We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Matador Resources Q2 Earnings Beat on Higher Production Volumes
Read MoreHide Full Article
Key Takeaways
MTDR posted Q2 EPS of $1.53, beating estimates but falling y/y on weaker oil prices.
Record daily production of 209,013 BOE/D exceeded guidance and drove earnings.
Total operating expenses fell to $29.91/BOE, beating estimates and easing cost pressures.
Matador Resources Company (MTDR - Free Report) reported second-quarter 2025 adjusted earnings of $1.53 per share, which beat the Zacks Consensus Estimate of $1.29. The bottom line declined from the year-ago quarter’s $2.05.
Total revenues of $895.3 million missed the Zacks Consensus Estimate of $905 million. However, the top line increased from the year-ago quarter’s $847.1 million.
Better-than-expected quarterly earnings were driven by MTDR's record total production volumes and lower operating expenses. The positives were partially offset by lower commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources is primarily involved in oil and gas exploration, and production activities in the United States. The company’s overall financial performance is heavily dependent on the oil and gas pricing environment. Most of MTDR’s production comprises oil (59% of total second-quarter production), making this commodity’s price the prime factor in determining the company’s earnings.
The average daily oil production was 122,875 barrels, reflecting a 0.4% increase from the anticipated figure. The company’s record production volumes exceeded the guidance range due to the exceptional performance of both newly commissioned wells and its existing base production.
Let us take a look at the average commodity sales price, along with production.
Average Sales Price of Commodities
The average sales price for oil (without realized derivatives) was $64.34 per barrel, down from $81.20 a year ago. The commodity price was also lower than our projection of $65.55 per barrel. The price of natural gas was $2.05 per thousand cubic feet (Mcf), up from $2 in the year-ago quarter. However, the figure came in lower than our estimate of $3.28 Mcf.
Increasing Production
Matador reported oil production of 122,875 barrels per day (B/D), up from 95,488 B/D in the prior-year quarter. The figure beat our estimate of 114,908.8 B/D. Natural gas production was recorded at 516.8 million cubic feet per day (MMcf/D), up from 388.9 MMcf/D recorded a year ago. The reported figure surpassed our estimate of 487.3 MMcf/D.
The rise in total average production can be attributed to the outperformance of the wells that were brought into production for sales in the last quarter of 2024.
Total oil equivalent production in the second quarter was 209,013 BOE/D, reflecting a 30.4% increase from the year-ago quarter’s 160,305 BOE/D. The figure was also above our projection of 206,955.1 BOE/D.
Operating Expenses
MTDR’s plant and other midstream services’ operating expenses decreased to $2.40 per BOE from the year-earlier level of $2.55. Our estimate for the same was pinned at $2.68.
Lease operating costs increased to $5.56 per BOE from $5.42 a year ago. Our projection for the metric was pinned at $5.45 per BOE. Production taxes, transportation and processing costs declined to $4.35 per BOE from $5.27 in the year-ago quarter. Our projection for the metric was pinned at $5.31 per BOE.
Overall, total operating expenses per BOE were $29.91, lower than the prior-year figure of $30.64 and also below our estimate of $30.54.
Balance Sheet & Capital Spending
As of June 30, 2025, MTDR had cash and restricted cash of $86.8 million and a long-term debt of $3,286 million. In the second quarter, the company spent $367.1 million on well drilling, completion and equipment.
Outlook
For 2025, Matador Resources expects average daily oil equivalent production to be 200,000-205,000 Boe/d. This implies a 1.3% increase from its previous guidance. The company also expects average daily total production for the third quarter of 2025 to be 198,500-201,000 Boe/d. The company has also reiterated its total 2025 capital expenditure forecast of $1.30-$1.55 billion.
MTDR’s Zacks Rank & Key Picks
Matador Resources currently carries a Zacks Rank #3 (Hold).
Antero Midstream (AM - Free Report) generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Compared with its sub-industry peers, Antero Midstream’s higher dividend yield reflects its commitment to generating shareholder returns.
The Zacks Consensus Estimate for AM’s 2025 EPS is pegged at 24 cents, indicating a 33.3% year-over-year increase.
Enbridge (ENB - Free Report) is a leading midstream energy player in North America, operating an extensive crude oil and liquids transportation network spanning 18,085 miles — the world's longest and most complex system. ENB’s gas transportation pipeline network spans 71,308 miles, covering 31 U.S. states, four Canadian provinces and offshore areas in the Gulf of Mexico.
The Zacks Consensus Estimate for ENB’s 2025 EPS is pegged at 41 cents.
Vermilion Energy Inc. (VET - Free Report) is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The energy explorer’s diversification across different continents provides it with certain advantages relative to the other upstream players. VET, with its unique portfolio of high-margin, low-decline assets, is currently focused on cost reductions and positive free cash flow generation.
VET’s 2025 earnings is expected to surge 231.8% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Matador Resources Q2 Earnings Beat on Higher Production Volumes
Key Takeaways
Matador Resources Company (MTDR - Free Report) reported second-quarter 2025 adjusted earnings of $1.53 per share, which beat the Zacks Consensus Estimate of $1.29. The bottom line declined from the year-ago quarter’s $2.05.
Total revenues of $895.3 million missed the Zacks Consensus Estimate of $905 million. However, the top line increased from the year-ago quarter’s $847.1 million.
Better-than-expected quarterly earnings were driven by MTDR's record total production volumes and lower operating expenses. The positives were partially offset by lower commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Upstream Business in Q2
Matador Resources is primarily involved in oil and gas exploration, and production activities in the United States. The company’s overall financial performance is heavily dependent on the oil and gas pricing environment. Most of MTDR’s production comprises oil (59% of total second-quarter production), making this commodity’s price the prime factor in determining the company’s earnings.
The average daily oil production was 122,875 barrels, reflecting a 0.4% increase from the anticipated figure. The company’s record production volumes exceeded the guidance range due to the exceptional performance of both newly commissioned wells and its existing base production.
Let us take a look at the average commodity sales price, along with production.
Average Sales Price of Commodities
The average sales price for oil (without realized derivatives) was $64.34 per barrel, down from $81.20 a year ago. The commodity price was also lower than our projection of $65.55 per barrel. The price of natural gas was $2.05 per thousand cubic feet (Mcf), up from $2 in the year-ago quarter. However, the figure came in lower than our estimate of $3.28 Mcf.
Increasing Production
Matador reported oil production of 122,875 barrels per day (B/D), up from 95,488 B/D in the prior-year quarter. The figure beat our estimate of 114,908.8 B/D. Natural gas production was recorded at 516.8 million cubic feet per day (MMcf/D), up from 388.9 MMcf/D recorded a year ago. The reported figure surpassed our estimate of 487.3 MMcf/D.
The rise in total average production can be attributed to the outperformance of the wells that were brought into production for sales in the last quarter of 2024.
Total oil equivalent production in the second quarter was 209,013 BOE/D, reflecting a 30.4% increase from the year-ago quarter’s 160,305 BOE/D. The figure was also above our projection of 206,955.1 BOE/D.
Operating Expenses
MTDR’s plant and other midstream services’ operating expenses decreased to $2.40 per BOE from the year-earlier level of $2.55. Our estimate for the same was pinned at $2.68.
Lease operating costs increased to $5.56 per BOE from $5.42 a year ago. Our projection for the metric was pinned at $5.45 per BOE. Production taxes, transportation and processing costs declined to $4.35 per BOE from $5.27 in the year-ago quarter. Our projection for the metric was pinned at $5.31 per BOE.
Overall, total operating expenses per BOE were $29.91, lower than the prior-year figure of $30.64 and also below our estimate of $30.54.
Balance Sheet & Capital Spending
As of June 30, 2025, MTDR had cash and restricted cash of $86.8 million and a long-term debt of $3,286 million. In the second quarter, the company spent $367.1 million on well drilling, completion and equipment.
Outlook
For 2025, Matador Resources expects average daily oil equivalent production to be 200,000-205,000 Boe/d. This implies a 1.3% increase from its previous guidance. The company also expects average daily total production for the third quarter of 2025 to be 198,500-201,000 Boe/d. The company has also reiterated its total 2025 capital expenditure forecast of $1.30-$1.55 billion.
MTDR’s Zacks Rank & Key Picks
Matador Resources currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at a few better-ranked stocks, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Midstream (AM - Free Report) generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Compared with its sub-industry peers, Antero Midstream’s higher dividend yield reflects its commitment to generating shareholder returns.
The Zacks Consensus Estimate for AM’s 2025 EPS is pegged at 24 cents, indicating a 33.3% year-over-year increase.
Enbridge (ENB - Free Report) is a leading midstream energy player in North America, operating an extensive crude oil and liquids transportation network spanning 18,085 miles — the world's longest and most complex system. ENB’s gas transportation pipeline network spans 71,308 miles, covering 31 U.S. states, four Canadian provinces and offshore areas in the Gulf of Mexico.
The Zacks Consensus Estimate for ENB’s 2025 EPS is pegged at 41 cents.
Vermilion Energy Inc. (VET - Free Report) is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The energy explorer’s diversification across different continents provides it with certain advantages relative to the other upstream players. VET, with its unique portfolio of high-margin, low-decline assets, is currently focused on cost reductions and positive free cash flow generation.
VET’s 2025 earnings is expected to surge 231.8% year over year.