Matador Resources Reports 29% Revenue Growth to $1.014 Billion in Q1 2025

Matador Resources Company reported significant financial growth in its first quarter of 2025, with total revenues reaching $1.014 billion, a 29% increase from $788 million in the same period of 2024. The company's oil and natural gas revenues alone rose to $910 million, up from $704 million year-over-year. This growth was driven by a 34% increase in oil production, which totaled 10.4 million barrels, and a 27% increase in natural gas production, amounting to 45.1 billion cubic feet. The average daily oil production was 115,030 barrels, while natural gas production averaged 501.6 million cubic feet per day.

In terms of profitability, Matador reported a net income of $240.1 million, or $1.92 per diluted share, compared to $193.7 million, or $1.61 per diluted share, in the first quarter of 2024. The increase in net income was attributed to higher production levels and improved natural gas prices, despite a decrease in realized oil prices. Adjusted EBITDA also saw a substantial rise, increasing to $644.2 million from $505.4 million in the prior year.

Operationally, Matador has made strategic adjustments, including a reduction in its drilling rig count from nine to eight by mid-2025, reflecting a more flexible approach to its drilling program in response to market conditions. The company also announced a decrease in its estimated capital expenditures for drilling, completion, and equipping activities for 2025, now projected between $1.18 billion and $1.37 billion, down from a previous range of $1.28 billion to $1.47 billion. This adjustment aligns with the company's focus on optimizing its operations and capital allocation.

Matador's balance sheet remains strong, with total assets of $11.08 billion as of March 31, 2025, up from $10.85 billion at the end of 2024. The company reported a total shareholders' equity of $5.64 billion, reflecting a solid financial position. Additionally, Matador declared a quarterly cash dividend of $0.3125 per share, totaling $39.2 million, and initiated a share repurchase program of up to $400 million, demonstrating its commitment to returning value to shareholders.

Looking ahead, Matador anticipates continued focus on its Delaware Basin assets, with plans to maintain flexibility in its capital expenditures and operational strategies. The company remains vigilant regarding market conditions, particularly commodity price volatility, which could impact future revenues and operational decisions. Matador's management expressed confidence in its ability to navigate these challenges while pursuing growth opportunities in both exploration and midstream operations.