Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 31 Dec, 25 | MTDR | Buy | USD 42.79 | USD 45.25 | USD 46.5 | 29 days | Closed |
5.89%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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. 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. 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.
Continued Expansion in Midstream Revenue Contribution: Matador’s midstream platform delivered stronger earnings contribution in Q3 FY25, with third-party midstream revenues rising to USD 43.8 million, compared with USD 38.3 million in Q3 FY24
Sustained Revenue Growth Momentum: During Q3 FY25, Matador Resources Company reported total revenues of USD 939.0 million, reflecting a meaningful increase from USD 899.8 million in Q3 FY24
Decline in Net Income Attributable to Shareholders: Net income attributable to Matador shareholders declining to USD 176.4 million in Q3 FY25, compared with USD 248.3 million in Q3 FY24
Meaningful Increase in DD&A Costs: Depletion, depreciation and amortization expense, rose to USD 305.4 million in Q3 FY25, compared with USD 242.8 million in Q3 FY24
Matador Resources Company remains exposed to commodity price volatility, capital intensity risk, and elevated cost inflation, which could pressure margins and returns should market conditions weaken
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 42.79 | 39.5 | 45.25 | 46.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Performance: During Q3 FY25, Matador Resources Company reported total revenues of USD 939.0 million, reflecting an increase compared with USD 899.8 million in Q3 FY24. This growth was underpinned by stronger commodity price realizations and continued operational execution in the Delaware Basin. Oil and natural gas revenues rose to USD 810.2 million, supported by a notable increase in natural gas revenues to USD 96.3 million from USD 71.8 million in the prior-year quarter. Third-party midstream services revenue also contributed positively to the top line.
Profitability and Cost Structure: Despite revenue growth, net income attributable to shareholders declined to USD 176.4 million in Q3 FY25 from USD 248.3 million in Q3 FY24. The contraction was primarily driven by higher depletion, depreciation and amortization (DD&A) expenses of USD 305.4 million, up from USD 242.8 million, along with increased lease operating expenses and general and administrative costs. Interest expense also rose year-on-year. These factors offset the higher revenue base and moderated net earnings performance.
Operating Expenses: Total operating expenses reached USD 633.0 million in Q3 FY25, compared with USD 507.7 million in Q3 FY24. Lease operating expenses increased to USD 107.5 million, reflecting higher activity levels across key development areas. Production-related taxes and transportation charges also increased, consistent with higher commodity-linked revenue. DD&A remained the single largest expense component due to sustained capital investment and reserve development.
Operating Income and Earnings Quality: Operating income totaled USD 306.0 million in Q3 FY25, down from USD 392.1 million in the prior-year quarter, reflecting the expanded expense base. While derivative gains modestly supported reported earnings, the company’s underlying business continues to remain predominantly driven by upstream operations and midstream integration. Matador continues to demonstrate scale and consistency in production delivery, though cost inflation remains evident in field-level operations.
Midstream and Integrated Operations: Matador’s midstream joint venture continued to provide strategic flow assurance and incremental earnings stability. Third-party midstream revenue increased to USD 43.8 million in Q3 FY25, compared with USD 38.3 million in Q3 FY24, reflecting expanding utilization of gathering and processing infrastructure. These assets remain a structural advantage in supporting Matador’s development program and enhancing margins over the long term.
Capital Structure and Shareholder Returns: The company maintained a disciplined capital structure, with continued investment in drilling and completion activity alongside shareholder distributions. Dividends continued at a quarterly rate of USD 0.3125 per share during the period, while the authorized share repurchase program saw selective execution. Balance sheet liquidity and credit facility access support ongoing development plans and strategic investment flexibility.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Matador Resources Company (NYSE: MTDR) at the closing market price of USD 42.79, as on Dec 30, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas E&P
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MTDR Matador Resources Company |
-0.84 1.67% | 49.56 | 8.19 | 5.59 | 2.74 | 1.85 | 3.34 | 4.85 |
| COP ConocoPhillips |
-3.47 3.12% | 107.74 | 18.36 | 12.53 | 2.44 | 2.20 | 2.69 | 6.19 |
| CNQ Canadian Natural Resources Ltd |
-1.37 3.23% | 41.05 | 11.56 | 12.72 | 2.39 | 2.85 | 3.22 | 6.50 |
| EOG EOG Resources Inc |
-3.27 2.45% | 129.98 | 9.09 | 8.98 | 3.01 | 2.57 | 2.97 | 5.16 |
| PEXNY PTT Exploration & Production |
- -% | 8.21 | 25.79 | 24.51 | 5.92 | 3.66 | 0.05 | 0.08 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 31, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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