Matador Resources Co Q3 FY2025 earnings call

• Joe Foran expressed satisfaction with the quarter, mentioned raising the dividend, and highlighted the team's outstanding work. • Chris Calvert discussed positives of the capital program: 12 additional wells with over 50% rate of return, reduced well costs from $880 to $8.44 per completed lateral foot, and accelerated operations leading into 2026. • Rob Macalik highlighted the balance sheet strength with over $3 billion in retained earnings, paid down revolving debt, and flexibility for future plans. • Brian Willard discussed the midstream business, including processing records, assets like 250 miles of pipeline, and partnerships with Matador.

No detailed product segment financial performance or revenue contribution % provided in the transcript.

• Management stated 2026 is expected to be a fruitful year with inventory, cash flow, and liquidity. • Chris Calvert mentioned optionality in 2026 based on market conditions, with the ability to flex up or down depending on cost and commodity price changes. • Joe Foran emphasized the balance between capital spend and production growth, considering multiple factors beyond oil price alone.

• Factors that could cause actual results to differ from forward-looking statements, including oil price fluctuations, service cost changes, and pipeline maintenance impacts on gas pricing. • Need to consider multiple factors beyond just oil price in capital decisions, such as well days saved, rig partnerships, and long-term production potential of wells.

Q: Neal Dingmann asked about balancing capital spend and production growth.

A: Joe Foran said it's a balance between the two, considering multiple factors like oil price, well costs, and long-term production potential. Chris Calvert added on cost dislocation and optionality.

Q: Derrick Whitfield inquired about efficiency gains and their inclusion in 2026 guidance.

A: Chris Calvert talked about continued efficiency gains in completion, drilling, and logistics, and potential to improve on cost per full range in 2026 based on oil price.

Q: Leo Mariani asked about oil macro factors and spending decisions.

A: Chris Calvert and Joe Foran discussed optionality, committee-level internal discussions, and considering factors like well days saved and rig partnerships.

Q: Noah Hungness asked about water handling growth.

A: Joe Foran mentioned investment in Matador's midstream business for water gathering to increase produced water use.

Q: Jon Abbott asked about natural gas pricing.

A: Joe Foran and Anton Langland discussed curtailment of wells during pipeline maintenance, upcoming pipelines to relieve capacity issues, and hedging for gas prices.

Q: Kevin McCurdy asked about midstream impact on San Mateo volumes.

A: Brian Willard mentioned the partnership with Matador is critical, with midstream capital expenditures contributing to growth.