Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin33.6%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-3.8%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-99.4 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$3.9B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$394M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
B
Price-to-Book1.10x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$12M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$716M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Matador Resources Company
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.
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.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-35,872
192,547
Reconciled Depreciation
292,704
305,511
Reconciled Cost Of Revenue
497,792
226,264
EBITDA
327,727
550,259
EBIT
35,023
244,748
Net Interest Income
-51,525
-55,045
Interest Expense
51,525
55,045
Normalized Income
244,537
162,175
Net Income From Continuing And Discontinued Operation
-35,872
192,547
Total Expenses
624,816
605,244
Total Operating Income As Reported
46,821
242,748
Diluted Average Shares
123,480
124,280
Basic Average Shares
123,480
124,280
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-35,872
192,547
Net Income Common Stockholders
-35,872
192,547
Net Income
-35,872
192,547
Minority Interests
-20,054
-22,992
Net Income Including Noncontrolling Interests
-15,818
215,539
Net Income Continuous Operations
-15,818
215,539
Tax Provision
-684
-25,836
Pretax Income
-16,502
189,703
Other Income Expense
-281,765
40,446
Other Non Operating Income Expenses
4,367
2,000
Special Income Charges
-16,165
0
0
Gain On Sale Of Ppe
-578
0
Other Special Charges
15,587
Gain On Sale Of Security
-269,967
38,446
Net Non Operating Interest Income Expense
-51,525
-55,045
Interest Expense Non Operating
51,525
55,045
Operating Income
316,788
204,302
Operating Expense
127,024
378,980
Other Operating Expenses
17,110
68,991
Other Taxes
70,891
Selling General And Administration
39,023
34,360
General And Administrative Expense
39,023
34,360
Other Gand A
39,023
34,360
Gross Profit
443,812
583,282
Cost Of Revenue
497,792
226,264
Total Revenue
941,604
809,546
Operating Revenue
941,604
809,546
Balance Sheet
2026
2025
2024
Treasury Shares Number
241
147
Ordinary Shares Number
124,206
124,262
Share Issued
124,447
124,410
Net Debt
3,438,490
3,386,788
Total Debt
3,566,052
3,487,111
Tangible Book Value
5,584,900
5,658,141
Invested Capital
9,053,841
9,060,243
Working Capital
-394,239
-214,941
Net Tangible Assets
5,584,900
5,658,141
Capital Lease Obligations
97,111
85,009
Common Stock Equity
5,584,900
5,658,141
Total Capitalization
9,053,841
9,060,243
Total Equity Gross Minority Interest
5,913,085
5,996,652
Minority Interest
328,185
338,511
Stockholders Equity
5,584,900
5,658,141
Treasury Stock
8,525
5,333
Retained Earnings
3,070,423
3,153,112
Additional Paid In Capital
2,521,758
2,509,118
Capital Stock
1,244
1,244
Common Stock
1,244
1,244
Total Liabilities Net Minority Interest
6,261,404
5,713,917
Total Non Current Liabilities Net Minority Interest
4,782,389
4,682,408
Other Non Current Liabilities
140,814
120,312
Derivative Product Liabilities
5,821
Non Current Deferred Liabilities
1,016,696
1,015,931
Non Current Deferred Taxes Liabilities
1,016,696
1,015,931
Long Term Debt And Capital Lease Obligation
3,468,941
3,402,102
Long Term Debt
3,468,941
3,402,102
Long Term Provisions
150,117
144,063
Current Liabilities
1,479,015
1,031,509
Other Current Liabilities
429,649
75,658
Current Deferred Liabilities
61,107
64,169
Current Debt And Capital Lease Obligation
97,111
85,009
Current Capital Lease Obligation
97,111
85,009
Pensionand Other Post Retirement Benefit Plans Current
19,847
33,162
30,544
Current Provisions
4,949
6,309
Payables And Accrued Expenses
866,352
767,202
Current Accrued Expenses
316,639
226,273
Interest Payable
53,755
32,157
Payables
549,713
540,929
Other Payable
346,114
361,592
Dueto Related Parties Current
30,544
Accounts Payable
203,599
179,337
Total Assets
12,174,489
11,710,569
Total Non Current Assets
11,089,713
10,894,001
Other Non Current Assets
154,572
162,703
Financial Assets
0
Investments And Advances
Long Term Equity Investment
Net PPE
10,935,141
10,731,298
Accumulated Depreciation
-7,687,846
-7,395,142
Gross PPE
18,622,987
18,126,440
Leases
22,028
19,242
Other Properties
2,030,409
1,963,059
Machinery Furniture Equipment
31,171
28,290
Current Assets
1,084,776
816,568
Other Current Assets
140,706
129,368
Hedging Assets Current
90,600
34,052
Restricted Cash
62,021
64,163
Inventory
45,580
43,842
Receivables
715,418
529,829
Other Receivables
122,145
103,628
Accounts Receivable
593,273
426,201
Cash Cash Equivalents And Short Term Investments
30,451
15,314
Cash And Cash Equivalents
30,451
15,314
Cash Financial
30,451
15,314
Cash Flow
2026
2025
2024
Free Cash Flow
11,750
-113,598
Repurchase Of Capital Stock
-707
-5,143
Repayment Of Debt
-1,262,670
-607,000
Issuance Of Debt
1,349,000
788,000
Capital Expenditure
-458,796
-588,047
Interest Paid Supplemental Data
75,867
Income Tax Paid Supplemental Data
-4,279
End Cash Position
92,472
79,477
Beginning Cash Position
79,477
96,387
Changes In Cash
12,995
-16,910
Financing Cash Flow
387
96,688
Cash Flow From Continuing Financing Activities
387
96,688
Net Other Financing Charges
-38,419
-32,885
Cash Dividends Paid
-46,817
-46,284
Common Stock Dividend Paid
-46,817
Net Common Stock Issuance
-707
-5,143
Common Stock Payments
-707
-5,143
Net Issuance Payments Of Debt
86,330
181,000
Net Long Term Debt Issuance
86,330
181,000
Long Term Debt Payments
-1,262,670
-607,000
Long Term Debt Issuance
1,349,000
788,000
Investing Cash Flow
-457,938
-588,047
Cash Flow From Continuing Investing Activities
-457,938
-588,047
Net Other Investing Changes
858
-3,263
Net Business Purchase And Sale
3,263
113,576
Purchase Of Business
0
0
Net PPE Purchase And Sale
-61,655
-77,295
Purchase Of PPE
-61,655
-77,295
Capital Expenditure Reported
-397,141
-510,752
Operating Cash Flow
470,546
474,449
Cash Flow From Continuing Operating Activities
470,546
474,449
Change In Working Capital
-93,694
-938
Change In Other Working Capital
-3,062
-55,313
Change In Other Current Liabilities
-2,309
-576
Change In Other Current Assets
-149
1,514
Change In Payables And Accrued Expense
99,458
-43,478
Change In Payable
99,458
-43,478
Change In Account Payable
113,457
-51,638
Change In Tax Payable
Change In Income Tax Payable
Change In Prepaid Assets
Change In Inventory
1,052
-3,010
Change In Receivables
-188,684
105,261
Changes In Account Receivables
-188,684
105,261
Other Non Cash Items
12,459
7,214
Stock Based Compensation
4,518
3,686
Deferred Tax
-684
-26,189
Deferred Income Tax
-684
-26,189
Depreciation Amortization Depletion
292,704
305,511
Operating Gains Losses
271,061
-30,374
Gain Loss On Investment Securities
255,474
-30,374
Net Income From Continuing Operations
-15,818
215,539
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.0B▼ $942M-6.4%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 51.1%▼ 47.1%-3.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 31.5%▼ 33.6%+2.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 23.9%▼ -3.8%-27.7pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$942M/qtr (≈$3.8B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.73x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$12M
vs Positive
Operating Cash Flow
$471M
Latest quarter · Buffett's cash reality check
ROIC
2.3%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.0x
Net Assets: $5.9B
Asset Context — Oil & Gas E&P
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️Net margin compressed 27.7pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
Peers & Industry
No auto-detected peers for Oil & Gas E&P. You can manually compare MTDR against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
7.10%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-0.6%
Weak — poor returns on equity
Return on Assets (ROA)
-0.3%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$56M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+2.3% YoY
Debt is roughly stable
Leadership Team
Joseph Wm. Foran
Founder, CEO & Chairman of the Board
Age 73
Pay: $5,553,211
Van Singleton II
Co-President Land, Acquisitions & Divestitures and Planning
Age 47
Pay: $2,554,625
Bryan Erman
Co-President, Chief Legal Officer, Head of M&A and Corporate Secretary
Age 47
Pay: $2,554,625
Brian Willey
Executive Vice President of Midstream
Age 48
Pay: $2,483,750
Christopher Calvert
Executive VP & CFO
Age 46
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.97%
11,137,651
Vanguard Portfolio Management LLC
6.82%
8,464,400
Dimensional Fund Advisors LP
5.60%
6,948,104
State Street Corporation
4.13%
5,133,566
Vanguard Capital Management LLC
4.08%
5,071,348
Wellington Management Group, LLP
3.22%
3,996,501
LSV Asset Management
3.10%
3,847,931
T. Rowe Price Investment Management, Inc.
3.02%
3,744,792
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.73
Low volatility — more stable than the market
Short Interest
10.0% of float
Moderate short interest
Debt-to-Equity
0.60x
Conservative balance sheet — low financial risk
Current Ratio
0.73x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $37.14Current: $49.56High: $66.84
Currently at 42% of 52-week range
Matador Resources Company (MTDR) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 47.1%. Operating margin: 33.6%. Net margin: -3.8%. Market cap: $6.2B. Sector: Energy. Industry: Oil & Gas E&P. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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