Matador Resources outlined a disciplined growth strategy at the 17th Annual Midwest IDEAS Conference, projecting $900 million in free cash flow for 2026 alongside a flat $1.6 billion capital budget. The company, which has grown from a $6 million startup in 2003 to an enterprise value approaching $10 billion, emphasized profitable expansion over volume-driven targets.
Chief Financial Officer Chris Calvert reiterated the company’s focus on long-term value creation rather than quarterly performance, noting that maintenance capital expenditures are estimated to be $100 million to $200 million below current spending levels. Matador’s oil production is expected to rise 6% to 7% in 2026, building on a 21% compound annual growth rate in oil production from 2021 through recent periods. The company has also expanded its acreage by 17,000 net acres over the past year through its "ground game" strategy.
The company’s integrated midstream business, San Mateo Midstream—a 51% owned joint venture with Five Point Infrastructure—continues to scale, with gas processing capacity increasing from 60 million cubic feet per day to 720 million cubic feet per day. San Mateo Midstream’s annual EBITDA run rate is projected to approach $400 million in 2026, with a suggested valuation range of $3.2 billion to $4.8 billion based on 8x to 12x EBITDA multiples.
Matador’s stock metrics reflect its capital discipline, trading at $58.01 with a P/E ratio of 9.43 and a dividend yield of 2.71%. The company has raised its dividend seven times over five years, including a 20% increase over the last twelve months. Since April 2025, Matador has repurchased approximately 1.8 million shares at an average price in the low $40s, while insider purchases totaled 86 with no sales reported on Form 4 filings. More than 95% of employees participate in the company’s stock purchase program.
Production metrics highlight operational efficiency gains, with drilling and completion costs declining 12% per lateral foot year-over-year and well execution improving 10% to 15% through faster drilling and completion times. The company’s reserve base stands at 703 million BOE, excluding newly announced reserves from the Woodford formation. Natural gas production currently exceeds 0.5 billion cubic feet per day, with 50% to 70% of gas sales historically tied to the Waha hub.
