Matador Resources Company (MTDR): History, Ownership, Mission, How It Works & Makes Money

When you look at the US energy landscape, does the integrated model of an exploration and production (E&P) company like Matador Resources Company (MTDR) really give it a competitive edge? The numbers suggest a resounding yes, considering their Q3 2025 total production hit a record 209,184 barrels of oil equivalent per day (BOE/d), a 22% year-over-year jump, driven by its strategic upstream and midstream assets in the prolific Delaware Basin. You're seeing impressive financial discipline, too, with the company generating $567 million in Adjusted EBITDA in Q3 2025 and increasing its annual base dividend to $1.50 per share. So, how does Matador Resources Company manage to consistently deliver this record growth and what near-term risks does this accelerated development activity, which included a $250 million capex increase to its 2025 guidance midpoint, introduce for investors?

Matador Resources Company (MTDR) History

Given Company's Founding Timeline

You want to know where Matador Resources Company came from, and honestly, the story starts with a clear focus and a seasoned founder. The company wasn't a blind startup; it was built on the prior success and relationships of its leadership team, which is why it secured significant capital right out of the gate.

Year established

2003

Original location

Dallas, Texas

Founding team members

The company was primarily led by Joseph Wm. Foran, who continues to serve as Chairman and CEO, and co-founder Scott E. King. Mr. Foran had a history in the oil and natural gas independent space, which defintely helped with early investor confidence.

Initial capital/funding

The company was launched with an initial equity investment of $6.0 million in July 2003. Soon after, investors contributed an additional $46.8 million, bringing the total initial capitalization to a substantial $52.8 million. This early backing, which included private equity firms like Warburg Pincus, was crucial for its initial exploration efforts.

Given Company's Evolution Milestones

The company's journey shows a consistent, strategic pivot toward higher-value assets and operational control-a smart playbook for an independent energy producer.

Given Company's Transformative Moments

The biggest shifts for Matador Resources Company weren't just about drilling; they were about integrated strategy and smart capital allocation, especially in the last few years. The move to control their own infrastructure (midstream) was a game changer, plus the recent financial moves show real confidence in their asset base.

• Delaware Basin Concentration: The mid-2010s pivot to the Delaware Basin was the single most important acreage decision. It moved the company from a diversified E&P to a dominant player in one of the most prolific oil and gas regions, giving them a core acreage position of over 200,000 net acres.
• Midstream Integration: Forming San Mateo Midstream allowed Matador Resources Company to capture the full value chain. In the second quarter of 2025 alone, this segment delivered record net income of $66 million, showing the value of that integrated approach.
• Brick-by-Brick Land Strategy: Their ongoing, targeted land acquisition program-the 'brick-by-brick' strategy-continues to improve the quality of their inventory. For instance, in the third quarter of 2025, they completed over $125 million in targeted Delaware Basin transactions, ensuring they have over 10 years of high-return drilling locations.
• Shareholder Returns in 2025: The company's financial strength in 2025 led to clear capital return actions. In April 2025, the Board authorized a $400 million share repurchase program. They also raised the quarterly base dividend twice in 2025, reaching an annualized rate of $1.50 per share by October 2025. That's a strong signal to the market.

If you want a deeper dive into the balance sheet supporting these moves, check out Breaking Down Matador Resources Company (MTDR) Financial Health: Key Insights for Investors.

Matador Resources Company (MTDR) Ownership Structure

Matador Resources Company (MTDR) is a publicly traded independent energy company, listed on the New York Stock Exchange (NYSE: MTDR), meaning its ownership is distributed among a wide base of institutional, insider, and retail investors.

This structure is heavily weighted toward professional money managers, which is typical for a company with a market capitalization around $4.88 billion as of early November 2025, giving large institutions significant voting power and influence over long-term strategy.

Matador Resources Company's Current Status

Matador Resources Company operates as a public entity, and its stock is highly liquid. As of late 2025, the company has demonstrated strong financial performance, reporting first-quarter 2025 earnings per share (EPS) of $1.99, which beat analyst expectations. They also recently increased their quarterly cash dividend to $0.375 per share, reflecting confidence in near-term cash flow.

The company's governance is driven by a focus on the Delaware Basin, and the high institutional ownership means key decisions, like capital allocation and major acquisitions, are defintely scrutinized by large, sophisticated shareholders like Vanguard and BlackRock. Exploring Matador Resources Company (MTDR) Investor Profile: Who's Buying and Why?

Matador Resources Company's Ownership Breakdown

The vast majority of Matador Resources Company's stock is held by institutional investors, a common trait for established energy companies. Here's the quick math on who controls the shares, based on filings closest to the end of the 2025 fiscal year.

Matador Resources Company's Leadership

The company is steered by a seasoned management team, with an average tenure that provides stability and deep industry knowledge. The founder-led structure is a key factor in its strategic consistency.

• Joseph Wm. Foran: Founder, Chairman of the Board and Chief Executive Officer (CEO). He co-founded the company in 2003 and has been the driving force behind its strategy.
• Van H. Singleton II: Co-President - Land, Acquisitions and Divestitures and Planning.
• Bryan A. Erman: Co-President, Chief Legal Officer (CLO) and Head of M&A. His promotion to Co-President in June 2025 reflects his critical role in shaping company strategy and growth through mergers and acquisitions.
• Robert T. Macalik: Executive Vice President and Chief Financial Officer (CFO). He is responsible for the financial strategy and reporting.
• Christopher P. Calvert: Executive Vice President and Chief Operating Officer (COO).

This core leadership team, with the founder still at the helm, provides a clear, centralized decision-making structure. Their long history together means they execute with speed.

Matador Resources Company (MTDR) Mission and Values

Matador Resources Company's core purpose moves beyond simply extracting resources; it is a disciplined, integrated strategy focused on maximizing shareholder return by balancing production growth with superior free cash flow generation. This dual focus defines their cultural DNA and long-term aspirations in the volatile energy market.

Matador Resources Company's Core Purpose

You're looking for what truly drives Matador Resources Company, and it's a clear, consistent message: long-term value creation through financial discipline and operational integration. They don't chase growth at any cost. Instead, they aim to grow production and free cash flow in tandem, ensuring a resilient balance sheet even through commodity cycles. This is a realist's approach to energy.

Official Mission Statement

While the company doesn't publish a single, pithy mission statement, their stated business goal is precise and quantifiable. It boils down to increasing shareholder value by building oil and natural gas reserves, production, and cash flows while achieving an attractive return on invested capital (ROIC).

• Increase shareholder value through disciplined capital allocation.
• Build oil and natural gas reserves and production.
• Achieve attractive returns on invested capital.

For example, their Q3 2025 oil and natural gas revenues of $810.2 million, up from the prior year, directly support this mission by generating the cash flow needed for reinvestment and shareholder returns. If you want a deeper dive into their financial health, check out Breaking Down Matador Resources Company (MTDR) Financial Health: Key Insights for Investors.

Vision Statement

Matador Resources Company's vision is to be the premier, high-margin operator in the Delaware Basin, leveraging their integrated business model to maintain peer-leading financial metrics. Their vision is about quality and control, not just scale.

• Deliver superior free cash flow margin across commodity cycles.
• Maintain a strong balance sheet with over $1.8 billion in liquidity as of June 30, 2025.
• Grow the integrated midstream business, San Mateo Midstream, to provide flow assurance and third-party revenue.

Here's the quick math: their integrated upstream and midstream model delivered $133 million in adjusted free cash flow in Q2 2025. That cash flow is the engine for their vision, funding both their 'brick-by-brick' land acquisition strategy and their commitment to shareholder returns. They are defintely focused on the long game.

Matador Resources Company Slogan/Tagline

Matador Resources Company does not widely publish an official, consumer-facing slogan or tagline. Their communication focuses more on their operational results and financial metrics, which speak for themselves in the investment community.

Their actions, however, suggest a working ethos: 'Balanced Growth, Disciplined Returns.' This is evident in their 2025 shareholder actions, including an annualized dividend of $1.50 per share and the repurchase of over 1.3 million shares for approximately $55 million.

Matador Resources Company (MTDR) How It Works

Matador Resources Company operates as an integrated energy business, generating revenue from the exploration, development, and production of oil and natural gas, plus a critical, fee-based revenue stream from its midstream infrastructure assets.

You're looking for a clear map of their value chain, and honestly, it boils down to two core segments: getting the hydrocarbons out of the ground and then moving and processing them efficiently.

Matador Resources Company's Product/Service Portfolio

Matador Resources Company's Operational Framework

The company's operations are built on an integrated model, which is a major reason for its strong performance. This means the upstream (drilling) and midstream (transport/processing) segments work together, reducing bottlenecks and lowering costs for both Matador Resources Company and its third-party customers.

Here's the quick math on efficiency: they've revised their full-year 2025 drilling and completion (D/C/E) capital expenditures (CapEx) up to a range of $1.47 to $1.55 billion to accelerate activity, but they expect the cost per completed lateral foot to drop to between $835 to $855. That's better capital efficiency.

• Resource Focus: Primary operations are in the prolific Delaware Basin (Southeast New Mexico and West Texas), with over 200,000 net acres, plus a strategic natural gas position in the Haynesville and Cotton Valley plays in Northwest Louisiana.
• Technology Integration: The MAXCOM Operations Center provides 24/7 geosteering and engineering support, achieving 99% average accuracy in well placement, which is defintely a key driver of well performance.
• Value Creation: The midstream segment, primarily San Mateo Midstream, LLC, provides flow assurance-a guaranteed way to get their product to market-and a stable, fee-based revenue stream that complements the more volatile commodity-price-driven upstream revenue.

Matador Resources Company's Strategic Advantages

Matador Resources Company's market success comes from a few clear, repeatable strategies that minimize risk and maximize returns, especially in a volatile commodity price environment.

• Integrated Model: The combination of upstream and midstream operations provides a significant competitive edge. It ensures Matador Resources Company controls its own destiny by avoiding capacity bottlenecks that plague non-integrated producers, especially in new, high-growth areas.
• Disciplined Land Strategy: They employ a 'brick-by-brick' land acquisition strategy, focusing on smaller, targeted deals to continuously add high-quality acreage to their drilling inventory. This is a low-competition way to sustain their 10- to 15-year inventory of quality drilling locations.
• Advanced Completion Techniques: The company is a leader in using capital-efficient technologies like 'Trimul-Frac,' which is expected to account for approximately 35% of their 2025 completions, up from 15% in 2024. This speeds up the process and lowers the per-foot cost.
• Financial Strength: Matador Resources Company maintains a resilient balance sheet, with a debt-to-Adjusted EBITDA leverage ratio of less than 1.0x as of the second quarter of 2025. This financial flexibility allows them to execute their share repurchase program and increase their annualized base dividend to $1.50 per share.

If you're curious about who's buying Matador Resources Company stock, you should check out Exploring Matador Resources Company (MTDR) Investor Profile: Who's Buying and Why?

Matador Resources Company (MTDR) How It Makes Money

Matador Resources Company generates the vast majority of its revenue from the exploration and production (E&P) of oil and natural gas, which is the upstream business, but it crucially stabilizes its cash flow with a growing, fee-based midstream segment.

The company operates an integrated model, where its 51%-owned subsidiary, San Mateo Midstream, provides gathering, processing, and disposal services for its own production and for third-party customers, creating a valuable, counter-cyclical revenue stream.

Matador Resources Company's Revenue Breakdown

As of the third quarter of the 2025 fiscal year, Matador's revenue is heavily weighted toward the sale of hydrocarbons, but the midstream component is a high-margin growth engine. Here's the quick math on the $939.0 million in total revenue reported for Q3 2025.

Business Economics

The core economics of Matador's business are centered on managing the volatile price of commodities while aggressively controlling drilling costs in the high-return Delaware Basin. The key is operational efficiency, which they've defintely nailed.

• Commodity Price Exposure: Upstream revenue is subject to West Texas Intermediate (WTI) crude oil and natural gas prices, which introduces volatility. For Q3 2025, the average realized oil price (without derivatives) was $64.91 per barrel, down from the prior year, showing the headwind they faced despite higher production.
• Cost Efficiency: The company is driving down its drilling and completion (D&C) costs, a critical metric in the E&P world. D&C costs were approximately $855 per completed lateral foot in Q3 2025, and the full-year 2025 guidance was revised down to a range of $835 to $855 per completed lateral foot. Lowering this cost directly boosts the internal rate of return (IRR) on every new well.
• Midstream Fee-Based Stability: The San Mateo Midstream business provides a stable, fee-based revenue stream. This means Matador gets paid a set fee for gathering and processing services, regardless of the ultimate sale price of the commodity, insulating a portion of their cash flow from market swings. Midstream Adjusted EBITDA was $74 million in Q3 2025.
• Hedging Strategy: Matador uses financial derivatives (like collars) to lock in minimum prices for a portion of its future production, providing downside protection. For example, existing oil collars for the second half of 2025 offered protection if prices fell below $52 per barrel.

Matador Resources Company's Financial Performance

Matador's financial health as of late 2025 reflects a successful strategy of increasing production while maintaining capital discipline, even as commodity prices softened. They achieved record production in Q3 2025, which drove strong cash flow generation.

• Net Income and EBITDA: For Q3 2025, Matador reported net income of $176 million and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a key measure of operational cash flow) of $567 million.
• Free Cash Flow and Capital Spend: The company generated $93 million in Adjusted Free Cash Flow in Q3 2025, a critical metric showing cash available after capital expenditures. Total drilling, completion, and equipping (D/C/E) capital expenditures for the full year 2025 are projected to be in the $1.47 billion to $1.55 billion range, reflecting an acceleration of activity due to efficiencies and lower service pricing.
• Balance Sheet Strength: Matador maintains a strong balance sheet. As of September 30, 2025, the company's debt-to-EBITDA leverage ratio was below 1.0x, and it had approximately $2 billion in available liquidity under its revolving credit facility (RBL).
• Shareholder Returns: Demonstrating confidence in future cash flow, the Board of Directors increased the annual cash dividend by 20%, raising it from $1.25 to $1.50 per share per year. They also repurchased 1.3 million shares for approximately $55 million as of October 21, 2025.

If you want to dig into who is buying and selling this stock, you should check out Exploring Matador Resources Company (MTDR) Investor Profile: Who's Buying and Why?

Matador Resources Company (MTDR) Market Position & Future Outlook

Matador Resources Company (MTDR) has solidified its position as a high-growth, capital-efficient independent operator focused primarily on the Delaware Basin, an ultra-competitive sub-basin of the Permian. The company is poised for a record year, with full-year 2025 production expected to average between 200,000 and 205,000 BOE per day, driven by aggressive operational execution and strategic infrastructure control.

You're looking at a company that's small enough to be nimble but large enough to command its own logistics, which is a powerful combination in the volatile energy market. Their model is simple: own the best rock and control the flow. Exploring Matador Resources Company (MTDR) Investor Profile: Who's Buying and Why?

Competitive Landscape

Matador operates in the Permian Basin alongside much larger integrated energy companies and major independent producers. While its overall Permian market share is modest, its focus on the Delaware Basin and its integrated midstream strategy through San Mateo Midstream, LLC provides a critical competitive edge over peers who rely on third-party infrastructure.

Here's the quick math: Permian total production is projected to be around 10.9 million BOE per day in 2025, so Matador's production of $\approx 202,500$ BOE/d puts it at a calculated 1.9% share of the total basin output.

Opportunities & Challenges

The company's strategy for 2025 is clearly focused on maximizing capital efficiency and shareholder returns, but it's not immune to macro risks. They are defintely trying to balance aggressive growth with financial discipline.

Industry Position

Matador Resources Company is a top-tier independent producer within the Delaware Basin, distinguished by its operational excellence and vertically integrated structure. They hold an estimated 10-15 year inventory of high-return drilling locations across approximately 200,000 net acres.

• Rank among the top producers in the Delaware Basin in terms of size and profitability.
• Lead peers in well productivity, according to third-party data like Enverus.
• Maintain a strong balance sheet with over $1.8 billion in liquidity and a leverage ratio below 1.0x as of mid-2025, providing stability for strategic acquisitions.
• The integrated midstream business is a major differentiator, providing a structural advantage over peers who must pay third-party tariffs and risk bottlenecks.

The company's ability to generate strong free cash flow-projected to approach $1 billion in 2025-while simultaneously increasing production and cutting costs is a clear indicator of superior execution in a tough commodity environment.