MTDRNYSECrude Petroleum & Natural GasUS GAAP · USD

Matador Resources Co

Matador Resources Co is an independent U.S. energy company that explores, develops, produces and acquires oil and natural gas resources, with operations concentrated in shale and other unconventional plays. Its core asset base is in the Delaware Basin of Southeast New Mexico and West Texas, with additional activity in the Haynesville and Cotton Valley plays in Northwest Louisiana. The company also runs midstream assets through San Mateo to support its own production and provide third-party gathering, processing, transportation and disposal services.

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Revenue3,696m USD
+5.5 %y/y
Operating profit (EBIT)1,227m USD
−14.5 %y/y
EBIT margin33.2%
−7.7 ppy/y
Net income759m USD
−14.2 %y/y
Free cash flow270m USD
+116.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-1,00001,0002,0003,0004,000m USD2020: 862 m USD2020: EBIT -521 m USD20202021: 1,862 m USD2021: EBIT 793 m USD20212022: 3,197 m USD2022: EBIT 1,759 m USD20222023: 2,818 m USD2023: EBIT 1,209 m USD20232024: 3,505 m USD2024: EBIT 1,435 m USD20242025: 3,696 m USD2025: EBIT 1,227 m USD20253,6961,227
RevenueOperating profit (EBIT)
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Business

Share of revenue
Upstream oil and gas85 %

Exploration, drilling, development and production of oil, natural gas and NGLs in U.S. shale basins.

Midstream services15 %

Gathering, processing, transportation and produced water handling through San Mateo and related assets.

Products

Reported · share of revenue
77.7%10.9%FY2025100 %
  • Oil Reserves77.7 %
  • Natural Gas Reserves10.9 %
  • Natural Gas Sales6.9 %
  • Natural Gas Midstream4.5 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Matador sells most of its oil, natural gas and NGL output to unaffiliated third-party purchasers, independent marketing companies and midstream companies. Its midstream business also serves third-party producers that need gathering, processing, transportation and disposal capacity in the basins where Matador operates. Customer concentration is meaningful, with a small number of purchasers accounting for a large share of hydrocarbon revenue.

Third-party commodity purchasers

Buy Matador's oil, natural gas and NGL production for resale or end-use; they matter because they monetize the company's upstream output.

Midstream and marketing companies

Purchase or handle production volumes and provide market access, transportation and processing services in the basins Matador operates.

Third-party producers

Use San Mateo's gathering, processing and disposal infrastructure to move and treat their own production.

Joint-interest owners

Participate in wells Matador operates and reimburse their share of drilling and operating costs.

Strategy

Matador is focused on disciplined development of its core shale acreage, with drilling activity that can be scaled up or down based on commodity prices and market conditions. It is also expanding and optimizing its midstream platform through San Mateo to improve flow assurance, capture more value from produced volumes and add third-party service revenue. Capital allocation has included share repurchases and balance-sheet actions that support flexibility while the company continues to invest in its core basins.

Optimize Delaware Basin drilling and completionsShort term

The core basin drives most production and cash flow, so well performance and capital efficiency are central to returns.

Expand and monetize midstream infrastructureMedium term

Midstream assets improve flow assurance for Matador's own wells and create fee-based revenue from third parties.

Maintain capital flexibility and shareholder returnsShort term

Commodity volatility requires balance-sheet flexibility, while buybacks can return excess cash when conditions allow.

Geography

Matador's business is overwhelmingly U.S.-based, with upstream operations centered in the Delaware Basin across Southeast New Mexico and West Texas. It also has a meaningful footprint in Northwest Louisiana through the Haynesville shale and Cotton Valley plays, while its midstream system is positioned to support these same operating areas. Geography matters because basin proximity drives well economics, infrastructure access, and exposure to regional price differentials and takeaway constraints.

Risks

Matador's earnings are highly exposed to oil and gas price swings, regional price differentials and the operational risks of drilling and production in a concentrated set of basins. The company also faces customer concentration, credit risk, regulatory scrutiny and infrastructure execution risk through both its upstream and midstream businesses. Because it uses leverage, hedging and acquisitions to manage growth, financing terms, counterparty performance and integration outcomes can materially affect results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Oil and natural gas price volatility1Customer concentration and counterparty credit risk2Operational and drilling risk3Infrastructure and takeaway constraints4Regulatory and environmental compliance5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Oil and natural gas price volatilityImpact: HighLikelihood: High

    Revenue and cash flow depend on realized commodity prices, which can move sharply with market conditions.

    Exposure: Upstream production and hedging results

  2. Customer concentration and counterparty credit riskImpact: HighLikelihood: Medium

    Three significant purchasers accounted for most oil, gas and NGL revenue in recent years, so payment delays or loss of a buyer could hurt cash flow.

    Exposure: Hydrocarbon sales and derivative counterparties

  3. Operational and drilling riskImpact: HighLikelihood: Medium

    Drilling and completion outcomes are uncertain, and the company operates in a capital-intensive, technically complex business.

    ExposureWell performanceReserve replacementCost control
  4. Infrastructure and takeaway constraintsImpact: MediumLikelihood: High

    Regional gathering, processing and transportation capacity affects the ability to move production and realize pricing.

    Exposure: Delaware Basin and Louisiana operations

  5. Regulatory and environmental complianceImpact: MediumLikelihood: Medium

    Oil and gas operations and midstream assets are subject to federal, state and local regulation, including FERC-related oversight for some assets.

    ExposurePermittingRatesPenaltiesOperating restrictions
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Accounting

Judgemental items
Full-cost method for oil and gas properties

Capitalized costs and reserve-based ceiling tests can materially affect asset values and impairment risk.

Impact: Upstream asset carrying values and depletion

Depletion, depreciation and amortization

DD&A is driven by reserve estimates and production volumes, making earnings sensitive to reserve revisions.

Impact: Reported operating profit and net income

Derivative and hedge accounting

Commodity hedges can create mark-to-market gains or losses that affect period results and cash flow visibility.

Impact: Earnings volatility and realized price protection

Income tax accounting

Deferred tax assets, liabilities and uncertain tax positions require judgment and can change with profitability.

Impact: Tax expense and effective tax rate

Purchase accounting for acquisitions

Recent acquisitions require fair value allocation of assets and liabilities, affecting future DD&A and goodwill/intangible assessments.

Impact: Post-acquisition earnings and balance sheet values

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Last updated: 24/09/2026