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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$2.08

$1.93 (18 Analysts)

Q3 EPS

$1.39

Q3 Adjusted Net Income

Beat

$257.50 mln

$217.70 mln (14 Analysts)

Q3 Adjusted Free Cash Flow

$287.60 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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