| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 10.5x | 17.8x | Top tier | |
Growth | 41 | -4.4% | 7.1% | Around median | |
Quality | 66 | 11.4% | 4.5% | Around median | |
Safety | 67 | 1.4x | 2.6x | Top tier | |
Capital Return | 48 | 2.15% | 2.12% | Around median | |
Momentum | 77 | 0.6% | 2.9% | Top tier | |
Sentiment | 96 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Matador Resources Company engages in oil and gas exploration and production, with a clear operational focus on the Delaware Basin, and supports its upstream operations with midstream infrastructure that gathers gas and transports it to market. The company benefits from integrating new assets with its existing pipelines, with approximately 100 drilling rigs located within 10 miles of its pipelines, enabling it to serve its own production and attract third-party customers. The new federal assets and acreage also added more than 15 years of drilling inventory spanning nine or more geological formations.
In the second quarter of fiscal year 2026, revenue reached $1.2 billion, up 32.5%, and adjusted earnings per share increased 70.6% to $2.61, while oil production reached a record 126,106 barrels per day. Adjusted free cash flow totaled $303 million, of which the company used $200 million to repay bank debt associated with the federal acreage acquisition. Production exceeded the high end of guidance, prompting management to raise its annual oil growth forecast from 4% to 7% while reducing planned capital expenditures by 1%.
EDGAR filings show considerable volatility between periods: the first quarter of fiscal year 2026 recorded revenue of $671.6 million, a net loss of $35.9 million, and a loss per share of $0.29, compared with revenue of $3.7 billion, net income of $759.2 million, and earnings per share of $6.09 in fiscal year 2025. On a trailing-twelve-month basis in fiscal year 2026, revenue totaled $3.4 billion, net income was $483.3 million, and earnings per share were approximately $3.91, showing that the second-quarter recovery followed a weak start to the fiscal year.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is "Buy," with an average price target of $71.18 within a wide range of $54 to $93; the average is above the 52-week range high of $66.84, while the highest target exceeds that high by a significant margin. The wide range of targets reflects meaningful differences in estimates of the impact of production growth and debt reduction versus commodity-price sensitivity and earnings volatility, and the available data do not allow for a reliable price-to-earnings valuation because of the loss recorded in the first quarter of fiscal year 2026.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Matador Resources generated approximately $1.2 billion in revenue in the second quarter of fiscal year 2026, an increase of 32.5%. Adjusted earnings per share rose 70.6% to $2.61, while oil production reached a record 126,106 barrels per day. The company also recorded $303 million in adjusted free cash flow, but it benefited from a significant marketing gain that management said on August 6, 2026, might not recur.
The company's production exceeded the high end of its guidance in the second quarter of fiscal year 2026, and oil production reached a record 126,106 barrels per day. Accordingly, management raised its annual oil growth forecast from 4% to 7%. The company said it achieved this increase while reducing planned capital expenditures by 1%, indicating improved operating efficiency alongside higher volumes.
The federal acreage extended Matador Resources' drilling inventory life to more than 15 years and includes nine or more geological formations. The company expects ultimate recoverable oil volumes to be 15% to 20% higher on these assets, with well returns exceeding 80% and costs of approximately $600 per foot. As of August 6, 2026, the permitting process was underway, with activity targeted to begin by the end of 2026 or in early 2027.
Borrowings associated with the federal acreage totaled $1.25 billion, and the company subsequently reduced them to less than $1 billion after repaying $200 million in the second quarter of fiscal year 2026. The repayment came from $303 million in adjusted free cash flow generated during the quarter. Management expects the company could generate approximately $900 million in free cash flow in fiscal year 2026 and has made deleveraging its top priority.
The Cardinal assets connect Matador Resources' network around the Delaware Basin, and approximately 100 drilling rigs are located within 10 miles of its pipelines. This gives the company an opportunity to secure transportation of its gas to market and attract third-party production to the network. Management valued the midstream components at approximately $50 million in the Paloma transaction and approximately $100 million in the federal acreage acquisition, with gas realizations expected to improve when the Hugh Brinson Pipeline begins operating early.
Commodity-price sensitivity is the foremost risk, as Joe Foran said that an oil-price decline to $30 would require a different program from one appropriate for the $70 to $80 range. The first quarter of fiscal year 2026 also recorded a net loss of $35.9 million, highlighting profitability volatility between periods. Additional risks include transaction-related debt, no assurance that the marketing gain recorded in the second quarter will recur, and the dependence of federal acreage development timing on the completion of permitting.
