Matador Resources Company (MTDR) Q4 2023 earnings summary

Executive summary

• Record Q4 production reached 154,261 BOE/d, up 14% QoQ and 38% YoY; oil output set a record at 88,663 Bbl/d.

• Q4 Adjusted EBITDA was $552.8 million, up 20% YoY; FY2023 net income was $846.1 million and Adjusted EBITDA was $1.85 billion.

• Year-end proved reserves rose 29% to 460.1 MMBOE; 2024 guidance targets 18% midpoint production growth and $1.30-$1.55 billion in total capital spending.

Financial highlights

• Q4 total revenue was $836.1 million, including $753.2 million in oil and natural gas revenue; net income was $254.5 million, or $2.12 diluted EPS.

• Q4 Adjusted net income was $238.4 million, or $1.99 adjusted diluted EPS; Adjusted EBITDA was $552.8 million.

• FY2023 total revenue was $2.81 billion, including $2.55 billion in oil and natural gas revenue; net income was $846.1 million and diluted EPS was $7.05.

• Operating cash flow was $618.3 million in Q4 and $1.87 billion for FY2023; adjusted free cash flow was $180.5 million and $460.0 million, respectively.

• FY2023 Adjusted net income was $811.7 million; reported realized derivative loss was $9.6 million.

Outlook and guidance

• FY2024 production guidance is 153,000-159,000 BOE/d, including 91,000-95,000 Bbl/d oil and 370-386 MMcf/d gas; midpoint implies 18% total production growth YoY.

• Q1 production guidance is 145,000-146,500 BOE/d; production is expected to exceed Q4 2023 levels in Q2 and reach 160,000-162,000 BOE/d in Q4.

• FY2024 D/C/E capex is guided to $1.10-$1.30 billion and midstream capex to $200-$250 million, for total capital spending of $1.30-$1.55 billion.

• Eight Delaware Basin rigs and 128 gross (94 net) operated wells to sales are planned; D/C costs are expected at $995-$1,025/ft, down 6% YoY.

• Cash taxes are expected at 5-10% of pre-tax book income in 2024 at current commodity prices, versus ~1% in 2023.