Matador Resources Company (MTDR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 financial and operational results, with production reaching 160,305 BOE/day, up 23% year-over-year, and oil production at 95,488 Bbl/day.

• Announced $1.905 billion Ameredev acquisition, expected to close late Q3 2024, adding 33,500 net acres, 117–120 million BOE reserves, and expanding Delaware Basin presence.

• Adjusted EBITDA for Q2 2024 was $578.1 million, up 14% sequentially and 37% year-over-year.

• Capital expenditures were $315 million, 8% below expectations, and leverage ratio was 0.7x as of June 30, 2024.

• Dividend increased to $0.80 annualized, with ~$200 million returned to shareholders since 2021.

Financial highlights

• Q2 2024 net income was $228.8 million ($1.83 per diluted share); adjusted net income was $255.9 million ($2.05 per share).

• Oil and natural gas revenues were $776.3 million; adjusted free cash flow was $167.0 million.

• San Mateo midstream contributed $58 million in adjusted EBITDA, up 36% year-over-year.

• Operating expenses per BOE were $30.64, with lease operating expense at $5.42/BOE.

• D/C/E capital expenditures: $314.5 million, 8% below guidance; midstream capex: $45.3 million.

Outlook and guidance

• 2024 production guidance raised to 158,500–163,500 BOE/day (+22% YoY); oil production guidance 93,500–96,500 Bbl/day (+26% YoY).

• Q3 2024 production expected at 163,000–165,000 BOE/day; D/C/E CapEx $330–$370 million.

• Ameredev acquisition expected to add 25,000–26,000 BOE/day (65% oil) and 117.7 million BOE of proved reserves.

• Ninth rig to be deployed post-close, expected to add four incremental wells by year-end.

• Cash tax payments for 2024 expected at 5–10% of pre-tax book net income.