Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $4.93B
• Dividend Yield: 2.43%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.16
• Revenue Growth: 21.73%
• EPS Growth: 1.48%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.83
• Shares Outstanding: 125,207,214
• 10 Day Avg. Volume: 2,929,509
• 30 Day Avg. Volume: 2,240,049
• PEG Ratio: N/A
• 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: 2.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.99
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.47
• Price Target Upside: 59.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Matador Resources presents a strong financial performance with solid revenue growth and profitability, bolstered by strategic debt reduction and operational enhancements. The attractive valuation and positive earnings call support the company's growth potential, although technical indicators suggest caution due to current bearish trends.

Positive Factors

Cost Efficiency

D&C costs fell 3% in 1Q from full-year 2024 levels.

Financial Performance

Reported adj EBITDA of $644m, ahead of consensus of $638m and Benchmark’s $634m.

Share Buyback

The Board of Directors authorized a $400 million buyback, marking the first authorization for Matador Resources, which historically avoided buybacks.

Negative Factors

Capital Returns

MTDR's capital returns trail peers, with a modeled Return of Capital Yield significantly below that of its peers.

Production Guidance

2Q25 guidance was disappointing with lower oil production and materially higher total capex due to timing.

Valuation Concerns

MTDR's valuation is at a slight premium with a 3.4x 2026E EV/EBITDA multiple, which exceeds peers' 3.1x, limiting its valuation appeal.

Matador Resources Business Overview & Revenue Model

Company Description

Matador Resources Company (MTDR) is an independent energy company primarily engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. The company operates in the upstream sector of the oil and gas industry, with a focus on developing unconventional resource plays, particularly in the Permian Basin of Southeast New Mexico and West Texas. Matador Resources is known for its strategic emphasis on high-quality assets and operational efficiency.

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 financial health with consistent revenue growth and high profitability margins. The company effectively manages costs and maintains a stable balance sheet with moderate leverage. Its strong cash flow management enhances liquidity and financial flexibility.

Income Statement

Matador Resources has demonstrated strong performance on its income statement with consistent revenue growth, particularly a 6.34% increase in TTM. The gross profit margin of 56.57% and net profit margin of 25.18% indicate solid profitability. The EBIT margin of 40.89% and EBITDA margin of 65.91% further underscore efficient operations. The company effectively manages costs, translating high revenues into robust profits.

Balance Sheet

The balance sheet of Matador Resources reveals a stable financial position, with a debt-to-equity ratio of 0.40 indicating moderate leverage. The return on equity of 17.62% demonstrates effective use of shareholders' equity to generate profits. However, the equity ratio of 47.70% suggests a balanced capital structure. The company maintains solid asset management and financial stability.

Cash Flow

Matador Resources shows strong cash flow management with a substantial free cash flow growth rate of 286.89% in TTM, evidencing improved liquidity. The operating cash flow to net income ratio of 2.69 and free cash flow to net income ratio of 1.16 highlight the company's ability to convert earnings into cash, enhancing financial flexibility.

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: 40.49
• 50DMA: Negative
• 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 Negative. The current price of 40.49 is above the 20-day moving average (MA) of 40.19, below the 50-day MA of 46.23, and below the 200-day MA of 53.35, indicating a neutral trend. The MACD of -1.85 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 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
CHRD	79 Outperform	$5.48B	5.75	12.27%	5.60%	34.76%	-34.10%
MTDR	78 Outperform	$4.93B	5.52	19.20%	2.43%	21.73%	1.48%
MUR	73 Outperform	$2.98B	7.74	7.77%	5.77%	-12.48%	-36.47%
MGY	69 Neutral	$3.94B	10.47	20.06%	2.63%	7.25%	-4.99%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%
PTEN	53 Neutral	$2.26B	―	-24.93%	5.67%	5.82%	-481.39%
CRK	47 Neutral	$5.67B	―	-9.51%	0.66%	-22.76%	-199.21%

Matador Resources Corporate Events

Matador Resources Reports Q1 2025 Production Surge

On April 23, 2025, Matador Resources reported its first quarter 2025 results, highlighting a 33% increase in total oil and gas production compared to the previous year. The company also announced a $400 million share repurchase program and adjustments to its drilling activities, reducing its capital expenditures by $100 million for the year. These strategic moves are aimed at enhancing shareholder value and providing operational flexibility amid market volatility.

Spark’s Take on MTDR Stock

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

Matador Resources shows strong financial performance with robust revenue growth and efficient operations. The company’s attractive valuation and positive earnings call further support confidence in its future growth potential. However, technical indicators suggest caution due to bearish trends. Recent corporate events bolster its strategic positioning, enhancing shareholder value.

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

Matador Resources Announces Quarterly Cash Dividend

On April 16, 2025, Matador Resources Company announced a quarterly cash dividend of $0.3125 per share of common stock, payable on June 6, 2025, to shareholders of record as of May 9, 2025. This dividend declaration follows the company’s dividend policy adopted in February 2025, reflecting Matador’s commitment to returning value to shareholders. The decision underscores the company’s stable financial position and operational success, which could positively impact its market standing and investor confidence.

Spark’s Take on MTDR Stock

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

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.

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

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.