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Jun 30
Matador Q2 2025 Earnings Report
Matador Resources Company reported strong financial and operational results for the second quarter of 2025, achieving record production and robust free cash flow.
Key Takeaways
Matador Resources Company delivered a strong second quarter in 2025, marked by record oil and natural gas production volumes and significant free cash flow generation. The company's integrated upstream and midstream operations contributed to these results, with the San Mateo Midstream segment also achieving record net income and Adjusted EBITDA. Despite moderating drilling activity, Matador maintained capital efficiency and is increasing its full-year 2025 production guidance.
Achieved record quarterly production of 209,013 BOE/d, including 122,875 Bbl/d of oil, exceeding guidance.
Generated $501 million in net cash from operating activities and $133 million in adjusted free cash flow.
San Mateo Midstream increased processing capacity by 38% to 720 MMcf/d and delivered record quarterly net income of $66 million.
Increased full-year 2025 production guidance without changing capital expenditure guidance, reflecting improved capital efficiency.
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 is increasing its full-year 2025 production guidance ranges without changing its capital expenditure guidance, reflecting improved capital efficiency. The company expects a slight decline in Q3 2025 production due to well co-development, with an increase expected in Q4 2025.
Positive Outlook
- Increased full-year 2025 total daily production guidance from 198,000-202,000 BOE/d to 200,000-205,000 BOE/d.
- Increased full-year 2025 natural gas production guidance from 486-498 MMcf/d to 495-513 MMcf/d.
- Increased full-year 2025 oil production guidance from 117,000-119,000 Bbl/d to 117,500-119,500 Bbl/d.
- No change to full-year 2025 capital expenditure guidance, indicating improved capital efficiency.
- Expected reduction in cash tax payments for 2025 from 5-10% to 0-5% of pre-tax book net income due to the One Big Beautiful Bill Act (OBBBA).
Challenges Ahead
- Anticipates a slight decline in average daily oil equivalent production in Q3 2025 to a midpoint of approximately 199,750 BOE/d from 209,013 BOE/d in Q2 2025.
- The Q3 2025 production decline is attributed to larger batches of wells being co-developed, creating unevenness in quarterly production.
- Approximately two-thirds of operated wells expected to be turned to sales in Q3 2025 are in the latter half of the quarter, limiting their contribution to full Q3 production.
- Reduced operated rig count to eight by August 1, 2025, following a moderation of drilling activity announced in April.
- San Mateo adjusted free cash flow was negative $14.9 million in Q2 2025, compared to positive $35.2 million in Q2 2024.