(WO) – Matador Resources‘ total production averaged 230,470 boed in the third quarter, 10% higher than a year earlier and 3% above the 224,000-boed midpoint of guidance. Oil volumes reached a record 132,019 bopd against guidance of 128,500 bopd to 130,500 bopd, and natural gas production rose to 590.7 MMcfd, 10% above second-quarter output of 537 MMcfd.
The company credited the beat mainly to outperformance from new wells turned to sales during the quarter, along with a 12-well batch in the Ranger Asset area that came online earlier than expected.
Drilling and completion costs came in at $804 per completed lateral foot, down 6% from $855 a year earlier, and Matador said well-level efficiencies continue to offset oilfield service inflation. It kept its full-year cost guidance of $785 to $805 per completed lateral foot, excluding exploration wells. Third-quarter capital spending was $381.4 million, below the $410 million to $440 million guided range, largely because of timing shifts. Lease operating expenses were $5.66/boe, better than the expected $5.80/boe on lower repair and maintenance costs.
Proved reserves rose 16% to 771 MMboe from 667 MMboe at year-end 2025, based on unaudited internal management estimates and pro forma for the Paloma and Ridge Runner acquisitions completed in October. Matador said it expects to begin operations on 35 to 40 gross wells on acreage from the May federal lease sale and Paloma through year-end 2027, plus up to 15 gross Woodford wells in New Mexico and Texas. Its smaller “brick-by-brick” deals have added more than 25,000 net Delaware Basin acres across more than 1,100 transactions in 2025 and 2026.
For the fourth quarter, Matador expects record oil output of about 137,000 bopd, within a range of 136,000 bopd to 138,000 bopd, and total production of 238,000 boed to 242,000 boed. Paloma and Ridge Runner are expected to contribute about 10,000 boed, 57% oil. The company plans to turn 21 to 23 net operated horizontal Delaware Basin wells to sales in the quarter, including two net wells near its federal lease sale acreage.
Full-year production guidance moves up to 223,000 boed to 224,000 boed, with oil at 128,750 bopd to 129,250 bopd. Planned net operated wells for the year have risen to 112.6 from 107.6 in February guidance. Drilling, completion and equipping capital is narrowed to $1.50 billion to $1.54 billion, and Matador said it could deliver mid-single-digit production growth or better in 2027.
Gas realizations improved after volumes began flowing on the Hugh Brinson pipeline, commissioned Sept. 1, reaching $2.99/Mcf compared with negative $0.79/Mcf in the second quarter.
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