Matador Resources Company (MTDR) reported first-quarter 2026 adjusted earnings of $1.53 per share, down 23.1% from $1.99 a year ago. The bottom line beat the Zacks Consensus Estimate of $1.24 by 23.4%.
Total revenues were $671.6 million, down 33.8% from $1,014 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $883.3 million by 24.0%.
Better-than-expected quarterly earnings were driven by increased total production volumes and slightly lower operating expenses. The positives were partially offset by lower natural gas 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 Q1
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 (58% of total first-quarter production), making oil prices a major factor in determining the company’s earnings.
The average oil production was 120,277 barrels per day (Bbl/D), reflecting a 4.6% increase from the prior-year figure of 115,030. The figure also beat our estimate of 116,217.3 Bbl/D. Natural gas production was recorded at 523.9 million cubic feet per day (MMcf/D), up from 501.6 MMcf/D recorded a year ago. The reported figure came in higher than our estimate of 519.7 MMcf/D.
Total oil equivalent production in the first quarter was 207,594 barrels of oil equivalent (BOE/D), reflecting a 4.5% increase from the year-ago quarter’s figure of 198,631 BOE/D. The figure also exceeded our projection of 202,834.8 BOE/D. The company’s production volumes exceeded the midpoint of the guidance range by 3%, primarily due to the sustained outperformance of Matador Resources’ producing wells and those brought into production in the first quarter of 2026.
Matador Resources turned 36 net operated wells to production in the quarter, including a large portion in late February and March.
Matador Resources Faces Waha Gas Price Collapse
A key pressure point in the quarter was natural gas pricing. Matador’s average realized natural gas price, excluding hedging, was 64 cents per thousand cubic feet (Mcf), sharply down from $3.56 per Mcf in the first quarter of 2025. The figure came in lower than our estimate of $2.74 per Mcf. The natural gas price decline was driven by a collapse in Waha prices, which forced roughly 3,000 BOE/D in voluntary shut-ins. Winter Storm Fern forced additional well shut-ins due to freezing conditions.
The average sales price for oil (excluding realized derivatives) was $72.83 per barrel, up from $72.38 a year ago. The commodity price was higher than our projection of $71.74 per barrel.
MTDR’s Operating Expenses
MTDR’s midstream operating expenses increased to $2.96 per BOE from the year-earlier level of $2.90.
Lease operating costs decreased to $5.76 per BOE from $5.84 a year ago. Our projection for the metric was $5.25 per BOE. General and administrative expenses increased to $2.09 per BOE from the year-earlier level of $1.89. Our estimate for the same was $1.89.
Transportation and processing costs declined to 79 cents per BOE from $1.12 per BOE in the year-ago quarter. Taxes other than income also declined to $3.79 per BOE from $4.31 recorded in the year-ago quarter.
Overall, total operating expenses per BOE were $31.06, lower than the prior-year figure of $31.83 and above our estimate of $29.79 per BOE.
Balance Sheet & Capital Spending of MTDR
As of March 31, 2026, MTDR had cash and restricted cash of $92.5 million and long-term debt of $4,782.4 million.
Matador Resources’ first-quarter total capital expenditures were $428.1 million, which is within the company’s guidance range of $415 million to $435 million. Meanwhile, the company spent $377.4 million on well drilling, completion and equipment.
MTDR 2026 Guidance Rises
Matador Resources increased its full-year 2026 production guidance while keeping its capital budget unchanged. The company now expects full-year 2026 oil production to be in the range of 123,000-125,000 Bbl/D and total production to be between 210,500 BOE/D and 216,000 BOE/D. Total capital expenditures are unchanged at $1.45 - $1.55 billion.
MTDR’s Zacks Rank & Other Key Picks
Matador Resources currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Energy sector are Chevron Corporation CVX, BP plc BP and Eni S.p.A. E. CVX, BP and E each currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
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