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Matador Resources
(NYSE:MTDR)
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Rating:74Outperform
Price Target:
$60.00
▲(8.60% Upside)
Action:Reiterated
Date:10/05/26
MTDR scores well primarily on solid financial performance driven by strong operating cash flow and improved free cash flow, supported by a positive earnings outlook and deleveraging focus from the latest call. Valuation is also favorable (low P/E with a dividend). The main constraint is weaker near-term technical momentum (negative MACD and trading below key short-term moving averages).
Positive Factors
Strong cash generation
Robust operating cash flow and a sharp free-cash-flow improvement strengthen Matador’s ability to fund drilling, reduce borrowings, and support shareholder returns internally. This cash-generation capacity provides resilience and strategic flexibility across the next several quarters.
Negative Factors
Acquisition-related leverage
Although debt reduction is progressing, nearly $1.0 billion of acquisition-related borrowings leaves Matador dependent on continued free cash flow and operating execution. Deleveraging also competes with drilling, acquisitions, and shareholder returns, reducing financial flexibility if conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating cash flow and a sharp free-cash-flow improvement strengthen Matador’s ability to fund drilling, reduce borrowings, and support shareholder returns internally. This cash-generation capacity provides resilience and strategic flexibility across the next several quarters.
Read all positive factors
Matador Resources (MTDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.12B
Dividend Yield2.61%
Average Volume (3M)1.57M
Price to Earnings (P/E)9.9
Beta (1Y)0.31
Revenue Growth1.84%
EPS Growth-14.76%
CountryUS
Employees483
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)5.83
Shares Outstanding123,754,220
10 Day Avg. Volume1,265,671
30 Day Avg. Volume1,570,877
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.93
Price to Sales (P/S)1.45
P/FCF Ratio21.88
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue2.77
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda4.45
Forecast
1Y Price Target
$69.73Price Target Upside26.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)8.05
Revenue Forecast (FY)$4.26B
Matador Resources Business Overview & Revenue Model
Company Description
Matador Resources Company operates as an independent energy firm, primarily engaged in the identification, development, extraction, and acquisition of crude oil and natural gas reserves throughout the United States. Its business operations are str...
How the Company Makes Money
Matador primarily makes money through (1) upstream oil and natural gas production revenues and (2) midstream service revenues. Upstream revenue is generated by selling crude oil, natural gas, and natural gas liquids (NGLs) produced from its operat...
Matador Resources Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive outlook driven by strong free cash flow, meaningful reserve growth, upgraded production guidance, high-return new acreage, midstream integration benefits, and operational efficiency gains. Management also stressed deliberate balance-sheet management and de-leveraging after recent acquisitions. Key risks mentioned include remaining leverage, the non-recurring nature of certain marketing gains, commodity price volatility, and execution/permitting risks associated with large lease purchases and expanded development.Positive Updates
Near-Record Adjusted Free Cash Flow
Adjusted free cash flow for the quarter was $303 million. Management used $200 million of that to pay down acquisition-related bank debt and expects to generate roughly $900 million in free cash flow for 2026.
Negative Updates
Remaining Leverage and Dependence on Deleveraging
Despite the $200 million repayment, acquisition-related borrowings remain just under $1.0 billion. Management emphasized a priority to de-lever further and indicated they are in a 'digest and de-lever' posture while remaining opportunistic for new transactions.
Read all updates
Q2-2026 Updates
Positive
Negative
Near-Record Adjusted Free Cash Flow
Adjusted free cash flow for the quarter was $303 million. Management used $200 million of that to pay down acquisition-related bank debt and expects to generate roughly $900 million in free cash flow for 2026.
Read all positive updates
Company Guidance
Matador raised its outlook and provided specific targets: Q2 adjusted free cash flow was $303 million (with $200 million applied to acquisition borrowings, reducing that debt from about $1.25 billion to under $1.0 billion), and management said it could generate as much as ~$900 million of free cash flow for 2026; it increased year‑over‑year oil production guidance from +4% to +7% while planning ~1% less CapEx, reported a 5% reserves increase to 703 million BOE (from 667 million BOE) and an inventory life extended to >15 years, highlighted federal leases carrying 1/8 royalties and nine benches with expected oil EURs +15–20%, said new‑asset returns are >80% (existing assets >50%) with well costs targeted near $600/ft, noted midstream value contributions (~$50M for Paloma, ~$100M for the federal leases), flagged operational readouts including ~12 operated wells being completed for Q3 turn‑ins, ~100 rigs within 10 miles of its pipelines, a 19‑bank RBL group and a targeted ~$100M/month debt paydown (aiming to retire the acquisition borrowings in ~12–15 months), plus execution gains such as cutting three‑mile drill times from ~20 to ~10 days and an initial Rae’s Creek test over 2,200 barrels.Matador Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.66B | 3.48B | 2.82B | 3.06B | 1.66B |
| Gross Profit | 2.08B | 1.67B | 1.54B | 1.33B | 1.88B | 891.54M |
| EBITDA | 2.39B | 2.44B | 2.42B | 1.93B | 2.22B | 1.13B |
| Net Income | 723.69M | 759.22M | 885.32M | 846.07M | 1.21B | 584.97M |
Balance Sheet | ||||||
| Total Assets | 13.49B | 11.87B | 10.85B | 7.73B | 5.55B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 26.32M | 79.48M | 23.03M | 52.66M | 505.18M | 48.13M |
| Total Debt | 3.30B | 3.55B | 2.11B | 2.27B | 1.23B | 1.56B |
| Total Liabilities | 7.24B | 5.88B | 5.39B | 3.60B | 2.24B | 2.13B |
| Stockholders Equity | 5.93B | 5.66B | 5.09B | 3.91B | 3.11B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 625.84M | 241.64M | 280.04M | 318.02M | 894.75M | 319.88M |
| Operating Cash Flow | 2.60B | 2.43B | 2.25B | 1.87B | 1.98B | 1.05B |
| Investing Cash Flow | -3.21B | -2.16B | -3.67B | -3.21B | -1.04B | -729.26M |
| Financing Cash Flow | 609.26M | -282.60M | 1.41B | 902.33M | -480.85M | -328.55M |
Matador Resources Technical Analysis
Positive
55.25
Price Trends
55.68
Positive
53.47
Positive
53.11
Positive
Market Momentum
-0.02
Negative
59.45
Neutral
70.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTDR, the sentiment is Positive. The current price of 55.25 is above the 20-day moving average (MA) of 53.39, below the 50-day MA of 55.68, and above the 200-day MA of 53.11, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTDR.
Matador Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.79B | 11.02 | 21.10% | 2.60% | 11.35% | 18.91% | |
74 Outperform | $7.12B | 9.87 | 12.76% | 2.61% | 1.84% | -14.76% | |
72 Outperform | $8.45B | 10.33 | 10.42% | 3.36% | 19.23% | 268.81% | |
71 Outperform | $9.40B | 10.21 | 16.53% | 2.18% | 75.39% | -28.23% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.83B | -40.85 | -3.60% | 2.98% | 2.33% | -117.79% | |
61 Neutral | $5.65B | 94.12 | 1.12% | 3.49% | 24.25% | ― |
* Energy Sector Average
MTDR
Matador Resources
57.52
15.48
36.82%
SM
SM Energy
39.50
18.91
91.81%
MGY
Magnolia Oil & Gas
25.35
3.00
13.42%
CRC
California Resources Corp
54.33
8.70
19.06%
CHRD
Chord Energy
154.56
68.57
79.74%
CRGY
Crescent Energy Company Class A
13.77
6.01
77.36%
Matador Resources Corporate Events
Business Operations and StrategyM&A Transactions
Matador Resources Closes Paloma Permian Acquisition Deal
Positive
Oct 5, 2026
On October 1, 2026, Matador Resources closed its previously announced acquisition of Paloma Permian LLC, a portfolio company of EnCap Investments, for approximately $1.255 billion in cash, subject to post-closing adjustments. The deal, executed th...
Business Operations and StrategyExecutive/Board Changes
Matador Resources Announces Leadership Transition and Advisor Role
Neutral
Sep 10, 2026
On September 9, 2026, Matador Resources announced that Van H. Singleton, II retired from his role as Co-President – Land, Acquisitions and Divestitures and Planning and moved into a Special Advisor position to the board and executive committ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Matador Resources Reports Strong Q2 2026 Performance
Positive
Aug 5, 2026
Matador Resources reported strong financial and operating results for the second quarter of 2026 on August 5, 2026, including record average oil output of 126,106 barrels per day and a 5% increase in total proved reserves to 703 million BOE. The c...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Matador Resources Expands Delaware Basin With Major Acquisitions
Positive
Jul 24, 2026
On July 22, 2026, Matador’s subsidiaries agreed to acquire Paloma Permian LLC and certain undeveloped and producing assets from Ridge Runner Resources II in the Delaware Basin, for a combined consideration centered on a $1.275 billion cash p...
Business Operations and StrategyDividends
Matador Resources Declares Quarterly Cash Dividend Announcement
Positive
Jul 22, 2026
On July 22, 2026, Matador Resources announced that its Board of Directors declared a quarterly cash dividend of $0.375 per share on its common stock. The dividend will be paid on September 8, 2026, to shareholders of record as of August 10, 2026, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.