Matador Resources CompanyMTDR
NYSE • Energy
$56.92
P/E
14.63
PEG
—
FCF Yield
—
Rev Growth YoY
-6.4% YoY
Gross Margin
47.1%
Health Score
6/10
D/E Ratio
0.63
Confidence
MEDIUM
Business Snapshot
Matador Resources Company is an independent energy company engaged in the exploration, development, and production of oil and natural gas, primarily in the Delaware Basin in West Texas and New Mexico. It operates as a mid-cap E&P player with financial scale reflected by TTM revenue of $3.63 billion, focusing on low-cost drilling and high-return wells. The company competes in the fragmented U.S. onshore oil & gas sector, where scale and operational efficiency are key differentiators. Matador’s defining characteristic is its pure-play concentration in the resource-rich Delaware Basin, which offers high-quality acreage but also exposes it to commodity price volatility and single-basin risk.
Financial Health
Gross margin stands at 47.1%, down sharply from 258.4% in the prior year, signaling a significant deterioration in cost structure or a one-time revenue recognition anomaly. Net margin of 14.4% provides some cushion but is compressed relative to historical levels...
Risk Assessment
- VALUATION DIVERGENCE — The current price of $56.92 trades at a 45.1% premium to the FMP DCF estimate of $39.22, signalling the stock is priced well above its modelled intrinsic value.
- EARNINGS QUALITY — The most recent quarter (Q1 2026) posted a net loss of $35.87 million, driving a -114.9% earnings decline despite four consecutive earnings beats...