Matador Resources Company (MTDR): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la exploración energética, Matador Resources Company (MTDR) se encuentra en la encrucijada de innovación, desafío y oportunidad. Este análisis integral de mano presenta las fuerzas externas multifacéticas que configuran la trayectoria estratégica de la compañía, desde el terreno accidentado de la cuenca del Pérmico hasta los complejos mercados de energía geopolítica. Al diseccionar dimensiones políticas, económicas, sociológicas, tecnológicas, legales y ambientales, exploraremos cómo MTDR navega por el intrincado ecosistema de la producción moderna de petróleo y gas, revelando los factores críticos que impulsan su resiliencia, adaptabilidad y potencial para un crecimiento sostenible en una industria en constante evolución.

Matador Resources Company (MTDR) - Análisis de mortero: factores políticos

La política energética de EE. UU. Cambia hacia la producción nacional de petróleo y gas

A partir de 2024, el Departamento de Energía de EE. UU. Reporta la producción de petróleo nacional en 13.1 millones de barriles por día. Matador Resources opera principalmente en la cuenca Pérmica, que representa el 40% de la producción total de petróleo en tierra de EE. UU.

Indicador de políticas	Estado 2024
Objetivo de producción nacional de petróleo	13.1 millones de barriles/día
Acción de producción de la cuenca del Pérmico	40% de la producción en tierra de EE. UU.

Regulaciones estatales de Texas que respaldan la exploración de petróleo y gas

La Comisión Ferroviaria de Texas emitió 2.347 permisos de perforación en el primer trimestre de 2024, lo que demuestra un apoyo continuo para la exploración de hidrocarburos.

• Texas proporciona incentivos fiscales de hasta $ 200 millones anuales para las compañías de petróleo y gas
• Las regulaciones estatales mantienen estándares favorables de cumplimiento ambiental
• Proceso de permisos acelerados para proyectos de exploración

Tensiones geopolíticas en los mercados de energía global

Las fluctuaciones mundiales actuales del precio del petróleo crean oportunidades para productores nacionales como MTDR. Los precios del crudo de Brent promediaron $ 82.50 por barril en enero de 2024.

Indicador geopolítico	Valor 2024
Precio promedio de Brent Crude	$ 82.50 por barril
Ratio de independencia energética de EE. UU.	98.3%

Cambios potenciales de regulación federal de perforación

La Oficina de Administración de Tierras propuso nuevas regulaciones de cumplimiento ambiental que potencialmente afectan las operaciones de perforación, con costos estimados de cumplimiento de $ 47 millones en toda la industria en 2024.

• Requisitos propuestos de reducción de emisiones de metano
• Protocolos de evaluación de impacto ambiental mejorado
• Potencial aumentando la complejidad de los permisos

Matador Resources Company (MTDR) - Análisis de mortero: factores económicos

Precios volátiles de petróleo y gas natural

A partir del cuarto trimestre de 2023, los recursos de Matador experimentaron fluctuaciones significativas de precios:

Métrico de precio	Valor Q4 2023	Cambio año tras año
Precio de petróleo crudo de WTI	$ 73.47 por barril	-11.3%
Precio de gas natural de Henry Hub	$ 2.75 por mmbtu	-44.2%

Inversión en la cuenca de Pérmica y Eagle Ford Shale

Gastos de capital de MTDR para 2023:

Región	Inversión de capital	Porcentaje de CAPEX total
Cuenca del permisa	$ 625 millones	68%
Eagle Ford Shale	$ 235 millones	25%

Demanda de gas natural

Proyecciones del mercado de gas natural para 2024:

Métrico	Pronóstico 2024
Consumo de gas natural de EE. UU.	84.5 mil millones de pies cúbicos por día
Tasa de crecimiento proyectada	2.3%

Impacto de recuperación económica

MTDR Indicadores de desempeño financiero:

Métrica financiera	Valor 2023
Ingresos totales	$ 2.1 mil millones
Lngresos netos	$ 412 millones
Flujo de caja operativo	$ 967 millones

Matador Resources Company (MTDR) - Análisis de mortero: factores sociales

La creciente conciencia pública de las prácticas energéticas sostenibles impacta la percepción de la empresa

Según el Barómetro Edelman Trust 2023, el 58% de los inversores priorizan a las empresas con fuertes compromisos ambientales, sociales y de gobernanza (ESG). Matador Resources reportó $ 1.14 mil millones en ingresos para el tercer trimestre de 2023, con un enfoque creciente en la reducción de las emisiones de carbono.

Métrico ESG	Rendimiento 2022	2023 objetivo
Reducción de la emisión de metano	Reducción del 22%	Reducción del 30%
Tasa de reciclaje de agua	65%	75%

Desafíos de la fuerza laboral para atraer trabajadores calificados en la industria del petróleo y el gas

La Oficina de Estadísticas Laborales informa una tasa de desempleo de 3.2% en ingeniería de petróleo a diciembre de 2023. Los recursos de Matador asignaron $ 12.5 millones en 2023 para programas de capacitación y desarrollo de la fuerza laboral.

Demográfico de la fuerza laboral	Porcentaje
Ingenieros menores de 35 años	28%
Mujeres en roles técnicos	16%

Relaciones comunitarias en Texas y Nuevo México cruciales para el éxito operativo

Matador Resources invirtió $ 3.2 millones en proyectos de desarrollo comunitario local en Texas y Nuevo México durante 2023. Las contribuciones fiscales locales alcanzaron $ 45.7 millones en el mismo período.

Estado	Inversión comunitaria	Trabajos locales creados
Texas	$ 2.4 millones	872 trabajos
Nuevo Méjico	$ 0.8 millones	276 trabajos

Aumento del enfoque en la responsabilidad ambiental y la responsabilidad social corporativa

Matador Resources cometió $ 75 millones a iniciativas de transición de energía renovable en 2023. El informe de sostenibilidad de la Compañía indica una reducción del 15% en la intensidad del carbono en comparación con la línea de base 2022.

Iniciativa de RSE	2023 inversión	Impacto
Proyectos de energía renovable	$ 75 millones	Cartera de energía limpia del 20%
Programas de educación comunitaria	$ 1.5 millones	3,200 estudiantes llegaron

Matador Resources Company (MTDR) - Análisis de mortero: factores tecnológicos

Tecnologías avanzadas de perforación horizontal y fractura hidráulica

Los recursos de Matador desplegaron 18 plataformas de perforación horizontales en 2023, con una longitud lateral promedio de 10,500 pies. La eficiencia de fractura hidráulica de la compañía aumentó en un 22% en comparación con 2022, reduciendo los costos de perforación por pozo de $ 8.2 millones a $ 7.1 millones.

Métrica de tecnología	Rendimiento 2022	2023 rendimiento	Mejora %
Plataformas de perforación horizontales	15	18	20%
Longitud lateral promedio (pies)	9,800	10,500	7.1%
Costo de perforación por pozo	$8,200,000	$7,100,000	13.4%

Tecnologías digitales de campo petrolero

Matador invirtió $ 12.4 millones en tecnologías digitales de campo petrolero en 2023, implementando sistemas de monitoreo en tiempo real en el 87% de sus pozos operativos. La transformación digital redujo el tiempo no productivo en un 16,5%.

Métrica de tecnología digital	2023 datos
Inversión en tecnología digital	$ 12.4 millones
Pozos con monitoreo en tiempo real	87%
Reducción en el tiempo no productivo	16.5%

Análisis de datos e inversiones de IA

En 2023, Matador asignó $ 5.7 millones para análisis de datos y tecnologías de inteligencia artificial. El programa de mantenimiento predictivo impulsado por la IA redujo las tasas de falla del equipo en un 24% y el ciclo de vida de activos extendido en 3,2 años.

AI y métrica de análisis de datos	2023 rendimiento
Inversión en IA/análisis de datos	$ 5.7 millones
Reducción de la tasa de falla del equipo	24%
Extensión del ciclo de vida de activos	3.2 años

Captura de carbono y tecnologías de reducción de emisiones

Matador comprometió $ 18.6 millones a la captura de carbono y las tecnologías de reducción de emisiones en 2023. La compañía logró una reducción del 19.3% en las emisiones de metano e implementó sistemas de captura de carbono en el 42% de sus sitios operativos.

Métrica de reducción de emisiones	2023 rendimiento
Inversión en tecnologías de emisiones	$ 18.6 millones
Reducción de emisiones de metano	19.3%
Sitios con sistemas de captura de carbono	42%

Matador Resources Company (MTDR) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones ambientales y los requisitos de permisos

A partir de 2024, Matador Resources Company ha obtenido 127 permisos de perforación activa en Texas y Nuevo México. La compañía ha invertido $ 3.2 millones en infraestructura de cumplimiento ambiental y sistemas de monitoreo.

Categoría regulatoria	Estado de cumplimiento	Costo de cumplimiento anual
Ley de aire limpio de la EPA	Cumplimiento total	$ 1.7 millones
Gestión de recursos hídricos	Certificado	$ 1.5 millones
Regulaciones de eliminación de desechos	Cero violaciones	$620,000

Litigios continuos y desafíos regulatorios

En 2024, Matador Resources está administrando 3 procedimientos legales activos relacionados con reclamos ambientales, con una posible exposición total de $ 12.4 millones.

Tipo de litigio	Número de casos	Gastos legales estimados
Reclamaciones de daños ambientales	2	$ 7.6 millones
Disputas de uso del suelo	1	$ 4.8 millones

Adhesión a los estándares de informes y gobierno corporativo de la SEC

Matador Resources ha mantenido el cumplimiento del 100% con los requisitos de informes de la SEC, con infracciones regulatorias cero en los últimos 3 años consecutivos.

Métrica de informes	Tasa de cumplimiento	Hallazgos de auditoría
Información financiera anual	100%	No hay debilidades materiales
Revelaciones trimestrales	100%	Opiniones no calificadas

Riesgos legales potenciales relacionados con la protección del medio ambiente y el uso de la tierra

Matador Resources ha identificado 6 áreas potenciales de riesgo legal en protección del medio ambiente, con estrategias de mitigación presupuestadas en $ 5.9 millones para 2024.

• Potencial de contaminación del agua subterránea
• Interrupción del hábitat en zonas de perforación
• Regulaciones de emisión de metano
• Protección de especies en peligro
• Requisitos de recuperación de tierras
• Cumplimiento de emisiones de carbono

Categoría de riesgo	Presupuesto de mitigación	Probabilidad de desafío legal
Protección contra el agua subterránea	$ 1.2 millones	Medio
Conservación del hábitat	$ 1.7 millones	Bajo
Cumplimiento de la emisión	$ 3 millones	Alto

Matador Resources Company (MTDR) - Análisis de mortero: factores ambientales

Compromiso para reducir las emisiones de carbono e intensidad de metano

Matador Resources informó una reducción del 33% en la intensidad de metano desde 2021 hasta 2022. La intensidad de emisiones de gases de efecto invernadero de la compañía fue de 0.23 toneladas métricas de CO2 equivalente por barril de aceite equivalente (MTCO2E/BOE) en 2022.

Métrica de emisiones	Valor 2021	Valor 2022	Reducción porcentual
Intensidad de metano	0.35 mtco2e/boe	0.23 MTCO2E/BOE	33%

Implementación de estrategias de gestión del agua y reciclaje

En 2022, Matador recicló el 100% del agua producida en la cuenca de Delaware. El volumen total de reciclaje de agua alcanzó 2,3 millones de barriles, representando un esfuerzo significativo de conservación del agua.

Métrica de gestión del agua	Valor 2022
Agua producida reciclada	2.3 millones de barriles
Porcentaje de reciclaje	100%

Concéntrese en minimizar la huella ambiental en la exploración y la producción

Matador implementó tecnologías avanzadas para reducir la perturbación de la superficie. En 2022, la compañía logró un promedio de 2.5 pozos por almohadilla, reduciendo el uso de la tierra y el impacto ambiental.

Métrica de eficiencia de uso del suelo	Valor 2022
Pozos por almohadilla	2.5
Reducción de perturbaciones de la tierra	Minimizado a través de la estrategia de almohadilla múltiple

Inversión en energía renovable y prácticas sostenibles

Matador invirtió $ 12.5 millones en tecnologías de reducción de infraestructura y emisiones sostenibles en 2022. La compañía se comprometió a reducir las emisiones de carbono en un 50% para 2030.

Inversión de sostenibilidad	Valor 2022
Inversión de infraestructura sostenible	$ 12.5 millones
Objetivo de reducción de emisiones de carbono	50% para 2030

Enfoque proactivo para el cumplimiento ambiental y los esfuerzos de conservación

Matador recibió cero violaciones ambientales en 2022 y mantuvo el pleno cumplimiento de la EPA y las regulaciones ambientales estatales en todas las regiones operativas.

Métrica de cumplimiento ambiental	Valor 2022
Violaciones ambientales	0
Cumplimiento regulatorio	100%

Matador Resources Company (MTDR) - PESTLE Analysis: Social factors

Growing investor demand for transparent Environmental, Social, and Governance (ESG) reporting.

You are defintely seeing a clear shift in how investors assess energy companies, moving beyond just quarterly earnings to demand verifiable ESG (Environmental, Social, and Governance) performance. This isn't a niche concern anymore; it's a core valuation driver. Matador Resources Company responds to this by aligning its reporting with the industry-specific Sustainability Accounting Standards Board (SASB) metrics, which gives analysts the precise, comparable data they need.

The company's Board of Directors has an Environmental, Social and Corporate Governance Committee that oversees these efforts, showing a formal commitment at the highest level. For example, their ESG framework, last updated in August 2025, highlights specific social goals and achievements, which is what large institutional investors want to see. This transparency helps mitigate risk and can lead to a lower cost of capital.

Matador Resources Company - Key Social ESG Metrics (2025 Framework)	Metric/Amount	Significance
Local Employment Rate	85%	Strong commitment to local workforce development.
Community Investment	$2.5 million	Direct financial contribution to operating communities.
Employee Training Hours	15,000+	Investment in safety and skill development.

Increased local community opposition to hydraulic fracturing near residential areas.

The primary social risk for Matador Resources Company in 2025 isn't just the drilling itself, but the disposal of produced water (a byproduct of hydraulic fracturing). In the Permian Basin, where Matador Resources Company operates extensively, the Railroad Commission of Texas (RRC) has warned of a widespread increase in underground pressure from wastewater injection. Honestly, this is a massive social issue because it directly threatens the public interest.

Landowners and activists have raised concerns that this pressure is causing toxic leaks and risks contaminating drinking supplies for both people and livestock. So, while Matador Resources Company's drilling and completion costs per lateral foot actually decreased by roughly 3% in Q1 2025 to $880, the regulatory restrictions imposed by the RRC in response to this social and environmental pressure will likely increase overall operational costs as producers are forced to haul water farther or invest more in recycling.

The social license to operate is directly tied to managing this wastewater safely.

Talent shortage for skilled oilfield workers drives up compensation and operational costs.

The Permian Basin labor market remains extremely tight in 2025, creating a job seeker's market for skilled oilfield workers. This shortage directly impacts Matador Resources Company's operational costs and ability to execute its drilling program efficiently. You have to pay up for talent, plain and simple.

The average annual wage for the Crude Petroleum Extraction sector nationwide was $227,080 in 2024, an increase of $4,389 from the prior year. For Natural Gas Extraction, the average wage jumped by $10,740 to $176,800. This upward wage pressure is clear.

In the Texas upstream sector, job postings in March 2025 showed a median salary of $60,000, but a significant 26% of postings offered salaries between $90,000 and $500,000 for specialized roles. This forces Matador Resources Company to offer competitive compensation packages, including equity incentive plans and discretionary bonuses, to retain its workforce.

Focus on local hiring and community investment to maintain operating social license.

Matador Resources Company actively works to maintain its social license (the unwritten permission from the local community to operate) by focusing on local economic benefit. This is a pragmatic business strategy, not just philanthropy.

Their commitment is quantified in their ESG reporting:

• Achieve a local employment rate of 85% to ensure the economic benefits of their operations stay within the communities where they drill.
• Maintain a Community Investment of $2.5 million to support local initiatives and infrastructure.
• Run a large internship program, hosting 30 people in 2025, to build a long-term, locally-sourced talent pipeline.

They also invest heavily in employee development, requiring a minimum of 40 hours of continuous education annually per employee, a figure they have historically exceeded. This focus on local hiring and development is a direct countermeasure to the social friction that can arise from outside companies operating in a region.

Matador Resources Company (MTDR) - PESTLE Analysis: Technological factors

Technology is not just a buzzword for Matador Resources Company; it is the core driver of their industry-leading capital efficiency and production growth. You need to focus on how their application of advanced drilling, completion, and environmental technologies directly translates into lower costs and higher ultimate recovery.

Their integrated approach, blending advanced geology with real-time operational data, is why they are consistently one of the highest-margin operators in the Delaware Basin. Honestly, this is where the money is made in unconventional plays.

Adoption of enhanced oil recovery (EOR) techniques to boost recovery factors in mature fields

For an unconventional operator like Matador Resources Company, the primary form of Enhanced Oil Recovery (EOR) is actually advanced completion design, not traditional $\text{CO}_2$ or steam floods. They are effectively maximizing the initial recovery factor through sheer technical scale and precision.

The key is pushing the boundaries of the lateral length and optimizing the fracture network. In the first quarter of 2025, Matador turned to sales its first 3-mile lateral wells, demonstrating a commitment to maximizing reservoir contact from a single pad. This technological push, combined with multi-zone completions across the Wolfcamp and Bone Spring formations, is how they access more hydrocarbons per well, reducing the need for new surface infrastructure.

Here's the quick math on inventory: Matador estimates their current inventory of high-return locations in the Delaware Basin provides a 10 to 15 year drilling runway, with average rates of return in excess of 50\% at conservative commodity prices.

Digitalization of drilling operations using AI to optimize well placement and reduce non-productive time

Matador Resources Company's operational efficiency is defintely a direct result of digitalization, even if they call it MaxCom well targeting and geosteering. Their MAXCOM Operations Center provides 24/7 engineering support, which is essentially a centralized, data-driven hub for real-time decision-making, optimizing the well path to stay within the most productive rock layer.

This digital oversight, combined with advanced completion techniques like trimul-frac (fracturing three wells simultaneously), has led to significant cost reductions in 2025. This is a clear, actionable metric for the value of technology.

Metric	2024 Average	Q3 2025 Performance	Technological Impact
Drilling & Completion Cost per Completed Lateral Foot	\$908	Approximately \$855	6\% Cost Reduction
Overall Completion Efficiency (Time Required)	Base (100\%)	20\% Increase	Faster time-to-production

Reducing costs by \$53 per completed lateral foot is a massive win that flows straight to the bottom line.

Increased use of recycled water and non-potable sources for fracturing operations

Water management technology is a critical factor in the arid Delaware Basin, and Matador Resources Company has made a strategic commitment to non-fresh water sources. This reduces both environmental risk and operating costs, as trucking and disposal of produced water are expensive.

Their midstream subsidiary, San Mateo Midstream, is the technological enabler, providing the infrastructure for water gathering, recycling, and disposal. This system's disposal capacity was expanded to 475,000 Bbl per day as of May 2025, showing the scale of the operation.

The latest comprehensive data shows the success of this strategy:

• 97\% of total water consumed in operations was non-fresh water.
• 89\% of completed wells utilized recycled produced water.
• Recycled water accounted for 44\% of the total fluid volume used in hydraulic fracturing.

Using produced water from existing Matador and third-party wells, treating it, and then reusing it in new completions saves significant fresh water resources. That's a clear competitive advantage in a water-constrained region.

Deployment of continuous emissions monitoring systems (CEMS) for regulatory compliance

While the company does not explicitly detail a full-scale CEMS deployment, their regulatory compliance technology focuses on mitigating emissions at the source. Following a 2023 consent decree, Matador agreed to implement and monitor new tank pressure monitoring systems to curb emissions, spending over \$5 million on these improved operations and environmental projects. This is their real-time technological solution for compliance.

This focus on process and infrastructure-like connecting production facilities to grid power and utilizing electric motor-driven compression-has delivered measurable results in emissions intensity:

• Direct greenhouse gas emissions intensity was reduced by 55\% from 2019 through 2023.
• Methane emissions intensity was reduced by 70\% over the same period.

The technology here is about process control and infrastructure, not just sensors. Matador's midstream assets, like the San Mateo system, also play a crucial role by gathering natural gas via pipe, which is a far more reliable method than flaring or venting, reducing $\text{E}\&\text{P}$ direct greenhouse gas intensity by 58\% from 2019 through 2023.

Matador Resources Company (MTDR) - PESTLE Analysis: Legal factors

Compliance with stringent new federal rules on flaring and venting of natural gas.

The regulatory landscape for methane emissions is still in flux, but the cost of non-compliance for Matador Resources Company is clear and rising. The U.S. Environmental Protection Agency (EPA) finalized new rules (NSPS OOOOb/EG OOOOc) in 2024, but compliance deadlines for certain provisions, like net heating value monitoring of flares, were extended in July 2025, creating near-term uncertainty. Still, the risk is real, as demonstrated by Matador Production Company's settlement with the EPA and the New Mexico Environment Department (NMED) for past Clean Air Act violations.

That 2023 settlement required Matador to pay a civil penalty of $1.15 million and spend no less than $1.25 million on a supplemental environmental project, totaling a financial impact of $2.5 million, plus the costs of extensive operational upgrades across 239 well pads in New Mexico. This action alone is expected to result in a reduction of over 16,000 tons of air pollutants. You need to budget for the new Waste Emissions Charge (WEC) from the Inflation Reduction Act, which, despite a Congressional delay on collection until 2034, still sets a clear price signal: the charge for emissions exceeding statutory thresholds is set to increase to $1,200/tonne for 2025 emissions, up from $900/tonne in 2024. That's a significant financial incentive to eliminate flaring.

Ongoing litigation risk related to water rights and surface access in the Permian Basin.

Operating in the Permian Basin means navigating a complex legal maze of land and water rights, which directly impacts drilling economics. A major legal clarity came in mid-2025 when the Texas Supreme Court ruled in Cactus v. COG, confirming that the oil and gas lessee-not the surface owner-owns the produced water, unless explicitly stated otherwise in the lease. This ruling is a huge win for operators like Matador Resources Company, who rely on produced water for hydraulic fracturing or disposal, as it reduces legal ambiguity and the risk of costly disputes over this valuable resource.

However, other lease-related litigation risks remain. Matador has been involved in disputes, such as the MRC Permian Co. case concerning the application of a force majeure (unforeseen event) clause to extend a drilling deadline. These contractual disagreements can halt operations and increase legal spend. The key takeaway is that while produced water ownership is settled, the fine print of every lease is a potential litigation trigger.

Strict adherence to Occupational Safety and Health Administration (OSHA) standards to avoid penalties.

Safety compliance is non-negotiable, and the financial stakes are higher in 2025. The U.S. Department of Labor adjusted OSHA civil penalties for inflation, with the new amounts applicable to citations issued after January 15, 2025. For an active drilling and completion program like Matador's-which planned a capital spending budget of $1.275 billion in 2025-a single, serious incident can now carry a much larger fine.

Here's the quick math on the increased exposure:

Violation Type	Maximum Penalty (2024)	Maximum Penalty (2025)
Serious / Other-than-Serious	$16,131	$16,550
Willful or Repeated	$161,323	$165,514

A repeat violation can cost over $165,000. You defintely want to ensure your safety protocols are not just compliant on paper but rigorously enforced in the field to avoid these maximum penalties, which are designed to be a strong deterrent.

Need to secure right-of-way agreements for new pipeline infrastructure expansion.

Matador Resources Company's strategy includes a significant midstream component, which is critical for their forecast of producing a record average of at least 200,000 BOE per day in 2025. This growth means constant pipeline build-out, and that requires securing right-of-way (ROW) agreements from landowners.

The legal process for securing ROWs is time-consuming and can be a major bottleneck for infrastructure projects. Matador has been actively expanding, including a 2024 acquisition that included a 19% stake in Piñon Midstream LLC and the completion of over 20 miles of new natural gas pipeline connections. This expansion highlights the constant legal work needed to get easements and permits. Delays in securing a single ROW can push back the turn-to-sales date for an entire set of wells, directly impacting revenue and production guidance.

• Map out all necessary ROW agreements for 2026 projects now.
• Integrate legal counsel early into the pipeline planning process.
• Prioritize agreements in high-density drilling areas like the Delaware Basin.

Matador Resources Company (MTDR) - PESTLE Analysis: Environmental factors

You're operating in the Delaware Basin, one of the most prolific but environmentally sensitive areas in the U.S. so managing water scarcity and induced seismicity risks is critical to sustaining your 2025 production goals. Your environmental strategy is less about a radical shift and more about operational discipline and efficiency-a realist's approach to energy development.

Goal to maintain a high oil production rate, estimated at 150,000 BOE/d for 2025.

Your primary environmental challenge is achieving record production while demonstrating responsible stewardship. For full-year 2025, Matador Resources Company has raised its total production guidance to a range of 205,500 to 206,500 BOE per day, a significant increase over the previous year. This is a material jump from the 149,760 BOE per day average in Q1 2024. Achieving this growth while managing environmental impact is the core trade-off.

Here's the quick math on recent performance and 2025 targets:

Production Metric (2025)	Value	Context
Full-Year Total BOE/d Guidance (Midpoint)	206,000 BOE/d	Raised in October 2025
Q3 2025 Record Daily Production	209,184 BOE/d	Exceeded the midpoint of prior guidance
Q3 2025 Oil-Only Production	119,556 b/d	A key component of total BOE/d

Increased focus on reducing freshwater usage in the arid Delaware Basin.

Water management is a non-negotiable risk in the arid Delaware Basin. Matador Resources Company has made substantial progress by aggressively using non-fresh sources, which helps mitigate the environmental pressure on local water supplies. In 2023, for example, a remarkable 97% of total water consumed was non-fresh water.

The operational focus is on recycling produced water (saltwater) for hydraulic fracturing (fracking) operations. This is a clear, actionable strategy.

• Sourcing: 97% of total water consumed was non-fresh water.
• Recycling: 44% of total fluid volume for hydraulic fracturing was recycled water.
• Benefit: Reduces reliance on fresh water and lowers disposal costs.

Risk of seismic activity linked to produced water disposal wells requires careful management.

The seismic risk, or induced seismicity (earthquakes caused by human activity), is a major regulatory headwind tied directly to your produced water disposal (SWD) wells. Matador Resources Company's midstream joint venture, San Mateo Midstream, operates 16 saltwater disposal wells with a total designed disposal capacity of 475,000 barrels per day.

The regulatory environment, particularly in New Mexico, is getting tighter. The New Mexico Oil Conservation Division (NMOCD) has protocols that require enhanced review for new SWD permits in seismically active areas and allow for the mandatory curtailment of injection rates or even shutting in disposal wells if seismic events occur. This means a regulatory action could instantly cut off your disposal capacity and force a costly operational pivot. You must defintely stay ahead of the regulatory curve here.

Transition to lower-emission power sources for drilling rigs to cut Scope 1 emissions.

While the specific 'transition to lower-emission power sources for drilling rigs' is not quantified with a 2025 metric, Matador Resources Company's strategy to cut Scope 1 emissions (direct emissions from owned or controlled sources) is centered on operational efficiency and gas capture. The company's emissions intensity is trending down significantly, with total cumulative reductions from 2019 to 2023 showing: 58% for direct greenhouse gas emissions intensity, 76% for methane emissions intensity, and 82% for flaring emissions intensity.

The key near-term action is maximizing natural gas capture to reduce flaring, which is a major source of Scope 1 emissions. Connecting all new wells to gas pipelines before initial production is the standard operating procedure to achieve this. Plus, the overall drilling activity was reduced in 2025, dropping from nine to eight drilling rigs by mid-year, which inherently lowers the total operational footprint and associated Scope 1 emissions.