Matador Holds Dividend Flat as Cash Flow Guidance Nearly Triples
Matador Resources (MTDR) declared a quarterly dividend of $0.375 a share unchanged from April, even as the company now projects $1.1 billion to $1.2 billion in full-year adjusted free cash flow.
Matador Resources (MTDR) declared a quarterly cash dividend of $0.375 a share on July 22, matching the payout set in its April 22 declaration and showing no dividend growth quarter-over-quarter. The energy producer's announcement contained no operating, production, or financial results, a pattern consistent with the prior quarter's April release, which was also limited to dividend declaration.
The flat payout follows Q1 2026 results on May 6 that showed the underlying business accelerating. Matador reported average daily production of 207,594 barrels of oil equivalent, including 120,277 barrels of oil a day and 523.9 million cubic feet of gas a day, up 5% from Q1 2025. That output beat the upper end of the company's guidance range and exceeded the midpoint of its prior oil production guidance by 3%.
On the strength of that quarter, Matador raised its full-year 2026 production guidance while reaffirming cost-per-completed-lateral-foot, lease operating expense, and capital budget targets from its previous release. Capital spending in the first quarter came in line with prior guidance, which the company attributed to operational efficiencies and cost-saving initiatives.
The production beat carried through to cash generation. Matador raised its full-year 2026 adjusted free cash flow guidance to approximately $1.1 billion to $1.2 billion at strip pricing as of early May, up sharply from $437 million in full-year 2025 excluding land and seismic costs. Year-end 2025 audited proved reserves grew 9% to 667.0 million barrels of oil equivalent from 611.5 million a year earlier, giving the higher cash flow guidance a reserve base to draw on.
Matador applied the improved cash generation to its balance sheet, paying down more than $350 million on its revolving credit facility since year-end 2025. That followed a March 2026 tender offer that retired about 84%, or $419.7 million, of the $500 million outstanding on its 6.875% senior notes due 2028, with the remaining notes set for redemption by April 15, 2026.
The company also changed hands in its finance and operations leadership during the quarter. Christopher Calvert was promoted from chief operating officer to chief financial officer, and Glenn Stetson moved up to chief operating officer, effective April 21, 2026, following Robert Macalik's departure as CFO.
With the anchor release limited to the dividend declaration, the next full financial update will show whether Matador's production gains and debt paydown convert the raised free cash flow guidance into dividend growth beyond the $0.375-a-share level held since April.