Matador Resources Reports $939M Revenue in Q3 2025, Net Income Declines

Matador Resources Company reported a total revenue of $939.0 million for the third quarter of 2025, marking a 4.4% increase from $899.8 million in the same period of 2024. The company's oil and natural gas revenues rose to $810.2 million, up from $770.2 million year-over-year, driven by a 19% increase in oil production, which reached 11.0 million barrels. However, this was partially offset by a 14% decline in the average realized oil price, which fell to $64.91 per barrel. For the nine months ending September 30, 2025, total revenues increased to $2.85 billion, compared to $2.53 billion in the prior year.

Despite the revenue growth, Matador's net income attributable to shareholders decreased to $176.4 million, or $1.42 per diluted share, from $248.3 million, or $1.99 per diluted share, in the third quarter of 2024. The decline in profitability was attributed to increased operational costs, including a $62.5 million rise in depletion, depreciation, and amortization expenses, and a $20.7 million increase in lease operating expenses. For the nine-month period, net income also fell to $566.7 million from $670.8 million in the previous year.

Strategically, Matador has focused on expanding its operations, particularly in the Delaware Basin, which accounted for 100% of its oil production and approximately 94% of its natural gas production in the third quarter. The company has also increased its capital expenditure budget for 2025 to a range of $1.47 to $1.55 billion, reflecting a commitment to drilling and completing new wells. Additionally, Matador's Board of Directors declared a quarterly cash dividend of $0.375 per share, an increase from the previous $0.3125, and authorized a share repurchase program of up to $400 million.

Operationally, Matador's average daily production reached 209,184 barrels of oil equivalent per day in the third quarter, a 22% increase from the previous year. The company reported a total of 19.2 million barrels of oil equivalent produced during the quarter. The increase in production was supported by the Ameredev acquisition, which added 204 wells to its portfolio. The company also noted a significant rise in third-party midstream services revenues, which increased by 14% to $43.8 million, driven by higher natural gas gathering and processing revenues.

Looking ahead, Matador anticipates continued growth in production and revenues, although it remains cautious about the volatility of oil and natural gas prices. The company plans to focus on its Delaware Basin assets and is prepared to adjust its capital expenditures based on market conditions. The ongoing geopolitical tensions and regulatory changes may also impact future operations and financial performance.