Matador Resources outlined a strategy of disciplined growth at the 17th Annual Midwest IDEAS Conference, projecting a 6% to 7% increase in oil production for 2026 while keeping capital expenditures virtually flat at approximately $1.6 billion.
The Dallas-based independent, focused on the Delaware Basin, reported free cash flow of about $900 million for 2026, with maintenance capital potentially running $100 million to $200 million below current spending levels. CEO Joe Foran, the company’s founder and largest individual shareholder, reiterated the emphasis on profitable expansion rather than volume-driven growth, framing it as the firm’s long-standing approach.
CFO Chris Calvert highlighted the company’s integrated midstream operations through its 51%-owned San Mateo Midstream joint venture, now the largest private equity gas gatherer and processor in the Northern Delaware Basin. The venture’s EBITDA is projected to approach $400 million annually in 2026, with an estimated valuation range of $3.2 billion to $4.8 billion based on EBITDA multiples of 8x to 12x. San Mateo’s gas processing capacity has expanded from 60 million cubic feet per day to 720 million cubic feet per day, supporting Matador’s shift away from Waha hub pricing toward stronger regional benchmarks.
Production efficiency gains were noted, including a 12% year-over-year reduction in drilling and completion costs per lateral foot and a 10% to 15% improvement in well execution through faster drilling and completion cycles. The company’s reserves base exceeds 703 million barrels of oil equivalent, excluding potential contributions from its recently announced Woodford formation acreage expansion. Gas production currently stands slightly above 0.5 billion cubic feet per day, with historical sales heavily weighted toward the Waha hub.
Matador has expanded its acreage by 17,000 net acres over the past year through targeted leasing, trades, and acquisitions, including the Ridge Runner position in the Woodford formation. The company’s net revenue interest in recent Bureau of Land Management lease auctions averaged 87.5%, above the basin average of 75%. Shareholder alignment was underscored by insider activity, with 86 Form 4 purchases and no sales recorded since April 2025, alongside a dividend raised seven times over five years.
The firm’s integrated model, combining upstream production with midstream infrastructure, was positioned as a core competitive advantage. Calvert emphasized the strategy’s focus on long-term value creation over quarterly benchmarks, while Senior Vice President of Investor Relations Mac Schmitz highlighted insider purchasing as a demonstration of alignment with public shareholders.
