Matador Resources achieved an average production of 230,470 barrels of oil equivalent per day (boed) in the third quarter of this year, which is 10 percent higher than the same period last year and 3 percent above the guidance average of 224,000 boed. Oil production reached a record 132,019 barrels per day (bopd), exceeding the target of 128,500 to 130,500 bopd. Natural gas production also increased to 590.7 million cubic feet per day (MMcfd), which is 10 percent higher than the second quarter's production of 537 MMcfd.
Strong Performance of New Wells
The strong performance of this production is primarily attributed to the better performance of new wells that were sold during this quarter. Additionally, a batch of 12 wells in the Ranger asset area that came online earlier than expected contributed to this success.
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Drilling and completion costs have decreased to $804 per lateral foot, which is 6 percent lower than $855 last year. Matador has stated that efficiency at the well level continues to offset field service costs. The full-year cost guidance remains at $785 to $805 per lateral foot, excluding exploratory wells. Operating lease costs reached $5.66 per barrel of oil equivalent (boe), better than the forecast of $5.80 per boe.
Increase in Proven Reserves and Future Production Forecast
Matador's proven reserves increased by 16 percent to 771 million barrels of oil equivalent (MMboe), up from 667 MMboe at the end of 2025. This increase is based on internal management estimates and considers the acquisitions of Paloma and Ridge Runner completed in October. Matador expects operations on 35 to 40 total wells from the federal lease benefits of May and Paloma to commence by the end of 2027, in addition to up to 15 total Woodford wells in New Mexico and Texas.
The company forecasts record oil production of 137,000 barrels per day for the fourth quarter of this year, within a range of 136,000 to 138,000 barrels per day, with total production reaching 238,000 boed to 242,000 boed. Paloma and Ridge Runner are expected to contribute about 10,000 boed, with 57 percent oil. Matador plans to sell 21 to 23 horizontal Delaware Basin wells this quarter, including two wells near federal lease lands.
The full-year production forecast has been increased to 223,000 boed to 224,000 boed, with oil production in the range of 128,750 to 129,250 barrels per day. The number of planned operational wells for the year has increased to 112.6 from 107.6 in the February forecast. Capital expenditure for drilling, completion, and equipment has been capped at $1.50 billion to $1.54 billion, and Matador has stated it can deliver average production growth or better by 2027.
Improved gas pricing following the commencement of flows in the Hugh Brinson pipeline, which went into service on September 1, reached $2.99 per thousand cubic feet (Mcf), compared to negative $0.79 per Mcf in the second quarter of this year.
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