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Matador Resources Company (MTDR)
NYSE:MTDR
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Matador Resources (MTDR) AI Stock Analysis

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MTDR

Matador Resources

(NYSE:MTDR)

Rating:82Outperform
Price Target:
$59.00
▲(16.16%Upside)
Matador Resources scores highly due to its solid financial performance, strategic growth initiatives, and attractive valuation metrics. The company's strong earnings call highlights and corporate events reinforce confidence in its future potential. Technical analysis indicates stable market conditions, supporting the overall positive outlook for the stock.
Positive Factors
Financial Performance
MTDR reported strong results which beat on all key metrics relative to Consensus.
Operational Efficiency
Matador increased the TIL count by 1.4 net wells but kept capex unchanged, underlining the company’s increasing capital efficiencies.
Share Buybacks
The company executed a meaningful amount of buybacks, improving its financial position.
Negative Factors
Production Decline
Production is expected to decline sequentially from record Q2'25 levels due to planned activity and rig reduction.
Production Guidance
Oil production guidance for 3Q25 comes in light, with expectations below previous estimates.

Matador Resources (MTDR) vs. SPDR S&P 500 ETF (SPY)

Matador Resources Business Overview & Revenue Model

Company DescriptionMatador Resources Company (MTDR) is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Headquartered in Dallas, Texas, the company primarily operates in the Delaware Basin, a sub-basin of the Permian Basin, which is known for its rich reserves. Matador's core operations focus on the exploration and production of oil and natural gas, leveraging advanced technologies to optimize resource extraction and enhance operational efficiency.
How the Company Makes MoneyMatador Resources generates revenue primarily through the sale of oil, natural gas, and natural gas liquids (NGLs) extracted from its exploration and production activities. The company's revenue model is largely driven by the production volumes and prevailing market prices of these commodities. Matador undertakes strategic acquisitions and development of oil and gas properties to increase its reserves and production capacity, thereby enhancing its revenue potential. Additionally, Matador's operations benefit from its midstream subsidiary, San Mateo Midstream, which provides gathering, processing, and transportation services, contributing to cost efficiencies and additional revenue streams.

Matador Resources Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q1-2025)
|
% Change Since: -0.26%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strategic approach to navigating market uncertainties with strong financial management and operational capacity expansion. Despite short-term production challenges and market volatility, the company's actions, including debt reduction, increased processing capacity, and a share buyback program, suggest confidence in long-term growth and shareholder value.
Q1-2025 Updates
Positive Updates
Debt Reduction
Matador Resources repaid $190 million of debt, indicating strong cash flow management and financial health.
Gas Processing Capacity Expansion
The new Marlin plant coming online increased the processing capacity to 720 million from the original 60 million, enhancing flow assurance and operational capability.
Share Buyback Program
The board authorized a share repurchase program, demonstrating alignment with shareholder interests and confidence in company valuation.
Production Growth Outlook
Despite a slight slowdown, Matador expects a 17% growth in oil production by year-end, driven by operational adjustments and new wells coming online.
Strong Insider Investment
Management and employees actively bought shares, indicating strong internal confidence in the company's future performance.
Negative Updates
Reduced Production in Q1
Production slowdown due to maintenance and force majeure events, resulting in a 1-2% decline in production.
Operational Adjustments
Matador reduced activity, including cutting rigs from the Meredith asset and Antelope Ridge, and shifted focus to West Texas amid market uncertainties.
Hedging for 2026
Concerns over capacity issues prompted Matador to lock in wider gas dips for 2026, indicating potential vulnerabilities in future market conditions.
Company Guidance
During the Matador Resources Company's First Quarter 2025 earnings call, CEO Joseph Foran highlighted several key metrics and strategic decisions. The company successfully reduced its debt by $190 million and announced the completion of its Marlin gas processing plant, which, along with the Black River plant, increases processing capacity to 720 million cubic feet per day. Despite a slight 1-2% production dip due to maintenance and force majeure events, the company projects a 17% growth in oil production by year-end. Matador also emphasized shareholder alignment, with management and over 100 employees purchasing company shares, supported by a board-authorized share repurchase program. Additionally, the company is exploring IPO options for its midstream segment and has hedged against potential future gas pricing vulnerabilities.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.48B2.82B3.06B1.66B862.13M
Gross Profit1.54B1.33B1.88B891.54M227.77M
EBITDA2.42B1.94B2.23B1.14B-353.67M
Net Income885.32M846.07M1.21B584.97M-553.56M
Balance Sheet
Total Assets10.85B7.73B5.55B4.26B3.69B
Cash, Cash Equivalents and Short-Term Investments23.03M52.66M505.18M48.13M57.92M
Total Debt3.46B2.27B1.16B1.53B1.81B
Total Liabilities5.46B3.60B2.24B2.13B2.17B
Stockholders Equity5.09B3.91B3.11B1.91B1.29B
Cash Flow
Free Cash Flow280.04M318.02M894.75M319.88M-302.87M
Operating Cash Flow2.25B1.87B1.98B1.05B477.58M
Investing Cash Flow-3.67B-3.21B-1.04B-729.26M-775.67M
Financing Cash Flow1.41B902.33M-480.85M-328.55M324.34M

Matador Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.79
Price Trends
50DMA
48.10
Positive
100DMA
46.21
Positive
200DMA
50.95
Negative
Market Momentum
MACD
0.73
Positive
RSI
53.06
Neutral
STOCH
42.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Positive. The current price of 50.79 is above the 20-day moving average (MA) of 50.50, above the 50-day MA of 48.10, and below the 200-day MA of 50.95, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 42.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTDR.

Matador Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$6.33B7.3212.64%4.65%31.71%-32.13%
82
Outperform
$6.34B7.3817.07%2.12%16.20%-12.42%
76
Outperform
$6.96B6.9825.34%5.24%26.76%-69.10%
75
Outperform
$4.62B11.6720.85%2.36%8.78%0.56%
67
Neutral
$15.27B9.946.24%5.21%4.47%-70.67%
67
Neutral
$4.67B54.213.73%38.21%-67.24%
48
Neutral
$6.21B-14.17%0.66%-1.73%-608.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTDR
Matador Resources
50.79
-9.36
-15.56%
APA
APA
19.10
-10.58
-35.65%
CRK
Comstock Resources
20.74
10.34
99.42%
CNX
CNX Resources
31.09
5.74
22.64%
MGY
Magnolia Oil & Gas
23.74
-2.24
-8.62%
CHRD
Chord Energy
108.72
-54.72
-33.48%

Matador Resources Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Matador Resources Reports Record Q2 Production and Growth
Positive
Jul 22, 2025

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.

The most recent analyst rating on (MTDR) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Matador Resources stock, see the MTDR Stock Forecast page.

Dividends
Matador Resources Declares Quarterly Cash Dividend
Neutral
Jul 15, 2025

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.

The most recent analyst rating on (MTDR) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Matador Resources stock, see the MTDR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Matador Resources Holds Annual Shareholder Meeting
Neutral
Jun 17, 2025

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.

The most recent analyst rating on (MTDR) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Matador Resources stock, see the MTDR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Matador Resources Announces Leadership Promotions Amid Growth
Positive
Jun 13, 2025

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.

The most recent analyst rating on (MTDR) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Matador Resources stock, see the MTDR Stock Forecast page.

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.Date of analysis: Jul 25, 2025