Matador Resources Reports 25% Revenue Growth to $3.50 Billion in 2024

Matador Resources Company reported significant financial growth in its 2024 fiscal year, with total revenues reaching approximately $3.50 billion, a 25% increase from $2.81 billion in 2023. The company's net income attributable to shareholders was approximately $885.3 million, or $7.14 per diluted share, compared to $846.1 million, or $7.05 per diluted share, in the previous year. This growth was primarily driven by a 30% increase in average daily oil equivalent production, which rose to 170,751 BOE per day, including 99,808 Bbl of oil and 425.7 MMcf of natural gas. The increase in production was largely attributed to the successful Ameredev Acquisition, which added significant oil and natural gas producing properties to Matador's portfolio.

The company experienced notable operational changes, including the completion of the Ameredev Acquisition on September 18, 2024, for approximately $1.83 billion. This acquisition included oil and natural gas properties in Lea County, New Mexico, and Loving and Winkler Counties, Texas, as well as a 19% stake in Piñon Midstream, LLC. The acquisition contributed an additional $118 million in revenues and $34.8 million in net income from the closing date through the end of the year. Additionally, Matador's midstream operations, conducted through its joint venture San Mateo, reported increased revenues and operational efficiencies, further enhancing the company's overall performance.

In terms of operational metrics, Matador's total proved oil and natural gas reserves increased by 33% to 611.5 million BOE at year-end 2024, compared to 460.1 million BOE at the end of 2023. This increase was driven by the Ameredev Acquisition and ongoing development activities in the Delaware Basin. The Standardized Measure of these reserves rose to $7.38 billion, while the PV-10 value increased to $9.23 billion. The company also reported a 40% increase in lease operating expenses, reflecting the higher number of wells operated and inflationary pressures in the industry.

Looking ahead, Matador Resources has set a capital expenditure budget for 2025 between $1.28 billion and $1.47 billion, primarily focused on the Delaware Basin. The company plans to continue its drilling program, operating nine rigs in the area, and expects to fund its capital expenditures through a combination of cash on hand, operating cash flows, and performance incentives. The company remains committed to optimizing its operations and maintaining financial discipline while navigating the challenges posed by fluctuating commodity prices and regulatory changes.