Matador Resources Co (MTDR) Surpasses Production Expectations and Achieves Record Reserves in 2023
Record Production: MTDR's Q4 2023 average daily production hit a record 154,300 BOE per day, surpassing expectations.
Financial Performance: Net income reached $254.5 million in Q4 2023, with full-year net income at $846.1 million.
Adjusted EBITDA: Q4 2023 Adjusted EBITDA was $552.8 million, contributing to a full-year total of $1.85 billion.
Proved Reserves: Total proved oil and natural gas reserves grew to 460.1 million BOE at the end of 2023, a 29% increase year-over-year.
Midstream Expansion: San Mateo Midstream, LLC achieved record Adjusted EBITDA of $200.2 million in 2023.
2024 Guidance: MTDR anticipates an 18% increase in total average production for 2024, with oil production expected to rise by 23%.
Capital Expenditures: 2024 drilling, completing, and equipping capital expenditures are projected to be $1.10 to $1.30 billion.
On February 20, 2024, Matador Resources Co (NYSE:MTDR) released its 8-K filing, detailing a robust performance for the fourth quarter and full year of 2023. The independent energy company, which focuses on the exploration, development, production, and acquisition of oil and natural gas resources, particularly in the United States' shale and unconventional plays, has reported significant achievements and operational updates that set the stage for a promising 2024.
Operational Excellence and Financial Strength
MTDR's record production in Q4 2023 was primarily driven by increased production from wells in the Stateline asset area and Rodney Robinson leasehold, outperformance of the Margarita wells, land acquisitions, and higher-than-expected production from non-operated assets. The company's lease operating expenses decreased by 5% to $5.06 per BOE in Q4 2023, showcasing improved operational efficiency.
Joseph Wm. Foran, Matadors Founder, Chairman, and CEO, expressed confidence in the company's trajectory, stating:
"Matador achieved another record quarter in the fourth quarter of 2023, which was another strong finish to yet another record year... We used this higher free cash flow to repay borrowings under our credit facility, make profitable investments in our oil and natural gas properties and our midstream business and pay a steadily increasing fixed dividend to our shareholders."
Financial Highlights and Future Outlook
MTDR's financial achievements in 2023, including a net income of $846.1 million and Adjusted EBITDA of $1.85 billion, reflect the company's ability to generate substantial free cash flow and return value to shareholders. The company's midstream joint venture, San Mateo Midstream, LLC, also contributed significantly to its financial success.
Looking ahead, MTDR anticipates continued growth in 2024, with an expected 18% increase in total average production and a 23% increase in oil production. The company plans to maintain capital expenditure levels similar to 2023, focusing on operational efficiencies and cost reductions.
MTDR's strong reserve growth, despite lower average oil and natural gas prices, underscores the company's effective resource management and operational capabilities. The company's total proved oil and natural gas reserves increased by 29% year-over-year, reaching 460.1 million BOE at the end of 2023.
For a more detailed analysis of Matador Resources Co's financial and operational performance, readers can access the full earnings release and additional information on the company's website.
Matador Resources Co remains committed to delivering profitable growth and enhancing shareholder value as it navigates the dynamic energy landscape.
For further information and inquiries, please contact Mac Schmitz, Vice President - Investor Relations at (972) 371-5225 or via email at investors@matadorresources.com.
Explore the complete 8-K earnings release (here) from Matador Resources Co for further details.
This article first appeared on GuruFocus.
