Matador Resources (MTDR) AI Stock Analysis

• Market Cap: $6.14B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.00
• Revenue Growth: 21.73%
• EPS Growth: 1.48%
• Country: US
• Employees: 452
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.99
• Shares Outstanding: 125,202,740
• 10 Day Avg. Volume: 1,361,692
• 30 Day Avg. Volume: 1,503,987
• PEG Ratio: -0.26
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.30
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 0.61
• 1Y Price Target: $63.57
• Price Target Upside: 23.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 82 Outperform
• Price Target: $53.00 ▲(2.63%Upside)

Matador Resources demonstrates strong financial performance, attractive valuation, and strategic initiatives in its earnings call and corporate events. While technical indicators show mixed momentum, the company's robust financial health and strategic focus on growth and shareholder value position it well in the industry.

Positive Factors

Operational Efficiency

MTDR highlighted continued efficiency gains and recent operational records in oil and gas exploration, showing strong performance and potential for future growth.

Strategic Growth

Recent management changes at MTDR indicate a strong focus on strategic growth opportunities, particularly in the midstream business at San Mateo.

Negative Factors

Market Risks

Risks to the Buy rating include prices falling dramatically for a long period, impacting earnings capacity, and geologic risks that may affect productivity.

Volume Trajectory Concerns

There were concerns about the lack of clarity on the second half volume trajectory and the pace of the buyback.

Matador Resources Business Overview & Revenue Model

Company Description

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. As of December 31, 2021, its estimated total proved oil and natural gas reserves were 323.4 million barrels of oil equivalent, including 181.3 million stock tank barrels of oil and 852.5 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.

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 shows strong financial health with robust revenue and profit growth, efficient operations, and solid cash flow management. The company has a moderate leverage position and effectively uses equity for 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.69B	3.48B	2.82B	3.06B	1.66B	862.13M
	Gross Profit
1.60B	1.54B	1.33B	1.88B	891.54M	227.77M
	EBIT
1.51B	1.43B	1.21B	1.76B	793.08M	165.11M
	EBITDA
2.56B	2.42B	1.94B	2.23B	1.14B	-353.67M
	Net Income Common Stockholders
931.68M	885.32M	846.07M	1.21B	584.97M	-553.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
505.18M	23.03M	52.66M	505.18M	48.13M	57.92M
	Total Assets
5.55B	10.85B	7.73B	5.55B	4.26B	3.69B
	Total Debt
1.16B	3.42B	2.27B	1.16B	1.53B	1.81B
	Net Debt
655.07M	3.39B	2.22B	655.07M	1.48B	1.76B
	Total Liabilities
2.24B	5.46B	3.60B	2.24B	2.13B	2.17B
	Stockholders Equity
3.11B	5.09B	3.91B	3.11B	1.91B	1.29B
Cash Flow		Free Cash Flow
549.67M	280.04M	318.02M	894.75M	319.88M	-302.87M
	Operating Cash Flow
2.51B	2.25B	1.87B	1.98B	1.05B	477.58M
	Investing Cash Flow
-3.63B	-3.67B	-3.21B	-1.04B	-729.26M	-775.67M
	Financing Cash Flow
1.13B	1.41B	902.33M	-480.85M	-328.55M	324.34M

Matador Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 51.64 is above the 20-day moving average (MA) of 45.42, above the 50-day MA of 42.66, and above the 200-day MA of 51.03, indicating a bullish trend. The MACD of 1.66 indicates Negative momentum. The RSI at 74.96 is Negative, neither overbought nor oversold. The STOCH value of 95.29 is Negative, 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
MTDR	82 Outperform	$6.14B	6.59	19.20%	2.55%	21.73%	1.48%
CHRD	79 Outperform	$5.91B	7.10	12.64%	5.08%	31.71%	-32.13%
MUR	74 Outperform	$3.47B	9.33	7.54%	5.34%	-14.90%	-27.53%
MGY	74 Outperform	$4.54B	12.02	20.85%	2.54%	8.78%	0.56%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
PTEN	53 Neutral	$2.45B	―	-24.93%	5.04%	5.82%	-481.39%
CRK	52 Neutral	$7.01B	―	-14.17%	0.66%	-1.73%	-608.98%

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.

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.

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.

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.