# Matador Resources (MTDR.US)

Canonical: https://gigainvestors.com/s/MTDR

Analysis as of: 2026-10-16T07:30:27.539Z. Financial observations: FY2009–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $53.77 per share; close as of 2026-10-15.

Estimated value: low $107.34 per share, central $153.34 per share, high $180.13 per share. Buy at or below the central value $153.34 per share. Valuation as of 2026-10-16T07:30:27.539Z; scenarios are not confidence intervals.

Expected annual return: 21.8% at the stated quote. About 21.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 1.08×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.30×

- FY2018: 0.40×

- FY2019: 0.23×

- FY2020: -0.61×

- FY2021: 0.48×

- FY2022: 0.58×

- FY2023: 0.43×

- FY2024: 0.41×

- FY2025: 0.32×

- LTM to Jun 2026: 0.36×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.6%

- ROIC, second-lowest year: -13.1%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 45.1%

- Recent gross margin (lower of latest and 3-year median): 45.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 74.9%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -13.1%

- FY2017: 9.8%

- FY2018: 12.4%

- FY2019: 5.4%

- FY2020: -13.4%

- FY2021: 20.8%

- FY2022: 35.2%

- FY2023: 16.4%

- FY2024: 15.4%

- FY2025: 10.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.65×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.8B

- Net income, five-year total: $4.3B

- Return on incremental invested capital: 22.0%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -5.0 pp

- Working capital / revenue, final three-year average: 14.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.02×

- FY2024: 1.00×

- FY2025: 0.13×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.8% vs 15.4%

- Per-share earnings: -1.07 to 7.05 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.3%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: $2.7B

- Cumulative retained earnings: $3.8B

- Diluted shares, 10-year annual growth: 4.3%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $8.12

- Per-share value, starting three-year median: -$1.07

- Per-share value, ending three-year median: $7.05

- Buybacks concentrated in cheaper years (correlation): 0.83

- Average buyback yield: 0.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $1.8B

- Cumulative net income, 10 years: $4.1B

- ROIC, first three-year median: 9.8%

- ROIC, last three-year median: 15.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$1.07

- FY2017: $1.23

- FY2018: $2.41

- FY2019: $0.75

- FY2020: -$5.11

- FY2021: $4.91

- FY2022: $10.11

- FY2023: $7.05

- FY2024: $7.14

- FY2025: $6.09

### accounting: pass

- Sloan accruals: -14.0%

- Receivables to sales index (DSRI): 0.77×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -15.8%

- FY2017: -8.1%

- FY2018: -9.7%

- FY2019: -11.4%

- FY2020: -29.0%

- FY2021: -11.0%

- FY2022: -13.8%

- FY2023: -13.2%

- FY2024: -12.5%

- FY2025: -14.0%

## Holders

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 13% since Oct 2023 · sales +5%

Story as of 2026-10-16T09:59:13.322Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.7% a year for ten years

- 2025-06-28: Matador Resources Expands Gas Processing Capacity to 720 MMcf/d with Marlan Plant Startup ([finance.yahoo.com](https://finance.yahoo.com/news/matador-resources-expands-gas-processing-081637316.html))

- 2025-07-23: Matador Resources Q2 Earnings Beat on Higher Production Volumes ([finance.yahoo.com](https://finance.yahoo.com/news/matador-resources-q2-earnings-beat-143900288.html))

- 2026-02-26: Matador Refinances Debt As Record Output Meets Discounted Valuation ([finance.yahoo.com](https://finance.yahoo.com/news/matador-refinances-debt-record-output-192435736.html))

- 2026-08-27: Matador Resources Targets Growth, $900M Free Cash Flow as Delaware Basin Footprint Expands ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/matador-resources-targets-growth-900m-170200082.html))

### Sales · FY2025–2026

sales +5%; source https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm; observed 2026-02-26.

- FY2017: $544M 

- FY2018: $900M 

- FY2019: $1.0B 

- FY2020: $855M 

- FY2021: $1.7B 

- FY2022: $3.1B 

- FY2023: $2.8B 

- FY2024: $3.5B 

- FY2025: $3.7B 

- FY2026: $3.8B 

### Gross margin · FY2025

gross margin 45.8%; source https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm; observed 2026-02-26.

- FY2016: 14.3% 

- FY2017: 41.9% 

- FY2018: 48.3% 

- FY2019: 35.2% 

- FY2020: 25.8% 

- FY2021: 53.6% 

- FY2022: 61.4% 

- FY2023: 47.4% 

- FY2024: 44.3% 

- FY2025: 45.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas e&p; annual sales are USD 3.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm (filed 2026-02-26); FY2025: revenue 3656514000; grossProfit 1674110000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MTDR.US: Matador Resources Company, an independent energy company, engages in the acquisition, exploration, development, and production 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 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. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties, as well as sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was incorporated in 2003 and is headquartered in Dallas, Texas.

### Why customers stay

Margins ranged from 44.3% to 47.4% during 2023–25; it earns 11.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 47.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 44.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 45.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.13115193023818048],[2017,0.09767266742979289],[2018,0.12377724858656768],[2019,0.05382470963820081],[2020,-0.13428919504232228],[2021,0.20774548736905465],[2022,0.3520939515906278],[2023,0.16389118167655972],[2024,0.1535678621094037],[2025,0.1083132142668704]]; median 0.11604523142671905. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 22% on new investment; paid dividends in 9 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 641469000; upkeep 178792000; cash acquisitions 0; owner earnings 125867000. Growth capex plus acquisitions / owner earnings = 5.096403346389443.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 1256221526.825393; upkeep 267364473.17460704; owner earnings 273514526.82539296. Growth capex / owner earnings = 4.592887776038833.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 388575000; upkeep 344905000; cash acquisitions 0; owner earnings 584968000. Growth capex plus acquisitions / owner earnings = 0.6642671052091739.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 617636000; upkeep 466348000; cash acquisitions 75816000; owner earnings 1214206000. Growth capex plus acquisitions / owner earnings = 0.5711156097070843.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 1549810000; cash acquisitions 0; owner earnings 12952000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 992546000; upkeep 974300000; cash acquisitions 1717638000; owner earnings 885322000. Growth capex plus acquisitions / owner earnings = 3.0612409948018913.

- Source: https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm (filed 2026-02-26); FY2025: growth capex 327946613.52421117; upkeep 1855424386.4757888; cash acquisitions 0; owner earnings 99154613.52421117. Growth capex plus acquisitions / owner earnings = 3.3074266730325617.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.21990542699511048, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,10045000],[2018,121520000],[2019,391000],[2020,1511000],[2021,14581000],[2022,35246000],[2023,77175000],[2024,104876000],[2025,163096000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 55849000 USD.

### What the price says

The price assumes cash profits shrink 6.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.10662006879584757. Price 53.77; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -12.2327041711125 → FY2025 0.7958728390365785. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $21.81 per share

- 2016-11: $26.64 per share

- 2016-12: $25.76 per share

- 2017-01: $26.33 per share

- 2017-02: $24.07 per share

- 2017-03: $23.79 per share

- 2017-04: $21.68 per share

- 2017-05: $22.79 per share

- 2017-06: $21.37 per share

- 2017-07: $24.26 per share

- 2017-08: $23.58 per share

- 2017-09: $27.15 per share

- 2017-10: $26.55 per share

- 2017-11: $28.60 per share

- 2017-12: $31.13 per share

- 2018-01: $32.41 per share

- 2018-02: $28.86 per share

- 2018-03: $29.91 per share

- 2018-04: $32.74 per share

- 2018-05: $28.07 per share

- 2018-06: $30.05 per share

- 2018-07: $33.50 per share

- 2018-08: $32.74 per share

- 2018-09: $33.05 per share

- 2018-10: $28.84 per share

- 2018-11: $22.80 per share

- 2018-12: $15.53 per share

- 2019-01: $19.50 per share

- 2019-02: $18.60 per share

- 2019-03: $19.33 per share

- 2019-04: $19.69 per share

- 2019-05: $16.44 per share

- 2019-06: $19.88 per share

- 2019-07: $17.63 per share

- 2019-08: $15.65 per share

- 2019-09: $16.53 per share

- 2019-10: $13.91 per share

- 2019-11: $14.08 per share

- 2019-12: $17.97 per share

- 2020-01: $14.67 per share

- 2020-02: $9.64 per share

- 2020-03: $2.48 per share

- 2020-04: $7.04 per share

- 2020-05: $7.84 per share

- 2020-06: $8.50 per share

- 2020-07: $8.68 per share

- 2020-08: $9.73 per share

- 2020-09: $8.26 per share

- 2020-10: $7.07 per share

- 2020-11: $10.18 per share

- 2020-12: $12.06 per share

- 2021-01: $15.28 per share

- 2021-02: $20.89 per share

- 2021-03: $23.45 per share

- 2021-04: $26.31 per share

- 2021-05: $30.64 per share

- 2021-06: $36.01 per share

- 2021-07: $30.90 per share

- 2021-08: $28.75 per share

- 2021-09: $38.04 per share

- 2021-10: $41.85 per share

- 2021-11: $39.27 per share

- 2021-12: $36.92 per share

- 2022-01: $44.77 per share

- 2022-02: $49.60 per share

- 2022-03: $52.98 per share

- 2022-04: $48.82 per share

- 2022-05: $60.90 per share

- 2022-06: $46.59 per share

- 2022-07: $57.78 per share

- 2022-08: $59.60 per share

- 2022-09: $48.92 per share

- 2022-10: $66.45 per share

- 2022-11: $66.36 per share

- 2022-12: $57.24 per share

- 2023-01: $66.16 per share

- 2023-02: $53.79 per share

- 2023-03: $47.65 per share

- 2023-04: $49.03 per share

- 2023-05: $43.97 per share

- 2023-06: $52.32 per share

- 2023-07: $55.63 per share

- 2023-08: $63.50 per share

- 2023-09: $59.48 per share

- 2023-10: $61.69 per share

- 2023-11: $57.88 per share

- 2023-12: $56.86 per share

- 2024-01: $54.89 per share

- 2024-02: $63.15 per share

- 2024-03: $66.77 per share

- 2024-04: $62.30 per share

- 2024-05: $63.45 per share

- 2024-06: $59.60 per share

- 2024-07: $61.48 per share

- 2024-08: $56.72 per share

- 2024-09: $49.42 per share

- 2024-10: $52.11 per share

- 2024-11: $60.01 per share

- 2024-12: $56.26 per share

- 2025-01: $58.00 per share

- 2025-02: $52.34 per share

- 2025-03: $51.09 per share

- 2025-04: $39.54 per share

- 2025-05: $43.01 per share

- 2025-06: $47.72 per share

- 2025-07: $49.88 per share

- 2025-08: $50.36 per share

- 2025-09: $44.93 per share

- 2025-10: $39.46 per share

- 2025-11: $42.40 per share

- 2025-12: $42.44 per share

- 2026-01: $45.24 per share

- 2026-02: $51.40 per share

- 2026-03: $63.18 per share

- 2026-04: $63.44 per share

- 2026-05: $53.60 per share

- 2026-06: $49.78 per share

- 2026-07: $49.89 per share

- 2026-08: $58.01 per share

- 2026-09: $51.58 per share

- 2026-10: $53.77 per share

## Annual estimated value (USD per share)

- FY2017: low $10.86 per share, central $12.25 per share, high $14.09 per share

- FY2018: low $20.41 per share, central $23.17 per share, high $26.84 per share

- FY2021: low $43.99 per share, central $62.79 per share, high $73.74 per share

- FY2022: low $108.92 per share, central $154.01 per share, high $180.26 per share

- FY2023: low $1.18 per share, central $1.34 per share, high $1.56 per share

- FY2024: low $97.00 per share, central $138.57 per share, high $162.78 per share

- FY2025: low $101.59 per share, central $145.10 per share, high $170.44 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:11.506Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.