Matador posts record oil production of 132,019 barrels per day in third quarter
Key Facts
Matador Resources said on November 3, 2026, that average oil production reached a quarterly record of 132,019 barrels per day in the third quarter, up 10% year over year. Average total production was 230,470 barrels of oil equivalent per day, compared with 209,184 barrels in the same period of 2025. Total production exceeded the midpoint of quarterly guidance by 3%, while new-well performance helped push results above targets. The company said a group of 12 wells in the Ranger area began sales earlier than expected during the quarter. This reflects higher produced volumes as the company expands its assets, while Matador raised its total production outlook range for the year.
Matador attributed the performance to strong production and momentum from upstream and midstream acquisitions, according to the chief executive. The company said oil production grew year over year, while natural gas production rose 10% to 591 million cubic feet per day in the third quarter from 537 million in the second quarter. The average realized oil price was $87.25 per barrel, down 11% from the second quarter but up 34% from the year-earlier period. The realized gas price was $2.99 per thousand cubic feet, up 53% year over year, after recording negative $0.79 in the previous quarter. The company said improved gas prices and revenue were also linked to the Hugh Brinson pipeline entering service on September 1.
Oil and gas revenue rose to $1.22 billion in the third quarter, up 51% from $810 million in the same period of 2025, which the company attributed to record production and improved realized prices. Natural gas revenue was $162 million, following a negative value of $39 million in the second quarter. Net income attributable to Matador shareholders was $172.1 million, compared with $176.4 million a year earlier, while core earnings were $1.39 per share versus $1.42. Adjusted free cash flow was $287.6 million, down from $303.2 million in the second quarter but up from $93.4 million in the third quarter of 2025. These comparisons show mixed quarterly indicators: year-over-year growth in revenue and adjusted free cash flow, alongside slight declines in net income and earnings per share.
Capital spending was $381.4 million in the third quarter, below the forecast range of $410 to $440 million. Matador said a shift in the timing of some spending from the third quarter to the fourth contributed to the lower figure. Operating expenses were $33.67 per barrel of oil equivalent, within the annual guidance range of $32 to $34, while well operating expenses were $5.66 per barrel of oil equivalent, better than the forecast of $5.80. San Mateo distributed $30.6 million to Matador during the quarter, and adjusted EBITDA for the consolidated midstream assets was $101.4 million. San Mateo's gas processing volumes also rose to 695 million cubic feet per day, up 26% from the previous quarter and 30% from the third quarter of 2025. The company expected adjusted EBITDA from wholly owned midstream assets to approach $400 million in 2026, up 17% from $332 million in 2025.
Matador raised its 2026 total production guidance range to 223,000–224,000 barrels of oil equivalent per day, saying the midpoint represents growth of 7% compared with the end of 2025. It forecast fourth-quarter oil production of between 136,000 and 138,000 barrels per day, and total production of between 238,000 and 242,000 barrels of oil equivalent per day. It also expected the Paloma and Ridge Runner assets to add about 10,000 barrels of oil equivalent per day, 57% of which would be oil. The company aims to bring 21 to 23 net operated horizontal wells in the Delaware Basin to sales in the fourth quarter. As of November 1, it said it had closed and begun integrating all previously announced acquisitions, including Paloma and Ridge Runner, and expected to bring 35 to 40 gross wells associated with federal land sales and Paloma acreage online through the end of 2027, along with up to 15 additional gross wells in the Woodford.
Matador repaid $150 million of borrowings during October and said total repayments in the fourth quarter had exceeded $150 million through November 3, or $50 million more than previously announced. The company expected its leverage ratio to approach 1.5 times by year-end. It forecast total capital spending of between $425 and $485 million in the fourth quarter, including $340 to $380 million for drilling, completion and equipping, and $85 to $105 million for midstream assets. It raised its annual dividend to $1.75 per share, up 17% from $1.50, while the earnings call was scheduled for November 4 at 10:00 a.m. Central time. Another upcoming development is the start of long-term gas sales agreements with liquefaction companies on the Gulf Coast in the first quarter of 2027, the company said.
Estimated oil and gas reserves totaled 771 million barrels of oil equivalent on September 30, up from 667 million on December 31, 2025, an increase of 16%. The company said the estimates are preliminary and unaudited, and include the two acquisitions completed in October on a pro forma basis. Matador repurchased 253,603 shares during the third quarter at an average price of $47.64 per share, while executives and board members bought about 23,600 shares during the period. Shares closed at $55.76 on November 2, before the results announcement, and then at $54.31 on November 3. The chief executive said the company expects mid-single-digit annual growth or better in 2027, based on current commodity prices and oilfield service costs.