Matador Resources Company MTDR reported second-quarter 2026 adjusted earnings of $2.61 per share, up 70.6% from $1.53 per share a year ago. The bottom line beat the Zacks Consensus Estimate of $2.05 per share by 27.3%.
Total revenues increased 32.5% to $1.2 billion from $895.3 million a year earlier. The top line surpassed the Zacks Consensus Estimate of $942.7 million by 25.8%.
The strong quarterly results were driven by record oil production and higher realized oil prices.
Total production averaged 215,631 barrels of oil equivalent per day (Boe/d), up 3% from 209,013 Boe/d recorded for the second quarter of 2025.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
MTDR's Production Hits a Record
MTDR produced a record 126,106 barrels of oil per day (Bbl/d), up 3% from 122,875 Bbl/d in the year-ago quarter. Oil production exceeded management's guidance range of 123,000-125,000 Bbl/d. Natural gas production increased 4% to 537.1 million cubic feet per day (MMcf/d) from 516.8 MMcf/d recorded in the second quarter of 2025.
The production outperformance was primarily driven by stronger-than-expected new wells brought online during the first half, including the company's first 3.4-mile lateral wells on the Guss pad. Matador achieved the results despite about 9,900 barrels of oil equivalent per day (Boe/d) of shut-ins related to weak Waha pricing and third-party plant maintenance.
Matador's Pricing Mix Bolsters Revenues
Matador's average realized oil price, excluding derivatives, increased 53% to $98.16 per barrel from $64.34 per barrel. The stronger oil realization, combined with higher oil volumes, provided a significant lift to upstream revenues.
Natural gas remained a pressure point. Average realized natural gas prices excluding derivatives were negative 79 cents per thousand cubic feet (Mcf) compared with $2.05 per Mcf a year earlier.
Oil and natural gas revenues rose to $1.09 billion from $815.8 million in the prior-year quarter.
MTDR's Cost Profile Shows Pressure
Total operating expenses were $32.90 per barrel of oil equivalent (Boe) compared with $29.91 per Boe in the prior-year period. The increase included higher midstream operating costs of $3.09 per Boe, taxes other than income of $5.24 per Boe and general and administrative expenses of $2.10 per Boe.
Lease operating expenses were $5.45 per Boe, below management's expectation of $5.60 due mainly to lower repair and maintenance costs. Depletion, depreciation and amortization were $16.06 per Boe, above the expected $15.65, largely because of proved undeveloped reserves booked from the May federal lease sale.
Matador Expands Midstream & Inventory
Matador's combined midstream operations generated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $89.9 million. San Mateo's natural gas gathering volumes increased 18% year over year to 577 MMcf/D, while natural gas processing volumes rose 14% to 552 MMcf/D.
The company advanced several strategic transactions. The federal lease purchase added more than 141 net operated locations, while the pending Paloma acquisition adds more than 156. Ridge Runner is expected to expand Matador's Woodford position to about 50,000 net acres and add roughly 150 net operated locations.
MTDR's Cash Flow Supports Debt Reduction
Net cash provided by operating activities totaled $937.1 million, up from $501.0 million a year ago. Adjusted EBITDA increased to $781.0 million from $594.2 million, while adjusted free cash flow surged to $303.2 million from $132.7 million.
The strong cash generation enabled Matador to repay more than $200 million of borrowings associated with the May federal lease acquisition. Management expects full-year 2026 adjusted free cash flow of approximately $900 million and continues to prioritize debt repayment.
Matador’s Balance Sheet
As of June 30, 2026, Matador had cash and restricted cash of $90.9 million and long-term debt of $5.7 billion.
MTDR Raises 2026 Production Outlook
Matador raised its 2026 oil production guidance to a range of 127,500-129,000 Bbl/d from 123,000-125,000 Bbl/d. Total production guidance increased to 218,500-223,500 Boe/d from 210,500-216,000 Boe/d.
For the third quarter, the company expects total production to be in the range of 222,000-226,000 Boe/d and oil output to be between 128,500 and 130,500 Bbl/d. Full-year total capital spending is projected at $1.625-$1.725 billion, reflecting accelerated activity and spending tied to recent acquisitions and midstream integration.
MTDR’s Zacks Rank & Key Picks
Matador currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, Valero Energy Corporation VLO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while VLO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share.
As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.
Valero reported second-quarter 2026 adjusted earnings of $12.54 per share, which beat the Zacks Consensus Estimate of $9.87 per share.
As of June 30, 2026, VLO had total debt of $9.10 billion, and cash and cash equivalents of $7.87 billion.
Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share.
As of June 30, 2026, WHD had cash and cash equivalents of $365 million.
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