Matador Resources Co Q3 FY2024 earnings call

• Ameredev acquisition is being integrated well, ahead of schedule and better than expected.
• Active share purchases by the company, with management considering buybacks but currently favoring the fixed dividend.
• Capital allocation for 2025 involves profitable growth at a measured pace, expecting over 200,000 BOE per day, with CapEx likely higher than 2024's $1.25 billion due to nine rigs operating full year and Ameredev properties performing strongly.
• Efficiencies in drilling and completion costs, including use of Trimul-Frac, remote operations, and produced water for frac.
• Midstream business contributing to flow assurance, water disposal, and produced water reuse, with record EBITDA for San Mateo.
• Collaboration across departments, including geologists, engineers, land, and finance teams, to drive performance.

No detailed financial performance for product segments provided in the transcript.

• Expect to have over 200,000 BOE per day in 2025.
• CapEx in 2025 is expected to be higher than 2024's $1.25 billion due to nine rigs operating full year and Ameredev properties performing better than expected.
• Cash taxes for 2025 will be largely dependent on 2025 planning, with more details to be shared in February.

No significant risks discussed in detail in the provided transcript.

Q: Neal Dingmann asked about stock repurchases and if Matador would consider them as a larger part of shareholder return.

A: Joseph Foran said they consider buybacks but currently favor the fixed dividend, noting shareholders prefer dividend growth and debt is manageable from free cash flow. They are open-minded about buybacks but at present, fixed dividend is more effective.

Q: Scott Hanold asked about capital allocation in 2025, especially with Ameredev assets.

A: Joseph Foran and Brian Willey mentioned expecting over 200,000 BOE per day in 2025, CapEx to be higher than 2024's $1.25 billion due to nine rigs operating full year and Ameredev properties performing strongly.

Q: Zach Parham asked about cash taxes in 2025.

A: Rob Macalik said cash tax rate for 2025 is dependent on 2025 planning and available deductions, with more details in February.

Q: John Freeman asked about efficiency gains and shifting from dual fuel e-fleets.

A: Christopher Calvert discussed efficiencies in drilling and completion costs, use of Trimul-Frac, remote operations, and produced water for frac, with continued improvement expected in 2025.

Q: Kevin MacCurdy asked about Ameredev assets' production increase.

A: Glenn Stetson and Ned Frost said production increase was due to seven new Tea Olive wells and better-than-expected performance, with mid-term trajectory to continue developing the area.

Q: Gabe Daoud asked about acquisitions and inorganic opportunities in 200 MBOE/d target.

A: Van Singleton and Brian Willey said acquisitions had minimal production, and they always look at inorganic opportunities when closed.

Q: Leo Mariani asked about midstream value unlock and CapEx for midstream in 2025.

A: Joseph Foran and Brian Willey discussed midstream's benefits like flow assurance and produced water reuse, with CapEx for midstream expected to be less than 2024's $225 million in 2025.

Q: Michael Scialla asked about mechanics and advantages of remote Simul-Frac and Trimul-Fracs.

A: Christopher Calvert explained it involves collaborative teamwork to tie pads together for one frac fleet operation, resulting in efficiency savings.

Q: Oliver Huang asked about LOE trends in Ameredev area and Pinyon sale impact.

A: Glenn Stetson said Pinyon sale has no effect on OpEx, with $1 million a month in potential savings from produced water use, chemical spend optimization, and personnel optimization.

Q: Scott Hanold asked about ground game and M&A appetite.

A: Joseph Foran and Van Singleton discussed M&A opportunities from rationalization, private equity turnover, and proposed wells not fitting plans, with focus on win-win deals.