Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $6.34B
• Dividend Yield: 2.12%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.93
• Revenue Growth: 16.20%
• EPS Growth: -12.42%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.53
• Shares Outstanding: 125,202,740
• 10 Day Avg. Volume: 2,122,262
• 30 Day Avg. Volume: 1,779,913
• PEG Ratio: -0.88
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 0.96
• 1Y Price Target: $62.79
• Price Target Upside: 23.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 82 Outperform
• 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 Business Overview & Revenue Model

Company Description

Matador 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 Money

Matador 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 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: Positive
• Last Price: 50.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHRD	82 Outperform	$6.33B	7.32	12.64%	4.65%	31.71%	-32.13%
MTDR	82 Outperform	$6.34B	7.38	17.07%	2.12%	16.20%	-12.42%
APA	76 Outperform	$6.96B	6.98	25.34%	5.24%	26.76%	-69.10%
MGY	75 Outperform	$4.62B	11.67	20.85%	2.36%	8.78%	0.56%
Sector *	67 Neutral	$15.27B	9.94	6.24%	5.21%	4.47%	-70.67%
CNX	67 Neutral	$4.67B	54.21	3.73%	―	38.21%	-67.24%
CRK	48 Neutral	$6.21B	―	-14.17%	0.66%	-1.73%	-608.98%

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.

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.

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.

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.

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.

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.

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.

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.