Key Highlights

  • Matador Resources (NYSE:MTDR) raised its annual Dividend to USD 1.75 per share, a 17% increase from USD 1.50, after third quarter 2026 production of 230,470 BOE per day.
  • Production was up 10% from 209,184 BOE per day a year earlier and 3% above the guidance midpoint of 224,000 BOE per day.
  • Oil and Natural Gas Revenue rose 51% to USD 1.22 billion from USD 810 million, while capital expenditures fell 19% to USD 381 million.
  • The company repaid USD 150 million of Debt in October 2026 and expects its Leverage Ratio to approach 1.5 times by year-end.

Record Output Funds a Higher Payout

Matador Resources (NYSE:MTDR) reported third quarter 2026 results on November 3, 2026. Total production averaged 230,470 BOE per day, including 132,019 barrels of oil per day and 590.7 million cubic feet of gas per day, each up 10% from a year earlier. Proved Reserves rose 16% to 771 million BOE from 667 million at December 31, 2025, on a pro forma basis that includes the Paloma and Ridge Runner acquisitions closed in October and is unaudited. The annual dividend rose to USD 1.75 per share, the eighth increase in five years. Capital expenditures of USD 381 million were 10% below the USD 425 million guidance midpoint. The release did not provide Net Income in the extract reviewed.

Pipeline Start Lifts Gas Realizations

Realized natural gas prices improved to USD 2.99 per thousand cubic feet from negative USD 0.79 in the second quarter, after the Hugh Brinson pipeline was commissioned on September 1, 2026, giving gas an alternative to weak Waha prices. Natural gas revenue was USD 162 million against negative USD 39 million in the second quarter. Oil realized USD 87.25 per barrel, up 34% from last year but down 11% from USD 98.16 in the second quarter. Well costs were USD 804 per completed lateral foot, 6% lower than a year earlier. Matador also expects higher gas realizations when long-term sales agreements with Gulf Coast liquefaction companies begin in the first quarter of 2027.

Raised Guidance, Midstream Growth and Cost Risks

Full-year 2026 production guidance moved to 223,000 to 224,000 BOE per day from 218,500 to 223,500 in August, and total capital spending guidance is USD 1.67 billion to USD 1.73 billion. Midstream spending was lifted to a USD 180 million midpoint for a new 300 million cubic feet per day gas processing plant at San Mateo, in which Matador owns 51%. San Mateo net income for nine months was USD 135 million versus USD 160 million, while midstream adjusted EBITDA is expected to approach USD 400 million for 2026. Operating expenses of USD 33.67 per BOE were above the guidance midpoint. Matador said it could deliver mid-single digit or better production growth in 2027 at current pricing and service costs. Risks include Commodity price swings, integration of acquisitions, and execution of the debt repayment plan.

Where Things Stand

The dividend rise follows a quarter in which output, revenue and reserves all grew and capital spending came in below plan, so the stated reason is cash generation plus faster debt reduction. Matador Resources (NYSE:MTDR) had said it would repay USD 350 million to USD 400 million of borrowings by the end of 2026, and it had already repaid over USD 150 million in October. The caveat is that realized oil prices fell sequentially and the extract gave no net income figure. Watch leverage near 1.5 times, gas realizations after the pipeline start, and fourth quarter capital spending.