Matador Resources Co Q1 FY2025 earnings call

• Joe Foran mentioned repaying $190 million of debt, record gas processing, and the Marlin plant coming online with 720 million processing capacity. • Emphasized alignment of interest with shareholders through share repurchase, with over 31 transactions by management team and over 100 employees buying stock. • Stated 17% growth in oil production by year end, due to timing matters and being a measured pace for profitable growth. • Highlighted having ten to fifteen years of inventory, replacing and growing reserves, and prudent decisions through various market challenges like COVID and BLM leases. • Mentioned paying down debt, oil hedges, selling noncore assets, working with banks for a reserve-based loan, and having options like share buybacks, inorganic opportunities, and midstream growth.

• Anticipates 17% growth in oil production by year end. • Second quarter to be a record quarter, third quarter strong, with plans for fourth quarter and 2026. • Announced a $400 million share repurchase to be done gradually and in a controlled fashion.

• Volatility in the broader market impacting midstream decisions. • Commodity price volatility affecting growth plans. • Timing matters on oil prices, whether temporary or new world situation. • Turbulence and chaos in the market affecting business plans.

Q: Tim Rezvan asked about the midstream path forward, specifically IPOs.

A: Gregg Krug said they are looking at all options including IPOs and investigating opportunities to grow the midstream business, with inquiries on third party gas.

Q: Zach Parham asked about longer term outlook and growth.

A: Joseph Foran said they are open to growing again, it's a timing matter, and they have the tools and inventory to grow profitably at a measured pace.

Q: Gabe Daoud asked about stock buyback prioritization against inorganic opportunities.

A: Joseph Foran said it's about having options and evaluating what creates the most value, and Brian Willey added it's a mix of metrics.

Q: Kevin McCurdy asked about criteria for buyback.

A: Brian Willey said it's a mix of metrics and evaluating options for long-term value.

Q: John Freeman asked about hedging activity.

A: Gregg Krug said they saw opportunities to layer on hedges for protection due to capacity issues in 2026.