Matador beats Q2 adjusted profit estimates

Overview

• Matador Q2 2025 production exceeds company guidance, achieving record levels

• Adjusted EPS and net income beat analyst expectations, per LSEG data

• Co raises full-year 2025 production guidance, maintaining capital expenditure forecasts

Outlook

• Matador raises 2025 production guidance to 200,000-205,000 BOE/d

• Company expects Q3 2025 production to decline slightly

• Matador anticipates lower cash tax payments in 2025

Result Drivers

• RECORD PRODUCTION - Achieved through outperformance of wells and existing production, exceeding company guidance

• MIDSTREAM EXPANSION - San Mateo's increased processing capacity supported strong free cash flow margin

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Matador Resources Co is $63.00, about 20.9% above its July 21 closing price of $49.86

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBwFD6GHa