Matador Resources posted adjusted EBITDA of $228 million for Q4 2025, exceeding expectations, while reaffirming full-year production guidance of 108,000 to 112,000 barrels of oil equivalent per day. The company also announced a strategic shift toward higher shareholder returns and reduced drilling activity.
- Q4 2025 adjusted EBITDA: $228 million, up 14% YoY
- Full-year 2025 production guidance: 108,000–112,000 BOEPD
- Lease operating expenses: $18.70 per BOE
- Cash flow from operations: $295 million in Q4
- 2026 capital budget reduced to $400 million from $450 million
- Dividend increased by 20%, share repurchase program of $200 million
Matador Resources delivered robust financial results for the fourth quarter of 2025, reporting adjusted EBITDA of $228 million, a 14% increase from the same period in 2024. The company maintained its full-year production guidance at 108,000 to 112,000 barrels of oil equivalent per day (BOEPD), reflecting disciplined operational execution despite elevated capital expenditures. The company’s adjusted net income reached $109 million, or $0.76 per diluted share, surpassing analyst expectations. This performance was driven by sustained high oil prices and effective cost management, with lease operating expenses per BOE held steady at $18.70. Matador also reported cash flow from operations of $295 million in Q4, underscoring its strong balance sheet and liquidity position. In a strategic pivot, Matador announced a reduction in planned capital spending for 2026 from $450 million to $400 million, citing improved returns on capital and a desire to bolster shareholder returns. The company intends to allocate $200 million toward share repurchases and increase its dividend by 20%, to $0.10 per share quarterly. This shift signals a transition from aggressive growth to capital efficiency and value distribution. The announcement prompted a positive market reaction, with MTDR shares rising 5.3% in after-hours trading. Investors welcomed the increased dividend and repurchase commitment, particularly amid a broader sector trend toward financial discipline. The move may influence peer companies in the mid-cap E&P space to reassess their capital allocation strategies.