One-glance verdict
Overvalued
$50.05 our estimate vs market $54.28
Wall Street consensus: $70.00 (39.9% higher than our fair-value estimate)
8% above our estimate, beyond the bull case
Fundamentals snapshot
Matador Resources Company
MTDR · NYQ · Energy · Oil & Gas E&P
Current price
$54.28
52-week range
$37.14 - $66.84
Market cap
$6.72B
Balance sheet
Watch
5.69x Adequate
Net debt $4.29B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 13.6% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 394.5% over 3 years.
- Risk Stock trades 30.3% above its 5-year average P/E.
What this company does
Matador Resources Company
Matador Resources Company finds and pumps oil and natural gas, which are like the fuel that powers cars and heats homes. Most of their money comes from selling these energy resources from places like the Delaware Basin and Louisiana. Understanding where they get their oil and gas is important because it shows how much they can produce and sell to make money.
How the company got here
Matador Resources Company was founded in July 2003 by Joseph Wm. Foran and Scott E. King, building on Foran's prior experience in the oil and gas industry since 1983. The company began with a significant initial capital investment from investors, many of whom had supported Foran's previous ventures. Matador Resources focuses on exploring, developing, and acquiring oil and natural gas resources, particularly in shale plays. A key strategic shift occurred around 2010 when the company began to concentrate more on oil and liquids-rich shale plays to create a more balanced portfolio of assets. This strategic focus has led to significant acreage positions in key basins like the Delaware Basin and Haynesville shale. The company went public in 2012, with its stock beginning to trade on the New York Stock Exchange.
What it actually does
Matador Resources is an independent energy company. This means it's not directly involved in refining oil into gasoline or other products, nor does it operate gas stations. Instead, Matador focuses on the upstream part of the energy business: finding, extracting, and producing oil and natural gas from the earth. They explore for these resources, drill wells to access them, and then produce the oil and gas to sell. The company's operations are primarily in the United States, with a strong emphasis on unconventional plays, which are geological formations that require advanced techniques to extract resources from, like shale rock.
Exploration and Production
This is the core business of Matador Resources, where the company actively searches for and extracts oil and natural gas. They operate in specific geological areas known for these resources, such as the Wolfcamp and Bone Spring plays in the Delaware Basin (located in Southeast New Mexico and West Texas) and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The revenue from this segment comes from selling the crude oil, natural gas, and natural gas liquids they produce to commercial markets, typically to refiners and marketers. This segment is the largest contributor to Matador's overall revenue, often making up over 90% of the company's total earnings.
Midstream
The Midstream segment of Matador Resources involves the infrastructure and services that support the transportation and processing of oil and natural gas after they are extracted. This includes building and operating pipelines to move the resources, facilities to process natural gas (separating valuable liquids from the gas), and systems for handling produced water (water that comes up from the ground during oil and gas extraction). Matador provides these services not only for its own production but also to other energy companies, acting as a service provider in the energy supply chain. This segment represents a smaller but important portion of Matador's overall business, typically around 10% of revenue.
What management is betting on now
Matador Resources' management is focused on increasing shareholder value by growing the company's oil and natural gas reserves, production, and cash flows. They aim to achieve this by concentrating their exploration and development efforts on promising unconventional plays, particularly in the Delaware Basin. The company is also strategically acquiring acreage and investing in midstream infrastructure to support its operations and capture more value. Recent acquisitions and a focus on operational efficiency are key priorities to ensure attractive returns on their investments.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.60B
FY2024 Q4
$45.19M
FY2025 Q1
$173.60M
FY2025 Q2
$9.61M
FY2025 Q3
$78.30M
FY2025 Q4
$8.07M
FY2026 Q1
$-26.38M
Revenue
$1.19B
Net income
$390.65M
Diluted EPS
3.15
Operating cash flow
$937.13M
Free cash flow
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Sources
Revenue
$671.64M
Net income
$-35.87M
Diluted EPS
-0.29
Operating cash flow
$470.55M
Free cash flow
$-26.38M
Fetching…
Sources
Revenue
$847.99M
Net income
$192.55M
Diluted EPS
1.54
Operating cash flow
$474.45M
Free cash flow
$8.07M
Fetching…
Sources
Revenue
$939.01M
Net income
$176.36M
Diluted EPS
1.42
Operating cash flow
$721.66M
Free cash flow
$78.30M
Fetching…
Sources
Revenue
$895.31M
Net income
$150.22M
Diluted EPS
1.21
Operating cash flow
$501.03M
Free cash flow
$9.61M
Fetching…
Sources
Revenue
$1.01B
Net income
$240.09M
Diluted EPS
1.92
Operating cash flow
$727.88M
Free cash flow
$173.60M
Fetching…
Sources
Revenue
$970.37M
Net income
$214.53M
Diluted EPS
1.71
Operating cash flow
$574.96M
Free cash flow
$45.19M
Fetching…
Sources
Revenue
$899.78M
Net income
$248.29M
Diluted EPS
1.99
Operating cash flow
$610.44M
Free cash flow
$-1.60B
Fetching…
Sources
Is it cheap or expensive?
Fair value $50.05 vs current price $54.28
Wall Street consensus is the average analyst price target: $70.00 (39.9% higher than our fair-value estimate).
Our most-likely fair value is $50.05 a share — about 7.8% below today's price of $54.28, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $4.3B. Interest coverage 5.7x.
Net debt
$4.29B
Interest coverage
5.69x
Matador Resources Company's profit covers its interest bill about 5.7 times over.
Watch
Worse cushion
Baseline
Better cushion
MTDR
BASELINE
Matador Resources Company
Total debt $4.32B Interest coverage 5.69x This is the baseline the peer rows are being compared against.
Total debt $1.50B Interest coverage 2.35x -59% vs MTDR Carries about 2.4x less debt cushion than MTDR.
Total debt $11.89B Interest coverage 7.76x +36% vs MTDR Carries about 1.4x more debt cushion than MTDR.
Total debt $12.61B Interest coverage 18.56x +226% vs MTDR Carries about 3.3x more debt cushion than MTDR.
Total debt $3.88B Interest coverage 9.89x +74% vs MTDR Carries about 1.7x more debt cushion than MTDR.
Total debt $413.13M Interest coverage 20.32x +257% vs MTDR Carries about 3.6x more debt cushion than MTDR.
What you should know
The case for and against MTDR
3 Rewards
3 Risks
Rewards
-
Returns 13.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 9.3x P/E vs peer median 10.5x (11.4% cheaper).
Risks
-
Net debt grew 394.5% over 3 years.
-
Stock trades 30.3% above its 5-year average P/E.
-
Operating margin compressed from 59.4% to 49.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
9.31x
Forward P/E
5.93x
P/B
1.14x
P/S
1.75x
EV/EBITDA
4.72x
PEG ratio
0.64x
Profitability
How much profit each dollar creates
Gross margin
82.4%
Operating margin
49.2%
Net margin
18.8%
ROE
13.6%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
0.65x
Quick ratio
0.45x
Total debt
$4.32B
Total cash
$26.32M
Growth
How the business has been compounding
Revenue TTM
$3.65B
Revenue 5Y CAGR
22.1%
EPS TTM
5.83
EPS 5Y CAGR
-15.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.60B
Free CF TTM
$269.59M
FCF margin
7.4%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
24.7%
Last ex-div date
2026-08-10