Matador Resources Reports Record 2025 Results and Provides 2026 Strategic Outlook
Matador Resources Company, a leading independent energy company focused on oil and natural gas exploration, development, production, and acquisition in the United States, today announced its financial and operational results for the fourth quarter and full year of 2025. The Company also outlined its strategic operating plan for 2026, highlighting initiatives aimed at improving efficiency, optimizing capital allocation, and advancing shareholder value. A comprehensive slide presentation summarizing the key results and operational highlights is available on Matador’s website under the Investor Relations section on the Events and Presentations page.
Management Commentary: Strategic Priorities and Key Achievements
Joseph Wm. Foran, Matador’s Founder, Chairman, and CEO, who also founded San Mateo, commented on the Company’s record-breaking performance in 2025. He emphasized that the Company remains focused on strengthening operational efficiency, enhancing profitability, and positioning itself for sustained growth in 2026. Key strategic priorities outlined by Foran for the upcoming year include improving capital efficiency, achieving higher profitability, reducing the Company’s reserve-based loan (RBL) exposure, realizing midstream asset value, executing quality land acquisitions, expanding reserves, optimizing capital costs, and attracting and retaining top talent.
Capital Efficiency, Profitability, and Reduced Finding Costs
Foran highlighted Matador’s continued emphasis on operational efficiency and capital discipline. The Company projects oil production growth of approximately 3% in 2026, reaching an estimated 123,000 barrels of oil per day, while simultaneously reducing total capital expenditures by 11% to $1.50 billion. These projections demonstrate Matador’s ability to increase production while effectively managing costs, underscoring the Company’s commitment to capital efficiency and inventory strength.
Drilling and completion (D&C) costs for 2026 are expected to average approximately $795 per lateral foot, representing a 6% reduction compared to 2025. This reduction is attributable to operational improvements, including a 13% reduction in well cycle times. By maintaining high capital efficiency, Matador anticipates a modest growth in production with a similar net lateral footage turned to sales, thereby optimizing capital deployment across its asset base.
Matador’s total proved reserves reached an all-time high of 667.0 million barrels of oil equivalent (BOE) as of December 31, 2025, up 9% from 611.5 million BOE at the end of 2024. The Company reported a standardized measure of $7.0 billion and a PV-10 value of $8.2 billion. Importantly, nearly 98% of the 2025 reserve additions were organic, resulting in a reserve replacement ratio of 173%. Future finding and development costs for proved undeveloped reserves decreased from $10.98 per BOE in 2024 to $10.34 per BOE in 2025, reflecting Matador’s operational and engineering efficiencies. These reserves were prepared internally by Matador’s engineering team and audited by the independent firm Netherland, Sewell & Associates.
Matador also made significant progress in enhancing its natural gas transportation capabilities. The Company secured 500 MMBtu per day of firm transportation capacity on Energy Transfer’s new Hugh Brinson pipeline. Scheduled to begin operations in the third quarter of 2026 and achieve full service by year-end, this pipeline will provide direct access from the Waha hub in the Permian Basin to more profitable markets along the Louisiana Gulf Coast, including Henry Hub. This expansion is expected to generate additional revenue, as Henry Hub prices have historically traded up to $3 higher than Waha hub prices. Each $0.50 increase in realized natural gas price could contribute approximately $90 million in additional annual revenue for Matador.
Record Production Performance
Matador achieved record production during the fourth quarter of 2025, delivering 211,290 BOE per day, including 121,363 barrels of oil per day. This performance marked a 1% increase over the third quarter and surpassed the midpoint of guidance by 2%, despite challenging market conditions for natural gas at the Waha hub. The production growth was primarily driven by new wells in the Arrowhead and Ranger asset areas, underscoring the strength of Matador’s Delaware Basin portfolio.
Midstream Operations and Value Realization
Midstream operations are a critical component of Matador’s integrated business strategy. The Company’s midstream portfolio includes San Mateo, a joint venture in which Matador holds a 51% interest, and wholly-owned midstream assets acquired through the Advance (2023) and Ameredev (2024) acquisitions. Combined, these assets generated $239 million in net income and $332 million in Adjusted EBITDA in 2025. Operational improvements and increased third-party volumes are expected to drive an 8% growth in Adjusted EBITDA to approximately $360 million in 2026.
San Mateo’s strong performance resulted in $137 million in cash distributions to Matador in 2025, along with an additional $13 million in performance incentives from partner Five Point. Strategic initiatives to explore potential combinations of Matador’s wholly-owned midstream assets with San Mateo are underway, reinforcing the Company’s long-term commitment to value creation in the midstream sector.
Strategic Land Acquisitions
In 2025, Matador expanded its Delaware Basin position by acquiring 17,500 net acres through its “brick-by-brick” strategy, bringing the total to approximately 212,500 net acres. This approach replaced the inventory drilled during the year while maintaining a long-term development pipeline. Matador continues to focus on high-quality acreage acquisitions to sustain 10 to 15 years of drilling inventory, with additional prospective opportunities in formations such as the Woodford shale slated for testing in the first half of 2026.
Financial Strength and Shareholder Returns
Matador ended 2025 with a leverage ratio of 1.1 times and liquidity under its RBL facility of $1.8 billion, demonstrating financial discipline while supporting operational growth. The Company reduced debt by approximately $200 million and increased its dividend for the seventh time in four years. Hedging strategies are in place for approximately 50% of 2026 oil production using costless collars with floor and ceiling prices of $53 and $66 per barrel, respectively, mitigating exposure to oil price volatility.
Shareholder returns in 2025 totaled $218.9 million, including $163.1 million in dividends and $55.8 million in share repurchases under the $400 million program. With robust cash flow projections for 2026, Matador anticipates continuing similar levels of capital returns to shareholders, including potential dividend increases.
Operational Outlook for 2026
For 2026, Matador projects oil production of 122,000 to 124,000 barrels per day and natural gas production of 525 to 545 million cubic feet per day, resulting in total oil equivalent production of 209,500 to 215,000 BOE per day. First-quarter production is expected to be the lowest of the year due to winter weather disruptions, elective shut-ins due to Waha pricing, and scheduled third-party maintenance. Production is anticipated to increase steadily from the second quarter onward, supported by large-batch well developments and longer-lateral wells.
D&C capital expenditures are forecasted to decrease to $1.35–$1.44 billion, while midstream CapEx is expected at $100–$110 million, reflecting continued operational efficiencies and infrastructure enhancements. Matador will focus on inventory accretion, reserve replacement, artificial intelligence integration, and improved production recoveries, with exploratory tests in formations such as the Woodford shale and enhanced completion technologies expected to contribute to long-term growth.
