Matador Resources Company press release

Matador Resources Company Reports Third Quarter 2026 Results Including Record Oil Production and Continued Debt Repayment

2026-11-03

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today reported financial and operating results for the third quarter of 2026. A slide presentation summarizing the details of this release is included on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab.

Third Quarter 2026 Financial and Operational Highlights

Debt Repayment : $150 million repaid in October 2026. Current Production : 230,470 barrels of oil equivalent (“BOE”) per day, a 10% increase compared to the third quarter 2025 production volumes of 209,184 BOE per day. Production for the third quarter was 3% above guidance midpoint of 224,000 BOE per day. Capital Expenditures (“CapEx”) : $381 million, a 19% reduction or $91 million less than the third quarter of 2025 and 10% below guidance midpoint of $425 million. Oil and Natural Gas Reserves : increased 16% to 771 million BOE from December 31, 2025 reserves of 667 million BOE. 1 Natural Gas Revenue : $162 million in the third quarter of 2026 compared to second quarter of 2026 revenue of negative $39 million. This sequential improvement was driven by increased natural gas realizations and the commissioning of the Hugh Brinson pipeline on September 1, 2026.

Management Summary Comments

Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “The Company's third quarter results beat our expectations handily. The outperformance was built on strong production numbers and momentum provided by acquisitions across both the upstream and midstream businesses. Additionally, we have continued to execute our strategic priorities of integrating this year’s acquisitions into Matador and San Mateo operations. In doing so, we have grown both our oil and natural gas production and our reserve base. We continued to add high-quality inventory and new discoveries, such as the Woodford. This asset growth was achieved while also scheduling regular debt repayments funded by free cash flow generation. Matador previously announced our intention to repay between $350 and $400 million in borrowings by the end of 2026 and we are pleased to report that we have already repaid over $150 million in borrowings so far in the fourth quarter of 2026, which was $50 million more than previously announced. We now expect our leverage ratio to approach 1.5x by year-end 2026.

“As a result of the Company’s operations, production, progress on debt repayments and year-to-date free cash flow generation, we recently announced the eighth dividend increase in five years. Matador’s annual dividend increased to $1.75 per share per year—a 17% increase from our prior annual dividend of $1.50 per share.

Increased Revenues and Capital Discipline

“Oil and natural gas revenues reached record levels in the third quarter. These revenues increased 51% as compared to the third quarter of 2025, up from $810 million to $1.22 billion in the third quarter of 2026. This increase was driven by record production and improved oil and natural gas price realizations. The previously mentioned $162 million in natural gas revenue in the third quarter was a quarterly high this year for Matador. We expect this upward revenue trend will continue, supported by natural gas production growth and improved natural gas pricing provided by the Hugh Brinson pipeline when compared to Waha prices. Natural gas production also increased 10% to 591 million cubic feet per day (“MMcfd”) in the third quarter of 2026 as compared to second quarter of 2026 production of 537 MMcfd, which also added to third quarter of 2026 outperformance. Additionally, Matador expects higher natural gas realizations when its long-term gas sales agreements with liquefaction companies on the Gulf Coast become effective in the first quarter of 2027.

“Matador’s production and revenue outperformance during the third quarter was complemented by better-than-expected CapEx results. Matador’s third quarter 2026 CapEx beat expectations by 10%, supported by well costs of $804 per completed lateral foot during the quarter. These well costs are a 6% reduction compared to $855 per completed lateral foot costs during the same period in 2025. Most importantly, we are pleased to report that well-level capital discipline and efficiencies achieved continue to offset oilfield service inflation. In fact, we expect Matador’s overall cost per completed lateral foot to remain unchanged from our February 2026 guidance range of $785 to $805 for full year 2026. 2

San Mateo Growth

“This was a landmark year of growth for our midstream business. San Mateo recently announced increased commitments and dedications for natural gas gathering, treating and processing with a large, financially strong producer in the Delaware Basin. These agreements, combined with existing and future Matador volumes, will underwrite a new 300 MMcfd natural gas processing plant at San Mateo’s Marlan plant complex—which we believe will solidify San Mateo’s position as the largest private natural gas processor in the Northern Delaware Basin. This expansion, together with the integration of the recently acquired Cardinal Midstream assets, are expected to provide sustainable long-term throughput volume growth and increased utilization of San Mateo’s integrated natural gas processing and midstream infrastructure.

“In addition to these agreements, San Mateo delivered solid execution across its existing midstream business, resulting in net income for the first nine months of 2026 of $135 million, compared to net income for the first nine months of 2025 of $160 million. Driven by the highest quarterly Adjusted EBITDA in San Mateo’s history, we now expect, on a combined basis, San Mateo and Matador’s other wholly-owned midstream assets will generate Adjusted EBITDA approaching $400 million for full year 2026, up 17% from full year 2025 Adjusted EBITDA of $332 million. Continued growth is expected to be driven by San Mateo’s strategic alliance with Matador and expanding relationships with third-party San Mateo customers.

Closing Thoughts

“2026 has been a transformational year for Matador and we thank our board, employees in Dallas and the field and all others who took part in the successful execution of four of Matador’s strategic catalysts in 2026, which were:

1. Federal lease sale in May, 2. San Mateo’s acquisition of Cardinal Midstream in July, 3. Paloma acquisition in October, and 4. Woodford discovery and the completion of the Ridge Runner acquisitions in October.

During 2026, propelled by these acquisitions and efficient operations, Matador has grown our oil and natural gas reserves, production, acreage position, number of prospective locations and our dividend, all between 10% and 20% since this time one year ago.”

All references to Matador’s net income, adjusted net income, Adjusted EBITDA and adjusted free cash flow reported throughout this earnings release are those values attributable to Matador Resources Company shareholders after giving effect to any net income, adjusted net income, Adjusted EBITDA or adjusted free cash flow, respectively, attributable to third-party non-controlling interests, including in San Mateo. Matador owns 51% of San Mateo. For a definition of adjusted net income, adjusted earnings per diluted common share, Adjusted EBITDA and adjusted free cash flow and reconciliations of such non-GAAP financial metrics to their most directly comparable GAAP metrics, please see “Supplemental Non-GAAP Financial Measures” below.

Full-Year 2026 Guidance Update

Effective November 3, 2026, Matador increased its full-year 2026 guidance range for oil, natural gas and total BOE production as set forth in the table below.

| Guidance Metric | February Full-Year 2026 Guidance Range | August Full-Year 2026

Guidance Range (3) | Current Full-Year 2026

Guidance Range (3) | | Oil Production, Bbl per day | 122,000 to 124,000 | 127,500 to 129,000 | 128,750 to 129,250 | | Natural Gas Production, MMcf per day | 525.0 to 545.0 | 546.0 to 567.0 | 565.5 to 568.5 | | Total Oil Equivalent Production, BOE per day | 209,500 to 215,000 | 218,500 to 223,500 | 223,000 to 224,000 | | Current income taxes (% of pretax income) | 0% to 0.5% | 0% to 1% | 0% to 1% | | D/C/E CapEx (1) | $1.35 to $1.44 billion | $1.48 to $1.56 billion | $1.50 to $1.54 billion | | Midstream CapEx (2) | $100 to $110 million | $145 to $165 million | $170 to $190 million | | Total CapEx | $1.45 to $1.55 billion | $1.625 to $1.725 billion | $1.67 to $1.73 billion | | | | | | | (1) Capital expenditures associated with drilling, completing and equipping wells. Includes 107.6 net operated wells in February full-year 2026 guidance and increased to 112.6 net operated wells in current full-year 2026 guidance. | | | | | (2) Includes Matador’s share of estimated capital expenditures for San Mateo and other wholly-owned midstream projects. Includes the expansion of the Marlan processing plant and pipeline build outs to connect to properties adjacent to acreage acquired in the recent Federal lease sale. Excludes acquisition costs. | | | | | (3) Includes production associated with the Paloma and Ridge Runner acquisitions that closed in the fourth quarter of 2026. Includes the Cardinal Midstream acquisition, which closed on July 31, 2026. | | | |

Matador raised the midpoint of its full-year 2026 production guidance to the high end of its prior full-year 2026 production range previously provided on August 5, 2026 based on market conditions. This new midpoint represents 7% production growth from year end 2025. In view of Matador’s growing acreage position, similar to 2026, Matador estimates it could deliver mid-single digit growth or better in full-year 2027 as compared to full-year 2026 based on current commodity pricing and oilfield service costs. Matador’s expected 2026 production from 221,000 BOE per day to 223,500 BOE per day is attributable to:

1,600 BOE per day from better-than-expected production in the third quarter of 2026 as detailed below and 900 BOE per day from improvements to expected production in the fourth quarter of 2026.

While Matador is not adjusting the midpoint of its 2026 D/C/E capital expenditure guidance of $1.52 billion provided on August 5, 2026, it is narrowing the range of its guidance. Matador is adjusting the midpoint of its 2026 midstream capital expenditure guidance from $155 million in August 2026 to $180 million due to the expansion of the Marlan gas processing complex, which is being underwritten by a new agreement with a large Delaware Basin producer. The midpoint of total capital expenditure expectations of $1.70 billion is flat as compared to total capital expenditures in 2025. Notably, Matador has not made any revisions to its 2026 drilling and completion costs per foot estimates, which remain at $785 to $805 2 per completed lateral foot, despite inflationary pressures from service costs.

| | | 1 Total proved reserves as of September 30, 2026 are pro forma for the Paloma and Ridge Runner acquisitions, which were completed in October 2026, are based on internal management estimates and are unaudited. Matador’s estimated proved reserves were determined using SEC prices at September 30, 2026 of $72.27 per barrel of oil and $3.620 per MMBtu of natural gas, adjusted for energy content, transportation fees and marketing differentials. | | 2 As of and as provided on February 24, 2026. Excludes exploration wells. |

Operational and Financial Update

Third Quarter 2026 Oil, Natural Gas and Total BOE Production

| Production | Q3 2026 Average Daily Volume | Q3 2026

Guidance

Range | Difference | YoY Change | | Total, BOE per day | 230,470 | 222,000 to 226,000 | +3% Better than Guidance | +10% | | Oil, Bbl per day | 132,019 | 128,500 to 130,500 | +2% Better than Guidance | +10% | | Natural Gas, MMcf per day | 590.7 | 561.0 to 573.0 | +4% Better than Guidance | +10% | | | | | | |

As summarized in the table above, Matador’s total BOE production averaged 230,470 BOE per day in the third quarter of 2026, which was a 10% year-over-year increase from an average of 209,184 BOE per day in the third quarter of 2025 and 3% better than the midpoint of Matador’s expected third quarter production guidance of 224,000 BOE per day. The better-than-expected oil and natural gas production was primarily due to outperformance of Matador’s new wells that were turned to sales in the third quarter of 2026. Additionally, Matador turned to sales a twelve-well batch earlier during the quarter than expected in our Ranger Asset area.

Third Quarter 2026 Realized Commodity Prices

The following table summarizes Matador’s realized commodity prices during the third quarter of 2026, as compared to the second quarter of 2026 and the third quarter of 2025.

| | Sequential (Q3 2026 vs. Q2 2026) | | YoY (Q3 2026 vs. Q3 2025) | | | | | | | | | | Realized Commodity Prices | Q3 2026 | | Q2 2026 | | Sequential Change | | Q3 2026 | | Q3 2025 | | YoY Change | | Oil Prices, per Bbl | $87.25 | | $98.16 | | -11% | | $87.25 | | $64.91 | | +34% | | Natural Gas Prices, per Mcf | $2.99 | | $(0.79) | | N/A | | $2.99 | | $1.95 | | +53% |

Matador’s natural gas volumes started flowing on the Hugh Brinson pipeline, which was commissioned on September 1, 2026, and Matador’s natural gas price realizations and associated revenues reached yearly highs. Natural gas realizations improved to $2.99 per thousand cubic feet (“Mcf”) for the third quarter of 2026, an improvement of $3.78 per Mcf from second quarter average natural gas realizations of negative $0.79 per Mcf.

Third Quarter 2026 Operating Expenses

For the third quarter of 2026, operating expenses of $33.67 per BOE were above the midpoint of Matador’s expected 2026 guidance range of $32.00 to $34.00 per BOE, primarily due to higher midstream operating expense of $3.89 per BOE, as compared to full-year expectations of $3.30 per BOE, primarily due to the Cardinal Midstream acquisition and certain non-recurring costs during the quarter. Notably, however, lease operating expenses (“LOE”) of $5.66 per BOE were better than expectations of $5.80 per BOE, primarily due to lower-than-expected repair and maintenance costs.

For the first nine months of 2026, operating expenses of $32.57 per BOE were below the midpoint of Matador’s expected 2026 guidance range of $32.00 to $34.00 per BOE. Through September 30, 2026, Matador has achieved approximately $15 million in operating expense savings through improved efficiencies relative to its guidance expectations.

Third Quarter 2026 Capital Expenditures

| Q3 2026 Capital Expenditures

($ millions) | Actual | August 2026 Guidance | | D/C/E | $329.9 | | | Midstream | $51.5 | | | Total | $381.4 | $410 to $440 |

For the third quarter of 2026, Matador’s total capital expenditures were $381.4 million, which was below the low end of the expected range of $410 to $440 million. The lower capital expenditures in the quarter were primarily driven by timing shifts in both the upstream and midstream businesses. Approximately $8 to $10 million of upstream and $20 to $25 million of midstream capital expenditures are expected to shift into the fourth quarter of 2026.

Acquisitions Update

As of November 1, 2026, Matador has closed and initiated the integration of all previously announced acquisitions, including the May 2026 Federal Lease sale, Paloma and Ridge Runner. Looking ahead through year-end 2027, we expect to commence operations on 35 to 40 gross wells associated with the Federal lease sale and Paloma acreage, alongside up to 15 gross Woodford wells in New Mexico and Texas. Complementing these major deals, Matador’s “brick-by-brick” strategy continues to be effective, adding over 25,000 net acres in the Delaware Basin across more than 1,100 selective transactions throughout 2025 and 2026.

Shareholder Returns Update

During the third quarter of 2026, Matador repurchased 253,603 shares of its common stock at a weighted average price of approximately $47.64 per share for a total of $12 million, as compared to Matador’s closing price on October 30, 2026 of $60.88 per share. Matador’s Board of Directors, management and staff also continue to be regular purchasers of Matador’s shares in the open market, further aligning the Company with its shareholders. Matador’s directors and executive officers purchased approximately 23,600 shares of Matador stock during the third quarter of 2026. In addition, over 95% of Matador employees continued to participate in Matador’s Employee Share Purchase Plan, or ESPP.

Midstream Update

The table below sets forth San Mateo’s throughput volumes for the third quarter of 2026, as compared to the second quarter of 2026 and third quarter of 2025.

| | | Sequential (Q3 2026 vs. Q2 2026) | | YoY (Q3 2026 vs. Q3 2025) | | | | | | | | | | San Mateo Throughput Volumes | | Q3 2026 | | Q2 2026 | | Sequential Change | | Q3 2026 | | Q3 2025 | | YoY Change | | | | | | | | | | | | | | | | Natural gas gathering, MMcf per day | | 731 | | 577 | | +27% | | 731 | | 530 | | +38% | | Natural gas processing, MMcf per day | | 695 | | 552 | | +26% | | 695 | | 533 | | +30% | | Oil gathering and transportation, Bbl per day | | 38,300 | | 41,600 | | -8% | | 38,300 | | 58,400 | | -34% | | Produced water handling, Bbl per day | | 412,000 | | 343,400 | | +20% | | 412,000 | | 413,700 | | -<1% |

Matador’s midstream assets include (1) San Mateo and (2) wholly-owned assets, which were largely acquired as part of the Advance acquisition in 2023 and the Ameredev acquisition in 2024. San Mateo distributed $30.6 million to Matador during the third quarter of 2026. San Mateo and Matador’s wholly-owned midstream assets had combined quarterly net income of $50.4 million and Adjusted EBITDA of $101.4 million in the third quarter of 2026.

Fourth Quarter 2026 Estimates

Fourth Quarter 2026 Estimated Oil, Natural Gas and Total BOE Production Growth

| | Q3 and Q4 2026 Production Comparison | | | | | Period | Average Daily

Total Production,

BOE per day | Average Daily

Oil Production,

Bbl per day | Average Daily

Natural Gas Production,

MMcf per day | % Oil | | Q3 2026 | 230,470 | 132,019 | 590.7 | 57% | | Q4 2026E | 238,000 to 242,000 | 136,000 to 138,000 | 612.0 to 624.0 | 57% |

As noted in the table above, Matador anticipates sequential quarterly oil production growth of approximately 4%. Matador estimates fourth quarter 2026 record production of approximately 137,000 barrels of oil per day compared to third quarter 2026 volumes of approximately 132,019 barrels of oil per day. This increase is primarily a result of the Paloma and Ridge Runner acquisitions, which closed early in the fourth quarter of 2026 and are expected to contribute approximately 10,000 BOE per day (57% oil) in the fourth quarter.

Fourth Quarter 2026 Estimated Wells Turned to Sales

At November 3, 2026, Matador expects to turn to sales 21 to 23 net operated horizontal wells in the Delaware Basin during the fourth quarter of 2026, including two net wells near acreage acquired in the May 2026 Federal lease sale.

Fourth Quarter 2026 Estimated Capital Expenditures

Matador expects D/C/E and midstream capital expenditures for the fourth quarter of 2026 will be approximately $425 to $485 million, including $340 to $380 million of D/C/E capital expenditures and $85 to $105 million of midstream capital expenditures. The midpoint of the total capital expenditure guidance for the fourth quarter of $455 million is a 19% increase, as compared to $381 million in the third quarter of 2026, primarily due to increased midstream capital investments tied to the expansion of the Marlan processing plant and system build outs to connect to properties adjacent to acreage acquired in the recent Federal lease sale and upstream well timing.

Third Quarter 2026 Earnings Conference Call

The Company will host a live conference call on Wednesday, November 4, 2026, at 10:00 a.m. Central Time to review its third quarter 2026 financial results and operational highlights. To access the live conference call by phone, you can use the following link https://register-conf.media-server.com/register/BI3d5902b4cc47489fae7571af4c82e038 and you will be provided with dial in details. To avoid delays, it is recommended that participants dial into the conference call 15 minutes ahead of the scheduled start time.