Matador Resources Reports 34% Revenue Decline and Net Loss in Q1 2026

Matador Resources Company reported a significant decline in financial performance for the first quarter of 2026, with total revenues of $671.6 million, down 34% from $1.014 billion in the same period of 2025. The decrease was primarily driven by a substantial unrealized loss on derivatives amounting to $255.5 million, compared to a gain of $5.1 million in the previous year. The company also recorded a net loss attributable to shareholders of $35.9 million, or $0.29 per diluted share, contrasting sharply with a net income of $240.1 million, or $1.92 per diluted share, in the first quarter of 2025.

In terms of operational metrics, Matador's average daily oil production increased by 5% year-over-year to 120,277 barrels per day, while natural gas production rose by 4% to 523.9 million cubic feet per day. The Delaware Basin remained the primary contributor, accounting for all of the company's oil production and 97% of its natural gas output. Despite the increase in production volumes, the average realized price for natural gas plummeted by 82% to $0.64 per Mcf, significantly impacting overall revenue.

Strategically, Matador has been active in managing its debt. In March 2026, the company repurchased $419.8 million of its senior notes due 2028 as part of a cash tender offer, and it subsequently redeemed the remaining $80.2 million of these notes. Additionally, Matador issued $750 million in senior notes due 2034, using the proceeds to fund the tender offer and for general corporate purposes. The company’s total debt as of March 31, 2026, stood at approximately $3.47 billion, with a debt-to-EBITDA ratio compliant with its credit agreements.

Looking ahead, Matador has set a capital expenditure budget of $1.35 to $1.44 billion for drilling and completion activities in 2026, alongside $100 to $110 million for midstream investments. The company aims to focus on its Delaware Basin assets while maintaining flexibility in its drilling program to adapt to changing market conditions. Despite the challenges posed by commodity price volatility and regulatory pressures, Matador remains committed to enhancing its operational efficiency and exploring opportunities for growth in both its exploration and midstream segments.