Matador Resources Co Q4 FY2024 earnings call

• Emphasized year-over-year growth as the most important metric, with a focus on long-term growth rather than short-term sequential production boosts. • Acquisition of AmeriDev, a $2 billion deal, with emphasis on efficiency gains and development plans; batch drilling saved $30 to $50 million but affected sequential growth. • Production grew from ~4.6 billion BOEs in Q4 2023 to over 6 billion BOEs in Q4 2024. • Insider buys by senior management and high employee participation in stock purchase plan. • Midstream operations with EBITDA growing from $30 million in first year to $300 million, focusing on flow assurance and expanding pipeline footprint. • D&C costs reduced to $880 per foot in 2025, driven by efficiency gains like SimulFrac, TrimulFrac, and vendor partnerships. • Capital deployed on AmeriDev to improve operating expenses, resulting in $2 million monthly OpEx savings and recycled produced water for fracturing.

No detailed breakdown of product segment financial performance by absolute terms and revenue contribution % provided in the transcript.

• Expect year-over-year growth of 20-30% for Q1 2025, with similar growth in subsequent quarters. • Full year 2025 D&C costs expected to be 3% below 2024, with increased TrimulFrac use from 16 to 40 wells. • Forecast around $1 billion free cash flow in 2025, focusing on proper growth at a measured pace with opportunities in New Mexico, midstream (fee-based), and Louisiana.

• Volatility in commodity prices could impact results. • Uncertainties related to timing of well completions and potential differences between expected and actual results. • External factors like COVID-19 or economic downturns could affect operations and financial performance.

Q: Focus on midstream infrastructure development and monetization opportunities.

A: Midstream operations focus on flow assurance, expanding pipeline footprint, and considering third-party customers; opportunities to enhance flow assurance and expand acreage positions.

Q: D&C cost guide and ability to drive costs lower.

A: 2025 D&C costs below 2024, driven by efficiency gains in SimulFrac, TrimulFrac, vendor partnerships, and reducing days on well.

Q: Capital deployment and cash flow management.

A: Capital deployed on AmeriDev to improve operating expenses, resulting in $2 million monthly OpEx savings and recycled produced water; focus on proper growth at a measured pace with various opportunities.

Q: Cotton Valley assets and inbound inquiries.

A: Cotton Valley assets have potential but no urgency to sell; experienced in the area, with high net revenue interest; could be developed further with improved technology.

Q: Use of free cash flow above dividend.

A: Considerations include opportunities in New Mexico, midstream (fee-based), Louisiana; focus on proper growth at a measured pace, returning value to shareholders through dividend increases.