Matador Resources Company (MTDR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with production, net income, and cash flow at all-time highs, driven by the Ameredev acquisition, which closed in September 2024 and added 33,500 net acres and significant reserves.

• Q3 2024 oil equivalent production reached 171,480 BOE/d, up 27% year-over-year and 7% above guidance, with oil production up 29% and natural gas up 24%.

• Adjusted EBITDA for Q3 2024 was $574.5 million, with adjusted net income of $223.4 million and adjusted EPS of $1.86.

• Management and board demonstrated confidence with significant insider stock purchases and a 25% dividend increase to $0.25 per share quarterly ($1.00 annualized).

• Integration of Ameredev assets exceeded expectations, with new wells outperforming and operational synergies targeted at $160 million over five years.

Financial highlights

• Q3 2024 total revenues were $899.8 million, up 16% year-over-year; oil revenues rose 19% to $698.4 million, while natural gas revenues fell 37% to $71.8 million.

• Q3 2024 adjusted free cash flow was $196.1 million, up 36% year-over-year; net cash from operating activities was $610.4 million.

• Drilling, completion, and equipping (D/C/E) capex for Q3 2024 was $329.9 million (6% below guidance); midstream capex was $48.9 million (11% below guidance).

• San Mateo midstream Q3 2024 adjusted EBITDA was $68.5 million, with record water handling of 513,000 Bbl/d.

• Q3 2024 net income was $248.3 million ($1.99/diluted share); adjusted net income was $236.0 million ($1.89/diluted share).

Outlook and guidance

• Full-year 2024 production guidance raised to 167,500–172,500 BOE/d (+29% YoY); oil production guidance up to 98,500–101,500 Bbl/d (+33% YoY).

• Q4 2024 production expected at 197,000–199,000 BOE/d (+15% sequentially); oil at 118,500–119,500 Bbl/d.

• 2025 production expected to exceed 200,000 BOE/d (60% oil) with nine rigs running for the full year.

• Full-year 2024 D/C/E capex guidance increased to $1.10–$1.35 billion; midstream capex unchanged at $200–$250 million.

• Lowered expected 2024 cash tax payments to 1–5% of pre-tax book net income due to Ameredev-related deductions; 2025 cash tax rate and CapEx remain subject to final planning.