MTDR Q4 Earnings & Revenues Beat on Higher Production Volumes

Matador Resources Company MTDR reported fourth-quarter 2025 adjusted earnings of 87 cents per share, which beat the Zacks Consensus Estimate of 71 cents. The bottom line declined from the year-ago quarter’s level of $1.83.

Total revenues of $849 million topped the Zacks Consensus Estimate of $812.3 million. The bottom line decreased from the year-ago quarter’s $970.4 million.

Better-than-expected quarterly results were driven by an increase in total production volumes and slightly lower total operating expenses. The positives were partially offset by lower oil price realizations.

Matador Resources Company Price, Consensus and EPS Surprise

Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote

MTDR’s Upstream Business in Q4

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 fourth-quarter production), making this commodity’s price a major factor in determining the company’s earnings.

The average daily oil production was 121,363 barrels, reflecting a 1.5% increase from the anticipated figure. The company’s production volumes exceeded the guidance range, primarily due to the sustained outperformance of Matador Resources’ producing wells and those brought into production in the fourth quarter of 2025.

Let us take a look at the average commodity sales price, along with production.

MTDR: Average Sales Price of Commodities

The average sales price for oil (without realized derivatives) was $58.89 per barrel, down from $70.66 a year ago. The commodity price was also lower than our projection of $58.93 per barrel. The price of natural gas was 95 cents per thousand cubic feet (Mcf), down from $2.72 in the year-ago quarter. However, the figure came in lower than our estimate of $2.23 per Mcf.

Upstream Production of MTDR

Matador Resources reported oil production of 121,363 barrels per day (Bbl/D), up from 118,440 Bbl/D in the prior-year quarter. The figure also beat our estimate of 119,653.9 Bbl/D. Natural gas production was recorded at 539.6 million cubic feet per day (MMcf/D), up from 496.1 MMcf/D recorded a year ago. The reported figure came in higher than our estimate of 517.2 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 fourth quarter. Notably, Matador Resources’ 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 fourth quarter was 211,290 BOE/D, reflecting a 5% increase from the year-ago quarter’s 201,116 BOE/D. The figure also exceeded our projection of 205,857.2 BOE/D.

MTDR’s Operating Expenses

MTDR’s midstream operating expenses increased to $3.22 per BOE from the year-earlier level of $2.70.

Lease operating costs increased to $5.25 per BOE from $5.13 a year ago. Our projection for the metric was pinned at $6.28 per BOE. General and administrative expenses decreased to $1.77 per BOE from the year-earlier level of $2.22. Our estimate for the same was pinned at $2.18.

Transportation and processing costs declined to 59 cents per BOE from 91 cents in the year-ago quarter. Taxes other than income also declined to $3.18per BOE from $4.08 recorded in the year-ago quarter.

Overall, total operating expenses per BOE were $29.73, lower than the prior-year figure of $30.89 and also below our estimate of $32.78 per BOE.

Balance Sheet & Capital Spending of MTDR

As of Dec. 31, 2025, MTDR had cash and restricted cash of $79.5 million and a long-term debt of $4,682.4 million. In the fourth quarter, the company spent $474.4 million on well drilling, completion and equipment.

MTDR: Outlook

For 2026, Matador Resources expects its average daily oil equivalent production to be 209,500-215,000 BOE/d, an increase from the 2025 guidance figure of 205,500-206,500 BOE/d. The company also expects average daily total production for the first quarter of 2026 to be 201,000-205,000 BOE/d. It also projects 2026 capital expenditure (CapEx) to be in the range of $1.450-$1.550 billion, while first-quarter 2026 is expected to be between $415 billion and $435 billion. Matador Resources further projects that a majority of its 2026 D/C/E and midstream CapEx — about 55% to 60% of the planned $1.5 billion — will be deployed during the first six months of the year.

MTDR’s Zacks Rank and Key Picks

Matador Resources currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Energy sector are TechnipFMC plc FTI, Archrock, Inc. AROC and Oceaneering International, Inc. OII. FTI and AROC sport a Zacks Rank #1 (Strong Buy) each, while OII has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

TechnipFMC posted fourth-quarter 2025 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate of 51 cents. The bottom line increased from the prior-year level of 54 cents.

FTI’s quarterly revenues of $2,517 million improved from $2,367.3 million in the year-ago period. The top line missed the Zacks Consensus Estimate of $2,546.8 million.

As of Dec. 31, FTI had $1,031.9 million in cash and cash equivalents, and $395.7 million in long-term debt, less current portion.

Archrockreported fourth-quarter 2025 adjusted earnings per share of 69 cents, which beat the Zacks Consensus Estimate of 40 cents. The company’s bottom line improved from the year-ago adjusted profit of 35 cents.

As of Dec. 31, AROC had $1.553 million in cash and cash equivalents, and $2.41 billion in long-term debt.

Oceaneering reported fourth-quarter 2025 adjusted earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 44 cents. The bottom line increased from the prior-year level of 37 cents.

OII’s quarterly revenues of $668.6 million declined from $713.4 million in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $711 million.

As of Dec. 31, OII had $1,512.4 million in cash and cash equivalents, and $487.417 million in long-term debt.

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