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Matador Resources Company MTDR reported third-quarter 2025 adjusted earnings of $1.36 per share, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line declined from the year-ago quarter’s level of $1.89.
Total revenues of $939 million topped the Zacks Consensus Estimate of $883 million. The top line also increased from the year-ago quarter’s $899.8 million.
Better-than-expected quarterly results were driven by an increase in total production volumes. The positives were partially offset by lower oil price realizations and higher total operating expenses.
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Matador Resources is primarily involved in oil and gas exploration and production activities in the United States. The company’s overall financial performance is heavily dependent on the oil and gas pricing environment. Most of MTDR’s production comprises oil (57% of total third-quarter production), making this commodity’s price a major factor in determining the company’s earnings.
The average daily oil production was 119,556 barrels, reflecting a 2% increase from the anticipated figure. The company’s production volumes exceeded the guidance range, primarily due to the sustained outperformance of Matador’s producing wells and those brought into production in the third quarter of 2025. Additionally, MTDR’s Avalon wells in Lea County, New Mexico, contributed to the higher output.
Let us take a look at the average commodity sales price, along with production.
The average sales price for oil (without realized derivatives) was $64.91 per barrel, down from $75.67 a year ago. The commodity price was also lower than our projection of $65.18 per barrel. The price of natural gas was $1.95 per thousand cubic feet (Mcf), up from $1.83 in the year-ago quarter. However, the figure came in lower than our estimate of $2.81 per Mcf.
Matador reported oil production of 119,556 barrels per day (Bbl/D), up from 100,315 Bbl/D in the prior-year quarter. The figure also beat our estimate of 117,879.6 Bbl/D. Natural gas production was recorded at 537.8 million cubic feet per day (MMcf/D), up from 427 MMcf/D recorded a year ago. The reported figure came in higher than our estimate of 494.7 MMcf/D.
The rise in total average production can be attributed to the sustained outperformance of the company’s existing wells and the new wells brought into production in the third quarter. Notably, Matador’s non-operated wells in the Haynesville shale, where the company mainly owns mineral interest, contributed to the production increase.
Total oil equivalent production in the third quarter was 209,184 BOE/D, reflecting a 22% increase from the year-ago quarter’s 171,480 BOE/D. The figure also exceeded our projection of 200,323.6 BOE/D.
Matador Resources announced a 20% increase to its quarterly cash dividend, raising it from $0.3125 per share to $0.375 per share for the third quarter of 2025 (annualized dividend of $1.50). The dividend is payable on Dec. 5, 2025, to shareholders of record as of Nov. 10, 2025.
MTDR’s plant and other midstream services’ operating expenses decreased to $2.63 per BOE from the year-earlier level of $2.77. Our estimate for the same was pinned at $2.87.
Lease operating costs increased to $5.58 per BOE from $5.50 a year ago. Our projection for the metric was pinned at $5.52 per BOE. Production taxes, transportation and processing costs declined to $4.32 per BOE from $4.61 in the year-ago quarter. Our projection for the metric was pinned at $5.70 per BOE.
Overall, total operating expenses per BOE were $30.31, higher than the prior-year figure of $30.09 and also below our estimate of $31.64 per BOE.
As of Sep. 30, 2025, MTDR had cash and restricted cash of $96.4 million and a long-term debt of $3,219.6 million. In the third quarter, the company spent $347.5 million on well drilling, completion and equipment.
Matador Resources updated its full-year 2025 average daily oil equivalent production guidance to 205,500-206,500 BOE/d from 200,000-205,000 BOE/d. The company also expects average daily total production for the fourth quarter of 2025 to be 205,000-208,000 BOE/d. It has also increased its total 2025 capital expenditure forecast to $1.625-$1.725 billion. For 2026, the company has forecasted an organic increase in daily production to approximately 210,000 BOE. Matador expects oil production to grow 2-5% from 2025 to 2026.
MTDR currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are Cheniere Energy Inc. LNG, Archrock, Inc. AROC and TechnipFMC plc FTI. While Cheniere Energy sports a Zacks Rank #1 (Strong Buy) at present, Archrock and TechnipFMC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to strengthen Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG both in the United States and internationally.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
TechnipFMC plcis a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. FTI’s project backlog, now at $15.8 billion, has grown sequentially in six of the last seven quarters, reinforcing long-term revenue visibility for the company.
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This article originally published on Zacks Investment Research (zacks.com).
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