Matador Resources Co. is navigating commodity market volatility with disciplined capital allocation, as it trims its 2025 drilling and completion plans. The Dallas-based E&P announced in its Q1 2025 earnings that it will reduce its rig count midyear—dropping from nine to eight—citing weaker commodity prices and an uncertain macroeconomic outlook.
“When prices get a little lower, you take a few more moments to think about what you’re doing,”
— Joe Foran, CEO, Matador Resources
While the reduction trims full-year production guidance to 200,000 boe/d, down from 205,000 boe/d, the company emphasized flexibility—leaving the door open to reactivating the ninth rig later in the year if market conditions improve.
Key Highlights from Q1 2025:
- Production: 198,600 boe/d (+32% YoY), exceeding guidance
- Wells Turned to Sales: 40 gross (33.5 net), including first 3-mile laterals
- Capex: $394M (near top of guidance range)
- Revenue: $910M (up from $704M in Q1 2024)
- Net Income: $240M (+24% YoY)
- Q2 Guidance: Capex expected at ~$360M, with 21–26 net wells to sales (two-thirds in Eddy County, NM)
With these adjustments, Matador is shaving $100 million off full-year capital spending, down to $1.275 billion. At the same time, the company announced a $400 million share buyback program, a move praised by analysts as a smart hedge against further market uncertainty.
📊 Drilling Trends: Q1 2024 vs Q1 2025
Matador’s strategic shift is part of a broader pattern across the U.S. drilling sector, where operators are fine-tuning activity in response to pricing dynamics. We analyzed drilling data across multiple basins, with a focus on rig utilization and regional hot spots.
➤ Quarterly Drilling Activity Overview
| Quarter | Wells Drilled |
|---|---|
| 2024 Q1 | 36 |
| 2025 Q1 | 41 |
Drilling activity increased 13.9% year-over-year in Q1, indicating operators continued turning wells despite margin pressure.
🛠️ Top Rigs in Q1 2025
The following rigs led drilling activity in Q1 2025:
Contractor & Rig Wells Drilled Patterson 813 6 Patterson 561 6 Patterson 256 5 Patterson 298 5 Patterson 297 4 Patterson 295 4 Patterson 282 4
When comparing Q1 2024 vs Q1 2025, several rigs maintained strong utilization across both periods:
Contractor & Rig Q1 2024 Q1 2025 Total Patterson 298 6 5 11 Patterson 297 6 4 10 Patterson 295 4 4 8 Patterson 256 2 5 7 Patterson 813 1 6 7
📍 Regional Spotlight: Eddy & Lea Counties
County-level comparisons show a notable shift in activity toward Lea County, NM in Q1 2025:
County Q1 2024 Q1 2025 Eddy 24 18 Lea 9 22 Loving 3 0 Ward 0 1
With nearly two-thirds of Matador’s upcoming Q2 completions in Eddy County, this region remains a core operating area, though neighboring Lea County has seen a strong uptick in industry-wide drilling.
🧠 Takeaway
Matador Resources is demonstrating strategic agility: pulling back on capital while maintaining strong operational performance. Despite trimming rig count, the company beat expectations in Q1, highlighted by high-return 3-mile laterals and record output.
Combined with broader drilling trends—such as strong Patterson rig utilization and shifting county-level activity—this points to an industry recalibrating for capital discipline while still growing efficiently where it counts.
Stay tuned for updates as Q2 unfolds and operators adjust to the evolving energy market landscape.
