Matador Resources Company (MTDR) Bundle
A Brief History of Matador Resources Company
Company Overview
Matador Resources Company, listed on the NYSE under the ticker MTDR, primarily focuses on the exploration, development, production, and acquisition of oil and natural gas resources. The company is actively engaged in the Delaware Basin and has expanded its operations to other regions, including the Eagle Ford and Haynesville shale plays.
Recent Financial Performance
As of September 30, 2024, Matador reported a net income attributable to shareholders of $670.8 million, or $5.44 per diluted common share, compared to $591.5 million, or $4.93 per diluted common share, for the same period in 2023. The Adjusted EBITDA for the nine months ended September 30, 2024, was $1.66 billion, up from $1.30 billion in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $248.3 | $263.7 | $670.8 | $591.5 |
| Earnings per Share | $1.99 | $2.20 | $5.44 | $4.93 |
| Adjusted EBITDA (in millions) | $574.5 | $508.3 | $1,660.0 | $1,300.0 |
Production Highlights
For the third quarter of 2024, Matador's total oil equivalent production reached 15.8 million BOE, averaging 171,480 BOE per day. This included 100,315 Bbl of oil per day and 427.0 MMcf of natural gas per day. The average daily oil production increased by 29% year-over-year, while natural gas production rose by 24%.
Recent Acquisitions
On September 18, 2024, Matador completed the acquisition of Ameredev for approximately $1.831 billion in cash. This acquisition included oil and natural gas properties in New Mexico and Texas and a 19% stake in a midstream company. The acquisition was financed through a combination of cash on hand and borrowings from a secured revolving credit facility.
Stock Performance and Dividends
In 2024, Matador declared quarterly cash dividends of $0.20 per share for the first three quarters. On October 16, 2024, the Board increased the quarterly dividend to $0.25 per share, payable on December 6, 2024.
| Quarter | Dividend Amount | Total Paid (in millions) |
|---|---|---|
| Q1 2024 | $0.20 | $23.9 |
| Q2 2024 | $0.20 | $24.9 |
| Q3 2024 | $0.20 | $24.9 |
| Q4 2024 (Proposed) | $0.25 | To be determined |
Capital Expenditure and Future Outlook
Matador's capital expenditures for 2024 are projected to be funded through cash on hand, operating cash flows, and performance incentives. The company has been proactive in managing its operations and has the flexibility to adjust its drilling programs based on market conditions.
Debt and Liquidity
As of September 30, 2024, Matador had outstanding borrowings of $526.0 million under its San Mateo Credit Facility, which matures in December 2026. The company also issued $750.0 million in senior unsecured notes due in 2033 with a 6.25% coupon rate, enhancing its liquidity position.
A Who Owns Matador Resources Company (MTDR)
Ownership Structure
As of 2024, Matador Resources Company (MTDR) has a diverse ownership structure, which includes institutional investors, retail shareholders, and company executives.
Institutional Ownership
Institutional investors own a significant portion of Matador Resources. The following table summarizes the major institutional shareholders as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 7,500,000 | 10.5% |
| BlackRock Inc. | 6,800,000 | 9.5% |
| State Street Corporation | 5,200,000 | 7.3% |
| Wellington Management Group LLP | 4,500,000 | 6.3% |
| Invesco Ltd. | 3,100,000 | 4.3% |
Insider Ownership
Insider ownership is also notable, reflecting the confidence of management in the company's future. As of September 30, 2024, the following table details the ownership of key executives:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Joseph Wm. Foran | CEO | 1,200,000 | 1.7% |
| David A. Kiolbassa | CFO | 600,000 | 0.8% |
| Matthew A. B. Dyer | COO | 400,000 | 0.6% |
Retail Ownership
Retail investors make up a smaller portion of the ownership structure, accounting for approximately 15% of total shares outstanding.
Recent Changes in Ownership
In March 2024, Matador Resources completed an equity offering of 5,250,000 shares, resulting in net proceeds of approximately $342.1 million, which were utilized for general corporate purposes and acquisitions.
Shareholder Equity
As of September 30, 2024, Matador's total shareholder equity attributable to the company was approximately $3.66 billion.
Market Capitalization
The market capitalization of Matador Resources Company as of September 30, 2024, was approximately $7 billion, reflecting its strong position in the energy sector.
Dividend Policy
Matador Resources declared a quarterly cash dividend of $0.20 per share in each of the first three quarters of 2024, with an increase to $0.25 per share effective from the fourth quarter.
Recent Acquisitions Impacting Ownership
On September 18, 2024, Matador completed the acquisition of Ameredev for approximately $1.831 billion, significantly impacting its asset base and operational capacity.
Conclusion
Matador Resources Company maintains a well-diversified ownership structure with significant institutional and insider holdings, complemented by a strong market presence and strategic acquisitions.
Matador Resources Company (MTDR) Mission Statement
Matador Resources Company emphasizes its commitment to being a leading independent oil and natural gas exploration and production company, with a focus on growth through the acquisition and development of oil and natural gas properties. The company is dedicated to maximizing stakeholder value while maintaining a focus on operational excellence and environmental stewardship.
Core Values
- Integrity: Adhering to the highest ethical standards in all operations.
- Innovation: Utilizing advanced technologies and methods to enhance production efficiency.
- Safety: Prioritizing the safety and well-being of employees and the communities in which they operate.
- Stewardship: Committing to sustainable practices that minimize environmental impact.
Strategic Goals
Matador Resources aims to achieve its mission through the following strategic goals:
- Expand its asset base through targeted acquisitions, such as the recent Ameredev Acquisition.
- Enhance production capabilities in key regions, particularly the Delaware Basin.
- Optimize operational efficiencies and reduce costs to improve profit margins.
Financial Performance
As of September 30, 2024, Matador Resources reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to Shareholders | $248.3 million | $263.7 million | -5.4% |
| Earnings per Share (EPS) | $1.99 | $2.20 | -9.5% |
| Adjusted EBITDA | $574.5 million | $508.3 million | 12.9% |
| Total Revenues | $899.8 million | $772.3 million | 16.5% |
Production Metrics
Matador Resources has demonstrated robust production capabilities, as illustrated in the following table:
| Production Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Average Daily Oil Production (Bbl/d) | 100,315 | 77,529 | 29.2% |
| Average Daily Natural Gas Production (MMcf/d) | 427.0 | 345.4 | 23.7% |
| Total Oil Equivalent Production (BOE/d) | 171,480 | 135,096 | 26.9% |
Recent Acquisitions
In September 2024, Matador Resources completed the acquisition of Ameredev for approximately $1.831 billion. This strategic acquisition included:
- Oil and natural gas producing properties in Lea County, New Mexico, and Loving and Winkler Counties, Texas.
- A 19% stake in Piñon, which has midstream assets in southern Lea County, New Mexico.
Capital Expenditures
Matador's capital expenditures for the nine months ended September 30, 2024, totaled approximately $3.38 billion, reflecting significant investments in:
- Land and seismic acquisition: $1.94 billion
- Midstream acquisition expenditures: $240.9 million
Dividend Policy
Matador Resources declared a quarterly cash dividend of $0.20 per share for the first three quarters of 2024, with an increase to $0.25 per share announced for future dividends, effective December 2024.
Environmental and Social Responsibility
Matador is committed to minimizing its environmental footprint through:
- Investments in clean technology and efficient resource management.
- Active community engagement and support for local initiatives.
How Matador Resources Company (MTDR) Works
Overview of Operations
Matador Resources Company is engaged in the exploration, development, production, and acquisition of oil and natural gas resources, primarily in the Delaware Basin. As of September 30, 2024, the company operates nine drilling rigs and covers approximately 196,200 net acres.
Production Metrics
For the third quarter of 2024, Matador reported:
- Total oil equivalent production: 15.8 million BOE
- Average daily production: 171,480 BOE
- Oil production: 100,315 Bbl per day
- Natural gas production: 427.0 MMcf per day
Financial Performance
In the third quarter of 2024, Matador's financial highlights included:
- Net income attributable to Matador shareholders: $248.3 million
- Earnings per share (diluted): $1.99
- Adjusted EBITDA: $574.5 million
Revenue Breakdown
For the three months ended September 30, 2024, Matador reported:
| Revenue Source | Amount |
|---|---|
| Oil Revenues | $698.4 million |
| Natural Gas Revenues | $71.8 million |
| Total Oil and Natural Gas Revenues | $770.2 million |
Expense Analysis
For the nine months ended September 30, 2024, the company reported:
- Lease operating expenses: $242.1 million
- Production taxes, transportation, and processing: $219.7 million
- General and administrative expenses: $86.4 million
- Depletion, depreciation, and amortization: $681.1 million
Capital Expenditures
For the nine months ended September 30, 2024, Matador's capital expenditures included:
| Expenditure Type | Amount |
|---|---|
| Land and seismic acquisition | $1.94 billion |
| Midstream acquisition expenditures | $240.9 million |
| Drilling, completion, and equipping expenditures | $905.4 million |
Debt and Financing
As of September 30, 2024, Matador's total senior notes outstanding were:
- Total senior notes: $2.15 billion
- Net increase in total senior notes from September 30, 2023: $950 million
Dividend Policy
Matador declared a quarterly cash dividend of $0.20 per share for each of the first three quarters of 2024. This was increased to $0.25 per share starting in the fourth quarter of 2024.
Acquisitions
On September 18, 2024, Matador completed the acquisition of Ameredev for approximately $1.831 billion in cash, expanding its operational footprint and resources in the Delaware Basin.
Liquidity Position
For the nine months ended September 30, 2024, Matador reported:
| Cash Flow Type | Amount |
|---|---|
| Net cash provided by operating activities | $1.67 billion |
| Net cash used in investing activities | ($3.28 billion) |
| Net cash provided by financing activities | $1.57 billion |
Market Position
Matador's operations are primarily focused on the oil-rich areas of the Delaware Basin, where it has established a strong market presence and continues to expand its production capabilities.
How Matador Resources Company (MTDR) Makes Money
Revenue Generation from Oil and Natural Gas
Matador Resources Company primarily generates revenue through the exploration and production of oil and natural gas. For the nine months ended September 30, 2024, the company reported oil and natural gas revenues of approximately $2.25 billion, compared to $1.79 billion for the same period in 2023.
| Revenue Source | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Oil Revenues | $2,002.5 million | $1,500.5 million |
| Natural Gas Revenues | $247.5 million | $291.8 million |
| Midstream Services Revenues | $103.3 million | $86.5 million | Total Revenues | $2,534.6 million | $1,970.7 million |
Production Performance
Matador's average daily oil equivalent production significantly increased in 2024. For the nine months ended September 30, 2024, the average daily production reached 171,480 BOE per day, a 28% increase from 130,400 BOE per day in the same period of 2023.
Cost Structure and Expenses
The cost structure of Matador Resources includes several key expense categories. For the nine months ended September 30, 2024, total expenses were approximately $1.46 billion, which includes:
| Expense Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Lease Operating Expenses | $242.1 million | $171.8 million |
| Depletion, Depreciation, and Amortization | $681.1 million | $496.6 million |
| Production Taxes, Transportation, and Processing | $219.7 million | $189.2 million |
| General and Administrative Expenses | $86.4 million | $80.9 million |
| Total Expenses | $1,459.9 million | $1,126.9 million |
Adjusted EBITDA
For the nine months ended September 30, 2024, Matador reported an Adjusted EBITDA of $1.66 billion, compared to $1.30 billion in the same period of 2023. This increase is attributed to higher production volumes and improved realized prices for oil, despite lower natural gas prices.
Acquisitions and Growth Strategy
On September 18, 2024, Matador completed the acquisition of Ameredev for approximately $1.83 billion. This acquisition includes oil and natural gas producing properties and midstream assets, enhancing Matador's operational footprint in the Delaware Basin.
Market Position and Competitiveness
Matador Resources operates primarily in the Delaware Basin, which is known for its high-quality resource potential. The company has positioned itself to capitalize on the increasing demand for oil and natural gas, leveraging advanced drilling techniques and technologies.
Financial Highlights
For the third quarter ended September 30, 2024, Matador reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $248.3 million | $263.7 million |
| Earnings per Share (Diluted) | $1.99 | $2.20 |
| Adjusted EBITDA | $574.5 million | $508.3 million |
Dividends
In 2024, Matador declared a quarterly cash dividend of $0.20 per share for the first three quarters, amounting to approximately $73.7 million in total dividends for the year. The dividend was increased to $0.25 per share starting in the fourth quarter of 2024.
Debt and Financing
As of September 30, 2024, Matador had approximately $2.15 billion in total senior notes outstanding. The company has strategically managed its debt levels, utilizing proceeds from equity offerings and debt issuances to fund acquisitions and operational growth.
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Article updated on 8 Nov 2024
Resources:
- Matador Resources Company (MTDR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Matador Resources Company (MTDR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Matador Resources Company (MTDR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.