NYSE$MTDR

Matador Resources Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Matador reported record production and decreased operating costs, resulting in a strong financial performance.

Matador Resources Company reported record fourth quarter and full year 2023 financial results, with a record quarterly average production of 154,300 BOE per day and net income of $254.5 million. The company also decreased operating costs and achieved record total proved oil and natural gas reserves.

  • Record quarterly average production of 154,300 BOE per day.
  • Net income of $254.5 million.
  • Adjusted EBITDA of $552.8 million.
  • Lease operating expenses decreased 5% to $5.06 per BOE.

Headline financials

Total Revenue

$832M

Previous: $707M+17.6%
EPS (adj)

$1.99

Previous: $2.08-4.3%
Total Production (MBOE)

154.3K

No prior period
Oil Production (MBbl)

88.7K

No prior period
Natural Gas Production (Mcf)

393.6M

No prior period
Capital Expenditures

-$495M

No prior period
Net Income

$255M

Previous: $254M+0.3%
Operating Income

$366M

Previous: $372M-1.6%
Gross Profit

$391M

Previous: $407M-3.8%
Stock-Based Comp

$2.88M

Previous: $4.24M-31.9%

Revenue & EPS history

Matador · Revenue · Quarterly

$832M

Q4 2023+17.6%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Matador · $70.3M total across 2 segments · Q3 2023

  • Purchased Natural Gas Sales
    $40.3M-48.3%
  • Third-party Midstream
    $29.9M+21.1%

Forward guidance

Matador anticipates another record year in 2024 with an 18% increase in our expected total average production of 156,000 BOE per day in full-year 2024, as compared to total average production of 131,800 BOE per day in full-year 2023.

Tailwinds

  • Expected 18% increase in total average production in 2024.
  • Oil production is expected to increase 23% in 2024.
  • Drilling and completion costs for operated wells turned to sales in 2024 are expected to be 6% lower.
  • Midstream projects are expected to have a rate of return of 20% or more with a payback period of less than five years.
  • The natural gas pipelines connecting Pronto’s system to both the San Mateo system and the acreage acquired in the Advance transaction remain on track to be completed by the end of the first quarter of 2024.

Headwinds

  • Expectation to experience temporary midstream constraints from time to time from third-party midstream providers primarily in Lea County, New Mexico during the first quarter of 2024.
  • Difficult to estimate the amount of these temporary third-party midstream production constraints.
  • During January 2024, these constraints are estimated to have resulted in approximately 5,500 BOE per day (3,850 barrels of oil per day) of less production.
  • These third-party midstream constraints have continued into February and are even expected to continue into March.
  • Estimates of first quarter 2024 production of 145,000 to 146,500 BOE per day take into account the impact of these temporary third-party midstream constraints.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.6%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

38%

21 / 56 earnings

Positive

+42.8%

Q1 2020

Best reaction

-14.9%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+3.0%-3.7%
Q4 2025-1.4%+7.1%+29.5%
Q3 2025-9.4%-10.2%-6.5%
Q1 2025-0.2%+0.4%+6.3%
Q4 2024-2.0%-7.6%-10.9%
Q3 2024-0.1%+2.0%+18.4%
Q2 2024-1.6%-2.0%-11.1%
Q1 2024+0.9%+1.4%-7.1%
Q4 2023+2.1%+2.3%+15.7%
Q3 2023-3.7%-5.3%-8.5%
Q2 2023-7.0%-5.2%+5.7%
Q1 2023-6.9%-3.5%-9.7%
Q4 2022-11.2%-6.7%-23.7%
Q3 2022+2.1%-1.2%+0.0%
Q2 2022+8.5%+12.5%+22.2%
Q1 2022-2.2%-4.4%+13.8%
Q4 2021-2.1%-1.2%+20.5%
Q3 2021-2.6%-6.6%-0.8%
Q2 2021+0.1%-2.9%-14.9%
Q1 2021+9.6%+5.1%+23.1%
Q4 2020+5.1%+0.9%+21.4%
Q3 2020-14.9%-13.6%+40.7%
Q2 2020+2.0%-4.9%+8.4%
Q1 2020+42.8%+40.6%+59.0%
Q4 2019-11.8%-21.0%-77.7%
Q3 2019-1.3%+3.1%+3.1%
Q2 2019-0.3%-12.0%-8.3%
Q1 2019-6.3%-1.1%-16.5%
Q4 2018+0.7%-4.4%+4.5%
Q3 2018+0.3%-2.5%-20.9%
Q2 2018-2.1%-6.5%-2.3%
Q1 2018-5.1%-0.3%-19.2%
Q4 2017-0.7%+3.0%-0.9%
Q3 2017+4.9%+6.8%+0.6%
Q2 2017-8.9%-0.9%-0.3%
Q1 2017+3.1%+11.4%+8.2%
Q4 2016-5.4%-8.2%-18.3%
Q3 2016-2.3%-5.2%+20.7%
Q2 2016+9.7%+13.5%+22.8%
Q1 2016-10.1%
Q4 2015+3.8%
Q3 2015-1.1%
Q2 2015-1.0%
Q1 2015-4.1%
Q4 2014+3.6%
Q3 2014+2.3%
Q2 2014-1.0%
Q1 2014-7.0%
Q4 2013+1.6%
Q3 2013+1.2%
Q2 2013+14.7%
Q1 2013-1.8%
Q4 2012-0.3%
Q3 2012+1.7%
Q2 2012-3.3%
Q1 2012-13.5%
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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