Matador Resources

Matador Resources generated near‑record adjusted free cash flow of $303 million in Q2 and used $200 million to pay down acquisition-related borrowings, cutting that debt below $1 billion. The company raised full‑year free cash flow guidance to about $900 million, exceeded production guidance, and increased reserves 5% to 703 million boe while trimming planned capital spending. Recent acquisitions and federal lease purchases extend inventory life beyond 15 years, could deliver high returns, and may see development begin in late 2026 or early 2027, though Matador remains focused on deleveraging and did not provide 2027 guidance. » More on finance.yahoo.com

Matador Resources reported adjusted EPS of $2.61 for Q2 on $1.19 billion in revenue, comfortably surpassing analyst estimates. Adjusted free cash flow reached $303 million, of which $200 million was used to reduce acquisition-related bank debt. Inventories rose 5% to 703 million BOE, and management raised its 2026 oil growth forecast from 4% to 7%. Matador is targeting further debt reduction, expects about $900 million of free cash flow in 2026, and plans drilling on acquired federal acreage in late 2026/early 2027. » More on de.investing.com

Moody’s changed the outlook for Matador Resources from positive to stable and affirmed the ratings (Corporate Family Rating Ba3, PD Ba3-PD, senior unsecured notes B1), while downgrading the Speculative Grade Liquidity rating from SGL-1 to SGL-2. The moves follow several acquisitions announced since May (notably purchases in the Delaware Basin, Cardinal Midstream and Paloma Permian) totaling several billion dollars, which could potentially increase consolidated debt by up to 75% to around $6.4 billion if financed entirely with debt. Moody’s notes the acquired assets will initially produce only limited cash flow and that the company’s target to reduce debt to about 1x net leverage within 12–18 months depends on oil prices; with WTI below $60 per barrel paydowns would be more difficult. The agency estimates an available credit facility of roughly $1.8 billion and expects moderate free cash flow in 2026 at a WTI price of $70 and existing hedges covering about 50% of production. » More on de.investing.com