Matador Resources Company reported strong Q1 2024 results, with a net income of $193.7 million and an adjusted EBITDA of $505.4 million, exceeding expectations.
Oil & gas Data Download
Matador Resources Wells Drilled Since 2023
Production averaged 149,760 BOE per day, a 40% year-over-year increase, with significant contributions from oil and natural gas exceeding guidance. The company highlighted cost savings and operational efficiencies, with $35 million less spent on D/C/E capital expenditures than anticipated. Strategic financial actions included a $350 million equity offering and a $900 million senior notes offering, enhancing their financial flexibility. Looking ahead, Matador remains focused on maintaining high production levels and expects continued operational and financial strength through 2024.
Matador Resources Company has reported robust financial and operational results for the first quarter of 2024, exceeding its initial forecasts. Here are the key takeaways from their earnings release:
Financial Performance
- Net Income: Matador posted a net income of $193.7 million, translating to $1.61 per diluted common share.
- Adjusted Net Income: The adjusted net income stood at $206.2 million, or $1.71 per diluted common share.
- Adjusted EBITDA: They achieved an Adjusted EBITDA of $505.4 million.
- Net Cash from Operations: The cash flow from operations was substantial, amounting to $468.6 million.
- Adjusted Free Cash Flow: The adjusted free cash flow was reported at $28.6 million.
Operational Highlights
- Production Volumes: Matador’s total oil and natural gas production averaged 149,760 BOE per day, a 40% increase year-over-year and 3% above the provided guidance.
- Oil Production: The oil production was 84,777 barrels per day, surpassing the guidance by 2%.
- Natural Gas Production: They reported 389.9 million cubic feet per day, exceeding expectations by 4%.
Strategic Moves and Capital Management
- Capital Expenditures: Matador spent less on drilling, completing, and equipping (D/C/E) than anticipated, with expenditures totaling $350.7 million, around $35 million below the expected.
- Midstream Developments: The company made significant progress in its midstream operations, including the successful operation of the San Mateo and Pronto assets, which contributed positively to their midstream revenue and efficiencies.
- Equity and Debt Financing: Matador raised approximately $350 million through a common stock offering and completed a $900 million senior notes offering, strengthening its balance sheet and providing liquidity for further operational and strategic initiatives.
Forward-Looking Statements
- Production Guidance for 2024: Matador expects to maintain production at the high end of its previously announced guidance, thanks to operational efficiencies and strong well performance.
- Capital Expenditure Outlook: They anticipate slightly lower capital expenditures in the coming quarters, reflecting cost savings and operational efficiencies.
Management Commentary
Joseph Wm. Foran, the CEO, expressed satisfaction with the results and highlighted the team’s efforts in exceeding the performance benchmarks and maintaining cost efficiencies. The management remains optimistic about sustaining profitable growth and leveraging their operational strengths in upcoming periods.
This robust performance showcases Matador’s effective management strategy and operational excellence, positioning them well for sustained growth in 2024 and beyond. Their strategic investments in midstream assets and innovative drilling techniques like the ‘trimul-frac’ operations underline their commitment to enhancing efficiency and shareholder value.
