Matador Resources Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Oil and natural gas revenues reached $1.22 billion in Q3 2026, a 51% increase compared to $810 million in Q3 2025.
• Net income attributable to Matador Resources Company shareholders was $172.1 million in Q3 2026, compared to $176.4 million in Q3 2025.
• Adjusted net income was $257.5 million in Q3 2026, up from $169.3 million in Q3 2025.
• Adjusted EBITDA was $738.3 million in Q3 2026, compared to $566.5 million in Q3 2025.
• Adjusted free cash flow was $287.6 million in Q3 2026, compared to $93.4 million in Q3 2025.
• Net cash provided by operating activities was $594.4 million in Q3 2026, compared to $721.7 million in Q3 2025.
• Operating expenses were $33.67 per BOE in Q3 2026, above the guidance midpoint of $32.00 to $34.00, primarily due to higher midstream operating expenses of $3.89 per BOE.
• Lease operating expenses (LOE) were $5.66 per BOE in Q3 2026, below the guidance expectation of $5.80 per BOE.
• Well costs were $804 per completed lateral foot in Q3 2026, a 6% reduction from $855 per foot in Q3 2025.
• Total capital expenditures were $381 million in Q3 2026, a 19% reduction compared to Q3 2025 and 10% below the guidance midpoint of $425 million.
• Debt repayment of $150 million was completed in October 2026.
• Matador expects its leverage ratio to approach 1.5x by year-end 2026.

Guidance and Future Outlook:

• Full-year 2026 total oil equivalent production guidance was raised to 223,000 to 224,000 BOE per day.
• Full-year 2026 D/C/E capital expenditure guidance remains $1.50 to $1.54 billion.
• Full-year 2026 midstream capital expenditure guidance was raised to $170 to $190 million.
• Full-year 2026 total capital expenditure guidance was raised to $1.67 to $1.73 billion.
• Matador estimates it could deliver mid-single digit production growth or better in full-year 2027 compared to full-year 2026.
• Fourth quarter 2026 production is estimated at 238,000 to 242,000 BOE per day.
• Fourth quarter 2026 capital expenditures are estimated at $425 to $485 million.
• Matador expects higher natural gas realizations in Q1 2027 when long-term gas sales agreements with Gulf Coast liquefaction companies become effective.
• Full-year 2026 Adjusted EBITDA for San Mateo and other midstream assets is expected to approach $400 million, up 17% from 2025.

Business Segments and Product Lines:

• Total production averaged 230,470 BOE per day in Q3 2026, a 10% increase year-over-year from 209,184 BOE per day.
• Oil production averaged 132,019 barrels per day in Q3 2026, a 10% increase year-over-year.
• Natural gas production averaged 590.7 MMcf per day in Q3 2026, a 10% increase year-over-year.
• Oil and natural gas reserves increased 16% to 771 million BOE as of September 30, 2026, from 667 million BOE at December 31, 2025.
• San Mateo throughput for natural gas gathering increased 38% year-over-year to 731 MMcf per day.
• San Mateo throughput for natural gas processing increased 30% year-over-year to 695 MMcf per day.
• San Mateo delivered net income of $135 million for the first nine months of 2026.
• San Mateo achieved its highest quarterly Adjusted EBITDA in history in Q3 2026.
• San Mateo distributed $30.6 million to Matador during Q3 2026.
• A new 300 MMcf per day natural gas processing plant is expected at San Mateo's Marlan plant complex.
• The Hugh Brinson pipeline was commissioned on September 1, 2026, improving natural gas realizations.
• Matador acquired the Paloma and Ridge Runner assets in October 2026.
• Matador acquired Cardinal Midstream in July 2026.

Market and Competitive Landscape:

• Matador is one of the larger Northern Delaware Basin producers.
• San Mateo is the largest private natural gas processor in the Northern Delaware Basin.
• Natural gas realizations improved to $2.99 per Mcf in Q3 2026, a 53% increase from $1.95 per Mcf in Q3 2025.
• Oil realizations were $87.25 per barrel in Q3 2026, a 34% increase from $64.91 per barrel in Q3 2025.
• Matador added over 25,000 net acres in the Delaware Basin through selective transactions in 2025 and 2026.

Risks and Challenges:

• Forward-looking statements involve risks including commodity price volatility, operational risks, regulatory changes, and the ability to integrate acquisitions.
• Risks include the availability of financing, inflationary pressures on oilfield service costs, and the potential for delays in drilling programs or midstream asset construction.
• Risks include the impact of seismic events, weather conditions, and evolving cybersecurity risks.
• Actual results could differ materially from expectations due to the ability to replace reserves and efficiently develop current reserves.

Management Commentary and Tone:

• CEO Joseph Wm. Foran stated results beat expectations handily, driven by strong production, momentum from acquisitions, and strategic integration.
• Management highlighted the successful execution of four strategic catalysts in 2026: Federal lease sale, Cardinal Midstream acquisition, Paloma acquisition, and Woodford discovery/Ridge Runner acquisition.
• Management expressed confidence in cost discipline, noting that well-level efficiencies offset oilfield service inflation.
• Management announced the eighth dividend increase in five years, raising the annual dividend to $1.75 per share, a 17% increase from $1.50.
• Management noted that $150 million in debt repayments was $50 million more than previously announced for the fourth quarter.

Other Key Points:

• Matador repurchased 253,603 shares of common stock in Q3 2026 for a total of $12 million.
• Directors and executive officers purchased approximately 23,600 shares of Matador stock in Q3 2026.
• Over 95% of employees participated in the Employee Share Purchase Plan (ESPP).
• Matador owns 51% of San Mateo.
• Pro forma reserves as of September 30, 2026, include the Paloma and Ridge Runner acquisitions completed in October 2026.
• Matador expects to commence operations on 35 to 40 gross wells associated with the Federal lease sale and Paloma acreage, alongside up to 15 gross Woodford wells in New Mexico and Texas through year-end 2027.
• Matador turned to sales a twelve-well batch earlier than expected in the Ranger Asset area during Q3 2026.
• Natural gas revenue reached a quarterly high of $162 million in Q3 2026, compared to negative $39 million in Q2 2026.