Matador Resources Company (MTDR): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'exploration énergétique, Matador Resources Company (MTDR) se dresse au carrefour de l'innovation, du défi et des opportunités. Cette analyse complète du pilon dévoile les forces externes à multiples facettes qui façonnent la trajectoire stratégique de l'entreprise, du terrain accidenté du bassin du Permien aux marchés de l'énergie géopolitique complexes. En disséquant des dimensions politiques, économiques, sociologiques, technologiques, juridiques et environnementales, nous explorerons comment le MTDR navigue dans l'écosystème complexe de la production moderne de pétrole et de gaz, révélant les facteurs critiques qui stimulent sa résilience, son adaptabilité et son potentiel de croissance durable de la croissance durable en une industrie en constante évolution.

Matador Resources Company (MTDR) - Analyse du pilon: facteurs politiques

La politique énergétique des États-Unis se déplace vers la production intérieure de pétrole et de gaz

En 2024, le Département américain de l'énergie rapporte la production de pétrole intérieure à 13,1 millions de barils par jour. Matador Resources opère principalement dans le bassin du Permien, qui représente 40% du total de la production d'huile onshore américaine.

Indicateur de politique	Statut 2024
Cible de production de pétrole intérieure	13,1 millions de barils / jour
Part de production du bassin du Permien	40% de la production onshore américaine

Règlement sur l'État du Texas soutenant l'exploration pétrolière et gazière

La Texas Railroad Commission a délivré 2 347 permis de forage au T1 2024, démontrant un soutien continu à l'exploration d'hydrocarbures.

• Le Texas offre des incitations fiscales jusqu'à 200 millions de dollars par an pour les sociétés pétrolières et gazières
• Les réglementations de l'État maintiennent des normes de conformité environnementale favorables
• Processus d'autorisation accéléré pour les projets d'exploration

Tensions géopolitiques sur les marchés mondiaux de l'énergie

Les fluctuations actuelles du prix du pétrole créent des opportunités pour les producteurs nationaux comme le MTDR. Les prix du brut Brent étaient en moyenne de 82,50 $ le baril en janvier 2024.

Indicateur géopolitique	Valeur 2024
Prix ​​moyen brut Brent	82,50 $ le baril
Ratio d'indépendance de l'énergie américaine	98.3%

Modifications potentielles du réglementation du forage fédéral

Le Bureau of Land Management a proposé de nouvelles réglementations sur la conformité environnementale ayant un impact sur les opérations de forage, avec des coûts de conformité estimés de 47 millions de dollars à l'échelle de l'industrie en 2024.

• Exigences de réduction des émissions de méthane proposées
• Protocoles d'évaluation d'impact environnemental améliorés
• Potentiel accrue permis la complexité

Matador Resources Company (MTDR) - Analyse du pilon: facteurs économiques

Prix ​​volatile du pétrole et du gaz naturel

Au quatrième trimestre 2023, les ressources de Matador ont connu des fluctuations importantes de prix:

Métrique de prix	Valeur du trimestre 2023	Changement d'une année à l'autre
Prix ​​du pétrole brut WTI	73,47 $ par baril	-11.3%
Prix ​​du gaz naturel Henry Hub	2,75 $ par MMBTU	-44.2%

Investissement dans le bassin Permien et Eagle Ford Shale

Dépenses en capital de MTDR pour 2023:

Région	Investissement en capital	Pourcentage du CAPEX total
Bassin permien	625 millions de dollars	68%
Eagle Ford Schiste	235 millions de dollars	25%

Demande de gaz naturel

Projections du marché du gaz naturel pour 2024:

Métrique	2024 prévisions
Consommation de gaz naturel américain	84,5 milliards de pieds cubes par jour
Taux de croissance projeté	2.3%

Impact de la reprise économique

Indicateurs de performance financière MTDR:

Métrique financière	Valeur 2023
Revenus totaux	2,1 milliards de dollars
Revenu net	412 millions de dollars
Flux de trésorerie d'exploitation	967 millions de dollars

Matador Resources Company (MTDR) - Analyse du pilon: facteurs sociaux

La sensibilisation au public croissante aux pratiques énergétiques durables a un impact sur la perception de l'entreprise

Selon le baromètre d'Edelman Trust 2023, 58% des investisseurs privilégient les entreprises avec de solides engagements environnementaux, sociaux et de gouvernance (ESG). Matador Resources a déclaré 1,14 milliard de dollars de revenus pour le troisième trimestre 2023, en mettant de plus en plus l'accent sur la réduction des émissions de carbone.

Métrique ESG	2022 Performance	Cible 2023
Réduction des émissions de méthane	Réduction de 22%	Réduction de 30%
Taux de recyclage de l'eau	65%	75%

Défis de la main-d'œuvre pour attirer des travailleurs qualifiés dans l'industrie pétrolière et gazière

Le Bureau of Labor Statistics rapporte un taux de chômage de 3,2% en génie du pétrole en décembre 2023. Matador Resources a alloué 12,5 millions de dollars en 2023 pour les programmes de formation et de développement de la main-d'œuvre.

Travailleur démographique	Pourcentage
Ingénieurs de moins de 35 ans	28%
Femmes dans des rôles techniques	16%

Relations communautaires au Texas et au Nouveau-Mexique cruciales pour le succès opérationnel

Matador Resources a investi 3,2 millions de dollars dans des projets de développement communautaire local au Texas et au Nouveau-Mexique en 2023. Les contributions fiscales locales ont atteint 45,7 millions de dollars au cours de la même période.

État	Investissement communautaire	Emplois locaux créés
Texas	2,4 millions de dollars	872 emplois
New Mexico	0,8 million de dollars	276 emplois

Accent croissant sur la responsabilité environnementale et la responsabilité sociale des entreprises

Matador Resources a engagé 75 millions de dollars dans les initiatives de transition des énergies renouvelables en 2023. Le rapport sur la durabilité de la société indique une réduction de 15% de l'intensité du carbone par rapport à la ligne de base de 2022.

Initiative RSE	2023 Investissement	Impact
Projets d'énergie renouvelable	75 millions de dollars	Portfolio d'énergie propre à 20%
Programmes d'éducation communautaire	1,5 million de dollars	3 200 étudiants atteints

Matador Resources Company (MTDR) - Analyse du pilon: facteurs technologiques

Technologies avancées de forage horizontal et de fracturation hydraulique

Matador Resources a déployé 18 plates-formes de forage horizontales en 2023, avec une longueur latérale moyenne de 10 500 pieds. L'efficacité de fracturation hydraulique de la société a augmenté de 22% par rapport à 2022, ce qui réduit les coûts de forage par puits de 8,2 millions de dollars à 7,1 millions de dollars.

Métrique technologique	2022 Performance	Performance de 2023	Amélioration %
Plates-formes de forage horizontal	15	18	20%
Longueur latérale moyenne (pieds)	9,800	10,500	7.1%
Coût de forage par puits	$8,200,000	$7,100,000	13.4%

Technologies pétrolières numériques

Matador a investi 12,4 millions de dollars dans Digital Oilfield Technologies en 2023, mettant en œuvre des systèmes de surveillance en temps réel dans 87% de ses puits opérationnels. La transformation numérique a réduit le temps non productif de 16,5%.

Métrique technologique numérique	2023 données
Investissement technologique numérique	12,4 millions de dollars
Puits avec surveillance en temps réel	87%
Réduction du temps non productif	16.5%

Analyse des données et investissements en IA

En 2023, Matador a alloué 5,7 millions de dollars à l'analyse des données et aux technologies de l'intelligence artificielle. Le programme de maintenance prédictive dirigée par l'IA a réduit les taux de défaillance de l'équipement de 24% et le cycle de vie de l'actif prolongé de 3,2 ans.

IA et métrique d'analyse des données	Performance de 2023
Investissement dans l'IA / Analytique des données	5,7 millions de dollars
Réduction du taux de défaillance de l'équipement	24%
Extension du cycle de vie des actifs	3,2 ans

Technologies de réduction de la capture et des émissions du carbone

Matador a engagé 18,6 millions de dollars dans les technologies de capture du carbone et de réduction des émissions en 2023. La société a réalisé une réduction de 19,3% des émissions de méthane et a mis en œuvre des systèmes de capture de carbone dans 42% de ses sites opérationnels.

Métrique de réduction des émissions	Performance de 2023
Investissement dans les technologies d'émissions	18,6 millions de dollars
Réduction des émissions de méthane	19.3%
Sites avec des systèmes de capture de carbone	42%

Matador Resources Company (MTDR) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales et aux exigences de permis

En 2024, Matador Resources Company a obtenu 127 permis de forage actifs à travers le Texas et le Nouveau-Mexique. La Société a investi 3,2 millions de dollars dans l'infrastructure de conformité environnementale et les systèmes de surveillance.

Catégorie de réglementation	Statut de conformité	Coût annuel de conformité
EPA Clean Air Act	Compliance complète	1,7 million de dollars
Gestion des ressources en eau	Conforme certifié	1,5 million de dollars
Règlements sur l'élimination des déchets	Violations zéro	$620,000

Litiges et défis réglementaires en cours

En 2024, Matador Resources gère 3 procédures judiciaires actives liées aux réclamations environnementales, avec une exposition totale potentielle de 12,4 millions de dollars.

Type de litige	Nombre de cas	Dépenses juridiques estimées
Réclamations de dommages environnementaux	2	7,6 millions de dollars
Conflits d'utilisation des terres	1	4,8 millions de dollars

Adhésion aux normes de déclaration de la SEC et de gouvernance d'entreprise

Matador Resources a maintenu une conformité à 100% aux exigences de déclaration de la SEC, avec aucune violation réglementaire au cours des 3 dernières années consécutives.

Métrique de rapport	Taux de conformité	Résultats d'audit
Information financière annuelle	100%	Aucune faiblesse matérielle
Divulgations trimestrielles	100%	Opinions non qualifiées

Risques juridiques potentiels liés à la protection de l'environnement et à l'utilisation des terres

Matador Resources a identifié 6 domaines de risque juridique potentiels en matière de protection de l'environnement, avec des stratégies d'atténuation prévues à 5,9 millions de dollars pour 2024.

• Potentiel de contamination des eaux souterraines
• Perturbation de l'habitat dans les zones de forage
• Règlements sur les émissions de méthane
• Protection des espèces en voie de disparition
• Exigences de récupération des terres
• Conformité aux émissions de carbone

Catégorie de risque	Budget d'atténuation	Probabilité de contestation juridique
Protection contre les eaux souterraines	1,2 million de dollars	Moyen
Conservation de l'habitat	1,7 million de dollars	Faible
Conformité aux émissions	3 millions de dollars	Haut

Matador Resources Company (MTDR) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone et l'intensité du méthane

Matador Resources a signalé une réduction de 33% de l'intensité du méthane de 2021 à 2022. L'intensité des émissions de gaz à effet de serre de l'entreprise était de 0,23 tonnes métriques de CO2 équivalent par baril d'équivalent pétrolier (MTCO2E / BOE) en 2022.

Émissions métrique	Valeur 2021	Valeur 2022	Pourcentage de réduction
Intensité de méthane	0,35 MTCO2E / BOE	0,23 MTCO2E / BOE	33%

Mise en œuvre des stratégies de gestion de l'eau et de recyclage

En 2022, Matador a recyclé 100% de l'eau produite dans le bassin du Delaware. Le volume total du recyclage de l'eau a atteint 2,3 millions de barils, représentant un effort important de conservation de l'eau.

Métrique de gestion de l'eau	Valeur 2022
Produit d'eau recyclée	2,3 millions de barils
Pourcentage de recyclage	100%

Concentrez-vous sur la minimisation de l'empreinte environnementale dans l'exploration et la production

Matador a mis en œuvre des technologies avancées pour réduire les perturbations de surface. En 2022, l'entreprise a atteint en moyenne 2,5 puits par coussinet, réduisant l'utilisation des terres et l'impact environnemental.

Métrique d'efficacité d'utilisation des terres	Valeur 2022
Puits par pad	2.5
Réduction des perturbations des terres	Minimisé par le biais de la stratégie de pad multi puits

Investissement dans les énergies renouvelables et les pratiques durables

Matador a investi 12,5 millions de dollars dans les technologies de réduction des infrastructures et des émissions durables en 2022. La société s'est engagée à réduire les émissions de carbone de 50% d'ici 2030.

Investissement en durabilité	Valeur 2022
Investissement en infrastructure durable	12,5 millions de dollars
Cible de réduction des émissions de carbone	50% d'ici 2030

Approche proactive des efforts de conformité environnementale et de conservation

Matador n'a reçu aucune violation de l'environnement en 2022 et a maintenu la pleine conformité à l'EPA et aux réglementations environnementales de l'État dans toutes les régions opérationnelles.

Métrique de la conformité environnementale	Valeur 2022
Violations environnementales	0
Conformité réglementaire	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.