Matador Resources Company (MTDR) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 production of 209,013 BOE/d, exceeding guidance and up 30% year-over-year, with oil production at 122,875 Bbl/d.

• Net income attributable to shareholders was $150.2 million, with adjusted net income of $191 million and adjusted EBITDA of $594.2 million.

• Adjusted free cash flow reached $133 million, supporting dividends, share repurchases, and land acquisitions.

• San Mateo Midstream delivered record net income of $66 million and adjusted EBITDA of $85.5 million, with expanded processing capacity.

• Maintained a strong balance sheet with over $1.8 billion liquidity and leverage ratio below 1.0x.

Financial highlights

• Q2 2025 net income was $150.2 million, down from $228.8 million in Q2 2024; adjusted EBITDA was $594.2 million, up 3% year-over-year but down 8% sequentially.

• Adjusted free cash flow for Q2 2025 was $132.7 million; oil and natural gas revenues were $816 million, with total revenues including midstream and derivatives at $895.3 million.

• Oil production was 11.2 million Bbl (up 29%); natural gas production was 47.0 Bcf (up 33%) year-over-year.

• D&C costs per foot down 11% year-over-year to $825 per completed lateral foot, driven by operational efficiencies.

• Base dividend raised six times in four years; quarterly dividend of $0.3125/share declared, with $44 million in share repurchases in Q2.

Outlook and guidance

• Increased full-year 2025 production guidance to 200,000–205,000 BOE/d, with 117.5–119.5 MBbl/d oil and 495–513 MMcf/d natural gas.

• 2025 capital expenditures for drilling, completion, and equipping expected at $1.18–$1.37 billion; midstream capex at $120–$180 million.

• Q3 2025 production expected to dip to 198,500–201,000 BOE/d due to timing of well completions, with recovery anticipated in Q4.

• Cash tax payments for 2025 projected at 0–5% of pre-tax income due to new tax legislation.

• Oil and gas hedges in place for 2025 and 2026 to manage price risk.