MTDR Q4 Results Surpass Expectations Thanks to Increased Output

Matador Resources Company Q4 2025 Earnings Overview

Matador Resources Company (MTDR) announced adjusted earnings of $0.87 per share for the fourth quarter of 2025, surpassing the Zacks Consensus Estimate of $0.71. However, this result was lower than the $1.83 per share reported in the same quarter last year.

The company’s total revenue reached $849 million, exceeding the consensus estimate of $812.3 million, but marking a decline from the $970.4 million recorded a year earlier.

Matador’s strong quarterly performance was fueled by higher overall production and a slight reduction in operating costs. These positive factors were partially offset by weaker realized oil prices.

Production and Financial Highlights

• Oil and Gas Production: The company’s average daily oil output was 121,363 barrels, a 1.5% increase over expectations and above the guidance range, thanks to consistently strong performance from both existing and newly producing wells.
• Commodity Prices: The average realized oil price (excluding derivatives) was $58.89 per barrel, down from $70.66 in the prior year and slightly below projections. Natural gas averaged $0.95 per Mcf, a significant drop from $2.72 a year ago and also below estimates.
• Natural Gas Production: Daily natural gas production reached 539.6 million cubic feet, up from 496.1 million cubic feet in the previous year and above expectations.
• Total Oil Equivalent Production: The company produced 211,290 barrels of oil equivalent per day (BOE/D), a 5% increase from the prior year and higher than projected figures.

Operating Expenses

• Midstream operating expenses rose to $3.22 per BOE from $2.70 a year ago.
• Lease operating costs increased slightly to $5.25 per BOE, but remained below the projected $6.28 per BOE.
• General and administrative expenses fell to $1.77 per BOE from $2.22, also coming in under estimates.
• Transportation and processing costs dropped to $0.59 per BOE from $0.91, while non-income taxes decreased to $3.18 per BOE from $4.08.
• Overall, total operating expenses per BOE were $29.73, down from $30.89 a year earlier and below the forecasted $32.78.

Balance Sheet and Capital Expenditures

As of December 31, 2025, Matador Resources held $79.5 million in cash and restricted cash, with long-term debt totaling $4.68 billion. The company invested $474.4 million in well drilling, completion, and equipment during the fourth quarter.

Outlook for 2026

Looking ahead, Matador Resources anticipates average daily oil equivalent production between 209,500 and 215,000 BOE/d for 2026, up from the 2025 guidance of 205,500–206,500 BOE/d. For the first quarter of 2026, expected production is between 201,000 and 205,000 BOE/d. Capital expenditures for 2026 are projected at $1.45–$1.55 billion, with $415–$435 million allocated for the first quarter. The company plans to spend 55–60% of its 2026 drilling, completion, and midstream capital budget in the first half of the year.

Zacks Rank and Notable Energy Sector Picks

Currently, Matador Resources holds a Zacks Rank #4 (Sell).

Other energy sector stocks with stronger Zacks Ranks include:

• TechnipFMC plc (FTI) – Zacks Rank #1 (Strong Buy)
• Archrock, Inc. (AROC) – Zacks Rank #1 (Strong Buy)
• Oceaneering International, Inc. (OII) – Zacks Rank #2 (Buy)

Performance Highlights of Key Peers

• TechnipFMC (FTI): Reported Q4 2025 adjusted earnings of $0.70 per share, beating estimates and up from $0.54 a year ago. Quarterly revenue was $2.52 billion, higher than last year but slightly below expectations. As of year-end, FTI had $1.03 billion in cash and $395.7 million in long-term debt.
• Archrock (AROC): Delivered Q4 2025 adjusted earnings of $0.69 per share, exceeding estimates and nearly doubling the prior year’s $0.35. The company ended the year with $1.55 million in cash and $2.41 billion in long-term debt.
• Oceaneering (OII): Achieved Q4 2025 adjusted earnings of $0.45 per share, topping estimates and up from $0.37 a year earlier. Revenue was $668.6 million, lower than the prior year but above consensus. OII closed the year with $1.51 billion in cash and $487.4 million in long-term debt.

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Additional Resources

• TechnipFMC plc (FTI): Free Stock Analysis Report
• Oceaneering International, Inc. (OII): Free Stock Analysis Report
• Matador Resources Company (MTDR): Free Stock Analysis Report
• Archrock, Inc. (AROC): Free Stock Analysis Report