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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
15.3%
Sector: 6.7%
Dividend Analysis audit
INCOME
2.64%
Trailing Yield
$2.64
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
23%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Matador Resources Co (MTDR) receives a "Hold" rating with a composite score of 49.3/100, ranked #213 out of 4446 stocks. Key factor scores: Quality 50/100, Value 74/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
Matador Resources Co (MTDR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Matador Resources Co Do?
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. As of December 31, 2021, its estimated total proved oil and natural gas reserves were 323.4 million barrels of oil equivalent, including 181.3 million stock tank barrels of oil and 852.5 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas. Matador Resources Co (MTDR) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Joseph W. Foran and employs approximately 290 people, headquartered in DALLAS, Texas. With a market capitalization of $7.5B, MTDR is one of the notable companies in the Energy sector.
Matador Resources Co (MTDR) Stock Rating — Hold (April 2026)
As of April 2026, Matador Resources Co receives a Hold rating with a composite score of 49.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MTDR ranks #213 out of 4,446 stocks in our coverage universe. Within the Energy sector, Matador Resources Co ranks #35 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MTDR Stock Price and 52-Week Range
Matador Resources Co (MTDR) currently trades at $59.86. The stock gained $0.10 (0.2%) in the most recent trading session. The 52-week high for MTDR is $58.51, which means the stock is currently trading 2.3% from its annual peak. The 52-week low is $35.19, putting the stock 70.1% above its annual trough. Recent trading volume was 1.0M shares, reflecting moderate market activity.
Is MTDR Overvalued or Undervalued? — Valuation Analysis
Matador Resources Co (MTDR) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.73x, compared to the Energy sector average of 19.63x — a discount of 56%. The price-to-book ratio stands at 1.34x, versus the sector average of 1.64x. The price-to-sales ratio is 2.14x, compared to 0.47x for the average Energy stock. On an enterprise value basis, MTDR trades at 8.30x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, Matador Resources Co appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Matador Resources Co Profitability — ROE, Margins, and Quality Score
Matador Resources Co (MTDR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.3%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 7.8% versus the sector average of 3.7%.
On a margin basis, Matador Resources Co reports gross margins of 94.4%, compared to 52.7% for the sector. The operating margin is 36.7% (sector: 10.7%). Net profit margin stands at 24.5%, versus 6.4% for the average Energy stock. Revenue growth is running at 10.8% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MTDR Debt, Balance Sheet, and Financial Health
Matador Resources Co has a debt-to-equity ratio of 57.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.79x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $3.40B. Cash and equivalents stand at $20M.
MTDR has a beta of 1.16, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Matador Resources Co is 54/100, reflecting average volatility within the normal range for its sector.
Matador Resources Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Matador Resources Co reported revenue of $3.75B and earnings per share (EPS) of $6.10. Net income for the quarter was $918M. Gross margin was 94.4%. Operating income came in at $1.38B.
In FY 2025, Matador Resources Co reported revenue of $3.70B and earnings per share (EPS) of $6.10. Net income for the quarter was $861M. Gross margin was 94.4%. Revenue grew 5.5% year-over-year compared to FY 2024. Operating income came in at $1.23B.
In Q3 2025, Matador Resources Co reported revenue of $939M and earnings per share (EPS) of $1.42. Net income for the quarter was $201M. Revenue grew 4.4% year-over-year compared to Q3 2024. Operating income came in at $306M.
In Q2 2025, Matador Resources Co reported revenue of $895M and earnings per share (EPS) of $1.21. Net income for the quarter was $182M. Revenue grew 5.7% year-over-year compared to Q2 2024. Operating income came in at $289M.
Over the past 8 quarters, Matador Resources Co has demonstrated a growth trajectory, with revenue expanding from $847M to $3.75B. Investors analyzing MTDR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MTDR Dividend Yield and Income Analysis
Matador Resources Co (MTDR) currently pays a dividend yield of 2.6%. At this yield, a $10,000 investment in MTDR stock would generate approximately $$264.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning MTDR offers above-average income for its sector. With a net margin of 24.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MTDR Momentum and Technical Analysis Profile
Matador Resources Co (MTDR) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MTDR vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing MTDR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MTDR vs S&P 500 (SPY) comparison to assess how Matador Resources Co stacks up against the broader market across all factor dimensions.
MTDR Next Earnings Date
No upcoming earnings date has been announced for Matador Resources Co (MTDR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MTDR? — Investment Thesis Summary
Matador Resources Co presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals.
In summary, Matador Resources Co (MTDR) earns a Hold rating with a composite score of 49.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MTDR stock.
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Institutional Research Dossier
Matador Resources Co (MTDR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Matador Resources Co. (MTDR) receives a Hold rating, reflecting a balanced view of its operational strengths and financial challenges. While the company demonstrates robust profitability and attractive valuation multiples compared to its energy sector peers, its negative free cash flow and substantial debt burden raise concerns about its long-term financial sustainability and capital allocation efficiency. The Hold rating acknowledges Matador's potential for growth and value creation but also underscores the need for improved cash flow management and debt reduction.
The most critical takeaway is that Matador's future performance hinges on its ability to translate strong revenue and earnings into positive free cash flow. The company's aggressive growth strategy, while driving revenue expansion, has also resulted in significant capital expenditures, leading to negative free cash flow. Investors should closely monitor Matador's progress in optimizing its capital allocation strategy and improving its cash flow generation to assess its long-term investment viability.
Business Strategy & Overview
Matador Resources operates as an independent energy company focused on the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Its primary assets are located in the prolific Delaware Basin in Southeast New Mexico and West Texas, targeting the Wolfcamp and Bone Spring plays. The company also has operations in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. This diversified asset base provides exposure to multiple high-potential shale formations, allowing Matador to capitalize on varying commodity price environments and geological characteristics.
The company's strategy involves a combination of organic growth through drilling and development activities and strategic acquisitions to expand its acreage position and resource base. Matador has been actively investing in infrastructure, including midstream assets, to support its production operations and enhance its operational efficiency. These midstream operations provide natural gas processing, oil transportation, and water management services, both for its own production and for third-party customers. This vertical integration allows Matador to capture additional value along the energy value chain and reduce its reliance on external service providers.
Matador's business model is predicated on maximizing the economic returns from its oil and gas production. The company employs advanced drilling and completion techniques to optimize well productivity and reduce costs. It also actively manages its commodity price exposure through hedging strategies to mitigate the impact of price volatility on its revenue and cash flow. The company's management team has a proven track record of creating value through disciplined capital allocation and operational excellence.
The energy sector is characterized by intense competition and cyclical commodity prices. Matador competes with other independent oil and gas producers, as well as major integrated energy companies, for access to resources, capital, and skilled personnel. The company's success depends on its ability to efficiently develop its assets, control costs, and adapt to changing market conditions. The regulatory environment also plays a significant role, with environmental regulations and permitting requirements impacting the company's operations and development plans.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
10.8%
Sector: -1.2%
-1027% VS SCTR
Economic Moat Analysis
Matador Resources possesses a narrow economic moat, primarily derived from its cost advantages in specific areas of operation and its strategic midstream assets. The company's focus on the Delaware Basin, a region known for its high-quality oil and gas resources, allows it to achieve competitive production costs compared to some of its peers operating in less prolific areas. This cost advantage stems from the higher initial production rates and lower operating expenses associated with the Delaware Basin's geological characteristics.
The company's midstream assets, including natural gas processing plants, oil transportation pipelines, and water management infrastructure, provide a degree of vertical integration that enhances its operational efficiency and reduces its reliance on third-party service providers. These assets also generate revenue from third-party customers, contributing to the company's overall profitability. The midstream infrastructure creates a localized competitive advantage by providing essential services to other producers in the region, potentially increasing switching costs for those producers.
However, the energy sector is inherently competitive, and Matador's cost advantages are not insurmountable. Other producers in the Delaware Basin also benefit from the region's favorable geology, and technological advancements can erode cost advantages over time. The company's midstream assets, while valuable, are not unique and can be replicated by other companies with sufficient capital and expertise.
Furthermore, the cyclical nature of commodity prices and the regulatory environment pose challenges to Matador's ability to sustain its competitive advantages. Fluctuations in oil and gas prices can significantly impact the company's profitability, regardless of its cost structure. Changes in environmental regulations and permitting requirements can also increase operating costs and delay development projects, potentially diminishing its competitive position.
Therefore, while Matador possesses some elements of a narrow moat, its competitive advantages are not wide or deeply entrenched. The company's success depends on its ability to continuously innovate, optimize its operations, and adapt to changing market conditions to maintain its competitive edge. The narrow moat reflects the inherent challenges of establishing and sustaining a durable competitive advantage in the highly competitive and cyclical energy sector.
Financial Health & Profitability
Matador Resources demonstrates a mixed financial profile. The company's revenue has shown strong growth, increasing from $2.81 billion in FY2023 to $3.70 billion in FY2025. This growth is further supported by a revenue increase from $3.50 billion in FY2024 to $3.70 billion in FY2025, indicating a positive trajectory. The company's gross margin is exceptionally high, consistently above 94% in recent years, significantly exceeding the sector average of 55.1%. Similarly, its operating margin, ranging from 32.2% to 44.9% over the past few quarters, is substantially higher than the sector average of 10.6%. Net income has also been robust, with $860.77 million reported in FY2025.
However, Matador's free cash flow (FCF) presents a significant concern. The company reported negative free cash flow of -$242.20 million for the trailing twelve months (TTM). This negative FCF indicates that the company is spending more cash than it is generating from its operations, raising questions about its financial sustainability. The company's total debt stands at $3.40 billion, which is substantial relative to its total cash of only $20.15 million. The debt-to-equity ratio is 57.00, slightly higher than the sector average of 55.00, suggesting a moderate level of leverage.
The current ratio of 0.79 indicates that Matador may face challenges in meeting its short-term obligations. A current ratio below 1 suggests that the company's current liabilities exceed its current assets, potentially leading to liquidity issues. The company's return on equity (ROE) of 15.3% is significantly higher than the sector average of 6.9%, indicating efficient use of equity to generate profits. However, the negative free cash flow and high debt levels offset some of the positive aspects of its profitability.
Analyzing the quarterly financial history reveals a consistent trend of strong revenue and net income generation, but the absence of consistent positive free cash flow is a recurring concern. While the company's gross and operating margins remain impressive, the lack of FCF generation suggests that the company's capital expenditures are outpacing its operating cash flow. This situation warrants close monitoring to ensure that Matador can improve its cash flow management and reduce its reliance on debt financing.
Valuation Assessment
Matador Resources' valuation presents a compelling case for value investors, but the negative free cash flow warrants caution. The company's price-to-earnings (P/E) ratio of 9.6x is significantly lower than the sector average of 19.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.2x is substantially lower than the sector average of 3.5x, further indicating undervaluation based on its operating performance.
The company's strong revenue growth and high profitability margins support the argument for undervaluation. Matador's revenue growth of 10.9% significantly exceeds the sector average of -1.7%, demonstrating its ability to outperform its peers in terms of revenue generation. Its gross margin of 94.4% and operating margin of 36.7% are also significantly higher than the sector averages, indicating superior profitability and cost management.
However, the negative free cash flow is a critical factor that must be considered in the valuation assessment. While the company's earnings multiples suggest undervaluation, the negative FCF raises concerns about its ability to generate cash and fund its future growth. Investors should carefully analyze the reasons for the negative FCF and assess the company's plans to improve its cash flow generation.
The company's debt levels also play a role in the valuation assessment. While the debt-to-equity ratio is only slightly above the sector average, the absolute amount of debt ($3.40 billion) is substantial relative to its cash reserves ($20.15 million). This high debt level increases the company's financial risk and could limit its ability to invest in future growth opportunities. The valuation should consider the potential impact of debt servicing costs on the company's future earnings and cash flow.
Overall, Matador's valuation appears attractive based on its earnings multiples and profitability margins. However, the negative free cash flow and high debt levels warrant caution. The stock may be undervalued if the company can successfully improve its cash flow generation and reduce its debt burden. Investors should closely monitor the company's progress in these areas to determine whether the undervaluation is justified.
Risk & Uncertainty
Matador Resources faces several key risks that could impact its financial performance and stock valuation. The most significant risk is commodity price volatility. As an oil and gas producer, Matador's revenue and profitability are directly tied to the prices of oil and natural gas. Fluctuations in commodity prices can significantly impact the company's earnings and cash flow, regardless of its operational efficiency. A sustained decline in oil and gas prices could lead to reduced drilling activity, lower production volumes, and decreased profitability.
Another significant risk is related to the company's debt levels. Matador has a substantial amount of debt outstanding, which increases its financial leverage and exposes it to interest rate risk. Rising interest rates could increase the company's debt servicing costs, reducing its profitability and cash flow. The company's ability to repay its debt obligations depends on its ability to generate sufficient cash flow from its operations. Any disruption to its production or a decline in commodity prices could jeopardize its ability to meet its debt obligations.
Regulatory and environmental risks also pose a threat to Matador's operations. The oil and gas industry is subject to extensive regulations related to environmental protection, safety, and permitting. Changes in these regulations could increase the company's operating costs and delay its development projects. Environmental incidents, such as spills or leaks, could result in significant liabilities and reputational damage. The increasing focus on climate change and the transition to renewable energy sources could also impact the long-term demand for oil and gas, potentially reducing the value of Matador's assets.
Operational risks, such as drilling and completion challenges, also exist. The company's success depends on its ability to efficiently develop its oil and gas resources. Drilling and completion activities are inherently complex and can be subject to unexpected challenges, such as geological uncertainties, equipment failures, and weather-related disruptions. These challenges can increase costs and delay production, impacting the company's profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMatador's strategic focus on the high-return Delaware Basin, coupled with its integrated midstream operations, positions it for superior profitability compared to peers.
BULL VIEWThe company's aggressive growth strategy, while currently impacting free cash flow, will ultimately drive significant production increases and long-term shareholder value.
The Bear Case
BEAR VIEWMatador's negative free cash flow and high debt levels raise concerns about its financial sustainability, especially in a volatile commodity price environment.
BEAR VIEWThe company's reliance on continued drilling and development to maintain production growth exposes it to significant capital expenditure requirements and potential cost overruns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MTDR and 4,400+ other equities.
Matador Resources Co exhibits a 105% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.8%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
94.4%
Sector: 52.7%
Operating Margin
Core business profitability
36.7%
Sector: 10.7%
Net Margin
Bottom-line profitability
24.5%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+40%
Income Projection audit
A $10,000 investment would generate approximately $264 annually in dividends at the current trailing rate.
