Matador Resources Co (MTDR) Reports Record Q3 2023 Results and Increases Q4 Production Guidance
Matador Resources Co (NYSE:MTDR) reported record production for Q3 2023, averaging over 135,000 barrels of oil and natural gas equivalent (BOE) per day.
The company achieved better-than-expected cost savings, with D/C/E capital expenditures approximately $4 million lower than expected.
Net Cash Provided by Operating Activities for Q3 2023 was $461.0 million, and Adjusted Free Cash Flow was $144.6 million.
Matador's Board of Directors increased the fixed quarterly cash dividend from $0.15 per share to $0.20 per share.
Matador Resources Co (NYSE:MTDR) released its Q3 2023 earnings report on October 24, 2023, revealing record production and significant cost savings. The company reported an average daily production of over 135,000 BOE, marking the best quarter of total production in Matador's history. This record total production for Q3 2023 was 3% better sequentially than the previous total production record of 130,683 BOE per day in Q2 2023.
Financial Highlights
Matador's financial performance for Q3 2023 was strong, with Net Cash Provided by Operating Activities reaching $461.0 million and Adjusted Free Cash Flow hitting $144.6 million. The company's D/C/E capital expenditures for Q3 2023 were approximately $4 million lower than expected, and midstream capital expenditures were approximately $48 million lower than expected for the same period. The company also reported a net income of $263.7 million, or $2.20 per diluted common share, and Adjusted EBITDA of $508.3 million.
Operational Achievements
Matador's operational achievements for Q3 2023 included record oil production of 77,529 barrels per day and record natural gas production of 345.4 million cubic feet per day. The company also reported that its wholly-owned midstream subsidiary, Pronto Midstream, LLC, is now processing natural gas volumes up to its designed inlet capacity of 60 million cubic feet per day.
Dividend Increase and Debt Repayment
Matador's Board of Directors increased the fixed quarterly cash dividend from $0.15 per share to $0.20 per share, marking the fourth increase in the fixed dividend since its initiation in Q1 2021. The company also announced that it has repaid $200 million of borrowings under Matador's credit agreement, leaving only $500 million outstanding.
Looking Forward
For Q4 2023, Matador expects to produce an average of approximately 145,000 BOE per day, a 2% increase from the previous expectation. The company also plans to add an eighth drilling rig in Q1 2024 and continues to make progress with its midstream assets to increase the 'flow assurance' essential for its growing production volumes.
This article first appeared on GuruFocus.
