Matador Resources (NYSE:MTDR) executives said on the company’s third-quarter 2026 earnings call that production had risen above 230,000 barrels of oil equivalent per day, while improved natural gas pricing and progress on acquisitions were supporting its outlook.
Founder, Chairman and CEO Joe Foran said production had grown 10% and the company’s reserve base had increased to more than 700 million barrels of oil equivalent, from 667 million at the end of 2025. He also said Matador raised its dividend to $1.75 from $1.50, marking its eighth increase in five years.
Foran said Matador had repaid $150 million of the approximately $500 million to $600 million it borrowed, including a recent $50 million payment. The company hopes to make further repayments in 2026 and address the debt in 2027, he said.
Gas pricing and midstream plans
Foran highlighted Matador’s move away from selling gas at the Waha hub to using the Hugh Brinson pipeline. He said the company had paid $0.79 for its gas to be taken at Waha the prior month, while it was receiving $2.99 for its gas in the current month.
Asked about potentially monetizing the San Mateo midstream business, Foran said Matador considers the asset undervalued but wants to retain control over its ability to move production to market. He said the company plans to bring the business public at what it considers the optimal time, while remaining open to other ideas.
“We want to do the right deal, not just any deal,” Chief Financial Officer Chris Calvert said.
Calvert said combined midstream earnings before interest, taxes, depreciation and amortization, or EBITDA, were about $325 million in 2025 and were projected to rise 17% in 2026. He pointed to the Cardinal acquisition, recent agreements and a third plant expansion at Marlan as sources of future growth. The company had previously discussed Cardinal potentially contributing $100 million in EBITDA in 2028, he said.
Cardinal, which Matador took over on Aug. 1, brought nine third-party customers to the San Mateo system, Foran said. Chief Operating Officer Glenn Stetson said the two systems had been connected, with further connections planned for 2027.
Calvert said the Marlan expansion would be a multiyear project. He cited approximately $25 million of spending in the current quarter and said the company would provide more detail on the investment schedule in February.
2027 growth and capital spending
In response to an analyst’s question about earlier commentary on potential mid-single-digit growth in 2027, Calvert said it was too early to detail next year’s capital program. He cited changes in oil prices and the potential effect on oilfield service costs.
Matador nevertheless believes it can pursue production growth and debt repayment efficiently, Calvert said. He also cited opportunities to expand reserves and acquire acreage through smaller transactions.
Stetson said service costs had risen alongside higher commodity prices, but operational changes were helping offset that pressure. All water used for hydraulic fracturing in the third quarter was treated produced water, he said, while approximately 80% of wells completed during the quarter used field gas rather than trucked-in compressed natural gas to fuel pressure-pumping equipment.
Federal acreage and Woodford development
Foran said analysts could expect up to 25 wells on acreage associated with Paloma over the next year, plus 10 to 12 wells on associated federal lease-sale acreage. President Bryan Erman said Matador had submitted 48 permits for the federal acreage and hoped to begin activity there as early as the first quarter of 2027.
Erman said the company expected drilling and completion costs per foot on the federal acreage to be 15% to 20% below its corporate average, with estimated ultimate recoveries 15% to 20% higher. Stetson said some nearby wells had achieved drilling and completion costs of roughly $640 per foot.
Matador’s first Woodford well had produced more than 140,000 barrels in just over five months, exceeding initial expectations, Foran said. Executive Vice President of Reservoir Engineering Tom Elsener said the company continued to expect more than 800,000 barrels of oil in estimated ultimate recovery from the well.
Foran cautioned that Matador needed more wells before providing a fuller assessment of the Woodford opportunity. Stetson said the company expected to apply lessons from the first well, including by drilling longer laterals and using batch development to reduce costs.
About Matador Resources (NYSE:MTDR)
Matador Resources Company (NYSE: MTDR) is an independent energy company engaged in the exploration, development, production and acquisition of oil, natural gas and natural gas liquids. The company focuses primarily on unconventional, or shale, resource plays and operates across both upstream exploration and production and related midstream activities.
Matador’s principal exploration and production operations are located in the Delaware Basin in southeastern New Mexico and West Texas. Its midstream operations, conducted primarily through San Mateo Midstream, provide natural gas gathering and processing, crude oil and produced-water gathering, and water sourcing and disposal services that support the company’s operations and other producers in the region.
Founded in 2003 and headquartered in Dallas, Texas, Matador has historically expanded through development and acquisitions in U.S.
