Matador Resources Reports $895.3 Million Revenue in Q2 2025, Driven by Increased Oil Production

Matador Resources Company reported a total revenue of $895.3 million for the second quarter of 2025, marking a 5.7% increase from $847.1 million in the same period of 2024. The company's oil and natural gas revenues rose to $815.8 million, up from $776.3 million year-over-year, driven by a 29% increase in oil production, which reached 11.2 million barrels. However, this growth was tempered by a 21% decline in the average realized oil price, which fell to $64.34 per barrel from $81.20. For the first half of 2025, Matador's net income attributable to shareholders was $390.3 million, or $3.12 per diluted share, down from $422.5 million, or $3.45 per diluted share, in the prior year.

The company experienced significant operational changes, including the acquisition of Ameredev Stateline II, LLC, which contributed to a 31% increase in total oil production for the first half of 2025. Matador's average daily production reached 209,013 barrels of oil equivalent per day, with oil accounting for 59% and natural gas 41%. The Delaware Basin remained the primary source of production, contributing nearly all of the company's oil output and a substantial portion of its natural gas production. Additionally, Matador's third-party midstream services revenues increased by 29% to $42.0 million, reflecting growth in natural gas gathering and processing activities.

In terms of financial health, Matador's total assets increased to $11.3 billion as of June 30, 2025, compared to $10.9 billion at the end of 2024. The company's total liabilities also rose, with long-term debt standing at $4.5 billion. The company maintained a strong liquidity position, with $10.5 million in cash and $76.3 million in restricted cash. Matador's board declared a quarterly cash dividend of $0.3125 per share, consistent with previous quarters, and authorized a share repurchase program of up to $400 million, under which it repurchased approximately 1.1 million shares at an average price of $40.37.

Looking ahead, Matador plans to focus on its Delaware Basin assets, operating eight drilling rigs by August 2025, down from nine at the start of the year. The company anticipates capital expenditures of $1.18 to $1.37 billion for drilling and completion activities, alongside $120 to $180 million for midstream investments. The outlook remains cautious due to potential commodity price volatility and regulatory changes, including the recent One Big Beautiful Bill Act, which may impact tax liabilities and capital expenditures. Matador's management continues to evaluate opportunities for acquisitions and divestitures to enhance its operational efficiency and financial performance.