Matador Resources Posts Record Q2 Production, Raises FY25 Guidance

Matador Resources reported Q2 2025 record production of 209,013 BOE/d, a 30% YoY increase. The company generated $501 million in operating cash flow and $133 million in adjusted free cash flow. Matador increased its full-year 2025 production guidance to 200,000-205,000 BOE/d. San Mateo Midstream reported record net income and Adjusted EBITDA of $66 million and $85.5 million, respectively.

DALLAS -- Matador Resources Company (NYSE: MTDR) reported robust financial and operational results for the second quarter of 2025. The company achieved a record production of 209,013 barrels of oil and natural gas equivalent per day (BOE/d), representing a 30% year-over-year (YoY) increase. This performance was driven by the company's integrated upstream and midstream business, which generated net cash provided by operating activities of $501 million and adjusted free cash flow of $133 million [1].

Matador's upstream operations delivered 122,875 barrels of oil per day (Bbl/d), with a total of 32 gross (22.8 net) operated wells turned to sales during the quarter. The company's reserve growth is expected to be generally consistent with its production growth. Despite market and commodity price volatility, Matador announced a reduction in drilling activity in April, leading to the contractual release of its ninth drilling rig earlier this summer. The company plans to operate eight drilling rigs by August 1, 2025, aiming to achieve a record yearly lateral footage in 2025 through operational and vendor efficiencies [1].

San Mateo Midstream, a subsidiary of Matador, reported record quarterly net income and Adjusted EBITDA of $66 million and $85.5 million, respectively. The company increased its processing capacity by 38% to 720 million cubic feet of natural gas per day (MMcf/d) with the successful startup of the Marlan Plant expansion. This expansion contributes to Matador's leading free cash flow margin and reduces commodity price volatility [1].

Matador's strong financial performance was reflected in its cash operating costs, which decreased by approximately 13% to $13.76 per BOE. The company repaid $15 million of credit facility borrowings, resulting in a total leverage ratio of less than 1.0x and liquidity of over $1.8 billion [1].

Shareholder returns were a key focus for Matador during the quarter. The company declared a quarterly cash dividend of $0.3125 per share, payable on September 5, 2025. Additionally, Matador repurchased 1.1 million shares of its common stock at an average price of $40.37 per share, representing approximately 1% of the total shares outstanding as of June 30, 2025 [1].

Matador's management expressed optimism about the company's future prospects, noting that it is well-positioned to continue delivering superior free cash flow margin and oil production growth through various commodity cycles. The company expects to maintain a resilient balance sheet while increasing its asset base, cash flow, and shareholder value [1].

References:
[1] https://www.matadorresources.com/news-releases/news-release-details/matador-resources-company-reports-second-quarter-2025-results