Matador Resources (MTDR) Financials

Matador Resources (NYSE: MTDR) is showing a mixed but still fundamentally solid profile in Q1 2026. The company posted a quarterly net loss, but it also generated strong operating cash flow, maintained a large asset base, and continued to actively manage debt. Compared with the last several quarters, the most notable shift is that profitability weakened sharply from the strong results seen in much of 2024 and late 2025, while cash flow remained positive.

What stands out most: MTDR’s Q1 2026 revenue declined from the prior quarter and from last year’s stronger periods, while operating costs and non-operating expenses, especially interest expense, pressured earnings. At the same time, the company still produced nearly $471 million in operating cash flow, which suggests the core business remains cash-generative even in a softer earnings quarter.

• Operating cash flow remained strong at $470.5 million in Q1 2026, showing the business continues to generate meaningful cash despite the net loss.
• Free cash flow appears resilient on a quarterly basis, with operating cash flow exceeding capital spending only modestly after $458.8 million of PP&E purchases.
• The balance sheet still shows substantial equity, with $5.58 billion of common equity and $5.91 billion including noncontrolling interests.
• Long-term debt declined from $3.47 billion in Q1 2026 versus $3.60 billion in Q3 2025, indicating some progress on deleveraging.
• Cash and restricted cash increased to $92.5 million combined, up from $83.9 million in Q3 2025, despite heavy capital spending and debt service.
• Compared with 2023, the company has expanded revenue and asset scale significantly, with Q1 2026 revenue of $671.6 million versus much smaller quarterly revenue levels two years ago.
• Q1 2026 revenue of $671.6 million was below Q4 2025’s $848.0 million, suggesting some near-term top-line normalization.
• The company continued to spend heavily on the asset base, with quarterly capex of roughly $458.8 million, which is typical for an E&P business but keeps cash needs elevated.
• Depreciation remains very high at $292.7 million, reflecting the capital-intensive nature of the business and pressuring reported earnings.
• Accounts receivable stayed elevated at $715.4 million, which is manageable but worth watching given the quarter’s weaker earnings.
• MTDR reported a net loss of $15.8 million in Q1 2026, reversing the profitability seen in prior quarters.
• Operating income fell sharply to $46.8 million from $242.7 million in Q4 2025 and $306.0 million in Q3 2025.
• Interest expense was high at $67.1 million, which was enough to push pre-tax income negative despite positive operating income.
• The company carried $6.26 billion in total liabilities, including $3.47 billion of long-term debt, so leverage remains an important risk factor.
• Operating expenses were elevated at $554.7 million, driven heavily by depreciation and other operating costs.
• Q1 2026 net change in cash was only $13.0 million, showing that strong operating cash flow was largely absorbed by investment and financing outflows.

Bottom line: Matador Resources remains a cash-generating energy producer with a sizable asset base and meaningful equity, but Q1 2026 shows that earnings can swing quickly under pressure from revenue volatility, depreciation, and interest expense. Investors will likely want to watch whether the company can return to the stronger profitability it produced in 2024 and late 2025 while continuing to reduce debt.