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Sep 30, 2023

Matador Q3 2023 Earnings Report

Matador achieved record results driven by strong production and cost management.

Key Takeaways

Matador Resources Company reported record production and better-than-expected cost savings in the third quarter of 2023. The company's average daily oil and natural gas production was 135,096 BOE per day, and it achieved better-than-expected drilling, completing, and equipping capital expenditures and midstream capital expenditures. Net cash provided by operating activities was $461.0 million, and adjusted free cash flow was $144.6 million.

Record total production of over 135,000 BOE per day, a 3% sequential increase.

Record oil production of 77,529 barrels per day, a 2% sequential increase.

Record natural gas production of 345.4 million cubic feet per day, a 6% sequential increase.

Net Cash Provided by Operating Activities of $461.0 million and Adjusted Free Cash Flow of $144.6 million.

Total Revenue
$772M
Previous year: $841M
-8.2%
EPS
$1.86
Previous year: $2.68
-30.6%
Oil Production Volume
77.53K
Previous year: 60.16K
+28.9%
Natural Gas Volume
345.4M
Previous year: 270.3M
+27.8%
Total BOE Production
135.1K
Previous year: 105.21K
+28.4%
Gross Profit
$373M
Previous year: $512M
-27.1%
Cash and Equivalents
$62.2M
Previous year: $400M
-84.5%
Free Cash Flow
$37.1M
Total Assets
$7.44B
Previous year: $5.31B
+40.2%

Matador

Matador

Matador Revenue by Segment

Matador Revenue by Geographic Location

Forward Guidance

Matador expects to finish the year strong with continued production increases, cost efficiencies and debt repayment.

Positive Outlook

  • Expects to produce an average of approximately 145,000 BOE per day in Q4 2023.
  • Anticipates oil production to average 86,750 barrels of oil per day at the midpoint of guidance during Q4 2023.
  • Anticipates having 47 net wells in some stage of drilling or completion on December 31, 2023.
  • Plans to operate seven drilling rigs for the remainder of 2023 and add back an eighth drilling rig in the first quarter of 2024.
  • Expects to connect Pronto’s natural gas system with the natural gas system owned by San Mateo Midstream, LLC in the first quarter of 2024.

Challenges Ahead

  • None

Revenue & Expenses

Visualization of income flow from segment revenue to net income