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Dec 31, 2023
Matador Q4 2023 Earnings Report
Matador reported record production and decreased operating costs, resulting in a strong financial performance.
Key Takeaways
Matador Resources Company reported record fourth quarter and full year 2023 financial results, with a record quarterly average production of 154,300 BOE per day and net income of $254.5 million. The company also decreased operating costs and achieved record total proved oil and natural gas reserves.
Record quarterly average production of 154,300 BOE per day.
Net income of $254.5 million.
Adjusted EBITDA of $552.8 million.
Lease operating expenses decreased 5% to $5.06 per BOE.
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 another record year in 2024 with an 18% increase in our expected total average production of 156,000 BOE per day in full-year 2024, as compared to total average production of 131,800 BOE per day in full-year 2023.
Positive Outlook
- Expected 18% increase in total average production in 2024.
- Oil production is expected to increase 23% in 2024.
- Drilling and completion costs for operated wells turned to sales in 2024 are expected to be 6% lower.
- Midstream projects are expected to have a rate of return of 20% or more with a payback period of less than five years.
- The natural gas pipelines connecting Pronto’s system to both the San Mateo system and the acreage acquired in the Advance transaction remain on track to be completed by the end of the first quarter of 2024.
Challenges Ahead
- Expectation to experience temporary midstream constraints from time to time from third-party midstream providers primarily in Lea County, New Mexico during the first quarter of 2024.
- Difficult to estimate the amount of these temporary third-party midstream production constraints.
- During January 2024, these constraints are estimated to have resulted in approximately 5,500 BOE per day (3,850 barrels of oil per day) of less production.
- These third-party midstream constraints have continued into February and are even expected to continue into March.
- Estimates of first quarter 2024 production of 145,000 to 146,500 BOE per day take into account the impact of these temporary third-party midstream constraints.
Revenue & Expenses
Visualization of income flow from segment revenue to net income