Matador Q3 adjusted EPS and net income beat estimates on record production

Overview

• US oil and gas producer's Q3 revenue rose 51% yr/yr on record production and higher prices

• Adjusted EPS and adjusted net income for Q3 beat analyst expectations

• Company repaid $150 mln in debt and raised annual dividend by 17%

Outlook

• Matador raises full-year 2026 oil production guidance to 128,750-129,250 barrels per day

• Company expects Q4 2026 oil production of 136,000-138,000 barrels per day

• Matador expects mid-single digit or better production growth in 2027 versus 2026

Result Drivers

• RECORD PRODUCTION - Q3 oil and natural gas production rose 10% yr/yr and exceeded guidance due to strong well performance and early sales in Ranger Asset area

• IMPROVED REALIZATIONS - Higher oil and natural gas price realizations, including a 53% yr/yr increase in realized natural gas prices, contributed to revenue growth

• MIDSTREAM EXPANSION - Commissioning of Hugh Brinson pipeline and integration of Cardinal Midstream assets boosted natural gas revenues and processing volumes

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Matador Resources Company is $69.00, about 23.7% above its November 2 closing price of $55.76

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Nov 2 - Diamondback Energy boosts production forecast amid elevated oil prices

• Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output

• Nov 2 - Vitesse Energy Q3 revenue beats estimates on higher realized prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)