Matador increases production 23% q-o-q, raises full-year guidance
Matador Resources Co., Dallas, increased its 2023 production guidance midpoint to 46.65 MMboe from 45.30 MMboe and decreased its total capital expenditures guidance midpoint to $1.335 billion from $1.425 billion.
In its earnings release July 25, the operator said the production increase is due to the better-than-expected performance across its legacy assets and those gained through its $1.6-billion acquisition of Advance Energy Partners Holdings LLC. The decrease in capital expenditure guidance is a result of increased capital and operational efficiencies, the peaking service cost environment, and adjustments to its operating plan for the remainder of the year, the company said.
The midpoint of 2023 total oil production has increased to 27.15 million bbl of oil from 26.85 million bbl of oil and the midpoint of the company’s 2023 total natural gas production guidance has increased to 117 bcf from 110.7 bcf.
Matador expects flat oil and gas production volumes quarter-over-quarter, before ramping up in the year’s fourth quarter. The company plans to bring 26.2 net wells to sales during third-quarter 2023 (15% sequential increase), with 30.3 scheduled for the year’s fourth quarter.
The company said it remains on track to produce over 140,000 boe/d in this year’s fourth quarter.
Second-quarter 2023
The company had record average production of 130,683 boe/d in second-quarter 2023, an increase of 23% from first-quarter 2023, and an 18% increase from second-quarter 2022. The increase was primarily attributable to better-than-expected production from assets acquired from Advance, higher-than-expected natural gas production from non-operated assets in the Haynesville shale in Louisiana, and outperformance of the company’s Rodney Robinson leasehold wells in Lea County, NM, including the eight new wells turned to sales in first-quarter 2023.
Matador had net income of $164.7 million in second-quarter 2023, and adjusted net income of $170.1 million. Net cash provided by operating activities was $449 million.
