mtdr-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________

FORM 10-Q

_________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35410

_________________________________________________________

Matador Resources Company

(Exact name of registrant as specified in its charter)

_________________________________________________________


Texas			27-4662601
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

5400 LBJ Freeway, Suite 1500 Dallas, Texas			75240
(Address of principal executive offices)			(Zip Code)

(972) 371-5200

(Registrant’s telephone number, including area code)

_________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

MTDR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April 23, 2024, there were 124,780,249 shares of the registrant’s common stock, par value $0.01 per share, outstanding.

Table of Contents

MATADOR RESOURCES COMPANY

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2024

TABLE OF CONTENTS


			Page
PART I — FINANCIAL INFORMATION			3
Item 1. Financial Statements — Unaudited			3
Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023			3
Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023			4
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2024 and 2023			5
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023			7
Notes to Condensed Consolidated Financial Statements			8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk			38
Item 4. Controls and Procedures			40
PART II — OTHER INFORMATION			41
Item 1. Legal Proceedings			41
Item 1A. Risk Factors			41

Item 5. Other Information			41
Item 6. Exhibits			43
SIGNATURES			44

Table of Contents

Part I — FINANCIAL INFORMATION

Item 1. Financial Statements — Unaudited

Matador Resources Company and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED

(In thousands, except par value and share data)


	March 31, 2024		December 31, 2023
ASSETS
Current assets
Cash	$	23,208	$	52,662

Restricted cash	51,118		53,636
Accounts receivable
Oil and natural gas revenues	278,155		274,192
Joint interest billings	207,540		163,660
Other	42,778		35,102
Derivative instruments	3,027		2,112


Lease and well equipment inventory	39,927		41,808
Prepaid expenses and other current assets	108,382		92,700
Total current assets	754,135		715,872
Property and equipment, at cost
Oil and natural gas properties, full-cost method
Evaluated	9,973,110		9,633,757
Unproved and unevaluated	1,407,512		1,193,257
Midstream properties	1,398,601		1,318,015
Other property and equipment	40,901		40,375
Less accumulated depletion, depreciation and amortization	(5,441,274)		(5,228,963)
Net property and equipment	7,378,850		6,956,441
Other assets
Derivative instruments	1,718		558

Other long-term assets	92,626		54,125
Total other assets	94,344		54,683
Total assets	$	8,227,329	$	7,726,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	121,823	$	68,185
Accrued liabilities	419,791		365,848
Royalties payable	178,506		161,983

Amounts due to affiliates	13,495		28,688

Advances from joint interest owners	37,725		19,954




Other current liabilities	80,001		40,617
Total current liabilities	851,341		685,275
Long-term liabilities
Borrowings under Credit Agreement	260,000		500,000
Borrowings under San Mateo Credit Facility	526,000		522,000
Senior unsecured notes payable	1,185,567		1,184,627
Asset retirement obligations	90,361		87,485


Deferred income taxes	625,682		581,439

Other long-term liabilities	52,216		38,482
Total long-term liabilities	2,739,826		2,914,033
Commitments and contingencies (Note 10)
Shareholders’ equity

Common stock - $0.01 par value, 160,000,000 shares authorized; 124,835,154 and 119,478,282 shares issued; and 124,780,297 and 119,458,674 shares outstanding, respectively	1,248		1,194
Additional paid-in capital	2,472,681		2,133,172
Retained earnings	1,946,412		1,776,541
Treasury stock, at cost, 54,857 and 19,608 shares, respectively	(2,091)		(45)
Total Matador Resources Company shareholders’ equity	4,418,250		3,910,862
Non-controlling interest in subsidiaries	217,912		216,826
Total shareholders’ equity	4,636,162		4,127,688
Total liabilities and shareholders’ equity	$	8,227,329	$	7,726,996

The accompanying notes are an integral part of these financial statements.

Table of Contents

Matador Resources Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED

(In thousands, except per share data)


	Three Months Ended March 31,
	2024		2023
Revenues
Oil and natural gas revenues	$	703,540	$	502,909
Third-party midstream services revenues	32,357		26,511
Sales of purchased natural gas	49,446		34,254

Realized gain on derivatives	275		3,669
Unrealized gain (loss) on derivatives	2,075		(7,067)
Total revenues	787,693		560,276
Expenses
Production taxes, transportation and processing	70,153		55,486
Lease operating	76,295		44,407
Plant and other midstream services operating	39,623		31,045
Purchased natural gas	39,432		28,448
Depletion, depreciation and amortization	212,311		126,325
Accretion of asset retirement obligations	1,273		699

General and administrative	29,653		22,433
Total expenses	468,740		308,843
Operating income	318,953

SEC Form 10-Q filed by Matador Resources Company