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Matador Resources Company

MTDR
52
Oil & Gas Exploration & Production · Energy
Price
$53.80
+0.72 (+1.36%)
Market Cap
$6.68B
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+4.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 119.2M (2021) → 124.6M (2025)

Matador Resources is an American oil and natural gas company that finds and pulls fossil fuels out of the ground. It focuses mainly on the Permian Basin in West Texas and New Mexico, one of the most productive oil regions in the United States. The company sells crude oil, natural gas, and natural gas liquids to energy traders, refiners, and pipeline operators.

Matador makes money by selling the oil and gas it produces, so its revenue rises and falls with commodity prices. It also has a midstream business, which means it owns some of the pipelines and processing facilities that move and prepare the fuel it extracts — this adds a steadier income stream alongside the more volatile drilling side. The company's main growth driver is expanding its drilling activity in the Permian Basin, but its biggest risk is a sharp drop in oil or natural gas prices, which would directly cut into profits and could slow future investment.

Winston Score History

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1 trades / 12mo

0 Congressional buys and 1 sell on MTDR in the last 12 months.

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Score breakdown

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Quality

Gross Margin
47.1%
Healthy — 47.1% gross margin
Operating Margin
33.6%
Excellent — 33.6% operating margin
ROCE
3.5%
Weak — 3.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-1.9%
Shrinking sales (-1.9% YoY)
EPS YoY
-47.9%
Earnings shrinking (-47.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
449%
Turns 449% of profit into real cash
FCF Margin
1.6%
Thin free cash flow (1.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.62
Moderate — manageable debt (0.62)
Interest Cover
5.48x
Adequate interest coverage (5.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
13.8x
Attractive valuation — P/E 13.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+8.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (13.8 → 5.8)

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Dividends

Dividend Yield
2.86%
Moderate income — 2.86% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+33.7%
Dividend growing fast (33.7% YoY)

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