Matador Resources Company (MTDR): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly how Matador Resources Company is consistently delivering growth, especially when the sector feels so volatile. Honestly, their success isn't just about drilling; it's their integrated upstream and midstream model in the Delaware Basin that's the real engine, turning activity into solid cash flow. We see the results clearly in their 2025 performance: Q3 production averaged 209,184 BOE per day, supported by over $1.8 billion in liquidity, even as they plan capital spending up to $1.55 billion for the year. Owning the midstream piece via San Mateo is the key differentiator. Dive into the full Business Model Canvas below to see precisely how these nine components work together to generate that value.

Matador Resources Company (MTDR) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Matador Resources Company builds to keep its Delaware Basin engine running strong through 2025. These aren't just names on a contract; they are financial and operational pillars.

• - Joint venture partner in San Mateo Midstream, LLC, with Matador Resources Company holding a controlling 51% interest and the partner holding a 49% non-controlling interest.
• - Long-term, collaborative relationships with key service vendors, evidenced by the expected full-year 2025 drilling and completion cost per lateral foot range of $835 to $855.
• - Financial syndicate of 19 banks supporting the reserves-based revolving credit facility, which saw its borrowing base reaffirmed at $3.25 billion and elected commitment at $2.25 billion as of May 2025.
• - Landowners and mineral rights owners for ongoing brick-by-brick acquisitions, with Matador Resources Company completing over $125 million in such transactions during the third quarter of 2025.

The midstream joint venture, San Mateo Midstream, LLC, is a key area for these partnerships. In the second quarter of 2025, San Mateo delivered record quarterly Adjusted EBITDA of $85.5 million. The partnership structure with Five Point Capital Partners LLC has been in place since 2017.

The relationship with the financial syndicate is crucial for liquidity; Matador Resources Company maintained over $1.8 billion in liquidity as of mid-2025. This financial backing supported the company's ability to execute its strategy, including the ongoing brick-by-brick land acquisition program, which has positioned Matador Resources Company with over 10 years of engineered drilling locations. The midstream contribution transaction in late 2024 involved an upfront cash payment to Matador Resources Company of approximately $220 million from the joint venture structure.

The service vendor relationship is tied directly to operational execution. Matador Resources Company is focused on capital efficiency, aiming for a 2026 total capital expenditure that is expected to be 8 to 12% lower than 2025 levels for approximately the same footage. Also, Matador Resources Company secured firm transportation on Energy Transfer's Hugh Brinson Pipeline to move 500,000 MMBtu per day of natural gas production.

Finance: draft 13-week cash view by Friday.

Matador Resources Company (MTDR) - Canvas Business Model: Key Activities

You're looking at the core actions Matador Resources Company takes to run its business, especially now, late in 2025, when efficiency and capital discipline are driving results. Here's a breakdown of what they are actively doing.

• - Exploration and production (E&P) of oil and natural gas in the Delaware Basin.
• - Operating the San Mateo Midstream system, including the 720 MMcf/d Marlan Plant.
• - Disciplined, accretive land acquisitions to replenish drilling inventory.
• - Executing the $400 million share repurchase program.
• - Drilling and completing an expected 118.3 net wells in 2025.

The E&P focus in the Delaware Basin is yielding strong operational results. Matador Resources Company reported record production of 209,184 BOE per day in the third quarter of 2025, which was a 22% year-over-year gain. Oil production specifically hit 119,556 barrels per day for that quarter. They are driving down costs; drilling and completion costs were reported at $880 per completed lateral foot in the first quarter of 2025.

The integrated midstream component is a key activity supporting the upstream. San Mateo Midstream brought its Marlan plant expansion online in May 2025, increasing its natural gas processing capacity to 720 MMcf/d from the prior 520 MMcf/d. By the third quarter of 2025, San Mateo processed a record 533 MMcf per day. This asset is expected to generate an annual Adjusted EBITDA of $285 to $295 million for 2025.

Here's a quick look at how the Q3 2025 operational execution translated into financial performance for Matador Resources Company and its midstream arm:

Capital allocation is a major activity, balancing growth with shareholder returns. Matador Resources Company announced the $400 million share repurchase program earlier in 2025. As of October 21, 2025, they had already bought back 1.3 million shares for about $55 million, achieving a weighted average price of roughly $41 per share on those repurchases. This is part of a strategy that also includes disciplined land acquisitions, which management noted is particularly effective in the current market environment.

The drilling and completion schedule was adjusted based on efficiencies. The full-year 2025 guidance for completed wells was increased to an expected 118.3 net wells, up from the prior estimate of 106.3 net wells. This acceleration was supported by the operational efficiencies achieved, including turning 4.5 net operated wells above the midpoint of the July 2025 guidance during the third quarter alone.

Matador Resources Company (MTDR) - Canvas Business Model: Key Resources

Extensive, high-quality acreage in the Delaware Basin (Wolfcamp and Bone Spring plays)

• Matador Resources Company owns nearly 200,000 net acres in the Delaware Basin as of October 2025.
• The acreage includes prospective targets throughout the Wolfcamp and Bone Spring formations.
• The company has an inventory estimated to support 10 to 15 years of drilling in the Delaware Basin.
• Matador Resources Company has 2,546 gross (1,667 net) potential Matador-operated drilling locations.

San Mateo Midstream assets providing gas processing and water disposal

Matador Resources Company holds a 51% ownership stake in San Mateo Midstream, LLC. This midstream segment is a key resource for flow assurance and value capture.

Estimated 200 to 300 Bcf natural gas bank in the Cotton Valley/Haynesville plays

• Estimated gas opportunities in the Cotton Valley formation are between 200 to 300 Bcf.
• Matador Resources Company also holds a combined 28,400 acres in Eagle Ford and Haynesville plays.

Strong balance sheet with over $1.8 billion in liquidity as of mid-2025

The balance sheet strength supports operational flexibility and shareholder returns.

• Liquidity under the current Revolving Credit Facility (RBL) was approximately $2 billion as of September 30, 2025.
• The debt-to-EBITDA leverage ratio was under 1.0x as of September 30, 2025.
• Total borrowings under the RBL were reduced from $390 million at June 30, 2025 to $285 million as of September 30, 2025.

Experienced technical and management team focused on operational efficiency

Operational efficiency is demonstrated through cost metrics and planned activity levels for 2025.

• Drilling and completion costs in 3Q 2025 averaged about $855 per completed lateral foot.
• Lease operating expenses were reported at $5.56 per BOE in the second quarter of 2025.
• Matador Resources Company increased the number of operated wells to be drilled and turned to sales in 2025 to 118.3, up from 106.3 previously guided.

Matador Resources Company (MTDR) - Canvas Business Model: Value Propositions

You're looking at the core value Matador Resources Company delivers to its customers and investors as of late 2025. It's about operational control, efficiency, and direct shareholder rewards, all grounded in their premium Delaware Basin assets.

Integrated Upstream/Midstream model ensuring flow assurance and reduced bottlenecks

Matador Resources Company's structure is designed to keep product moving, which is a major value driver in the Permian. By owning a significant stake in its midstream infrastructure through San Mateo Midstream, LLC, Matador secures what they call flow assurance for its own production and for third-party customers in the Delaware Basin. This integration helps avoid the production curtailments seen when relying solely on third parties. For instance, San Mateo Midstream expanded its processing capacity by 38%, increasing it from 520 million cubic feet of natural gas per day (MMcf/d) to 720 MMcf/d with the startup of the Marlan Plant expansion. Matador, which owns 51% of San Mateo, saw its midstream segment deliver record quarterly net income of $66 million and record quarterly Adjusted EBITDA of $85.5 million in the second quarter of 2025.

The key components of this integrated value proposition include:

• - Midstream capacity reaching 720 MMcf/d post-expansion.
• - Flow assurance provided by San Mateo and Pronto Midstream assets.
• - Matador's 51% ownership stake in the profitable midstream JV.

Strong capital efficiency with Q2 2025 D&C costs below guidance

The operational focus at Matador Resources Company has clearly translated into lower costs for bringing wells online. In the second quarter of 2025, the company reported Drilling and Completion (D&C) costs of approximately $825 per completed lateral foot. This figure beat the guidance Matador had set in April 2025, which was around $880 per completed lateral foot. Furthermore, the actual D/C/E capital expenditures for Q2 2025 were $345.3 million, coming in 4% below the midpoint of the guided range of $330 to $390 million. This efficiency helps them generate free cash flow even with fluctuating commodity prices.

Consistent return of capital to shareholders via a $1.50 per share annual dividend

Matador Resources Company has made a clear commitment to returning capital directly to you, the shareholder. On October 15, 2025, the Board approved a 20% increase to the dividend policy. This move established a new annual dividend of $1.50 per share, which translates to a quarterly payment of $0.375 per share. As of October 20, 2025, this represented an increased annualized yield of approximately 3.5%. Beyond the dividend, the company also actively repurchased stock; in Q2 2025 alone, Matador bought back 1.1 million shares, or about 1% of common stock outstanding, for $44 million.

Here's the quick math on the shareholder return policy update:

Record production growth, averaging 209,184 BOE per day in Q3 2025

Operational execution resulted in record output. Matador Resources Company achieved a company record average daily production of 209,184 barrels of oil and natural gas equivalent (BOE) per day for the third quarter of 2025. This performance exceeded the midpoint of the July 2025 guidance by 5%. To put that in perspective, the Q3 2025 volume was a 22% year-over-year gain compared to the 171,480 BOE per day averaged in the third quarter of 2024. Oil production for Q3 2025 specifically averaged 119,556 barrels per day.

High-quality, long-life drilling inventory (10 to 15 years) in core areas

The foundation of Matador Resources Company's long-term value is its acreage position in the Delaware Basin. The company estimates it holds approximately 1,869 locations across 13 formations and over 20 producing zones. Management estimates that this inventory provides a long life of 10 to 15 years of drilling inventory in their core areas.

The scale of the inventory is substantial:

• - Estimated net locations: 1,869.
• - Estimated total inventory feet: 18.3 million feet.
• - Estimated inventory life: 10 to 15 years.

Finance: draft 13-week cash view by Friday.

Matador Resources Company (MTDR) - Canvas Business Model: Customer Relationships

You're looking at how Matador Resources Company manages its connections with the outside world-from the buyers of its oil and gas to the investors funding its operations. It's a mix of selling commodities, securing service capacity, and keeping shareholders informed.

Transactional relationships with large-scale commodity purchasers

Matador Resources Company's primary transactional relationships are with purchasers of its produced commodities. The company's operational output directly feeds these relationships. For instance, in the third quarter of 2025, Matador Resources Company achieved a company record total BOE production averaging 209,184 BOE per day, which was a 22% year-over-year increase. The company increased its full-year 2025 production guidance to a range of 205,500 to 206,500 BOE per day. Furthermore, Matador Resources Company is proactively communicating operational performance, revising its full-year 2025 drilling and completion costs down to a range of \$835 to \$855 per completed lateral foot.

Direct, long-term contracts with third-party midstream customers for reliable service

A key relationship element is through its integrated midstream joint venture, San Mateo Midstream. San Mateo Midstream provides natural gas processing, oil transportation, gathering services, and produced water disposal to third parties. This midstream arm is described as primarily a fixed-fee business designed to help provide flow assurance for Matador Resources Company and its third-party customers. The reliability of this service is evidenced by the successful expansion of San Mateo Midstream's processing capacity, which increased from 520 million cubic feet of natural gas per day (MMcf/d) to 720 MMcf/d with the startup of the Marlan Plant expansion in May 2025. San Mateo Midstream delivered record quarterly Adjusted EBITDA of \$85.5 million in the second quarter of 2025.

The nature of these midstream relationships can be summarized:

• Primarily fixed-fee structure for third-party services.
• Capacity expanded by 38% to 720 MMcf/d by May 2025.
• Focus on delivering flow assurance to external producers.
• Management is exploring strategic alternatives for the midstream asset.

Investor relations focused on transparency and capital return

Matador Resources Company maintains a relationship with its shareholders centered on transparency regarding financial health and a commitment to capital return. As of October 21, 2025, the Board approved a 20% increase in the annual dividend, raising it from \$1.25 to \$1.50 per share per year, payable proportionally each quarter. This marked the seventh time the Board raised the dividend in four years. The base dividend represented an increased annualized yield to shareholders of approximately 3.5% as of October 20, 2025. Furthermore, as of October 21, 2025, Matador Resources Company had repurchased 1.3 million outstanding shares for approximately \$55 million, at a weighted average price of approximately \$41 per share. The company reported third quarter 2025 net income of \$176 million, or earnings per share of \$1.42.

Here's a look at the recent capital return actions and financial context:

Proactive communication on operational performance and guidance updates

Matador Resources Company keeps its stakeholders updated through regular reporting and guidance adjustments. For example, following its third quarter 2025 results, the company increased its full-year 2025 production guidance and provided a 2026 outlook. The company increased the number of operated wells expected to be turned to sales in full-year 2025 from 106.3 net operated wells to 118.3 net operated wells. In the third quarter of 2025, Matador Resources Company turned to sales 34.5 net operated wells, exceeding the midpoint of its guidance range by 4.5 net operated wells. The company also noted that its total third quarter D/C/E CapEx was \$430 million, which was \$95 million above the midpoint of its July 2025 guidance range, due to accelerated operating activities. The company hosts regular conference calls, such as the Q3 2025 Earnings Conference Call on October 22, 2025.

Matador Resources Company (MTDR) - Canvas Business Model: Channels

Matador Resources Company (MTDR) uses a combination of direct sales and its integrated midstream assets to move product to market. The company focuses on its primary operating areas in the Delaware Basin in Southeast New Mexico and West Texas, and the Haynesville shale and Cotton Valley plays in Northwest Louisiana.

Direct sales contracts for crude oil and natural gas to refiners and marketers are the initial point of monetization for the upstream production. In the third quarter of 2025, Matador Resources Company (MTDR) achieved record total production of 209,184 barrels of oil and natural gas equivalent (BOE) per day. Of this total, average daily oil production was 119,556 barrels of oil per day (Bbl/d), and average daily natural gas production was 537.8 million cubic feet per day (MMcf/d). The realized price for oil, before accounting for realized derivatives, was $64.91 per barrel for the third quarter of 2025. The company also recently announced it entered into multiple natural gas transportation and marketing agreements on October 30, 2025, to improve all-in pricing netbacks.

San Mateo Midstream pipelines and processing plants provide critical flow assurance and delivery for product. Matador Resources Company (MTDR) holds a 51% ownership stake in this midstream joint venture. The strategic value of San Mateo is highlighted by its expanded processing capacity, which increased 38% from 520 MMcf/d to 720 MMcf/d upon the startup of the Marlan Plant expansion in May 2025. This system delivered record throughput in the third quarter of 2025, processing 533 MMcf/d of natural gas.

The performance of the midstream segment is a key channel metric, as shown below:

Commodity hedging programs and strategic marketing efforts help lock in prices and manage market risk, which is evident in the realized pricing versus unhedged prices. The company's adjusted earnings per share (EPS) for the third quarter of 2025 was $1.36, while total revenues were $939 million. The quarterly base dividend was raised 20% to $0.375 per share for the third quarter of 2025, representing an annualized dividend of $1.50 per share.

Investor communications via earnings calls and SEC filings provide transparency on the channels used to deliver product and value. Matador Resources Company (MTDR) held its quarterly earnings conference calls on the following dates in 2025:

• - Q1 2025 Earnings Conference Call: April 24, 2025.
• - Q2 2025 Earnings Conference Call: July 23, 2025.
• - Q3 2025 Earnings Conference Call: October 22, 2025.

The 2025 Annual Meeting of Shareholders was held on June 12, 2025.

Matador Resources Company (MTDR) - Canvas Business Model: Customer Segments

You're looking at the core groups Matador Resources Company serves, which is a mix of commodity buyers, capital providers, and strategic partners. Honestly, for an E&P company, the customer base is quite diverse.

Large-scale crude oil and natural gas purchasers (e.g., refiners, utilities, traders)

These are the entities taking the physical product. Matador Resources Company delivered a record average daily production of 209,184 BOE per day in the third quarter of 2025. For context, their oil production alone averaged 119,556 barrels per day in that same quarter. To manage natural gas sales, Matador is securing firm transportation for 500,000 MMBtu per day of production out of the Permian Basin to access better-priced markets. These markets have historically priced natural gas at over $2.00 per MMBtu higher than the Waha Hub price. The realized oil price in the second quarter of 2025 was $64.34 per Bbl.

Here's a snapshot of their output and realized pricing from recent periods:

Institutional and retail equity investors seeking growth and dividend income

The capital markets provide the funding for Matador Resources Company's operations. Institutional investors are definitely the dominant group here. As of late 2025 filings, the institutional ownership percentage stands at 91.98%. Insiders, who are also investors, hold about 5.8% of the company. The company supports the income-seeking segment by having raised its quarterly cash dividend to $0.375 per share, which translates to an annual rate of $1.50. To show management alignment, Matador Resources Company repurchased 1.3 million shares for approximately $55 million as of October 21, 2025.

Top institutional holders as of September 30, 2025, include:

• The Vanguard Group, Inc. holding 14,780,888 shares
• Blackrock, Inc. holding 10,480,084 shares
• Dimensional Fund Advisors Lp. holding 6,411,520 shares
• State Street Corp. holding 4,531,520 shares

Third-party exploration and production (E&P) companies needing midstream services

Matador Resources Company's midstream segment, San Mateo, serves third parties. While specific third-party throughput volumes aren't explicitly broken out for 2025 in the search snippets, the fact that Matador is securing firm transportation for 500,000 MMBtu per day on the Hugh Brinson Pipeline suggests significant capacity intended to serve both Matador and external producers needing access to the Gulf Coast and LNG markets. Furthermore, Matador noted that close to 30% of their Q3 2025 production beat came from six non-operated Haynesville wells, indicating existing third-party or joint venture activity utilizing their infrastructure or acreage.

Land and mineral owners for ongoing bolt-on acquisitions

These owners are crucial for Matador Resources Company's growth strategy in the Delaware Basin. The company actively pursues a 'brick-by-brick' land acquisition strategy. During the third quarter of 2025 alone, Matador completed over $125 million in transactions focused on the Delaware Basin, primarily acquiring undeveloped acreage and working interests. This activity helps expand their already substantial position, which is stated to be over 200,000 net acres in the Delaware Basin. These targeted acquisitions position them for over 10 years of engineered locations with expected average rates of return around 50% at oil prices as low as $50 per barrel.

Matador Resources Company (MTDR) - Canvas Business Model: Cost Structure

The Cost Structure for Matador Resources Company is heavily weighted toward capital deployment for asset growth and ongoing operational maintenance, reflecting its upstream focus.

The company's high capital intensity is driven by the continuous need for Drilling, Completing, and Equipping (D/C/E) wells to maintain and grow production volumes. Matador Resources Company updated its full-year 2025 D/C/E CapEx guidance to be in the $1.47 to $1.55 billion range. This revised guidance supported an expected total 2025 competed well count of 118.3 net wells. For context on the quarterly spend, total third quarter 2025 D/C/E CapEx was $430 million.

Ongoing operational costs include Lease Operating Expenses (LOE), which are a direct cost of keeping wells producing. Matador Resources Company reported Lease Operating Expenses of $5.56 per BOE in the second quarter of 2025. The company's full-year 2025 guidance range for LOE was set between $5.50 to $6.00 per BOE.

Financial obligations related to the balance sheet are a significant cost component, specifically interest expense on senior notes and reserves-based loan (RBL) borrowings. As of June 30, 2025, Matador Resources Company had $2.15 billion in senior notes outstanding and $390 million in borrowings outstanding under its RBL. The interest expense, net of the non-cash portion, for the second quarter of 2025 was reported as $49,672 thousand.

Costs associated with the integrated midstream segment, San Mateo, are also a key part of the structure. These are the Midstream operating costs for San Mateo's gas processing and water systems, categorized by Matador Resources Company as Plant and other midstream services operating (POMS) expenses. POMS expenses were reported at $2.40 per BOE for the second quarter of 2025. The guidance range for full-year 2025 POMS expenses was set at $2.50 to $3.00 per BOE.

Here's a breakdown of key cost metrics and related figures:

The structure also includes other operating costs that factor into the total unit expense:

• Production taxes, transportation and processing costs in Q2 2025 were $4.35 per BOE.
• Total operating expenses per BOE in Q2 2025 were $29.91.
• D&C costs for operated horizontal wells were expected to average $865 to $895 per foot for 2025.

Matador Resources Company (MTDR) - Canvas Business Model: Revenue Streams

You're looking at how Matador Resources Company brings in the money, and as of late 2025, it's a clear two-pronged approach: selling what you pull out of the ground and charging others to use your midstream infrastructure. The biggest chunk comes from the Sales of crude oil, natural gas, and natural gas liquids (NGLs). For the third quarter of 2025, the total revenues hit $939.02 million. Remember, Matador Resources Company reports production on a two-stream basis, meaning the economic value from NGLs is bundled right into the natural gas revenue line item. That quarterly revenue number shows the direct impact of their drilling and completion success, like hitting a record total production of 209,184 barrels of oil and natural gas equivalent per day (BOE/d) in Q3 2025. That's how you see the upstream engine running. It's a solid top line, even with the commodity price volatility we've seen this year.

To give you a quick snapshot of the financial results tied to these revenue-generating activities for the third quarter of 2025, look at this:

The second key stream is the fee-based revenue generated through San Mateo, Matador Resources Company's midstream joint venture, where Matador Resources Company holds a 51% ownership stake. This segment provides essential services like third-party fees for natural gas processing and water disposal. San Mateo processed a record 533 MMcf per day of natural gas in Q3 2025, which is a direct measure of the throughput generating those fees. The segment itself posted quarterly Adjusted EBITDA of $74 million for the period. Looking ahead, the expectation for the full year 2025 is that San Mateo will generate between $30 million and $40 million in EBITDA, which really helps stabilize cash flows regardless of daily commodity price swings. These midstream fees are the predictable, contractually-supported revenue that helps fund the whole operation.

When you look at the cash generated from these combined operations, the numbers speak volumes about the underlying strength of the business model in the third quarter of 2025:

• Net Cash Provided by Operating Activities was $722 million.
• Adjusted EBITDA for Matador Resources Company shareholders reached $567 million.
• The company also generated adjusted free cash flow of $93 million in the quarter.
• San Mateo's contribution to cash flow is significant, with an expected full-year 2025 EBITDA projection of $285 million to $295 million.

The cash flow from operations is definitely robust; that $722 million figure is a 44% jump from the prior quarter, so you see the operational leverage working.