Matador Resources' 2024 Q4: Key Contradictions in Infrastructure, Shareholder Returns, and Growth Strategies

These are the key contradictions discussed in Matador Resources' latest 2024Q4 earnings call, specifically including: Infrastructure and CapEx Strategy, Shareholder Returns, Permian Infrastructure Development and Monetization, D&C Cost Reduction Strategies, and Focus on Organic Versus Inorganic Growth:



Production and Growth Strategy:
- Matador Resources reported a 30% increase in production for the first quarter compared to the previous year. The company projects similar growth for subsequent quarters.
- The increase was due to a strategic focus on year-over-year growth after acquiring the Ameredev properties and optimizing operational efficiency through batch drilling.

Capital Efficiency and Drilling Cost Reductions:
- Matador achieved a 3% reduction in drilling and completion (D&C) costs per foot, resulting in a leading-edge D&C cost of $880 per foot in 2025 compared to 2024.
- This improvement is attributed to operational efficiencies such as increased use of trimul-frac techniques and optimized partnerships with vendors.

Midstream Infrastructure and Cash Flow:
- The midstream segment generated $300 million in EBITDA, with plans to expand the infrastructure to maintain cash flow stability.
- The expansion is driven by the need to ensure flow assurance and capitalize on the profitability of the existing midstream assets.

Dividend Increase and Shareholder Confidence:
- Matador increased its dividend to $1.25 per share, indicating confidence in its financial position and future growth prospects.
- The dividend increase reflects strong financial performance and shareholder alignment, with over 95% of staff participating in the employee stock purchase plan.