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Matador Resources
(NYSE:MTDR)
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Rating:66Neutral
Price Target:
$56.00
â–²(10.21% Upside)
Action:Reiterated
Date:07/24/26
MTDR scores highest on business/operational momentum and strategic actions (positive earnings-call execution and supportive corporate events), and valuation is reasonable with a mid-teens P/E plus a ~2.8% dividend yield. The overall score is held back primarily by financial fundamentals moderating from peak levels—especially weak free-cash-flow conversion despite solid operating cash flow—and a mixed technical setup with the stock below key intermediate moving averages.
Positive Factors
Large, High‑Return Inventory
A multi‑year drilling inventory with expected returns north of 50% provides durable optionality: it supports measured, long‑dated development, reduces exploration risk, and allows management to pace capex to commodity cycles while preserving economics across 2–6 months and beyond.
Negative Factors
Very Low Free Cash Flow Conversion
Extremely weak FCF conversion limits durable financial flexibility: even with solid operating cash flow, low free cash generation constrains dividends, buybacks and rapid deleveraging, raises dependency on borrowing or asset sales, and reduces buffer versus commodity downcycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, High‑Return Inventory
A multi‑year drilling inventory with expected returns north of 50% provides durable optionality: it supports measured, long‑dated development, reduces exploration risk, and allows management to pace capex to commodity cycles while preserving economics across 2–6 months and beyond.
Read all positive factors
Matador Resources (MTDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.86B
Dividend Yield3.12%
Average Volume (3M)1.72M
Price to Earnings (P/E)11.9
Beta (1Y)0.56
Revenue Growth-2.91%
EPS Growth-47.92%
CountryUS
Employees483
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.89
Shares Outstanding124,178,230
10 Day Avg. Volume1,586,833
30 Day Avg. Volume1,720,174
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.29Price Target Upside38.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)7.09
Revenue Forecast (FY)$3.90B
Matador Resources Business Overview & Revenue Model
Company Description
Matador Resources Company operates as an independent energy firm, primarily engaged in the identification, development, extraction, and acquisition of crude oil and natural gas reserves throughout the United States. Its business operations are str...
How the Company Makes Money
Matador primarily makes money by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its operated wells. Revenue is largely driven by: (1) volumes produced (oil, gas, and NGLs sold) and (2) realized commodity prices, ...
Matador Resources Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.63B | 3.66B | 3.48B | 2.82B | 3.06B | 1.66B |
| Gross Profit | 3.31B | 1.60B | 1.54B | 1.33B | 1.88B | 891.54M |
| EBITDA | 2.09B | 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
Negative
50.81
Price Trends
53.04
Negative
56.04
Negative
49.46
Negative
Market Momentum
>-0.01
Negative
43.05
Neutral
31.34
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 50.81 is below the 20-day moving average (MA) of 51.50, below the 50-day MA of 53.04, and above the 200-day MA of 49.46, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.05 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.69B | 13.45 | 16.38% | 2.49% | -1.98% | -14.47% | |
69 Neutral | $7.42B | -122.67 | -0.83% | 3.76% | -0.99% | -107.05% | |
66 Neutral | $5.86B | 11.86 | 8.74% | 2.83% | -2.91% | -47.92% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $7.26B | 25.78 | 2.49% | 2.53% | 27.35% | -66.88% | |
60 Neutral | $4.51B | -9.50 | -13.78% | 3.00% | 3.77% | -192.29% | |
58 Neutral | $3.46B | -14.01 | -6.06% | 4.26% | 18.27% | -67.80% |
* Energy Sector Average
MTDR
Matador Resources
46.12
-3.57
-7.19%
SM
SM Energy
29.65
2.90
10.84%
MGY
Magnolia Oil & Gas
23.40
-0.37
-1.57%
CRC
California Resources Corp
49.30
1.96
4.14%
CHRD
Chord Energy
128.80
21.95
20.54%
CRGY
Crescent Energy Company Class A
10.42
1.39
15.37%
Matador Resources Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Matador Resources Expands Delaware Basin With Major Acquisitions
Positive
Jul 24, 2026
On July 22, 2026, Matador’s subsidiaries agreed to acquire Paloma Permian LLC and certain undeveloped and producing assets from Ridge Runner Resources II in the Delaware Basin, for a combined consideration centered on a $1.275 billion cash p...
DividendsBusiness Operations and Strategy
Matador Resources Declares Quarterly Cash Dividend Announcement
Positive
Jul 22, 2026
On July 22, 2026, Matador Resources announced that its Board of Directors declared a quarterly cash dividend of $0.375 per share on its common stock. The dividend will be paid on September 8, 2026, to shareholders of record as of August 10, 2026, ...
Private Placements and FinancingShareholder MeetingsBusiness Operations and Strategy
Matador Resources Expands Credit Facility and Confirms Strategy
Positive
Jun 16, 2026
On June 10, 2026, Matador Resources’ subsidiary MRC Energy amended its secured revolving credit facility, reaffirming a $3.25 billion borrowing base while raising elected borrowing commitments from $2.25 billion to $2.75 billion, enhancing i...
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...
Executive/Board ChangesBusiness Operations and Strategy
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...
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.