Matador Res Co Stock Price, News & Analysis

Matador Resources Company (NYSE: MTDR) is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The company emphasizes oil and natural gas shale and other unconventional plays and reports that it was founded in 1983. According to recent company disclosures, Matador has grown from an initial capital base of $270,000 to holding assets valued at over $10 billion.

Matador’s primary operating focus is the Delaware Basin, particularly the oil and liquids-rich portions of the Wolfcamp and Bone Spring plays in Southeast New Mexico and West Texas. The company also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. These areas are highlighted in multiple company press releases as the core of its upstream (exploration and production) activities.

Business Segments and Operations

Matador states that it operates through two reportable business segments: exploration and production and midstream. The exploration and production segment focuses on drilling, developing and producing oil and natural gas wells in its core basins. The midstream segment is designed to support these upstream operations and also serves third parties.

Through its midstream activities, Matador provides natural gas processing, oil transportation services, and natural gas, oil and produced water gathering services, as well as produced water disposal services to both Matador and other producers. These services are provided in large part through San Mateo Midstream, LLC (“San Mateo”), Matador’s midstream joint venture in which Matador owns a 51% interest and Five Point Infrastructure LLC owns 49%, as described in company news releases.

Delaware Basin Focus and Acreage

Matador repeatedly emphasizes its focus on the Delaware Basin. Company communications describe a significant net acreage position in this basin and refer to a “brick-by-brick” land acquisition strategy. Matador highlights targeted, selective lease acquisitions in key areas of the Delaware Basin, including undeveloped acreage and additional working and mineral interests in existing wells. The company states that these efforts have contributed to a large inventory of engineered drilling locations and long-term development opportunities.

In its updates, Matador notes that its operations in the Delaware Basin are concentrated in oil and liquids-rich zones of the Wolfcamp and Bone Spring plays. The company also references a “gas bank” in Northwest Louisiana, tied to its Haynesville Shale interests, which it describes as being held by production and providing the option to adjust natural gas output in response to price conditions.

Midstream Infrastructure and San Mateo

Matador’s midstream business is a key part of its overall model. San Mateo Midstream is described as a strategic joint venture formed in 2017 between a Matador subsidiary and a subsidiary of Five Point Infrastructure LLC. According to company disclosures, San Mateo provides midstream services for the three main streams produced by oil and natural gas activities: natural gas, oil and produced water.

San Mateo’s system includes natural gas gathering, compression, treating and processing; produced water gathering and disposal; and oil gathering and transportation. The company reports that San Mateo owns and operates natural gas, produced water and oil gathering and transportation systems in the Delaware Basin, including the Black River and Marlan gas processing complexes in Eddy County, New Mexico. These facilities have a combined designed inlet capacity of 720 million cubic feet of natural gas per day and are supported by 16 commercial produced water disposal wells in Eddy County, New Mexico and Loving County, Texas with a combined designed disposal capacity of 475,000 barrels per day.

Matador describes San Mateo as providing “flow assurance” for Matador and third-party producers, meaning that the midstream system is intended to reliably move and process production from wells. Company releases state that San Mateo serves as the primary midstream solution for Matador and also provides services to other exploration and production operators in the Delaware Basin.

Natural Gas Marketing and Transportation

In addition to its upstream and midstream operations, Matador has disclosed strategic natural gas marketing and transportation arrangements. The company reports entering into multiple natural gas transportation and marketing agreements intended to improve net pricing for its natural gas production. One such agreement provides firm transportation on Energy Transfer’s Hugh Brinson Pipeline to move a substantial volume of natural gas per day out of the Permian Basin to markets in Texas and along the Gulf Coast.

According to Matador, this transportation is expected to connect its natural gas from West Texas to Maypearl, Texas and then to East Texas and Gulf Coast markets that have access to LNG export facilities and other trading hubs. The company notes that prices in these markets have historically been higher than prices at the Waha Hub. Matador also discloses an extension of a separate gas transportation agreement to move a portion of its natural gas to the Southern California market, where it states that prices have historically exceeded those in Texas and Louisiana.

Financial Structure and Credit Facilities

Matador’s SEC filings describe its primary secured revolving credit facility, often referred to as a reserves-based loan (“RBL”) credit facility. In a Form 8-K, the company reports that a Seventh Amendment to its Fourth Amended and Restated Credit Agreement reaffirmed the borrowing base at $3.25 billion and maintained elected borrowing commitments at $2.25 billion. The amendment also removed a 0.10% per annum credit spread adjustment in the calculation of certain SOFR-based interest rates.

Company press releases further state that Matador’s commercial bank group unanimously reaffirmed the borrowing base during a scheduled redetermination and that Matador has paid down borrowings under the RBL, resulting in a leverage ratio below 1.0x and significant available liquidity. These disclosures indicate that Matador uses the RBL as a key source of liquidity to fund its capital program and manage its balance sheet.

San Mateo Midstream also maintains its own revolving credit facility. Matador has reported that the lender commitments under San Mateo’s revolving credit facility were increased by $250 million, from $850 million to $1.10 billion, with the lender group led by Truist Bank. The company characterizes this increase as providing San Mateo with greater operational and financial flexibility to support its midstream operations and growth.

Shareholder Returns and Capital Allocation

Matador’s public communications describe a capital allocation framework that includes dividends, share repurchases, debt reduction, and reinvestment in its asset base. The company has adopted a dividend policy under which it pays a fixed quarterly cash dividend on its common stock. In 2025, Matador announced an amendment to this policy that increased the intended annual dividend per share, and the Board of Directors declared a quarterly cash dividend at the new level.

In addition to dividends, Matador has implemented a share repurchase program. Company releases note that Matador has repurchased shares of its common stock under a broader authorization, using a portion of its free cash flow. The company also highlights its ongoing “brick-by-brick” land acquisition strategy in the Delaware Basin, which it funds alongside shareholder distributions and debt repayment.

Corporate Governance and Listings

Matador Resources Company is incorporated in Texas and lists its common stock on the New York Stock Exchange under the ticker symbol MTDR, as disclosed in its SEC filings. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q and 8-K, which provide further detail on its operations, financial condition, risk factors and governance.

Recent Form 8-K filings have covered topics such as quarterly financial results and guidance updates, amendments to the company’s dividend policy, changes in senior executive roles, and amendments to its credit agreement. These filings also reference the use of non-GAAP financial measures such as Adjusted EBITDA, adjusted net income and adjusted free cash flow, with reconciliations provided in the related press releases.

Role of San Mateo in Matador’s Strategy

Matador frequently refers to the “San Mateo effect” when discussing its integrated upstream and midstream business. Company communications state that San Mateo’s gathering, processing and disposal services contribute to Matador’s production efficiency and cash flow generation. For example, Matador has reported record natural gas processing volumes at San Mateo’s facilities following the expansion of the Marlan plant and the startup of additional infrastructure such as the Ranger North compressor station.

San Mateo’s ability to handle sour gas, as well as its expanded capacity, is described as increasing optionality for serving additional third-party customers in parts of the Delaware Basin. Matador notes that San Mateo generates a significant and growing revenue stream and that the company continues to evaluate strategic options to highlight and potentially enhance the value of this midstream asset for Matador shareholders.

Summary

According to its public disclosures, Matador Resources Company is a U.S.-focused independent energy company with a core position in the Delaware Basin and additional operations in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The company’s business model combines exploration and production activities with a substantial midstream platform, primarily through its majority interest in San Mateo Midstream. Matador emphasizes disciplined capital allocation, including dividends, share repurchases, debt reduction and targeted acreage acquisitions, while using its credit facilities and midstream joint venture to support ongoing development and operations.