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

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