Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $6.23B
• Dividend Yield: 2.46%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.01
• Revenue Growth: 16.20%
• EPS Growth: -12.42%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 59
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.53
• Shares Outstanding: 124,494,420
• 10 Day Avg. Volume: 1,350,323
• 30 Day Avg. Volume: 1,591,748
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $63.69
• Price Target Upside: 32.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 80 Outperform
• Price Target: $55.00 ▲(14.01% Upside)

Matador Resources scores highly due to its strong financial performance and attractive valuation. Positive corporate events further enhance its outlook. Technical indicators are neutral, suggesting stable market conditions. The absence of earnings call data does not impact the overall assessment significantly.

Positive Factors

Financial Performance

MTDR reported strong results which beat on all key metrics relative to Consensus.

Leadership and Management

Matador continues to benefit from the aptitude of founder and CEO Joe Foran and team, with Foran demonstrating similar operational and financial success as at his predecessor companies.

Operational Efficiency

Matador increased the TIL count by 1.4 net wells but kept capex unchanged, underlining the company’s increasing capital efficiencies.

Negative Factors

Guidance and Expectations

Oil production guidance for 3Q25 comes in light, with expectations below previous estimates.

Production Decline

Production is expected to decline sequentially from record Q2'25 levels due to planned activity and rig reduction.

Matador Resources Business Overview & Revenue Model

Company Description

Matador Resources Company (MTDR) is an independent energy company engaged in the exploration, development, and production of oil and natural gas. Primarily focused on the Delaware Basin in New Mexico and Texas, Matador operates in the upstream sector of the oil and gas industry. The company is involved in the acquisition of oil and gas properties and the drilling of horizontal wells to extract hydrocarbons, making it a key player in the rapidly evolving energy sector.

How the Company Makes Money

Matador Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) produced from its operations. The company employs a revenue model based on the extraction and sale of these hydrocarbons at market prices. Key revenue streams include the direct sales of oil and gas to various purchasers, which can include large oil companies, midstream companies, and end-users. Additionally, Matador often enters into hedging contracts to manage price volatility, providing a more stable revenue stream. The company also benefits from cost efficiencies in its drilling and production processes, which can enhance profitability. Strategic partnerships with service providers and midstream companies further support its operations, allowing for effective transportation and processing of its products, ultimately contributing to its earnings.

Matador Resources Financial Statement Overview

Summary

Matador Resources demonstrates strong financial health with consistent revenue growth, solid profitability, and efficient cost management. The company shows robust cash flow generation and maintains moderate leverage, effectively utilizing equity to fuel growth.

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
EBITDA	2.42B	1.94B	2.23B	1.14B	-353.67M
Net Income	885.32M	846.07M	1.21B	584.97M	-553.56M
Balance Sheet
Total Assets	10.85B	7.73B	5.55B	4.26B	3.69B
Cash, Cash Equivalents and Short-Term Investments	23.03M	52.66M	505.18M	48.13M	57.92M
Total Debt	3.46B	2.27B	1.16B	1.53B	1.81B
Total Liabilities	5.46B	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: 48.24
• 50DMA: Negative
• 100DMA: Positive
• 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 48.24 is above the 20-day moving average (MA) of 48.10, below the 50-day MA of 49.10, and below the 200-day MA of 50.04, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.72 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
MTDR	80 Outperform	$6.23B	7.33	17.07%	2.46%	16.20%	-12.42%
MGY	79 Outperform	$4.69B	12.82	19.24%	2.41%	2.67%	-5.79%
APA	78 Outperform	$8.39B	7.61	19.09%	4.40%	12.13%	-67.53%
CHRD	75 Outperform	$6.15B	27.38	3.13%	5.16%	19.55%	-81.10%
CNX	67 Neutral	$4.16B	49.98	3.73%	―	38.21%	-67.24%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
CRK	44 Neutral	$4.69B	―	-3.18%	0.66%	17.60%	-385.47%

Matador Resources Corporate Events

Matador Resources Reports Record Q2 Production and Growth

In the second quarter of 2025, Matador Resources reported record production levels, generating significant free cash flow and maintaining a strong financial position with over $1.8 billion in liquidity. The company achieved a record quarterly production of 209,013 barrels of oil and natural gas equivalent per day and increased its full-year production guidance. San Mateo Midstream, a subsidiary, expanded its processing capacity, contributing to Matador’s robust financial performance. The company also repurchased 1.1 million shares and declared a quarterly dividend, reflecting its commitment to shareholder returns. Despite moderating drilling activity, Matador continues to focus on strategic growth and operational efficiency, positioning itself for sustained profitability and value creation.

Matador Resources Declares Quarterly Cash Dividend

On July 15, 2025, Matador Resources Company announced a quarterly cash dividend of $0.3125 per share of common stock, payable on September 5, 2025, to shareholders of record as of August 15, 2025. This dividend declaration aligns with the company’s dividend policy adopted in February 2025, reflecting its operational results and financial position, while also considering various business conditions and regulatory factors.

Matador Resources Holds Annual Shareholder Meeting

On June 12, 2025, Matador Resources held its Annual Meeting of Shareholders where key decisions were made. Shareholders elected four directors for terms expiring in 2028, approved the 2024 executive compensation, and ratified KPMG LLP as the independent registered public accounting firm for 2025.

Matador Resources Announces Leadership Promotions Amid Growth

On June 12, 2025, Matador Resources Company announced several leadership promotions effective June 11, 2025, including Bryan A. Erman as Co-President, Chief Legal Officer, and Head of M&A, and William D. Lambert as Executive Vice President, Chief Financial Officer, and Head of Strategy. These changes reflect the company’s strategic focus on strengthening its leadership team to support its growth in the midstream sector, particularly with the expansion of the Marlan Plant, which has significantly increased San Mateo’s gas processing capacity. The promotions are expected to enhance the company’s operational capabilities and strategic positioning in the industry.