Matador Resources Company MTDR reported first-quarter 2025 adjusted earnings of $1.99 per share, which beat the Zacks Consensus Estimate of $1.74. The bottom line also improved from the year-ago quarter’s level of $1.71.
Total revenues of $1.01 billion beat the Zacks Consensus Estimate of $943 million. The top line also increased from the year-ago quarter’s figure of $788 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The strong quarterly results were driven by MTDR's high total production volume and increased commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Upstream Business in Q1
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 (57.9% of total first-quarter production), making this commodity’s price the prime factor in determining the company’s earnings.
The average daily oil production was 115,030 barrels, reflecting a 1% increase from the anticipated figure.
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 $72.38 per barrel, down from $77.58 a year ago. The commodity price was, however, higher than our projection of $71.66 per barrel. The price of natural gas was $3.56 per thousand cubic feet (Mcf), up from $2.96 in the year-ago quarter. The figure came in lower than our estimate of $4.23 Mcf.
Increasing Production
Matador reported oil production of 115,030 barrels per day (B/D), up from 84,777 B/D in the prior-year quarter. The figure beat our estimate of 114,908.8 B/D. Natural gas production was recorded at 501.6 million cubic feet per day (MMcf/D), up from 389.9 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 first quarter was 198,631 BOE/D, reflecting a 33% increase from the year-ago quarter’s level of 149,760 BOE/D. The figure was also above our projection of 196,120 BOE/D.
Operating Expenses
MTDR’s plant and other midstream services’ operating expenses increased to $2.96 per BOE from the year-earlier level of $2.91. Our estimate for the same was pinned at $3.26.
Lease operating costs increased to $5.96 per BOE from $5.60 a year ago. Our projection for the metric was pinned at $5.85 per BOE. Production taxes, transportation and processing costs rose to $5.25 per BOE from $5.15 in the year-ago quarter.
Total operating expenses per BOE were $31.83, higher than the prior-year figure of $31.42 but below our estimate of $32.11.
Balance Sheet & Capital Spending
As of March 31, 2025, MTDR had cash and restricted cash of $77.5 million and a long-term debt of $3,176.5 million. In the first quarter, the company spent $378.4 million on well drilling, completion and equipment.
Outlook
For 2025, Matador Resources expects average daily oil equivalent production to be in the range of 198,000-202,000 Boe/d. This implies a 2% reduction from its previous guidance. The company also expects average daily total production for the second quarter of 2025 to be in the band of 206,000-208,000 Boe/d. The company has also updated its total 2025 capital expenditure forecast to the range of $1.30-$1.55 billion.
MTDR’s Zacks Rank and Key Picks
MTDR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. It operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts. KMI’s stable business model shields it from commodity price volatility, resulting in predictable earnings and facilitating reliable capital returns to its shareholders. In the first quarter of 2025, Kinder Morgan increased its quarterly cash dividend to 29.25 cents, reflecting an approximately 2% increase from the prior-year level.
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