Matador Lifts 2026 Production Guidance After Oil Beat

The Tip Desk · November 10, 2026 · 5 min read

Oil and natural gas revenues reached a record $1.22 billion in the third quarter, up 51% from $810 million a year earlier.

Matador Resources Company (MTDR), an independent oil and natural gas producer focused on the Delaware Basin, reported third-quarter 2026 oil and natural gas revenues of a record $1.22 billion, up 51% from $810 million in the third quarter of 2025, which the company said was driven by record production and improved price realizations.

Total production averaged 230,470 barrels of oil equivalent per day, a 10% year-over-year increase from 209,184 BOE per day and 3% above the 224,000 BOE per day guidance midpoint. Oil averaged 132,019 barrels per day, 2% above the midpoint of the 128,500 to 130,500 Bbl per day guidance range. Natural gas averaged 590.7 million cubic feet per day, 4% above the midpoint of the 561.0 to 573.0 MMcf per day range. The company said the beat was primarily due to outperformance of new wells turned to sales in the quarter and a twelve-well batch brought online earlier than expected in the Ranger Asset area.

Natural gas was the sharper sequential turn. Natural gas revenue was $162 million, compared with negative $39 million in the second quarter of 2026, a swing the company attributed to higher realizations and the September 1, 2026 commissioning of the Hugh Brinson pipeline. Natural gas production rose 10% to 591 MMcfd from 537 MMcfd in the second quarter. Realized natural gas prices were $2.99 per Mcf, an improvement of $3.78 per Mcf from negative $0.79 per Mcf in the second quarter and up 53% from $1.95 per Mcf in the third quarter of 2025. Realized oil prices were $87.25 per barrel, down 11% sequentially from $98.16 per barrel and up 34% from $64.91 per barrel a year earlier. The company said it expects the natural gas revenue trend to continue, supported by production growth and Hugh Brinson pricing versus Waha, and that higher realizations are expected when long-term Gulf Coast liquefaction sales agreements become effective in the first quarter of 2027.

Capital spending was $381 million, 19% below the third quarter of 2025 and 10% below the $425 million guidance midpoint. Total capital expenditures of $381.4 million were below the $410 to $440 million August range, which the company said was primarily driven by timing shifts in the upstream and midstream businesses. Well costs were $804 per completed lateral foot, a 6% reduction from $855 per completed lateral foot in the same period in 2025. Operating expenses of $33.67 per BOE were above the midpoint of the $32.00 to $34.00 per BOE 2026 guidance range, primarily due to higher midstream operating expense of $3.89 per BOE versus $3.30 per BOE full-year expectations, tied to the Cardinal Midstream acquisition and certain non-recurring costs. Lease operating expenses of $5.66 per BOE were better than expectations of $5.80 per BOE.

Oil and natural gas reserves increased 16% to 771 million BOE from 667 million BOE at December 31, 2025, pro forma for the Paloma and Ridge Runner acquisitions completed in October 2026. San Mateo natural gas gathering throughput was 731 MMcf per day, up 27% sequentially from 577 MMcf per day, and processing throughput was 695 MMcf per day, up 26% sequentially from 552 MMcf per day. Oil gathering and transportation throughput was 38,300 barrels per day, down 8% sequentially from 41,600 barrels per day. San Mateo and Matador’s wholly-owned midstream assets had combined quarterly net income of $50.4 million and Adjusted EBITDA of $101.4 million. San Mateo distributed $30.6 million to Matador. The company said it now expects San Mateo and other wholly-owned midstream assets to generate Adjusted EBITDA approaching $400 million for full year 2026, up 17% from $332 million in 2025.

Effective November 3, 2026, Matador raised the midpoint of full-year 2026 total BOE production guidance to 223,000 to 224,000 BOE per day from the August range of 218,500 to 223,500 BOE per day, placing the midpoint at the high end of the prior range and representing 7% production growth from year-end 2025. Oil guidance was raised to 128,750 to 129,250 barrels per day and natural gas to 565.5 to 568.5 MMcf per day. The company said the expected 2026 production increase from 221,000 BOE per day to 223,500 BOE per day is attributable to 1,600 BOE per day from better-than-expected third-quarter production and 900 BOE per day from improvements to expected fourth-quarter production. D/C/E capital expenditure guidance midpoint of $1.52 billion was unchanged, with the range narrowed to $1.50 to $1.54 billion. Midstream capital expenditure guidance midpoint was adjusted from $155 million in August to $180 million due to the Marlan processing plant expansion. Total capital expenditure guidance midpoint of $1.70 billion is flat as compared with total capital expenditures in 2025. Drilling and completion costs per foot remain at $785 to $805 per completed lateral foot.

Matador expects fourth-quarter 2026 total production of 238,000 to 242,000 BOE per day, oil of 136,000 to 138,000 barrels per day, and natural gas of 612.0 to 624.0 MMcf per day, with Paloma and Ridge Runner expected to contribute about 10,000 BOE per day (57% oil). Fourth-quarter D/C/E and midstream capital expenditures are expected at approximately $425 to $485 million. The company repaid $150 million in October 2026, $50 million more than previously announced, and now expects its leverage ratio to approach 1.5x by year-end 2026. The annual dividend increased to $1.75 per share per year, a 17% increase from $1.50 per share, the eighth dividend increase in five years. During the third quarter, Matador repurchased 253,603 shares at a weighted average price of approximately $47.64 per share for a total of $12 million.