NYSE · Energy

Matador Resources Company

MTDR · Oil & Gas E&P

$50.41

▲ 0.54 (1.08%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

N/A⤢

Fin. Health

F⤢

Years to Pay Off Debt 11.1 yrs

Working Capital vs Long-Term Debt -$4.8B

Working Capital -$542M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.05x

Cash Flow

F⤢

Free Cash Flow -$625M

CapEx % of Net Income 399.9%

Owner Earnings $2.3B

Financial Health

Years to Pay Off Debt 11.1 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 -$4.8B

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 -$542M

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.

Cash Flow

Free Cash Flow -$625M

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.

CapEx % of Net Income 399.9%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.3B

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.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

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.

Market Data

Market Cap $6.2B

Enterprise Value $11.6B

P/E (TTM) 8.71

Dividend Yield 3.01%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin N/A

Company Info

Sector Energy

Industry Oil & Gas E&P

Employees 483

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Matador Resources Company at $50.41.

The business passes only 3 of 5 of Graham's defensive criteria — well below his required standard.

At $50.41, the stock trades at a 30% premium to its Graham Number of $38.71. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q3 2026	Q4 2025
Gross Profit %	N/A•	72.1%
Operating Margin %	N/A•	25.2%
Net Income %	N/A•	23.8%
Diluted EPS	1.39▼	1.55

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025
Total Assets	$13.5B	$11.7B
Total Debt	$4.3B▲	$3.5B
Working Capital	-$542M▼	-$215M
Years to Pay Debt	11.07	18.11

Cash Flow Highlights

Metric	Q2 2026	Q4 2025
Free Cash Flow	-$625M▼	-$114M
Owner Earnings	$2.3B	$1.1B
CapEx % of Net Income	399.9%	305.4%

Income Statement

	2026	2025
Tax Effect Of Unusual Items		9,831
Tax Rate For Calcs		0
Normalized EBITDA		511,813
Total Unusual Items		38,446
Total Unusual Items Excluding Goodwill		38,446
Net Income From Continuing Operation Net Minority Interest		192,547
Reconciled Depreciation		305,511
Reconciled Cost Of Revenue		226,264
EBITDA		550,259
EBIT		244,748
Net Interest Income		-55,045
Interest Expense		55,045
Normalized Income		163,932
Net Income From Continuing And Discontinued Operation		192,547
Total Expenses		605,244
Total Operating Income As Reported		242,748
Diluted Average Shares	123,888	124,280
Basic Average Shares	123,808	124,280
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders		192,547
Net Income Common Stockholders		192,547
Net Income		192,547
Minority Interests		-22,992
Net Income Including Noncontrolling Interests		215,539
Net Income Continuous Operations		215,539
Tax Provision		-25,836
Pretax Income		189,703
Other Income Expense		40,446
Other Non Operating Income Expenses		2,000
Special Income Charges		0
Gain On Sale Of Ppe		0
Other Special Charges
Gain On Sale Of Security		38,446
Net Non Operating Interest Income Expense		-55,045
Interest Expense Non Operating		55,045
Operating Income		204,302
Operating Expense		378,980
Other Operating Expenses		68,991
Other Taxes
Selling General And Administration		34,360
General And Administrative Expense		34,360
Other Gand A		34,360
Gross Profit		583,282
Cost Of Revenue		226,264
Total Revenue		809,546
Operating Revenue		809,546

Balance Sheet

	2026	2025
Treasury Shares Number		147
Ordinary Shares Number	123,998	124,262
Share Issued	123,998	124,410
Net Debt	4,190,092	3,386,788
Total Debt	4,323,705	3,487,111
Tangible Book Value	5,928,623	5,658,141
Invested Capital	10,145,033	9,060,243
Working Capital	-542,004	-214,941
Net Tangible Assets	5,928,623	5,658,141
Capital Lease Obligations	107,295	85,009
Common Stock Equity	5,928,623	5,658,141
Total Capitalization	10,145,033	9,060,243
Total Equity Gross Minority Interest	6,250,898	5,996,652
Minority Interest	322,275	338,511
Stockholders Equity	5,928,623	5,658,141
Treasury Stock	25,002	5,333
Retained Earnings	3,414,634	3,153,112
Additional Paid In Capital	2,537,746	2,509,118
Capital Stock	1,245	1,244
Common Stock	1,245	1,244
Total Liabilities Net Minority Interest	7,243,668	5,713,917
Total Non Current Liabilities Net Minority Interest	5,694,555	4,682,408
Other Non Current Liabilities	189,583	120,312
Derivative Product Liabilities	8,470
Non Current Deferred Liabilities	1,124,901	1,015,931
Non Current Deferred Taxes Liabilities	1,124,901	1,015,931
Long Term Debt And Capital Lease Obligation	4,216,410	3,402,102
Long Term Debt	4,216,410	3,402,102
Long Term Provisions	155,191	144,063
Current Liabilities	1,549,113	1,031,509
Other Current Liabilities	275,655	75,658
Current Deferred Liabilities	78,280	64,169
Current Debt And Capital Lease Obligation	107,295	85,009
Current Capital Lease Obligation	107,295	85,009
Pensionand Other Post Retirement Benefit Plans Current	25,262	33,162
Current Provisions	3,883	6,309
Payables And Accrued Expenses	1,058,738	767,202
Current Accrued Expenses	403,135	226,273
Interest Payable	42,906	32,157
Payables	655,603	540,929
Other Payable	411,838	361,592
Dueto Related Parties Current
Accounts Payable	243,765	179,337
Total Assets	13,494,566	11,710,569
Total Non Current Assets	12,487,457	10,894,001
Other Non Current Assets	224,177	162,703
Financial Assets
Net PPE	12,263,280	10,731,298
Accumulated Depreciation	-8,002,990	-7,395,142
Gross PPE	20,266,270	18,126,440
Leases		22,028
Other Properties	2,075,304	1,963,059
Machinery Furniture Equipment		31,171
Current Assets	1,007,109	816,568
Other Current Assets	181,276	129,368
Hedging Assets Current	13,597	34,052
Restricted Cash	64,597	64,163
Inventory	50,177	43,842
Receivables	671,144	529,829
Other Receivables	77,526	103,628
Accounts Receivable	593,618	426,201
Cash Cash Equivalents And Short Term Investments	26,318	15,314
Cash And Cash Equivalents	26,318	15,314
Cash Financial	26,318	15,314

Cash Flow

	2026	2025
Free Cash Flow	-625,238	-113,598
Repurchase Of Capital Stock	-11,399	-5,143
Repayment Of Debt	-1,041,331	-607,000
Issuance Of Debt	1,788,000	788,000
Capital Expenditure	-1,562,366	-588,047
End Cash Position	90,915	79,477
Beginning Cash Position	92,472	96,387
Changes In Cash	-1,557	-16,910
Financing Cash Flow	661,285	96,688
Cash Flow From Continuing Financing Activities	661,285	96,688
Net Other Financing Charges	-27,544	-32,885
Cash Dividends Paid	-46,441	-46,284
Common Stock Dividend Paid	-46,441
Net Common Stock Issuance	-11,399	-5,143
Common Stock Payments	-11,399	-5,143
Net Issuance Payments Of Debt	746,669	181,000
Net Long Term Debt Issuance	746,669	181,000
Long Term Debt Payments	-1,041,331	-607,000
Long Term Debt Issuance	1,788,000	788,000
Investing Cash Flow	-1,599,970	-588,047
Cash Flow From Continuing Investing Activities	-1,599,970	-588,047
Net Other Investing Changes	0	-3,263
Net Business Purchase And Sale		3,263
Net PPE Purchase And Sale	-1,173,379	-77,295
Purchase Of PPE	-1,173,379	-77,295
Capital Expenditure Reported	-388,987	-510,752
Operating Cash Flow	937,128	474,449
Cash Flow From Continuing Operating Activities	937,128	474,449
Change In Working Capital	174,549	-938
Change In Other Working Capital	17,173	-55,313
Change In Other Current Liabilities	-1,851	-576
Change In Other Current Assets	1,887	1,514
Change In Payables And Accrued Expense	123,457	-43,478
Change In Payable	123,457	-43,478
Change In Account Payable	60,808	-51,638
Change In Prepaid Assets
Change In Inventory	-6,172	-3,010
Change In Receivables	40,055	105,261
Changes In Account Receivables	40,055	105,261
Other Non Cash Items	6,530	7,214
Stock Based Compensation	6,099	3,686
Deferred Tax	106,611	-26,189
Deferred Income Tax	106,611	-26,189
Depreciation Amortization Depletion	315,144	305,511
Operating Gains Losses	-85,457	-30,374
Gain Loss On Investment Securities	-85,457	-30,374
Net Income From Continuing Operations	413,652	215,539

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.65x 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.

-$625M

vs Positive

Operating Cash Flow

$937M

Latest quarter · Buffett's cash reality check

ROIC

nan%

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: $6.3B

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.

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

Share Buybacks (Latest Year)

$56M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+21.2% YoY

Debt is growing — management is leveraging up

Leadership Team

Joseph Wm. Foran

Founder, CEO & Chairman of the Board

Age 73

Pay: $5,553,211

Bryan Erman

President, & Corporate Secretary

Age 47

Pay: $2,554,625

Christopher Calvert

Executive VP & CFO

Age 46

Glenn Stetson

Executive VP & COO

Age 40

Mac Schmitz

Senior Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.32%	11,529,447
Vanguard Portfolio Management LLC	6.57%	8,132,644
Dimensional Fund Advisors LP	5.92%	7,330,204
State Street Corporation	4.24%	5,241,643
Vanguard Capital Management LLC	4.12%	5,102,110
LSV Asset Management	3.25%	4,023,693
Wellington Management Group, LLP	3.23%	3,995,579
T. Rowe Price Investment Management, Inc.	3.02%	3,731,487

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.92

Low volatility — more stable than the market

Short Interest

12.5% of float

Moderate short interest

Debt-to-Equity

0.77x

Conservative balance sheet — low financial risk

Current Ratio

0.55x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $38.80 Current: $50.41 High: $66.84

Currently at 41% of 52-week range

Matador Resources Company

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis