MTDRMTDR
US • —
$49.78
P/E
12.82
PEG
—
FCF Yield
—
Rev Growth YoY
-10.1% YoY
Gross Margin
77.2%
Health Score
6/10
D/E Ratio
0.60
Confidence
LOW
Business Snapshot
Matador Resources Company is an independent energy company focused on the exploration, development, and production of oil, natural gas, and natural gas liquids. Its primary operations are concentrated in the Delaware Basin in West Texas and New Mexico, a core region of the Permian Basin. The company operates in the U.S. upstream oil and gas sector, competing as a mid-sized independent producer with an asset base that supports controlled drilling inventory. A defining characteristic is its ownership and operation of midstream infrastructure, including natural gas processing and oil gathering systems, which provides vertical integration and cost control advantages that many pure-play producers lack.
Financial Health
Gross margin stands at a robust 77.2%, a level common for E&P companies due to the depletion accounting method, but net margin is a solid 14.4%. The balance sheet appears healthy with a manageable debt-to-equity ratio of 0.6x, indicating a moderate reliance on leverage; however, the current ratio of 0.79x signals potential short-term liquidity tightness...
Risk Assessment
- REVENUE DECELERATION — Revenue has declined by 10.1% year-over-year, a significant negative growth rate that signals a cyclical downturn or operational headwinds.
- EARNINGS QUALITY — Earnings have fallen by 47.8% year-over-year, indicating a severe compression in profitability that outpaces the revenue decline.
- DEBT / LIQUIDITY — Current ratio of 0.79x is below 1.0x, indicating the company may not have sufficient short-term assets to cover immediate liabilities.
- VALUATION DIVERGENCE — EV/EBITDA of 25.41x is elevated, creating a notable divergence from the low P/E and P/B ratios, and raising questions about cash flow valuation.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at a robust 77.2%, a level common for E&P companies due to the depletion accounting method, but net margin is a solid 14.4%. The balance sheet appears healthy with a manageable debt-to-equity ratio of 0.6x, indicating a moderate reliance on leverage; however, the current ratio of 0.79x signals potential short-term liquidity tightness. Free cash flow data is not available, making it impossible to assess whether the company is generating surplus cash for dividends or reinvestment versus burning cash. The combination of strong gross margins, reasonable debt, and a net margin in the double-digits suggests a profitable operating base, though the absence of free cash flow visibility prevents a clean assessment of financial flexibility.
- REVENUE DECELERATION — Revenue has declined by 10.1% year-over-year, a significant negative growth rate that signals a cyclical downturn or operational headwinds. - EARNINGS QUALITY — Earnings have fallen by 47.8% year-over-year, indicating a severe compression in profitability that outpaces the revenue decline. - DEBT / LIQUIDITY — Current ratio of 0.79x is below 1.0x, indicating the company may not have sufficient short-term assets to cover immediate liabilities. - VALUATION DIVERGENCE — EV/EBITDA of 25.41x is elevated, creating a notable divergence from the low P/E and P/B ratios, and raising questions about cash flow valuation. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives