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DALLAS - Matador Resources Company (NYSE:MTDR) reported second-quarter earnings that beat analyst expectations on the bottom line but fell short on revenue, sending shares down 3.3% as investors focused on the revenue miss despite record production levels.
The oil and natural gas producer posted adjusted earnings of $1.53 per share, exceeding the analyst consensus of $1.44. However, revenue came in at $815.77 million, significantly below the $908.61 million analysts had expected.
Matador achieved record quarterly production of 209,013 barrels of oil and natural gas equivalent per day (BOE/d), including 122,875 barrels of oil per day, representing a 30% year-over-year increase. Despite this production growth, lower realized commodity prices weighed on revenue, with oil prices averaging $64.34 per barrel in Q2, down 21% from $81.20 in the same quarter last year.
The company generated $501 million in cash from operations and adjusted free cash flow of $133 million. "Matador is pleased to report our second quarter where we achieved record production alongside robust free cash flow," said Joseph Wm. Foran, Matador’s Founder, Chairman and CEO.
Matador has increased its full-year 2025 production guidance without changing its capital expenditure forecast, reflecting improved capital efficiency. The company now expects total production of 200,000 to 205,000 BOE/d, up from its previous guidance of 198,000 to 202,000 BOE/d.
During the quarter, Matador repurchased 1.1 million shares at an average price of $40.37 per share and declared a quarterly base dividend of $0.3125 per share, representing an annualized yield of approximately 2.5%.
The company also completed the expansion of its San Mateo Midstream processing capacity, increasing it from 520 million cubic feet of natural gas per day to 720 million cubic feet per day with the startup of the Marlan Plant expansion.
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