Matador Resources Co Q1 FY2026 earnings call

• Teamwork is strong and has improved over time, helping the company navigate challenges. - Production is up, capital spending is kept in check, and debt has been reduced. - The midstream business of San Mateo is valuable for flow assurance, operational control, and has opportunities like the Hubrinson deal moving away from negative Waha pricing. - The Woodford well is a new catalyst with positive expectations. - AI is being integrated into operations in various facets like production, completion, and drilling to enhance efficiencies.

Production is up, capital spending is kept in check or down a bit, debt has been reduced. The midstream business of San Mateo is a key asset with flow assurance and operational control. The Woodford well is a new development with potential inventory opportunity. Production growth, capital expenditure management, and debt reduction are key aspects with the midstream business playing a significant role in upstream efficiencies.

CapEx guidance for the first half is 55% to 60% of the budget. Second half CapEx will be down from the second quarter number. D&C per lateral foot leverage includes multi-well completions, Simul and TrimalFrac utilization, electric fleets, water recycling, shorter cycle times, vendor relationships, AI integration, etc.

Actual results could differ materially from forward-looking statements due to factors like oil price fluctuations and changes in the business environment. Potential missteps in implementing new technologies like AI if not controlled properly.

Q: Historically production growth was higher, how is growth this year influenced by macro environment and capital spend?

A: Management is nimble, considering macro environment, keeping emphasis on production, debt reduction, and controlled capital spend, with collaborative effort with department heads.

Q: Opportunity to continue pulling forward activities and add to growth?

A: First quarter outperformance was buoyed by wells turned online and activity acceleration, efficiencies will continue, but early to judge full-year impact.

Q: Update on San Mateo?

A: Midstream is valuable, thought of taking it public, Hubrinson deal helps move away from negative Waha pricing, water recycling and field gas use provide savings and advantages.

Q: Detail on Woodford well?

A: Encouraging expectations, well drilled and cased, completion ongoing, land team and geoscience team involved, no current count in inventory.

Q: CapEx cadence for second half?

A: 55% to 60% first half guidance intact, second half will be down from second quarter, early to precise cadence.

Q: D&C per lateral foot leverage?

A: Levers include multi-well completions, Simul and TrimalFrac, electric fleets, water recycling, shorter cycle times, vendor relationships, AI integration.

Q: AI implementation in operations?

A: AI integrated in production, completion, drilling, with data monitoring, real-time operation monitoring, and targeting in lateral to enhance efficiencies.