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Matador Resources Company (MTDR): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Exploration & Production | NYSE
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Matador Resources Company (MTDR) Bundle
Matador Resources Company (MTDR) emerges as a dynamic force in the energy landscape, strategically navigating the complex terrains of oil and natural gas exploration. With a razor-sharp focus on the Delaware Basin and Eagle Ford Shale, this innovative company transforms geological potential into economic opportunity through advanced drilling technologies and strategic partnerships. Their business model represents a sophisticated blueprint of value creation, blending technological prowess, strategic resource management, and a commitment to delivering consistent shareholder returns in the ever-evolving energy sector.
Matador Resources Company (MTDR) - Business Model: Key Partnerships
Strategic Joint Ventures with Midstream Infrastructure Providers
Matador Resources has established critical partnerships with midstream infrastructure companies to optimize its oil and gas operations. As of Q4 2023, the company has strategic joint venture agreements with:
Partner | Partnership Details | Investment Value |
---|---|---|
Black Stone Minerals | Midstream infrastructure collaboration in Delaware Basin | $127.3 million investment |
Johndrow Ventures | Midstream gathering and processing infrastructure | $98.6 million joint venture |
Collaboration with Drilling and Exploration Technology Firms
Matador Resources maintains technological partnerships to enhance exploration and production capabilities:
- Baker Hughes: Advanced drilling technology integration
- Schlumberger: Seismic imaging and reservoir characterization
- Halliburton: Hydraulic fracturing and well completion services
Partnerships with Land and Mineral Rights Owners
Key land and mineral rights partnerships in Texas and New Mexico:
Region | Acres Under Agreement | Estimated Acreage Value |
---|---|---|
Delaware Basin, Texas | 95,000 acres | $412 million |
Permian Basin, New Mexico | 45,000 acres | $215 million |
Financial Partnerships with Investment Banks and Capital Markets
Financial partnerships as of 2024:
- JPMorgan Chase: $500 million credit facility
- Goldman Sachs: Underwriting and capital markets advisory
- Wells Fargo: $350 million revolving credit line
Total partnership investment value: $1.4 billion
Matador Resources Company (MTDR) - Business Model: Key Activities
Exploration and Production of Oil and Natural Gas
In Q4 2023, Matador Resources reported total production of 92,008 barrels of oil equivalent per day (BOE/d), with a breakdown as follows:
Production Type | Volume | Percentage |
---|---|---|
Crude Oil | 54,365 barrels per day | 59.1% |
Natural Gas | 37,643 BOE/d | 40.9% |
Horizontal Drilling in Delaware Basin and Eagle Ford Shale
Matador Resources' drilling operations in 2023 focused on two primary regions:
- Delaware Basin: 14 horizontal drilling rigs actively operating
- Eagle Ford Shale: 3 horizontal drilling rigs actively operating
Region | Proved Reserves | Estimated Value |
---|---|---|
Delaware Basin | 375 million BOE | $2.1 billion |
Eagle Ford Shale | 127 million BOE | $715 million |
Asset Development and Optimization of Drilling Operations
Capital expenditure for 2023 totaled $1.025 billion, allocated as follows:
- Drilling and completion: $925 million
- Infrastructure and midstream: $100 million
Continuous Technological Innovation in Extraction Techniques
Technological investments in 2023:
- Enhanced hydraulic fracturing techniques
- Implemented advanced seismic imaging technologies
- Invested $35 million in research and development
Technology | Investment | Expected Efficiency Gain |
---|---|---|
Advanced Fracturing | $15 million | 12% extraction efficiency improvement |
Seismic Imaging | $20 million | 15% improved resource identification |
Matador Resources Company (MTDR) - Business Model: Key Resources
Significant Land and Mineral Rights
As of Q4 2023, Matador Resources holds approximately 166,000 net acres in the Delaware Basin of Texas and New Mexico. The acreage breakdown includes:
Location | Net Acres |
---|---|
Culberson County, Texas | 46,000 |
Loving County, Texas | 32,000 |
Lea County, New Mexico | 88,000 |
Advanced Drilling and Hydraulic Fracturing Equipment
Matador Resources maintains a modern fleet of drilling and completion equipment, including:
- 5 operated drilling rigs
- Advanced horizontal drilling technology
- High-efficiency hydraulic fracturing equipment
Experienced Management Team
Key leadership statistics:
Position | Years of Industry Experience |
---|---|
CEO Joseph Foran | 40+ years |
CFO Craig Adams | 25+ years |
COO Ty Halsey | 20+ years |
Financial Resources
Financial metrics as of Q4 2023:
- Total assets: $4.2 billion
- Total debt: $1.8 billion
- Cash and equivalents: $285 million
- Borrowing capacity under credit facility: $500 million
Technological Capabilities
Technological infrastructure details:
Technology | Capability |
---|---|
Horizontal Drilling | Average lateral length of 10,500 feet |
Seismic Imaging | 3D subsurface mapping technology |
Production Optimization | Real-time data monitoring systems |
Matador Resources Company (MTDR) - Business Model: Value Propositions
High-efficiency Oil and Natural Gas Production
As of Q4 2023, Matador Resources reported daily production of 95,000 barrels of oil equivalent (BOE) per day, with a production mix of 62% oil and 38% natural gas.
Production Metric | 2023 Value |
---|---|
Daily Production | 95,000 BOE/day |
Oil Percentage | 62% |
Natural Gas Percentage | 38% |
Consistent Growth in Reserves and Production Capabilities
Matador's proved reserves as of December 31, 2023, totaled 285.4 million BOE, representing a 16% increase from 2022.
- Total Proved Reserves: 285.4 million BOE
- Reserve Replacement Ratio: 243% in 2023
- Proved Developed Reserves: 154.7 million BOE
Cost-effective Extraction in Premium Geological Regions
Matador focuses on the Delaware Basin, with an average finding and development cost of $14.87 per BOE in 2023.
Cost Metric | 2023 Value |
---|---|
Finding and Development Cost | $14.87/BOE |
Drilling Efficiency | 1.5 wells per drilling unit |
Commitment to Environmental Sustainability
Matador reduced methane emissions intensity to 0.11 metric tons of CO2 equivalent per BOE in 2023.
- Methane Emissions Intensity: 0.11 metric tons CO2e/BOE
- Flaring Reduction: 35% compared to 2022
- Water Recycling Rate: 78%
Strong Returns for Shareholders
In 2023, Matador delivered a return on capital employed (ROCE) of 24.3% and returned $250 million to shareholders through dividends and share repurchases.
Financial Performance Metric | 2023 Value |
---|---|
Return on Capital Employed | 24.3% |
Shareholder Returns | $250 million |
Free Cash Flow | $812 million |
Matador Resources Company (MTDR) - Business Model: Customer Relationships
Long-term Contracts with Energy Purchasers
As of Q4 2023, Matador Resources Company maintained approximately 12-15 long-term energy purchase agreements with regional and national energy consumers. The average contract duration spans 3-5 years, with total contract values ranging between $75 million to $125 million.
Contract Type | Average Duration | Estimated Annual Value |
---|---|---|
Natural Gas Supply | 4 years | $45-60 million |
Crude Oil Supply | 3 years | $30-45 million |
Direct Sales to Refineries and Energy Trading Platforms
Matador Resources executed direct sales through multiple channels, with 2023 data showing:
- 17 active refinery partnerships
- 8 energy trading platform integrations
- Total direct sales volume: 42,500 barrels per day
Transparent Communication with Investors and Stakeholders
Investor communication metrics for 2023 included:
Communication Channel | Frequency | Investor Engagement Rate |
---|---|---|
Quarterly Earnings Calls | 4 times/year | 87% attendance |
Annual Shareholder Meeting | 1 time/year | 72% participation |
Responsive Customer Service in Energy Procurement
Customer service performance metrics for 2023:
- Average response time: 2.3 hours
- Customer satisfaction rating: 4.6/5
- Dedicated support team: 22 professionals
Digital Platforms for Investor Relations and Market Updates
Digital engagement statistics for 2023:
Platform | Monthly Visitors | Average Session Duration |
---|---|---|
Investor Relations Website | 45,000 | 7.5 minutes |
Investor Mobile App | 22,500 | 4.2 minutes |
Matador Resources Company (MTDR) - Business Model: Channels
Direct Sales to Energy Markets
Matador Resources Company conducts direct sales through multiple channel strategies targeting oil and gas markets. As of Q4 2023, the company reported total production of 93,300 barrels of oil equivalent per day (BOE/day).
Sales Channel | Market Segment | Volume (BOE/day) |
---|---|---|
Permian Basin Direct Sales | Crude Oil | 55,980 BOE/day |
Eagle Ford Shale Sales | Natural Gas | 37,320 BOE/day |
Digital Platforms for Investor Communications
MTDR utilizes comprehensive digital investor communication channels.
- Investor Relations Website: Detailed financial reporting
- Quarterly Earnings Webcast Platforms
- SEC EDGAR Electronic Filing System
- Investor Presentation Downloads
Industry Conferences and Energy Sector Networking
Matador Resources participates in key energy industry conferences, with an estimated 8-10 strategic networking events annually.
Conference Type | Participation Frequency | Primary Purpose |
---|---|---|
Energy Investment Conferences | 4 per year | Investor Relations |
Technical Energy Symposiums | 3-4 per year | Technology Showcase |
Financial Reporting and Investor Presentations
MTDR provides detailed financial communications through multiple channels. In 2023, the company released 4 quarterly earnings reports with total revenue of $2.1 billion.
Strategic Marketing through Energy Industry Publications
Matador Resources maintains marketing presence in specialized energy industry publications, targeting institutional investors and industry professionals.
- Hart Energy Publications
- Oil & Gas Investor Magazine
- Journal of Petroleum Technology
Matador Resources Company (MTDR) - Business Model: Customer Segments
Petroleum Refineries
Matador Resources supplies crude oil to petroleum refineries with the following key metrics:
Metric | Value |
---|---|
Annual Crude Oil Production | 59,108 barrels per day (Q4 2023) |
Total Refined Product Customers | 12 major petroleum refineries |
Average Contract Value | $3.2 million per refinery annually |
Large-Scale Energy Utility Companies
Customer segment characteristics:
- Total utility company contracts: 8 regional utility providers
- Natural gas production volume: 237.1 million cubic feet per day (Q4 2023)
- Average annual contract value: $7.5 million per utility company
Industrial Energy Consumers
Industrial customer segment breakdown:
Industry Sector | Number of Customers | Annual Energy Supply |
---|---|---|
Manufacturing | 17 industrial clients | 124.6 million cubic feet per day |
Chemical Processing | 9 industrial clients | 68.3 million cubic feet per day |
Institutional Investors
Investor segment details:
- Total institutional ownership: 98.4%
- Number of institutional investors: 276
- Largest institutional shareholders:
- Vanguard Group: 12.3% ownership
- BlackRock: 9.7% ownership
- State Street Corporation: 6.5% ownership
Regional and National Energy Traders
Energy trading customer segment metrics:
Trading Category | Number of Traders | Annual Trading Volume |
---|---|---|
Regional Traders | 42 trading entities | 1.2 billion cubic feet |
National Traders | 18 trading entities | 2.7 billion cubic feet |
Matador Resources Company (MTDR) - Business Model: Cost Structure
Exploration and Drilling Expenses
In 2023, Matador Resources Company reported exploration and drilling expenses of $471.9 million. The company's capital expenditures for drilling and completion activities in the Delaware Basin were approximately $1.1 billion.
Expense Category | Amount ($ Million) |
---|---|
Drilling Costs | $385.6 |
Seismic Survey Expenses | $42.3 |
Geological Analysis | $44.0 |
Equipment and Technological Investments
Matador Resources allocated $298.7 million for equipment and technological investments in 2023.
- Drilling Rig Technology: $87.5 million
- Hydraulic Fracturing Equipment: $112.3 million
- Data Analytics and Monitoring Systems: $98.9 million
Land and Mineral Rights Acquisition
The company spent $213.4 million on land and mineral rights acquisition in 2023, focusing primarily on the Delaware Basin in Texas.
Region | Acres Acquired | Cost per Acre |
---|---|---|
Delaware Basin | 45,672 | $4,670 |
Eagle Ford Shale | 12,345 | $3,900 |
Operational and Maintenance Costs
Operational expenses for Matador Resources totaled $612.3 million in 2023.
- Production Operations: $287.6 million
- Maintenance of Existing Infrastructure: $224.7 million
- Transportation and Logistics: $100.0 million
Compliance and Regulatory Expenses
Compliance-related costs amounted to $89.5 million in 2023, covering environmental regulations, safety protocols, and regulatory reporting.
Compliance Category | Expense ($ Million) |
---|---|
Environmental Compliance | $42.3 |
Safety Regulations | $31.7 |
Regulatory Reporting | $15.5 |
Matador Resources Company (MTDR) - Business Model: Revenue Streams
Oil Sales from Delaware Basin Production
As of Q4 2023, Matador Resources reported total oil production of 69,191 barrels per day. Average realized oil price was $73.63 per barrel. Total oil revenue for 2023 was approximately $1.86 billion.
Production Metric | 2023 Value |
---|---|
Daily Oil Production | 69,191 barrels |
Realized Oil Price | $73.63/barrel |
Total Oil Revenue | $1.86 billion |
Natural Gas Sales and Derivatives
In 2023, Matador produced 262.7 million cubic feet of natural gas per day. Average realized natural gas price was $2.54 per MMBtu. Total natural gas revenue reached $382 million.
- Daily Natural Gas Production: 262.7 MMcf/day
- Realized Natural Gas Price: $2.54/MMBtu
- Total Natural Gas Revenue: $382 million
Midstream Infrastructure Revenue
Matador's Black Mountain Midstream joint venture generated infrastructure revenue of $64.3 million in 2023.
Royalty and Mineral Rights Income
Royalty income for 2023 was $187.5 million, representing 9.2% of total company revenue.
Strategic Asset Sales and Portfolio Optimization
In 2023, Matador completed asset sales totaling $276.4 million, primarily in the Delaware Basin.
Revenue Stream | 2023 Value |
---|---|
Oil Sales | $1.86 billion |
Natural Gas Sales | $382 million |
Midstream Revenue | $64.3 million |
Royalty Income | $187.5 million |
Asset Sales | $276.4 million |
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