Matador Resources Reports $3.70 Billion Revenue and $759.2 Million Net Income for 2025

Matador Resources Company reported a solid financial performance for the year ended December 31, 2025, with total revenues reaching $3.70 billion, a 5% increase from $3.50 billion in 2024. The company's oil and natural gas revenues rose to $3.24 billion, up 3% from the previous year, driven by a 20% increase in oil production to 43.7 million barrels, despite a 14% decline in the average realized oil price to $64.99 per barrel. Natural gas revenues also saw a 7% increase, totaling $398.6 million, attributed to a 23% rise in production, although the average realized price fell to $2.08 per Mcf.

In terms of profitability, Matador reported a net income of approximately $759.2 million, or $6.09 per diluted share, down from $885.3 million, or $7.14 per share, in 2024. The decrease in net income was primarily due to increased operating expenses, including a $221.1 million rise in depletion, depreciation, and amortization expenses, and a $90.7 million increase in lease operating expenses. Adjusted EBITDA for the year was $2.29 billion, slightly down from $2.30 billion in 2024, reflecting the company's ongoing efforts to manage costs amid fluctuating commodity prices.

Strategically, Matador has focused on expanding its operations in the Delaware Basin, where it completed and began producing from 258 gross horizontal wells in 2025. The company also made significant investments in midstream operations, including the expansion of the Marlan Processing Plant, which increased its natural gas processing capacity to 720 MMcf per day. Additionally, Matador's joint venture, San Mateo, reported increased revenues and volumes in its midstream services, contributing to the overall growth of the company.

Operationally, Matador's total proved oil and natural gas reserves increased by 9% to 667.0 million BOE at year-end 2025, with oil reserves growing by 4% and natural gas reserves by 17%. The company has identified 5,295 gross engineered locations for potential future drilling, primarily in the Wolfcamp and Bone Spring plays. However, the company noted that approximately 39% of its total proved reserves were undeveloped, highlighting the importance of continued exploration and development efforts.

Looking ahead, Matador has set a capital expenditure budget of $1.35 to $1.44 billion for 2026, focusing on further development of its Delaware Basin assets and midstream projects. The company plans to fund these expenditures through a combination of cash on hand, operating cash flows, and potential borrowings. Matador's management remains optimistic about its growth prospects, emphasizing the flexibility of its drilling program to adapt to changing market conditions and commodity prices.