Matador Resources Company (MTDR) Q4 2024 earnings summary

Executive summary

• Achieved record production in Q4 2024, surpassing 200,000 BOE/d, a 30% year-over-year increase, with full-year production averaging 170,751 BOE/d, up 30% from 2023.

• Proved reserves grew 33% to 611.5 MMBOE at year-end 2024, with a PV-10 of $9.2 billion.

• Completed successful integration of Ameredev and Advance acquisitions, adding 50,000 net acres, significant drilling inventory, and driving production 11% above expectations while reducing LOE by 35%.

• Increased annualized dividend to $1.25 per share, marking a 56% rise year-over-year and the sixth increase in four years, with over 95% staff participation in the employee stock purchase plan and significant insider buying.

• Focused on long-term value creation through disciplined capital deployment, cost containment, and measured growth pace.

Financial highlights

• Adjusted EBITDA rose 24% to $2.3 billion in 2024; adjusted free cash flow increased 75% to $807 million, with Q4 2024 adjusted EBITDA at $640.9 million.

• Production increased from 4.6 million BOEs in Q4 2023 to over 6 million BOEs in Q4 2024.

• Drilling and completion costs reduced to $880 per foot, down 3% year-over-year, with further reductions expected in 2025.

• San Mateo Midstream delivered record adjusted EBITDA of $253 million in 2024, with over $100 million in distributions.

• Free cash flow forecasted to approach $1 billion in 2025, supporting ongoing dividend increases and capital flexibility.

Outlook and guidance

• 2025 production guidance: 202,000–208,000 BOE/d (+20% YoY), oil 120,000–124,000 Bbl/d (+22% YoY), gas 492–504 MMcf/d (+17% YoY).

• CapEx for 2025 guided at $1.28–$1.7 billion, with early investments focused on reducing long-term operating expenses.

• Drilling and completion costs per lateral foot projected to decrease 3% to $865–$895.

• San Mateo expects 2025 Adjusted EBITDA of $285 million, up 13% from 2024.

• Anticipates sequential production increases in Q2 and Q4 2025, with temporary Q1 and Q3 declines due to well timing.