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.

Matador’s 2% production over-performance to start the year was done while spending less money on drilling than projected, the company said. During the first quarter of 2024, Matador’s average oil production of 84,777 barrels per day beat its guidance of 83,500 barrels, the company said.

Matador began 2024 operating seven drilling rigs in the Delaware Basin and added an eighth drilling rig in late January 2024. At February 20, 2024, Matador expects D/C/E capital expenditures for the first quarter of 2024 will be approximately $350 to $420 million, which is a 48% increase as compared to $261 million for the fourth quarter of 2023, primarily due to completion costs associated with the 21 Dagger Lake South wells expected to be turned to sales in the second quarter of 2024.

Matador’s record production of over 135,000 barrels of oil equivalent (“BOE”) per day during the third quarter of 2023 was driven in part by the 21 Margarita wells that were acquired in connection with the purchase of Advance in April 2023.

The third quarter of 2023 was the best quarter of total production in Matador’s history, as we averaged more than 135,000 barrels of oil and natural gas equivalent (‘BOE’) per day.

Matador plans to further expand its local gas processing capacity by another 200 MMcfd, they will support this with a new plant

Matador plans on running 7 drilling rigs for the remainder of 2023 .

Matador Resources 2023 Outlook Drilling, completing and equipping capital expenditures of $1.18 to 1.32 billion and Oil production guidance of 26.4 to 27.3 million barrels