Matador Resources Company (MTDR): History, Ownership, Mission, How It Works & Makes Money

How does Matador Resources consistently deliver strong results, achieving an average daily oil equivalent production of 153,800 barrels in the first quarter of 2024 alone? This independent exploration and production company has carved out a significant position, primarily focused on the rich resources of the Delaware Basin. Their story isn't just about drilling; it's a masterclass in strategic asset acquisition, operational efficiency, and navigating the complexities of the energy market. Are you curious about the specific strategies fueling their growth and profitability, and what lessons can be learned from their journey?

Matador Resources Company (MTDR) History

Understanding where a company comes from illuminates its path forward. Matador Resources began with a clear focus and has strategically evolved over two decades.

Matador Resources Company's Founding Timeline

Year established

2003

Original location

Dallas, Texas

Founding team members

Primarily led by Joseph Wm. Foran, who continues to serve as Chairman and CEO into 2024.

Initial capital/funding

The company secured early backing from private equity, notably including Warburg Pincus, enabling its initial exploration and development activities.

Matador Resources Company's Evolution Milestones

The journey from a private startup to a significant public E&P company involved several crucial steps.

Tracing these developments helps in Breaking Down Matador Resources Company (MTDR) Financial Health: Key Insights for Investors.

Matador Resources Company's Transformative Moments

Going Public in 2012

The IPO was pivotal, granting access to public capital markets essential for scaling operations beyond what private funding alone could support.

Delaware Basin Concentration

Making the Delaware Basin the core operational area was a defining strategic choice, aligning the company with one of North America's most prolific and economic oil plays.

Strategic Acquisitions (2023-2024)

The back-to-back large-scale acquisitions in 2023 and 2024 marked a significant acceleration in growth, transforming Matador into a larger-scale operator with enhanced production capacity and a deeper inventory of drilling locations within the Permian.

Matador Resources Company (MTDR) Ownership Structure

Matador Resources Company operates with a structure typical of publicly traded entities, where ownership is dispersed among various institutional and individual investors.

Matador Resources Company's Current Status

As of the end of 2024, Matador Resources Company is a publicly traded company. Its shares are listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol MTDR.

Matador Resources Company's Ownership Breakdown

Understanding who holds the shares provides insight into the company's governance and strategic direction. For a deeper dive into the investor base, consider Exploring Matador Resources Company (MTDR) Investor Profile: Who’s Buying and Why? The ownership distribution as of late 2024 is broadly categorized as follows:

Matador Resources Company's Leadership

The company's strategic direction and day-to-day operations are guided by its executive leadership team. As of the close of 2024, key figures leading the organization include:

• Joseph Wm. Foran: Founder, Chairman, and Chief Executive Officer
• Billy E. Goodwin: President - Operations
• Brian J. Willey: Executive Vice President and Chief Financial Officer

This team's experience and decisions are crucial to navigating the dynamic energy sector and driving shareholder value.

Matador Resources Company (MTDR) Mission and Values

Matador Resources Company operates with a clear focus on creating value through ethical and efficient exploration and production of oil and natural gas resources. Their underlying principles emphasize operational excellence and responsible resource development, directly impacting their overall performance, which you can explore further in Breaking Down Matador Resources Company (MTDR) Financial Health: Key Insights for Investors.

Matador Resources Company's Core Purpose

Official mission statement

While Matador Resources doesn't publish a single, formally labeled mission statement in its recent investor materials, its stated primary objective is to grow reserves, production, and cash flow at an attractive rate of return, creating value for its shareholders through oil and natural gas exploration, development, and production activities.

Vision statement

The company's vision centers on being a premier independent energy company, recognized for its operational expertise, disciplined financial management, and commitment to environmental stewardship and safety. They aim for sustainable growth, particularly within their core operating areas like the Delaware Basin.

Company slogan

Matador Resources does not prominently feature a single, overarching company slogan in its public communications.

Matador Resources Company (MTDR) How It Works

Matador Resources operates primarily as an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources, with a significant focus on the Delaware Basin portion of the Permian Basin in the United States. The company generates revenue mainly through selling the crude oil and natural gas it extracts, supplemented by income from its integrated midstream operations.

Matador Resources Company's Product/Service Portfolio

Matador Resources Company's Operational Framework

The company's value creation process centers on a proven cycle of acquiring prospective acreage, exploring for oil and gas deposits using advanced geological and geophysical techniques, and developing reserves through drilling and completion activities. Matador Resources primarily utilizes horizontal drilling and multi-well pad development to efficiently extract resources from unconventional formations like the Wolfcamp and Bone Spring plays within its core Delaware Basin operating areas, covering over 150,000 net acres. Production operations manage the flow of oil and gas, which is then gathered, processed (for natural gas), and transported often via its San Mateo midstream infrastructure. This integrated approach, combining upstream exploration and production with midstream logistics, allows for better cost control and flow assurance. For 2024, the company allocated significant capital, estimated between $1.05 billion and $1.15 billion, towards drilling and completion activities.

Matador Resources Company's Strategic Advantages

Matador Resources possesses several key strengths that underpin its market position and operational success as of late 2024.

• Premier Acreage Position: A concentrated and high-quality asset base in the oil-rich Delaware Basin provides a deep inventory of drilling locations.
• Integrated Midstream Operations: The San Mateo Midstream joint venture provides critical infrastructure support, reduces reliance on third-party services, captures additional value, and offers services to other producers, diversifying revenue streams. Midstream capital expenditures for 2024 were planned between $100 million and $120 million.
• Operational Efficiency: A consistent focus on optimizing drilling techniques, completion designs, and managing lease operating expenses helps maintain competitive production costs.
• Disciplined Financial Management: Maintaining a strong balance sheet and employing hedging strategies helps mitigate commodity price volatility, providing financial flexibility. The company's strategic focus and operational execution continue to attract attention, as detailed when Exploring Matador Resources Company (MTDR) Investor Profile: Who’s Buying and Why?

Matador Resources Company (MTDR) How It Makes Money

Matador Resources primarily generates revenue through the exploration, development, production, and acquisition of oil and natural gas resources in the United States, with significant operations in the Delaware Basin. It also earns income from its midstream operations, providing services like gathering, processing, and transportation for its own production and third parties.

Matador Resources Company's Revenue Breakdown

Matador Resources Company's Business Economics

The company's profitability hinges significantly on prevailing commodity prices, primarily West Texas Intermediate (WTI) for oil and Henry Hub for natural gas. Matador employs hedging strategies to mitigate price volatility for a portion of its production, locking in prices to protect cash flows, while selling the remainder at market spot prices. Operational efficiency is crucial; managing Lease Operating Expenses (LOE), projected around $5.50 - $6.50 per Barrel of Oil Equivalent (BOE) for 2024, and drilling and completion (D&C) costs directly impacts margins. Their integrated midstream segment, San Mateo, provides a competitive advantage by lowering gathering and processing costs for Matador's production and generating third-party revenue, enhancing overall economics.

Matador Resources Company's Financial Performance

For 2024, Matador anticipated robust financial performance driven by planned production growth, targeting an average daily oil equivalent production increase potentially exceeding 10% compared to 2023. Adjusted EBITDA is a key metric watched by investors, expected to remain strong assuming supportive commodity prices, likely surpassing $1.8 billion for the year based on mid-year trends and guidance. The company prioritizes free cash flow generation after funding its capital expenditure program, estimated between $1.1 billion and $1.3 billion for 2024. This free cash flow is allocated towards debt reduction, potential acquisitions, and returning capital to shareholders. Maintaining a healthy balance sheet with controlled leverage remains a core financial strategy. Analyzing who holds the stock provides further context on market confidence; Exploring Matador Resources Company (MTDR) Investor Profile: Who’s Buying and Why? offers insights into the shareholder base attracted by this financial profile.

• Key 2024 focus areas include optimizing drilling efficiency and managing operating costs.
• Continued investment in the San Mateo midstream joint venture supports both upstream growth and standalone profitability.
• Debt management remains prudent, aiming to keep leverage ratios within target ranges.

Matador Resources Company (MTDR) Market Position & Future Outlook

Matador Resources continues to solidify its position as a key operator in the Delaware Basin, leveraging its high-quality acreage and integrated midstream assets through San Mateo Midstream. Looking towards 2025, the company focuses on disciplined capital allocation, aiming for efficient production growth while managing operational costs and commodity price volatility, building on its 2024 average daily production of approximately 154,000 barrels of oil equivalent.

Competitive Landscape

The Permian Basin, particularly the Delaware sub-basin where Matador primarily operates, is intensely competitive, featuring operators of varying scales.

Opportunities & Challenges

Matador navigates a dynamic energy landscape with distinct pathways for growth and inherent sector risks.

Industry Position

Matador Resources is recognized as a highly successful mid-cap exploration and production company with a strategic focus on the Delaware Basin. Its integrated model, combining upstream E&P activities with its San Mateo midstream operations, provides operational control and enhances margins. While not possessing the sheer scale of supermajors or larger independents active in the Permian, Matador holds a competitive advantage through its concentrated, high-return acreage and efficient execution. The company's growth has been substantial, consistently increasing production and reserves. Understanding who holds stakes in the company offers further insight into its market perception; Exploring Matador Resources Company (MTDR) Investor Profile: Who’s Buying and Why? delves into the investor base. Its disciplined approach to capital deployment and focus on shareholder returns position it favorably within its peer group as it navigates the evolving energy market into 2025.