on September 24, 2025, which was unrelated to any financial disagreements. Mr. Macalik’s extensive experience in the oil and gas industry, along with his leadership in Matador’s finance and IT teams, positions him well for his new role, enhancing the company’s strategic financial management.