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Jun 30, 2024
Matador Q2 2024 Earnings Report
Matador achieved record production results and substantial cost savings, also entered into an agreement to complete the acquisition of Ameredev.
Key Takeaways
Matador Resources Company reported record financial and operating results for the second quarter of 2024, including record production and lower-than-expected costs. The company also entered into an agreement to acquire Ameredev for $1.905 billion, expected to close late in the third quarter of 2024.
Achieved record average total production of 160,305 BOE per day.
D/C/E capital expenditures were $314.5 million, lower than expected.
Operations team set 20 drilling records, saving an estimated $6 million.
Successfully performed its first ‘trimul-frac’ completion, estimated to save approximately $350,000 per well.
Matador
Matador
Matador Revenue by Segment
Revenue by Segment
Oil and Natural Gas Revenues Revenue
CapyFin.comThird-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 160,305 BOE per day in the second quarter of 2024 to grow by 2% to a midpoint of approximately 164,000 BOE per day in the third quarter of 2024.
Positive Outlook
- Expects to turn to sales 32 gross (26.5 net) operated horizontal wells in the Delaware Basin during the third quarter of 2024.
- Operating nine drilling rigs in the Delaware Basin and expects to continue this for the remainder of 2024.
- Expects that the ninth drilling rig will add an incremental four gross (3.9 net) operated wells turned to sales in late December 2024.
- Expects full-year 2024 D/C/E capital expenditures to be between the midpoint and the high end of its previous expected range of $1.10 to $1.30 billion.
- Estimates its proportionate share of midstream capital expenditures to be approximately $45 to $65 million in the third quarter of 2024.
Challenges Ahead
- Cash tax payments are expected to be approximately 5 to 10% of pre-tax book net income for the year ended December 31, 2024.
- 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.
- These capital expenditure estimates for the third quarter of 2024 do not include capital expenditures associated with the Ameredev properties.
- Natural Gas Prices decreased by 32% sequentially
- Natural gas gathering, MMcf per day decreased by 8% sequentially
Revenue & Expenses
Visualization of income flow from segment revenue to net income