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Mar 31, 2024
Matador Q1 2024 Earnings Report
Matador's Q1 2024 financial results were reported, demonstrating better-than-expected production and cost savings.
Key Takeaways
Matador Resources Company reported strong Q1 2024 results, exceeding production guidance and achieving cost efficiencies. The company also strengthened its balance sheet through strategic financial transactions.
Average production of 149,760 BOE per day, with oil production at 84,777 barrels per day.
Net income of $193.7 million, or $1.61 per diluted common share.
Adjusted free cash flow of $28.6 million.
Completed pipeline connections between Pronto and San Mateo and between Pronto and Advance acreage.
Matador
Matador
Matador Revenue by Segment
Revenue by Segment
Third-Party Midstream Services Revenues Revenue
CapyFin.comSales of Purchased Natural Gas Revenue
CapyFin.com Forward Guidance
Matador anticipates its average daily oil equivalent production of 149,760 BOE per day in the first quarter of 2024 to grow by 5% to a midpoint of approximately 157,250 BOE per day in the second quarter of 2024. Matador expects D/C/E capital expenditures for the second quarter of 2024 will be approximately $330 to $350 million. Matador estimates its proportionate share of midstream capital expenditures to be approximately $50 to $70 million in the second quarter of 2024.
Positive Outlook
- Total production is expected to grow by 5% in Q2 2024.
- Oil production is expected to increase to between 92,500 and 93,500 Bbl per day in Q2 2024.
- Turning to sales a record 43 gross (36.2 net) operated horizontal wells in the Delaware Basin during the second quarter of 2024.
- D/C/E capital expenditures for Q2 2024 are expected to decrease by 3% compared to Q1 2024.
- Midstream capital expenditures are estimated to decrease by 24% in Q2 2024.
Challenges Ahead
- Natural gas production is expected to slightly decrease in Q2 2024.
- Cash tax payments are expected to be 5-10% of pre-tax book net income for 2024, depending on various factors.
- Commodity prices, weather, allowable tax deductions and any state or federal legislative changes thereon, acquisitions, activity of offset operators and pipeline restrictions as well as any deductions or tax credits generated and earned that would offset tax liabilities in 2024 will impact taxable income.
- The Company’s cash tax payments will be dependent upon a variety of factors that will impact taxable income that cannot be calculated at this time.
- Forward-looking statements involve risks and uncertainties, and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income