Matador Resources reports record cash flow and raises production outlook

Matador Resources reported near-record adjusted free cash flow of $303 million for the second quarter of 2026. The company utilized $200 million of these funds to reduce bank debt related to federal lease acquisitions, bringing total acquisition-related debt down to less than $1 billion from $1.25 billion. CEO Joe Foran stated that reserves increased by 5% during the quarter to 703 million barrels of oil equivalent.

The company raised its year-over-year oil production growth outlook to a range of 4% to 7% while aiming to reduce capital spending by 1%. Management highlighted the integration of the Cardinal acquisition and federal lease purchases as key drivers for future development, noting that federal leases have extended the company's inventory life to over 15 years.

In recent institutional trading activity, Pacer Advisors Inc. significantly reduced its stake in Matador Resources by 92.3% during the first quarter. Conversely, several other institutional investors increased their positions, including Dimensional Fund Advisors LP, State Street Corp, LSV Asset Management, Wellington Management Group LLP, and Adage Capital Partners GP L.L.C.