Education
About Us
Working with TipRanks
Follow Us
Matador Resources Company (MTDR)
NYSE:MTDR
Top Page
Matador Resources
(NYSE:MTDR)81Outperform
Positive Factors
Dividend
Matador Resources increased its base dividend by 25%, reflecting confidence in its financial position.
Financial Performance
Operating costs came in much better than expected, with a significant decrease in lease operating expenses.
Negative Factors
Production Guidance
1Q25 volume guidance is over 5% below expectations, which is disappointing.
Matador Resources (MTDR) vs. S&P 500 (SPY)
Market Cap
$5.81B
Dividend Yield2.07%
Average Volume (3M)1.28M
Price to Earnings (P/E)6.5
Beta (1Y)0.91
Revenue Growth23.47%
EPS Growth0.80%
CountryUS
Employees395
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)7.14
Shares Outstanding125,207,214
10 Day Avg. Volume1,844,646
30 Day Avg. Volume1,281,356
Financial Highlights & Ratios
PEG Ratio8.18
Price to Book (P/B)N/A
Price to Sales (P/S)1.76
Price to Cash Flow (P/CF)2.50
P/FCF Ratio11.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$76.93Price Target Upside68.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Matador Resources Business Overview & Revenue Model
Company DescriptionMatador Resources Co. is a holding company engages in the exploration, development, production, and acquisition of oil and natural gas resources. It operates through the following segments: Exploration & Production; and Midstream. The Exploration & Production segment is engaged in the acquisition, exploration and development of oil and natural gas properties and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Midstream segment conducts midstream operations in support of the company's exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and salt water gathering services and salt water disposal services to third parties. The company was founded by Joseph William Foran and Scott E. King in July 2003 and is headquartered in Dallas, TX.
How the Company Makes MoneyMatador Resources generates revenue primarily through the production and sale of oil, natural gas, and natural gas liquids (NGLs). The company derives its income from the volume of these commodities it produces and the prevailing market prices. Key revenue streams include the sale of crude oil, which typically commands a higher price and thus contributes significantly to overall earnings, followed by sales of natural gas and NGLs. Matador Resources’ earnings are influenced by factors such as production volumes, commodity prices, operational efficiency, and cost management. The company may also engage in strategic partnerships and joint ventures to enhance its exploration and production capabilities, which can contribute to its revenue growth.
Matador Resources Financial Statement Overview
Summary
Matador Resources shows strong revenue and profit growth with efficient cost management and robust cash flows. The balance sheet is solid, though increasing liabilities warrant monitoring.Income Statement
Matador Resources shows strong revenue growth with a significant increase from $2.82 billion in 2023 to $3.47 billion in TTM (Trailing-Twelve-Months) 2024. The gross profit margin remains robust at 57.6%, and the net profit margin improved to 25.5%. Both EBIT and EBITDA margins are solid, highlighting efficient operations and cost management. However, the net income growth rate is moderate compared to revenue growth, suggesting some pressure on net profitability.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is 0.42, indicating a well-balanced capital structure with a healthy equity base. The equity ratio stands at 46.9%, reflecting a strong equity position relative to total assets. Return on Equity (ROE) is impressive at 17.4%, showcasing effective utilization of shareholder funds. However, total liabilities have grown, which warrants monitoring for potential leverage risks.78
Positive
Cash Flow
Matador Resources demonstrates excellent cash flow management with a significant increase in operating cash flow to $2.25 billion in TTM 2024. Free cash flow improved considerably, growing by 150.3% from 2023, indicating strong cash generation capability. The operating cash flow to net income ratio is 2.54, emphasizing robust cash conversion. However, high capital expenditures remain a point of consideration for future cash flow sustainability.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.48B | 2.82B | 3.06B | 1.66B | 862.13M | Gross Profit |
| 1.54B | 1.33B | 1.88B | 891.54M | 227.77M | EBIT |
| 1.43B | 1.21B | 1.76B | 793.08M | 165.11M | EBITDA |
| 2.41B | 1.94B | 2.23B | 1.14B | -353.67M | Net Income Common Stockholders |
| 885.32M | 846.07M | 1.21B | 584.97M | -553.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.03M | 52.66M | 505.18M | 48.13M | 57.92M | Total Assets |
| 10.85B | 7.73B | 5.55B | 4.26B | 3.69B | Total Debt |
| 2.11B | 2.27B | 1.16B | 1.53B | 1.81B | Net Debt |
| 2.09B | 2.22B | 655.07M | 1.48B | 1.76B | Total Liabilities |
| 5.39B | 3.60B | 2.24B | 2.13B | 2.17B | Stockholders Equity |
| 5.09B | 3.91B | 3.11B | 1.91B | 1.29B |
| Cash Flow | Free Cash Flow | |||
| 280.04M | 318.02M | 894.75M | 319.88M | -302.87M | Operating Cash Flow |
| 2.25B | 1.87B | 1.98B | 1.05B | 477.58M | Investing Cash Flow |
| -3.67B | -3.21B | -1.04B | -729.26M | -775.67M | Financing Cash Flow |
| 1.41B | 902.33M | -480.85M | -328.55M | 324.34M |
Matador Resources Technical Analysis
Negative
45.72
Price Trends
56.79
Negative
55.90
Negative
56.13
Negative
Market Momentum
-2.80
Positive
20.65
Positive
9.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Negative. The current price of 45.72 is below the 20-day moving average (MA) of 54.09, below the 50-day MA of 56.79, and below the 200-day MA of 56.13, indicating a bearish trend. The MACD of -2.80 indicates Positive momentum. The RSI at 20.65 is Positive, neither overbought nor oversold. The STOCH value of 9.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTDR.
Matador Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.81B | 6.51 | 19.67% | 2.07% | 23.47% | 0.80% | |
71 Outperform | $3.30B | 4.33 | 19.62% | 2.63% | 13.33% | -2.72% | |
64 Neutral | $41.98B | 9.34 | 12.20% | 5.71% | 31.55% | -9.00% | |
63 Neutral | $10.13B | 9.25 | 10.89% | 3.02% | -15.82% | -46.85% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
MTDR
Matador Resources
45.72
-16.81
-26.88%
OVV
Ovintiv
38.22
-9.94
-20.64%
SM
SM Energy
27.52
-16.16
-37.00%
FANG
Diamondback
142.70
-33.69
-19.10%
Matador Resources Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -20.43% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call was overall positive, with strong year-over-year growth, significant cost savings, and a solid financial position. The company effectively managed its operations and demonstrated confidence through dividend increases. However, some challenges with sequential production timing and higher capital expenditures were noted.Highlights
Year-over-Year Production Growth
Matador Resources reported a significant year-over-year growth of 30% in production for the first quarter of 2025 compared to the first quarter of 2024. The company expects similar growth rates for subsequent quarters, with a full-year increase from 4.6 billion BOEs to over 6 billion BOEs.
Cost Savings through Efficiency
The company saved an estimated $30 to $50 million by employing batch drilling techniques. Additionally, it reduced operating expenses by $2 million per month through facility upgrades and efficient operations post the AmeriDev acquisition.
Strong Financial Position
Matador Resources maintained a strong financial position with a leverage ratio of one times and a $3 billion line of credit. The company forecasts around $1 billion in free cash flow for 2025.
Midstream Segment Performance
The midstream segment reported an EBITDA of nearly $300 million, showcasing significant growth from $30 million in its first year of operations.
Dividend Increase
The company increased its dividend from ten cents to a dollar twenty-five, reflecting confidence in its financial strength and commitment to returning value to shareholders.
Lowlights
Sequential Production Timing Issue
The company faced a timing issue with sequential production growth due to the timing of the AmeriDev acquisition and batch drilling, leading to only two wells being brought online in the first half of the quarter.
Higher Capital Expenditure
The fourth quarter capital expenditure came in higher than expected, primarily due to early investments in improving operating expenses and facility upgrades related to the AmeriDev acquisition.
Company Guidance
During the fourth quarter and full year 2024 earnings call for Matador Resources Company, CEO Joseph Foran highlighted the company's focus on year-over-year growth and operational efficiency. The acquisition of AmeriDev properties, valued at $2 billion, was noted for its high-quality resources, with the expectation of maintaining a historical growth rate of over 20% per year. Foran emphasized the importance of batch drilling, which had saved the company an estimated $30 to $50 million, and projected production growth of approximately 30% for the first two quarters of 2025 compared to the previous year. The company's production increased from 4.6 billion BOEs to over 6 billion BOEs year-over-year, and the dividend was raised due to increased shareholder value. The CEO also discussed the strategic use of cash, highlighting a potential free cash flow of around $1 billion in 2025, and reiterated a focus on profitable growth at a measured pace.Matador Resources Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Matador Resources Reports Strong 2024 Financial Results
Positive
Feb 18, 2025
Matador Resources reported its financial and operational results for the fourth quarter and the entire year of 2024, highlighting a 25% dividend increase, record production levels, and strategic operational advancements. The company announced successful acquisitions and integrations, along with significant improvements in operational efficiencies that contribute to its strong financial outlook for 2025, including expectations of increased cash flow and reduced leverage.
Executive/Board Changes
Matador Resources Strengthens Board with New Appointment
Positive
Jan 28, 2025
On January 27, 2025, Matador Resources appointed Paul W. Harvey as a director on its Board. Mr. Harvey brings over four decades of investment experience, including significant involvement in the oil and gas sector. He will serve on various committees, providing valuable insights due to his extensive experience and long-standing affiliation with Matador. The appointment of Mr. Harvey is expected to strengthen Matador’s board with his expertise in working with high-net-worth individuals and his historical connection as a long-time shareholder.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.