# Matador Resources Co > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/Matador Resources Co). ## Overview 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. ## Products & services • Oil and natural gas exploration and development • Crude oil, natural gas and NGL production • Natural gas gathering and processing • Oil transportation and produced water disposal • Midstream services to third-party customers • Acreage and asset acquisitions - **Upstream oil and gas** (85%) — Exploration, drilling, development and production of oil, natural gas and NGLs in U.S. shale basins. - **Midstream services** (15%) — Gathering, processing, transportation and produced water handling through San Mateo and related assets. - Oil and natural gas exploration and development - Crude oil, natural gas and NGL production - Natural gas gathering and processing - Oil transportation and produced water disposal - Midstream services to third-party customers - Acreage and asset acquisitions ## 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** (primary) — 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** (primary) — Purchase or handle production volumes and provide market access, transportation and processing services in the basins Matador operates. - **Third-party producers** (secondary) — Use San Mateo's gathering, processing and disposal infrastructure to move and treat their own production. - **Joint-interest owners** (secondary) — Participate in wells Matador operates and reimburse their share of drilling and operating costs. - Independent marketing companies buying produced oil, gas and NGLs - Midstream companies purchasing or transporting production volumes - Third-party producers using San Mateo gathering and processing - Counterparties in joint-interest wells sharing operating costs - Customers value reliable basin access and flow assurance ## 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. - **United States** (100%) — All operations and oil and gas properties are described as being in the United States. - Operations are concentrated in the Delaware Basin in New Mexico and Texas - Additional upstream exposure in Northwest Louisiana - Midstream assets support production in the same operating basins - U.S.-only asset base reduces international geopolitical exposure - Regional infrastructure and takeaway capacity affect realized pricing ## 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 completions** (short-term) — The core basin drives most production and cash flow, so well performance and capital efficiency are central to returns. - **Expand and monetize midstream infrastructure** (medium-term) — Midstream assets improve flow assurance for Matador's own wells and create fee-based revenue from third parties. - **Maintain capital flexibility and shareholder returns** (short-term) — Commodity volatility requires balance-sheet flexibility, while buybacks can return excess cash when conditions allow. - Concentrate capital in the Delaware Basin core - Use flexible rig counts to match commodity conditions - Expand midstream capacity and processing infrastructure - Grow third-party midstream revenue alongside own production - Return capital through share repurchases when appropriate ## 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. - **Oil and natural gas price volatility** [high] — Revenue and cash flow depend on realized commodity prices, which can move sharply with market conditions. - **Customer concentration and counterparty credit risk** [high] — 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. - **Operational and drilling risk** [high] — Drilling and completion outcomes are uncertain, and the company operates in a capital-intensive, technically complex business. - **Regulatory and environmental compliance** [medium] — Oil and gas operations and midstream assets are subject to federal, state and local regulation, including FERC-related oversight for some assets. - **Infrastructure and takeaway constraints** [medium] — Regional gathering, processing and transportation capacity affects the ability to move production and realize pricing. - Commodity price volatility directly affects realized revenue and cash flow - Production is concentrated in a few core basins, increasing operational concentration - A few customers account for most hydrocarbon revenue, creating credit risk - Midstream and drilling operations face regulatory, safety and environmental risk - Interest rates, borrowing base reviews and debt covenants affect liquidity ## Accounting Matador uses the full-cost method for oil and gas properties, which capitalizes acquisition, exploration and development costs into a single cost center and makes ceiling-test style impairment considerations important. Results are also affected by depletion, depreciation and amortization, derivative hedge accounting, income tax estimates and purchase accounting for acquisitions such as Ameredev and Advance. Because the company has significant midstream assets and joint ventures, non-controlling interests, asset retirement obligations and consolidation judgments also matter for comparability. - **Full-cost method for oil and gas properties** — Upstream asset carrying values and depletion - **Depletion, depreciation and amortization** — Reported operating profit and net income - **Derivative and hedge accounting** — Earnings volatility and realized price protection - **Income tax accounting** — Tax expense and effective tax rate - **Purchase accounting for acquisitions** — Post-acquisition earnings and balance sheet values - Full-cost accounting affects capitalization and impairment sensitivity - Depletion, depreciation and amortization is a major non-cash expense - Derivative accounting affects hedge gains and losses in earnings - Income tax estimates depend on temporary differences and valuation allowances - Asset retirement obligations and acquisition accounting require judgment --- *Last updated: 2026-04-28T20:26:32.078024+00:00*