Matador Resources Targets 3% Oil Production Growth with 11% Capital Spending Cut in 2026
Event summary
- Matador Resources reported a 9% increase in total proved oil and natural gas reserves to 667.0 million BOE at December 31, 2025.
- The company plans to grow oil production by approximately 3% to 123,000 barrels per day in 2026 while reducing total capital expenditures by 11% to $1.50 billion.
- Matador secured 500 MMBtu per day of firm natural gas transportation on Energy Transfer’s Hugh Brinson pipeline, expected to begin flowing gas in Q3 2026.
- San Mateo and Matador’s wholly-owned midstream assets had net income of $239 million and Adjusted EBITDA of $332 million for full-year 2025.
The big picture
Matador Resources is focusing on improving capital efficiency and profitability while reducing its reserve-based loan (RBL) in 2026. The company's strategic priorities include midstream value realization, quality land acquisitions, and maintaining a strong balance sheet. These initiatives are aimed at navigating volatile commodity cycles and positioning Matador for long-term growth in the Delaware Basin.
What we're watching
- Capital Efficiency
- Whether Matador can sustain its 6% reduction in drilling and completion costs per lateral foot while maintaining production growth.
- Midstream Value
- How the combination of Matador’s wholly-owned midstream assets with San Mateo will impact overall profitability and operational efficiency.
- Market Access
- The pace at which the Hugh Brinson pipeline will enhance Matador’s access to more profitable Henry Hub markets and other key markets like AI data centers and LNG terminals.
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