Key Highlights

  • Production reached 230,470 BOE per day, up 10% year over year and 3% above the guidance midpoint.
  • Net income attributable to shareholders was USD 172.1 million, or USD 1.39 per diluted share; adjusted EPS was USD 2.08.
  • Adjusted EBITDA was USD 738.3 million, and adjusted free Cash Flow was USD 287.6 million versus USD 93.4 million.
  • Capital expenditures were USD 381 million, down 19%, and USD 150 million of Debt was repaid in October.

Volumes Ahead of Guidance

Matador Resources Company (NYSE:MTDR), the Dallas-based oil and Natural Gas producer, reported third-quarter 2026 Net Income attributable to shareholders of USD 172.1 million, or USD 1.39 per diluted share, compared with USD 176.4 million, or USD 1.42, a year earlier. Adjusted net income was USD 257.5 million, or USD 2.08 per share, against USD 169.3 million, or USD 1.36.

Daily production of 230,470 barrels of oil equivalent was a record for oil, with oil output of 132,019 barrels per day against 119,556 a year ago and natural gas output of 590.7 million cubic feet per day. Founder, Chairman and Chief Executive Officer Joseph Foran said results exceeded the company's expectations, crediting production and momentum from acquisitions in both the Upstream and Midstream businesses. Estimated Proved Reserves rose 16% to 771 million BOE from 667 million BOE at December 31, 2025.

Analyst estimates were EPS of USD 1.83 against reported EPS of USD 2.08, and Revenue of USD 1.12 billion against reported revenue of USD 1.16 billion.

Prices, Hedges and Costs

Oil sold for USD 87.25 per barrel before derivatives, versus USD 64.91 a year earlier, but realized derivative losses of USD 160.2 million brought the hedged price to USD 74.84. Natural gas realizations improved to USD 2.99 per thousand cubic feet from negative USD 0.79 in the second quarter, and natural gas revenue was USD 162 million after negative USD 39 million in the second quarter. Management tied that improvement to higher realizations and the commissioning of the Hugh Brinson pipeline on September 1, 2026.

Operating expenses were USD 33.67 per BOE, above the midpoint of the USD 32.00 to USD 34.00 guidance range, mainly on midstream Operating Expense of USD 3.89 per BOE. Lease operating expense of USD 5.66 per BOE came in below the company expectation of USD 5.80. Net cash from Operating Activities was USD 594.4 million versus USD 721.7 million.

Capital Discipline and Midstream

Capital expenditures of USD 381 million were USD 91 million below the third quarter of 2025 and 10% below the guidance midpoint of USD 425 million. Drilling, completion and equipping spending was USD 329.9 million and midstream spending was USD 51.5 million. Full-year capital guidance of USD 785 million to USD 805 million is unchanged. Adjusted free cash flow of USD 287.6 million Funded Debt reduction. The company repaid USD 150 million in October, USD 50 million more than previously announced, against an intention to repay USD 350 million to USD 400 million of borrowings by the end of 2026, and it now sees Leverage approaching 1.5 times at year end.

San Mateo, the midstream joint venture, reported net income of USD 46.9 million and adjusted EBITDA of USD 94.0 million. Combined adjusted EBITDA from San Mateo and Matador's other wholly owned midstream Assets was USD 101.4 million. Management now points to full-year midstream adjusted EBITDA approaching USD 400 million, up 17% from USD 332 million in 2025. The board raised the annual Dividend to USD 1.75 per share from USD 1.50, a 17% increase and the eighth in five years.

Total revenues were USD 1,162.6 million versus USD 939.0 million. Adjusted EBITDA of USD 738.3 million compared with USD 566.5 million a year earlier and USD 781.0 million in the second quarter.

Items to Follow

Midstream operating costs against guidance, the pace of debt repayment and fourth-quarter production are the items to follow.