Matador Resources Company (MTDR) is a prominent upstream player with a strong presence in prolific oil and natural gas shale and other unconventional plays. The company is poised for earnings growth of 16.5% in 2024 and 18.6% in 2025, driven by several favorable factors.

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced that a wholly-owned subsidiary of Matador has entered into a definitive agreement to acquire a subsidiary of Ameredev II Parent, LLC (“Ameredev”), including certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Loving and Winkler Counties, Texas (the “Ameredev Acquisition”).

Ensuring flow assurance in the Delaware Basin is crucial due to capacity limitations. Matador has secured firm transport agreements on takeaway pipelines to mitigate risks associated with negative pricing at Waha and ensure that their gas can be sold.

Matador’s drilling inventory with 406 gross drillable locations. They also own midstream assets, like pipelines and a saltwater disposal well, which could provide additional value to Matador’s operations.

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