Matador Resources Co

Previous wording

In this Quarterly Report on Form 10-Q (this “Quarterly Report”), (i) references to “we,” “our” or the “Company” refer to Matador Resources Company and its subsidiaries as a whole (unless the context indicates otherwise), (ii) references to “Matador” refer solely to Matador Resources Company, (iii) references to “San Mateo” refer to San Mateo Midstream, LLC, collectively with its subsidiaries, (iv) references to “Ameredev” refer to Ameredev Stateline II, LLC, (v) references to “Piñon” refer to Piñon Midstream, LLC and (vi) references to the “Ameredev Acquisition” refer to the acquisition of Ameredev from affiliates of EnCap Investments L.P., including (a) certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Loving and Winkler Counties, Texas, and (b) an approximate 19% stake in the parent company of Piñon, which was completed by a subsidiary of the Company on September 18, 2024. For certain oil and natural gas terms used in this Quarterly Report, please see the “Glossary of Oil and Natural Gas Terms” included with the Annual Report.

Current wording

In this Quarterly Report on Form 10-Q (this “Quarterly Report”), (i) references to “we,” “our” or the “Company” refer to Matador Resources Company and its subsidiaries as a whole (unless the context indicates otherwise), (ii) references to “Matador” refer solely to Matador Resources Company, (iii) references to “San Mateo” refer to San Mateo Midstream, LLC, collectively with its subsidiaries, (iv) references to “Ameredev” refer to Ameredev Stateline II, LLC, and (v) references to the “Ameredev Acquisition” refer to the acquisition of Ameredev from affiliates of EnCap Investments L.P., including (a) certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Loving and Winkler Counties, Texas, and (b) an approximate 19% stake in the parent company of Piñon Midstream, LLC, which was completed by a subsidiary of the Company on September 18, 2024. For certain oil and natural gas terms used in this Quarterly Report, please see the “Glossary of Oil and Natural Gas Terms” included with the Annual Report.

Previous wording

•the impact of the Inflation Reduction Act of 2022; and

Current wording

•the impact of the Inflation Reduction Act of 2022;

Previous wording

For the three months ended March 31, 2025, our total oil equivalent production was 17.9 million BOE, and our average daily oil equivalent production was 198,631 BOE per day, of which 115,030 Bbl per day, or 58%, was oil and 501.6 MMcf per day, or 42%, was natural gas. Our average daily oil production of 115,030 Bbl per day for the three months ended March 31, 2025 increased 36% year-over-year from 84,777 Bbl per day for the three months ended March 31, 2024. Our average daily natural gas production of 501.6 MMcf per day for the three months ended March 31, 2025 increased 29% year-over-year from 389.9 MMcf per day for the three months ended March 31, 2024.

Current wording

For the three months ended June 30, 2025, our total oil equivalent production was 19.0 million BOE, and our average daily oil equivalent production was 209,013 BOE per day, of which 122,875 Bbl per day, or 59%, was oil and 516.8 MMcf per day, or 41%, was natural gas. Our average daily oil production of 122,875 Bbl per day for the three months ended June 30, 2025 increased 29% year-over-year from 95,488 Bbl per day for the three months ended June 30, 2024. Our average daily natural gas production of 516.8 MMcf per day for the three months ended June 30, 2025 increased 33% year-over-year from 388.9 MMcf per day for the three months ended June 30, 2024.

Previous wording

The Delaware Basin contributed approximately 100% of our daily oil production and approximately 96% of our daily natural gas production in the first quarter of 2025, as compared to approximately 99% of our daily oil production and approximately 94% of our daily natural gas production in the first quarter of 2024.

Current wording

The Delaware Basin contributed approximately 100% of our daily oil production and approximately 97% of our daily natural gas production in the second quarter of 2025, as compared to approximately 99% of our daily oil production and approximately 95% of our daily natural gas production in the second quarter of 2024.

Previous wording

For the first quarter of 2025, we reported net income attributable to Matador shareholders of $240.1 million, or $1.92 per diluted common share, on a GAAP basis, as compared to net income attributable to Matador shareholders of $193.7 million, or $1.61 per diluted common share, for the first quarter of 2024. For the first quarter of 2025, our Adjusted EBITDA, a non-GAAP financial measure, was $644.2 million, as compared to Adjusted EBITDA of $505.4 million during the first quarter of 2024.

Current wording

For the second quarter of 2025, we reported net income attributable to Matador shareholders of $150.2 million, or $1.21 per diluted common share, on a GAAP basis, as compared to net income attributable to Matador shareholders of $228.8 million, or $1.83 per diluted common share, for the second quarter of 2024. For the second quarter of 2025, our Adjusted EBITDA, a non-GAAP financial measure, was $594.2 million, as compared to Adjusted EBITDA of $578.1 million during the second quarter of 2024.

Previous wording

For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income and net cash provided by operating activities, see “—Liquidity and Capital Resources—Non-GAAP Financial Measures.” For more information regarding our financial results for the three months ended March 31, 2025, see “—Results of Operations” below.

Current wording

For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income and net cash provided by operating activities, see “—Liquidity and Capital Resources—Non-GAAP Financial Measures.” For more information regarding our financial results for the three and six months ended June 30, 2025, see “—Results of Operations” below.

Previous wording

We began 2025 operating nine drilling rigs in the Delaware Basin and, as of April 23, 2025, we decided to drop to eight drilling rigs by the middle of 2025. We have built significant optionality into our drilling program, which should generally allow us to decrease or increase the number of rigs we operate as necessary based on changing commodity prices and other factors.

Current wording

We began 2025 operating nine drilling rigs in the Delaware Basin and expect to operate eight drilling rigs by August 1, 2025. We have built significant optionality into our drilling program, which should generally allow us to decrease or increase the number of rigs we operate as necessary based on changing commodity prices and other factors.

Previous wording

Matador’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.3125 per share of common stock in February 2025. On April 16, 2025, the Board declared a quarterly cash dividend of $0.3125 per share of common stock payable on June 6, 2025 to shareholders of record as of May 9, 2025.

Current wording

In February and April 2025, Matador’s Board of Directors (the “Board”) declared quarterly cash dividends of $0.3125 per share of common stock. On July 15, 2025, the Board declared a quarterly cash dividend of $0.3125 per share of common stock payable on September 5, 2025 to shareholders of record as of August 15, 2025.

Previous wording

At March 31, 2025, we had (i) $405.0 million in borrowings outstanding under our existing secured revolving credit facility (the “Credit Agreement”), (ii) approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement, (iii) $500.0 million of outstanding 6.875% senior notes due 2028 (the “2028 Notes”), (iv) $900.0 million of outstanding 6.50% senior notes due 2032 (the “2032 Notes”) and (v) $750.0 million of outstanding 6.25% senior notes due 2033 (the “2033 Notes”). Between March 31, 2025 and April 23, 2025, we repaid $15.0 million of borrowings under the Credit Agreement.

Current wording

At June 30, 2025, we had (i) $390.0 million in borrowings outstanding under our secured revolving credit facility (the “Credit Agreement”), (ii) approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement, (iii) $500.0 million of outstanding 6.875% senior notes due 2028 (the “2028 Notes”), (iv) $900.0 million of outstanding 6.50% senior notes due 2032 (the “2032 Notes”) and (v) $750.0 million of outstanding 6.25% senior notes due 2033 (the “2033 Notes”). Since June 30, 2025, we repaid $30.0 million of borrowings under the Credit Agreement, and at July 22, 2025, we had $360.0 million in borrowings outstanding under the Credit Agreement.

Previous wording

At March 31, 2025, San Mateo had $655.0 million in borrowings outstanding under San Mateo’s secured revolving credit facility (the “San Mateo Credit Facility”) and approximately $24.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between March 31, 2025 and April 23, 2025, San Mateo repaid $40.0 million of borrowings under the San Mateo Credit Facility.

Current wording

In June 2025, San Mateo and certain of its lenders modified San Mateo’s secured revolving credit facility (the “San Mateo Credit Facility”) to (i) increase the lender commitments from $800.0 million to $850.0 million and (ii) add one new bank to San Mateo’s lending group. At June 30, 2025, San Mateo had $778.0 million in borrowings outstanding under the San Mateo Credit Facility and approximately $15.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Since June 30, 2025, San Mateo repaid $85.0 million of borrowings under the San Mateo Credit Facility, and at July 22, 2025, San Mateo had $693.0 million in borrowings outstanding under the San Mateo Credit Facility.

Previous wording

See Note 2 to the interim unaudited condensed consolidated financial statements for a description of recent accounting pronouncements.

Current wording

See Note 2 to the interim unaudited condensed consolidated financial statements in this Quarterly Report for a description of recent accounting pronouncements.

Previous wording

Third-party midstream services revenues. Our third-party midstream services revenues increased $1.1 million, or 4%, to $33.5 million for the three months ended March 31, 2025, as compared to $32.4 million for the three months ended March 31, 2024. Third-party midstream services revenues are those revenues from midstream operations related to third parties, including working interest owners in our operated wells.

Current wording

Third-party midstream services revenues. Our third-party midstream services revenues increased $9.4 million, or 29%, to $42.0 million for the three months ended June 30, 2025, as compared to $32.7 million for the three months ended June 30, 2024. Third-party midstream services revenues are those revenues from midstream operations related to third parties, including working interest owners in our operated wells. This increase was primarily attributable to (i) an increase in our third-party natural gas gathering and processing revenues to $24.2 million for the three months ended June 30, 2025, as compared to $15.9 million for the three months ended June 30, 2024, and (ii) an increase in our oil transportation revenues to $5.8 million for the three months ended June 30, 2025, as compared to $3.4 million for the three months ended June 30, 2024.

Previous wording

Sales of purchased natural gas. Our sales of purchased natural gas increased $13.3 million, or 27%, to $62.8 million for the three months ended March 31, 2025, as compared to $49.4 million for the three months ended March 31, 2024. This increase was primarily the result of a 44% increase in natural gas price realized, which was partially offset by a 12% decrease in natural gas volumes sold. Sales of purchased natural gas reflect those natural gas purchase transactions that we periodically enter into with third parties whereby we purchase natural gas and (i) subsequently sell the natural gas to other purchasers or (ii) process the natural gas at San Mateo’s cryogenic natural gas processing plants and subsequently sell the residue natural gas and NGLs to other purchasers. These revenues, and the expenses related to these transactions included in “Purchased natural gas,” are presented on a gross basis in our interim unaudited condensed consolidated statements of income.

Current wording

Sales of purchased natural gas. Our sales of purchased natural gas increased $21.6 million, or 47%, to $67.9 million for the three months ended June 30, 2025, as compared to $46.3 million for the three months ended June 30, 2024. This increase was primarily the result of a 35% increase in natural gas price realized in those sales and a 9% increase in natural gas volumes sold. Sales of purchased natural gas reflect those natural gas purchase transactions that we periodically enter into with third parties whereby we purchase natural gas and (i) subsequently sell the natural gas to other purchasers or (ii) process the natural gas at San Mateo’s cryogenic natural gas processing plants and subsequently sell the residue natural gas and NGLs to other purchasers. These revenues, and the expenses related to these transactions included in “Purchased natural gas,” are presented on a gross basis in our interim unaudited condensed consolidated statements of income.

Previous wording

Realized gain on derivatives. Our realized gain on derivatives was $2.7 million for the three months ended March 31, 2025, as compared to a realized gain of $0.3 million for the three months ended March 31, 2024. We realized a net gain of $2.7 million related to our natural gas basis differential swap contracts for the three months ended March 31, 2025, resulting primarily from natural gas basis differentials that were below the fixed prices of certain of our natural gas basis differential swap contracts. For the three months ended March 31, 2024, we realized a net gain of $0.3 million related to our natural gas basis differential swap contracts, resulting primarily from natural gas basis differentials that were below the fixed prices of certain of our natural gas basis differential swap contracts. We realized an average gain on our natural gas derivatives of approximately $0.06 per Mcf produced during the three months ended March 31, 2025, as compared to an average gain of approximately $0.01 per Mcf produced during the three months ended March 31, 2024.

Current wording

Realized gain on derivatives. Our realized gain on derivatives was $6.9 million for the three months ended June 30, 2025, as compared to a realized gain of $3.8 million for the three months ended June 30, 2024. We realized a net gain of $6.9 million related to our natural gas basis differential swap contracts for the three months ended June 30, 2025, resulting primarily from natural gas basis differentials that were below the fixed prices of certain of our natural gas basis differential swap contracts. For the three months ended June 30, 2024, we realized a net gain of $3.8 million related to our natural gas basis differential swap contracts, resulting primarily from natural gas basis differentials that were below the fixed prices of certain of our natural gas basis differential swap contracts. We realized an average gain on our natural gas derivatives of approximately $0.15 per Mcf produced during the three months ended June 30, 2025, as compared to an average gain of approximately $0.11 per Mcf produced during the three months ended June 30, 2024.

Previous wording

Unrealized gain on derivatives. During the three months ended March 31, 2025, the aggregate net fair value of our open oil and natural gas costless collars and natural gas basis differential swap contracts changed to a net asset of $21.0 million from a net asset of $16.0 million at December 31, 2024, resulting in an unrealized gain on derivatives of $5.1 million for the three months ended March 31, 2025. During the three months ended March 31, 2024, the aggregate net fair value of our open natural gas basis differential swap contracts changed to a net asset of $4.7 million from a net asset of $2.7 million at December 31, 2023, resulting in an unrealized gain on derivatives of $2.1 million for the three months ended March 31, 2024.

Current wording

Unrealized loss on derivatives. During the three months ended June 30, 2025, the aggregate net fair value of our open oil and natural gas costless collars and natural gas basis differential swap contracts changed to a net liability of $16.3 million from a net asset of $21.0 million at March 31, 2025, resulting in an unrealized loss on derivatives of $37.3 million for the three months ended June 30, 2025. During the three months ended June 30, 2024, the aggregate net fair value of our open natural gas basis differential swap contracts changed to a net liability of $7.1 million from a net asset of $4.7 million at March 31, 2024, resulting in an unrealized loss on derivatives of $11.8 million for the three months ended June 30, 2024.

Previous wording

Oil and natural gas revenues. Our oil and natural gas revenues increased $206.4 million, or 29%, to $909.9 million for the three months ended March 31, 2025, as compared to $703.5 million for the three months ended March 31, 2024. Our oil revenues increased $150.8 million, or 25%, to $749.3 million for the three months ended March 31, 2025, as compared to $598.5 million for the three months ended March 31, 2024. The increase in oil revenues resulted from a 34% increase in our oil production to 10.4 million Bbl for the three months ended March 31, 2025, as compared to 7.7 million Bbl for the three months ended March 31, 2024, which was partially offset by a 7% decrease in the weighted average oil price realized for the three months ended March 31, 2025 to $72.38 per Bbl, as compared to $77.58 per Bbl for the three months ended March 31, 2024. Our natural gas revenues increased $55.6 million, or 53%, to $160.6 million for the three months ended March 31, 2025, as compared to $105.0 million for the three months ended March 31, 2024. The increase in natural gas revenues resulted from a 27% increase in our natural gas production to 45.1 Bcf for the three months ended March 31, 2025, as compared to 35.5 Bcf for the three months ended March 31, 2024 and a 20% increase in the weighted average natural gas price realized for the three months ended March 31, 2025 to $3.56 per Mcf, as compared to a weighted average natural gas price of $2.96 per Mcf realized for the three months ended March 31, 2024.

Current wording

Oil and natural gas revenues. Our oil and natural gas revenues increased $245.9 million, or 17%, to $1.73 billion for the six months ended June 30, 2025, as compared to $1.48 billion for the six months ended June 30, 2024. Our oil revenues increased $164.6 million, or 13%, to $1.47 billion for the six months ended June 30, 2025, as compared to $1.30 billion for the six months ended June 30, 2024. This increase in oil revenues resulted from a 31% increase in our oil production to 21.5 million Bbl for the six months ended June 30, 2025, as compared to 16.4 million Bbl for the six months ended June 30, 2024, which was partially offset by a 14% decrease in the weighted average oil price realized for the six months ended June 30, 2025 to $68.20 per Bbl, as compared to $79.50 per Bbl for the six months ended June 30, 2024. Our natural gas revenues increased by $81.2 million, or 46%, to $257.0 million for the six months ended June 30, 2025, as compared to $175.8 million for the six months ended June 30, 2024. The increase in natural gas revenues resulted from a 30% increase in our natural gas production to 92.2 Bcf for the six months ended June 30, 2025, as compared to 70.9 Bcf for the six months ended June 30, 2024 and a 13% increase in the weighted average natural gas price realized for the six months ended June 30, 2025 to $2.79 per Mcf, as compared to a weighted average natural gas price of $2.48 per Mcf for the six months ended June 30, 2024.

Previous wording

Production taxes, transportation and processing. Our production taxes and transportation and processing expenses increased $23.7 million, or 34%, to $93.8 million for the three months ended March 31, 2025, as compared to $70.2 million for the three months ended March 31, 2024. The increase was primarily attributable to an $18.2 million increase in production taxes to $72.2 million for the three months ended March 31, 2025, as compared to $54.0 million for the three months ended March 31, 2024, and a $5.5 million increase in transportation and processing expenses to $21.7 million for the three months ended March 31, 2025, as compared to $16.2 million for the three months ended March 31, 2024. This increase in production taxes and transportation and processing expenses is primarily due to the increase in oil and natural gas revenues between the two periods. On a unit-of-production basis, our production taxes and transportation and processing expenses increased 2% to $5.25 per BOE for the three months ended March 31, 2025, as compared to $5.15 per BOE for the three months ended March 31, 2024.

Current wording

Production taxes, transportation and processing. Our production taxes and transportation and processing expenses increased $6.0 million, or 8%, to $82.8 million for the three months ended June 30, 2025, as compared to $76.8 million for the three months ended June 30, 2024. The increase was primarily attributable to a $4.4 million increase in production taxes to $64.5 million for the three months ended June 30, 2025, as compared to $60.1 million for the three months ended June 30, 2024, and a $1.6 million increase in transportation and processing expenses to $18.3 million for the three months ended June 30, 2025, as compared to $16.7 million for the three months ended June 30, 2024. This increase in production taxes and transportation and processing expenses is primarily due to the increase in oil and natural gas revenues between the two periods. On a unit-of-production basis, our production taxes and transportation and processing expenses decreased 17% to $4.35 per BOE for the three months ended June 30, 2025, as compared to $5.27 per BOE for the three months ended June 30, 2024. This decrease per BOE was primarily attributable to a 21% decrease in realized oil prices and a 30% increase in our total oil equivalent production between the two periods.

Previous wording

Lease operating. Our lease operating expenses increased $30.3 million, or 40%, to $106.6 million for the three months ended March 31, 2025, as compared to $76.3 million for the three months ended March 31, 2024. Our lease operating expenses on a unit-of-production basis increased 6% to $5.96 per BOE for the three months ended March 31, 2025, as compared to $5.60 per BOE for the three months ended March 31, 2024. These increases were primarily attributable to the increased number of wells being operated by us, including 204 wells from the Ameredev Acquisition, and other operators (where we own a working interest) for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Current wording

Lease operating. Our lease operating expenses increased $26.7 million, or 34%, to $105.7 million for the three months ended June 30, 2025, as compared to $79.0 million for the three months ended June 30, 2024. Our lease operating expenses on a unit-of-production basis increased 3% to $5.56 per BOE for the three months ended June 30, 2025, as compared to $5.42 per BOE for the three months ended June 30, 2024. These increases were primarily attributable to the increased number of wells being operated by us, including 204 wells from the Ameredev Acquisition, and other operators (where we own a working interest) for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Previous wording

Plant and other midstream services operating. Our plant and other midstream services operating expenses increased $13.3 million, or 34%, to $52.9 million for the three months ended March 31, 2025, as compared to $39.6 million for the three months ended March 31, 2024. This increase was primarily attributable to increased throughput volumes from Matador and other San Mateo customers, which resulted in (i) increased expenses associated with our expanded pipeline operations of $26.1 million for the three months ended March 31, 2025, as compared to $16.2 million for the three months ended March 31, 2024, and (ii) increased expenses associated with our commercial produced water disposal operations of $16.8 million for the three months ended March 31, 2025, as compared to $14.4 million for the three months ended March 31, 2024.

Current wording

Plant and other midstream services operating. Our plant and other midstream services operating expenses increased $8.4 million, or 23%, to $45.6 million for the three months ended June 30, 2025, as compared to $37.3 million for the three months ended June 30, 2024. This increase was primarily attributable to increased throughput volumes from Matador and other San Mateo customers, which resulted in increased expenses associated with our expanded pipeline operations of $23.3 million for the three months ended June 30, 2025, as compared to $13.4 million for the three months ended June 30, 2024, which was partially offset by decreased expenses associated with our commercial produced water disposal operations of $12.9 million for the three months ended June 30, 2025, as compared to $16.6 million for the three months ended June 30, 2024.

Previous wording

Depletion, depreciation and amortization. Our depletion, depreciation and amortization expenses increased $69.6 million, or 33%, to $281.9 million for the three months ended March 31, 2025, as compared to $212.3 million for the three months ended March 31, 2024, primarily as a result of a 31% increase in our total oil equivalent production for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. On a unit-of-production basis, our depletion, depreciation and amortization expenses increased 1% to $15.77 per BOE for the three months ended March 31, 2025, as compared to $15.58 per BOE for the three months ended March 31, 2024.

Current wording

Depletion, depreciation and amortization. Our depletion, depreciation and amortization expenses increased $76.7 million, or 34%, to $302.6 million for the three months ended June 30, 2025, as compared to $225.9 million for the three months ended June 30, 2024, primarily as a result of a 30% increase in our total oil equivalent production for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. On a unit-of-production basis, our depletion, depreciation and amortization expenses increased 3% to $15.91 per BOE for the three months ended June 30, 2025, as compared to $15.49 per BOE for the three months ended June 30, 2024.

Previous wording

General and administrative. Our general and administrative expenses increased $4.1 million, or 14%, to $33.7 million for the three months ended March 31, 2025, as compared to $29.7 million for the three months ended March 31, 2024, primarily due to increased compensation expenses for our existing employees as well as the addition of new employees to support the continued growth in our land, geoscience, drilling, completion, production, midstream and administration functions. Our general and administrative expenses decreased by 13% on a unit-of-production basis to $1.89 per BOE for the three months ended March 31, 2025, as compared to $2.18 per BOE for the three months ended March 31, 2024, primarily as a result of a 31% increase in our total oil equivalent production between the two periods.

Current wording

General and administrative. Our general and administrative expenses increased $4.3 million, or 15%, to $32.2 million for the three months ended June 30, 2025, as compared to $27.9 million for the three months ended June 30, 2024, primarily due to increased compensation expenses for our existing employees as well as the addition of new employees to support the continued growth in our land, geoscience, drilling, completion, production, midstream and administration functions. Our general and administrative expenses decreased by 12% on a unit-of-production basis to $1.69 per BOE for the three months ended June 30, 2025, as compared to $1.91 per BOE for the three months ended June 30, 2024, primarily as a result of a 30% increase in our total oil equivalent production between the two periods.

Previous wording

Interest expense. For the three months ended March 31, 2025, we incurred total interest expense of $58.2 million. We capitalized $8.7 million of our interest expense on certain qualifying projects for the three months ended March 31, 2025 and expensed the remaining $49.5 million to operations. For the three months ended March 31, 2024, we incurred total interest expense of $45.4 million. We capitalized $5.9 million of our interest expense on certain qualifying projects for the three months ended March 31, 2024 and expensed the remaining $39.6 million to operations. The increase in interest expense for the three months ended March 31, 2025 was primarily attributable to an increase in our total senior notes outstanding to $2.15 billion at March 31, 2025, as compared to $1.20 billion at March 31, 2024.

Current wording

Interest expense. For the three months ended June 30, 2025, we incurred total interest expense of $59.6 million. We capitalized $6.2 million of our interest expense on certain qualifying projects for the three months ended June 30, 2025 and expensed the remaining $53.3 million to operations. For the three months ended June 30, 2024, we incurred total interest expense of $45.3 million. We capitalized $9.3 million of our interest expense on certain qualifying projects for the three months ended June 30, 2024 and expensed the remaining $36.0 million to operations. The increase in interest expense for the three months ended June 30, 2025 was primarily attributable to an increase in our total senior notes outstanding to $2.15 billion at June 30, 2025, as compared to $1.40 billion at June 30, 2024.

Previous wording

Income tax provision. We recorded a current income tax provision of $23.0 million and a deferred income tax provision of $59.9 million for the three months ended March 31, 2025. We recorded a current income tax provision of $17.3 million and a deferred income tax provision of $49.5 million for the three months ended March 31, 2024. Our effective income tax rate of 26% for each of the three months ended March 31, 2025 and 2024 differed from the U.S. federal statutory rate due primarily to state taxes in New Mexico.

Current wording

Income tax provision. We recorded a current income tax provision of $46.1 million and a deferred income tax provision of $93.3 million for the six months ended June 30, 2025. We recorded a current income tax provision of $47.4 million and a deferred income tax provision of $97.4 million for the six months ended June 30, 2024. Our effective income tax rates of 26% for each of the six months ended June 30, 2025 and 2024 differed from the U.S. federal statutory rate due primarily to state taxes in New Mexico.

Previous wording

Our primary use of capital has been, and we expect will continue to be during the remainder of 2025 and for the foreseeable future, for the acquisition, exploration and development of oil and natural gas properties and for midstream investments. We expect to fund our 2025 capital expenditures through a combination of cash on hand, operating cash flows and performance incentives paid to us by Five Point Energy, LLC or its affiliates. If capital expenditures were to exceed our operating cash flows during the remainder of 2025, we expect to fund any such excess capital expenditures, including for significant acquisitions, through borrowings under the Credit Agreement or the San Mateo Credit Facility (assuming availability under such facilities) or through other capital sources, including borrowings under expanded or additional credit arrangements, the sale or joint venture of midstream assets, oil and natural gas producing assets, leasehold interests or mineral interests and potential issuances of equity, debt or convertible securities, none of which may be available on satisfactory terms or at all. Our future success in growing proved reserves and production will be highly dependent on our ability to generate operating cash flows and access outside sources of capital.

Current wording

Our primary use of capital has been, and we expect will continue to be during the remainder of 2025 and for the foreseeable future, for the acquisition, exploration and development of oil and natural gas properties and for midstream investments. We expect to fund our 2025 capital expenditures through a combination of cash on hand, operating cash flows and performance incentives paid to us by Five Point Infrastructure LLC (previously, Five Point Energy LLC) or its affiliates. If capital expenditures were to exceed our operating cash flows during the remainder of 2025, we expect to fund any such excess capital expenditures, including for significant acquisitions, through borrowings under the Credit Agreement or the San Mateo Credit Facility (assuming availability under such facilities) or through other capital sources, including borrowings under expanded or additional credit arrangements, the sale or joint venture of midstream assets, oil and natural gas producing assets, leasehold interests or mineral interests and potential issuances of equity, debt or convertible securities, none of which may be available on satisfactory terms or at all. Our future success in growing proved reserves and production will be highly dependent on our ability to generate operating cash flows and access outside sources of capital.

Previous wording

The Board declared a quarterly cash dividend of $0.3125 per share of common stock in February 2025. On April 16, 2025, the Board declared a quarterly cash dividend of $0.3125 per share of common stock payable on June 6, 2025 to shareholders of record as of May 9, 2025.

Current wording

In February and April 2025, the Board declared quarterly cash dividends of $0.3125 per share of common stock. On July 15, 2025, the Board declared a quarterly cash dividend of $0.3125 per share of common stock payable on September 5, 2025 to shareholders of record as of August 15, 2025.

Previous wording

On April 16, 2025, the Board authorized a share repurchase program (the “Share Repurchase Program”) of up to $400.0 million of common stock. These repurchases may be conducted through a variety of methods, including open market purchases, 10b5-1 trading plans, privately negotiated transactions or other means. The timing and number of shares that we may purchase is subject to a variety of factors, including our stock price, market conditions, trading volume and other uses for our free cash flow. There can be no assurance regarding the exact number of shares to be repurchased by the Company, if any. Depending on market conditions and other factors, these repurchases may be commenced or suspended at any time or periodically without prior notice, and the Share Repurchase Program does not obligate the Company to acquire any amount of common stock. On April 28, 2025, we repurchased 250,000 shares of our common stock at an average price of $41.45 per share, totaling $10.4 million under the Share Repurchase Program.

Current wording

On April 16, 2025, the Board authorized the Share Repurchase Program of up to $400.0 million of common stock. These repurchases may be conducted through a variety of methods, including open market purchases, 10b5-1 trading plans, privately negotiated transactions or other means. The timing and number of shares that we may purchase is subject to a variety of factors, including our stock price, market conditions, trading volume and other uses for our free cash flow. There can be no assurance regarding the exact number of shares to be repurchased by the Company, if any. Depending on market conditions and other factors, these repurchases may be commenced or suspended at any time or periodically without prior notice, and the Share Repurchase Program does not obligate the Company to acquire any amount of common stock. During the second quarter of 2025, we repurchased 1,095,667 shares of our common stock under the Share Repurchase Program at an average price of $40.37 per share, for a total cost of $44.2 million.

Previous wording

At March 31, 2025, we had cash totaling $14.5 million and restricted cash totaling $63.0 million, which was primarily associated with San Mateo. By contractual agreement, the cash in the accounts held by our less-than-wholly-owned subsidiaries is not to be commingled with our other cash and is to be used only to fund the capital expenditures and operations of these less-than-wholly-owned subsidiaries.

Current wording

At June 30, 2025, we had cash totaling $10.5 million and restricted cash totaling $76.3 million, which was primarily associated with San Mateo. By contractual agreement, the cash in the accounts held by our less-than-wholly-owned subsidiaries is not to be commingled with our other cash and is to be used only to fund the capital expenditures and operations of these less-than-wholly-owned subsidiaries.

Previous wording

At March 31, 2025, we had (i) $500.0 million of outstanding 2028 Notes, (ii) $900.0 million of outstanding 2032 Notes, (iii) $750.0 million of outstanding 2033 Notes, (iv) $405.0 million in borrowings outstanding under the Credit Agreement and (v) approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement. Between March 31, 2025 and April 23, 2025, we repaid $15.0 million of borrowings under the Credit Agreement.

Current wording

At June 30, 2025, we had (i) $500.0 million of outstanding 2028 Notes, (ii) $900.0 million of outstanding 2032 Notes, (iii) $750.0 million of outstanding 2033 Notes, (iv) $390.0 million in borrowings outstanding under the Credit Agreement and (v) approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement. Since June 30, 2025, we repaid $30.0 million of borrowings under the Credit Agreement, and at July 22, 2025, we had $360.0 million in borrowings outstanding under the Credit Agreement.

Previous wording

At March 31, 2025, San Mateo had $655.0 million in borrowings outstanding under the San Mateo Credit Facility and approximately $24.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between March 31, 2025 and April 23, 2025, San Mateo repaid $40.0 million of borrowings under the San Mateo Credit Facility. The outstanding borrowings under the San Mateo Credit Facility mature on November 26, 2029, and lender commitments under the facility were $800.0 million at March 31, 2025. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases in lender commitments to up to $1.05 billion. The San Mateo Credit Facility is non-recourse with respect to Matador and its other subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The San Mateo Credit Facility requires San Mateo to maintain a debt to EBITDA ratio, which is defined as total consolidated funded indebtedness outstanding (as defined in the San Mateo Credit Facility) divided by a rolling four quarter EBITDA calculation, of 5.00 or less, subject to certain exceptions. The San Mateo Credit Facility also requires San Mateo to maintain an interest coverage ratio, which is defined as a rolling four quarter EBITDA calculation divided by San Mateo’s consolidated interest expense for such period, of 2.50 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s debt to EBITDA ratio is greater than 4.50 or San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. We believe that San Mateo was in compliance with the terms of the San Mateo Credit Facility at March 31, 2025.

Current wording

In June 2025, San Mateo and certain of its lenders modified the San Mateo Credit Facility to (i) increase the lender commitments from $800.0 million to $850.0 million and (ii) add one new bank to San Mateo’s lending group. At June 30, 2025, San Mateo had $778.0 million in borrowings outstanding under the San Mateo Credit Facility and approximately $15.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Since June 30, 2025, San Mateo repaid $85.0 million of borrowings under the San Mateo Credit Facility, and at July 22, 2025, San Mateo had $693.0 million in borrowings outstanding under the San Mateo Credit Facility. The outstanding borrowings under the San Mateo Credit Facility mature on November 26, 2029. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases in lender commitments to up to $1.05 billion. The San Mateo Credit Facility is non-recourse with respect to Matador and its other subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The San Mateo Credit Facility requires San Mateo to maintain a debt to EBITDA ratio, which is defined as total consolidated funded indebtedness outstanding (as defined in the San Mateo Credit Facility) divided by a rolling four quarter EBITDA calculation, of 5.00 or less, subject to certain exceptions. The San Mateo Credit Facility also requires San Mateo to maintain an interest coverage ratio, which is defined as a rolling four quarter EBITDA calculation divided by San Mateo’s consolidated interest expense for such period, of 2.50 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s debt to EBITDA ratio is greater than 4.50 or San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. We believe that San Mateo was in compliance with the terms of the San Mateo Credit Facility at June 30, 2025.

Previous wording

We expect that development of our Delaware Basin assets will be the primary focus of our operations and capital expenditures for the remainder of 2025. We began 2025 operating nine drilling rigs in the Delaware Basin and, as of April 23, 2025, we decided to drop to eight drilling rigs by the middle of 2025. We have built significant optionality into our drilling program, which should generally allow us to decrease or increase the number of rigs we operate as necessary based on changing commodity prices and other factors. At April 23, 2025, we decreased our estimated D/C/E capital expenditures for 2025 to a range of $1.18 to $1.37 billion from a range of $1.28 to $1.47 billion, as we plan to reduce to eight drilling rigs in the middle of the year as well as adjust our completions schedule. At April 23, 2025, our estimated midstream capital expenditures for 2025 remained $120.0 to $180.0 million, which includes our proportionate share of San Mateo’s estimated 2025 capital expenditures as well as the estimated 2025 capital expenditures for other wholly-owned midstream projects. The midstream capital expenditure budget includes 51% of the costs associated with the Marlan Processing Plant Expansion that is expected to be online in the second quarter of 2025. Substantially all of these 2025 estimated capital expenditures are expected to be allocated to (i) the further delineation and development of our leasehold position, (ii) the construction, installation and maintenance of midstream assets and (iii) our participation in certain non-operated well opportunities. Our 2025 Delaware Basin operated drilling program is expected to focus on the continued development of our various asset areas throughout the Delaware Basin, with a continued emphasis on drilling and completing a high percentage of longer horizontal wells.

Current wording

We expect that development of our Delaware Basin assets will be the primary focus of our operations and capital expenditures for the remainder of 2025. We began 2025 operating nine drilling rigs in the Delaware Basin. In response to market and commodity price volatility in the beginning of the second quarter, we contractually released our ninth drilling rig and expect to operate eight drilling rigs by August 1, 2025. We have built significant optionality into our drilling program, which should generally allow us to decrease or increase the number of rigs we operate as necessary based on changing commodity prices and other factors. At July 22, 2025, our estimated drilling, completing and equipping (“D/C/E”) capital expenditures for 2025 remained $1.18 to $1.37 billion. At July 22, 2025, our estimated midstream capital expenditures for 2025 remained $120.0 to $180.0 million, which includes our proportionate share of San Mateo’s estimated 2025 capital expenditures as well as the estimated 2025 capital expenditures for other wholly-owned midstream projects. The midstream capital expenditure budget includes 51% of the costs associated with San Mateo’s construction of an additional natural gas processing plant with a designed inlet capacity of 200 MMcf per day, including a nitrogen rejection unit and additional related facilities, to expand its Marlan cryogenic natural gas processing plant (the “Marlan Processing Plant Expansion”), which came online in the second quarter of 2025. Substantially all of these 2025 estimated capital expenditures are expected to be allocated to (i) the further delineation and development of our leasehold position, (ii) the construction, installation and maintenance of midstream assets and (iii) our participation in certain non-operated well opportunities. Our 2025 Delaware Basin operated drilling program is expected to focus on the continued development of our various asset areas throughout the Delaware Basin, with a continued emphasis on drilling and completing a high percentage of longer horizontal wells.

Previous wording

As we have done in recent years, we may divest portions of our non-core assets as well as consider monetizing other assets, such as certain midstream assets and mineral and royalty interests, as value-creating opportunities arise. During the first quarter of 2025, we divested our remaining assets in the Eagle Ford shale for $22.2 million. In addition, during 2025, we intend to continue evaluating the opportunistic acquisition of producing properties, acreage and mineral interests and midstream assets, principally in the Delaware Basin. These monetizations, divestitures and expenditures are opportunity-specific, and purchase price multiples and per-acre prices can vary significantly based on the asset or prospect. As a result, it is difficult to estimate these 2025 monetizations, divestitures and capital expenditures with any degree of certainty; therefore, we have not provided estimated proceeds related to monetizations or divestitures or estimated capital expenditures related to acquiring producing properties, acreage and mineral interests and midstream assets for 2025.

Current wording

We intend to continue evaluating the opportunistic acquisition of producing properties, acreage and mineral interests and midstream assets, principally in the Delaware Basin. Purchase price multiples and per-acre prices can vary significantly based on the asset or prospect. As a result, it is difficult to estimate these capital expenditures with any degree of certainty; therefore, we have not provided estimated capital expenditures related to acquiring producing properties, acreage and mineral interests and midstream assets for 2025.

Previous wording

Our unaudited cash flows for the three months ended March 31, 2025 and 2024 are presented below:

Current wording

Our unaudited cash flows for the six months ended June 30, 2025 and 2024 are presented below:

Previous wording

Net cash provided by operating activities increased $259.3 million to $727.9 million for the three months ended March 31, 2025 from $468.6 million for the three months ended March 31, 2024. Excluding changes in operating assets and liabilities, net cash provided by operating activities increased $127.1 million to $608.5 million for the three months ended March 31, 2025 from $481.4 million for the three months ended March 31, 2024. This increase was primarily attributable to higher oil and natural gas production and higher realized natural gas prices for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, partially offset by lower realized oil prices. Changes in our operating assets and liabilities between the two periods resulted in a net increase of approximately $132.2 million in net cash provided by operating activities for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Current wording

Net cash provided by operating activities increased $167.4 million to $1.23 billion for the six months ended June 30, 2025 from $1.06 billion for the six months ended June 30, 2024. Excluding changes in operating assets and liabilities, net cash provided by operating activities increased $151.6 million to $1.18 billion for the six months ended June 30, 2025 from $1.02 billion for the six months ended June 30, 2024. This increase was primarily attributable to increased oil and natural gas production and higher realized natural gas prices for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, partially offset by lower realized oil prices. Changes in our operating assets and liabilities between the two periods resulted in an increase of $15.8 million in net cash provided by operating activities for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Previous wording

Net cash used in investing activities decreased $31.7 million to $511.7 million for the three months ended March 31, 2025 from $543.3 million for the three months ended March 31, 2024. This decrease in net cash used in investing activities was primarily due to (i) a decrease between the periods of $120.6 million in expenditures related to the acquisition of oil and natural gas properties, (ii) a decrease between the periods of $32.2 million in midstream capital expenditures and (iii) an increase between the periods of $21.3 million related to proceeds from the sale of assets. These decreases were partially offset by an increase between the periods of $141.7 million in D/C/E capital expenditures primarily attributable to our operated and non-operated drilling, completion and equipping activities in the Delaware Basin.

Current wording

Net cash used in investing activities decreased $113.5 million to $1.01 billion for the six months ended June 30, 2025 from $1.12 billion for the six months ended June 30, 2024. This decrease in net cash used in investing activities was primarily due to (i) a decrease between the periods of $131.0 million in expenditures related to the acquisition of oil and natural gas properties, (ii) a decrease between the periods of $95.3 million in expenditures related to the Ameredev Acquisition and (iii) an increase between the periods of $21.4 million related to proceeds from the sale of assets. These decreases in cash used in investing activities were partially offset by an increase between the periods of $133.8 million in D/C/E capital expenditures primarily attributable to our operated and non-operated drilling, completion and equipping activities in the Delaware Basin.

Previous wording

Adjusted EBITDA, a non-GAAP financial measure, increased $138.9 million to $644.2 million for the three months ended March 31, 2025, as compared to $505.4 million for the three months ended March 31, 2024. This increase was primarily attributable to higher oil and natural gas production and higher realized natural gas prices, partially offset by lower realized oil prices, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Current wording

Adjusted EBITDA, a non-GAAP financial measure, increased $16.2 million to $594.2 million for the three months ended June 30, 2025, as compared to $578.1 million for the three months ended June 30, 2024. This increase was primarily attributable to increased oil and natural gas production and higher realized natural gas prices, partially offset by lower realized oil prices, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Previous wording

(1)The amounts included in the table above represent principal maturities only. At March 31, 2025, we had $405.0 million in borrowings outstanding under the Credit Agreement and approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement. The outstanding borrowings under the Credit Agreement mature on March 22, 2029. At March 31, 2025, San Mateo had $655.0 million of borrowings outstanding under the San Mateo Credit Facility and approximately $24.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. The outstanding borrowings under the San Mateo Credit Facility mature on November 26, 2029. Assuming the amounts outstanding and interest rates of 6.18% and 6.43% respectively, for the Credit Agreement and the San Mateo Credit Facility at March 31, 2025, the interest expense for such facilities is expected to be approximately $25.4 million and $42.7 million, respectively, each year until maturity.

Current wording

(1)The amounts included in the table above represent principal maturities only. At June 30, 2025, we had $390.0 million in borrowings outstanding under the Credit Agreement and approximately $52.9 million in outstanding letters of credit issued pursuant to the Credit Agreement. The outstanding borrowings under the Credit Agreement mature on March 22, 2029. At June 30, 2025, San Mateo had $778.0 million of borrowings outstanding under the San Mateo Credit Facility and approximately $15.4 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. The outstanding borrowings under the San Mateo Credit Facility mature on November 26, 2029. Assuming the amounts outstanding and interest rates of 6.18% and 6.43% respectively, for the Credit Agreement and the San Mateo Credit Facility at June 30, 2025, the interest expense for such facilities is expected to be approximately $24.4 million and $50.7 million, respectively, each year until maturity.

Previous wording

(7)We dedicated to San Mateo our current and certain future leasehold interests in the Rustler Breaks asset area and the Wolf portion of the West Texas asset area and acreage in the Greater Stebbins Area and Stateline asset area pursuant to 15-year, fixed-fee oil transportation, oil, natural gas and produced water gathering and produced water disposal agreements. In addition, we dedicated to San Mateo our current and certain future leasehold interests in the Rustler Breaks asset area and acreage in the Greater Stebbins Area and Stateline asset area pursuant to 15-year, fixed-fee natural gas processing agreements. In

Current wording

(7)We dedicated to San Mateo our current and certain future leasehold interests in the Rustler Breaks asset area and the Wolf portion of the West Texas asset area and acreage in the Greater Stebbins Area and Stateline asset area pursuant to 15-year, fixed-fee oil transportation, oil, natural gas and produced water gathering and produced water disposal agreements. In addition, we dedicated to San Mateo our current and certain future leasehold interests in the Rustler Breaks asset area and acreage in the Greater Stebbins Area and Stateline asset area pursuant to 15-year, fixed-fee natural gas processing agreements. In 2024, we also dedicated to San Mateo certain of our current and future leasehold interests in the Ranger and Antelope Ridge asset areas pursuant to 15-year, fixed-fee natural gas gathering, compression, treating and processing agreements with San Mateo. See Note 10 to the interim unaudited condensed consolidated financial statements in this Quarterly Report for more information about these contractual commitments.

Previous wording

(8)At March 31, 2025, we had outstanding commitments related to San Mateo’s Marlan Processing Plant Expansion, in addition to commitments to purchase compressors to be utilized in San Mateo operations.

Current wording

(8)At June 30, 2025, we had outstanding commitments related to San Mateo’s Marlan Processing Plant Expansion, in addition to commitments to purchase compressors to be utilized in San Mateo’s operations.

Previous wording

Our business success and financial results are dependent on many factors beyond our control, such as economic, political and regulatory developments, as well as competition from other sources of energy. For example, the recent election of President Trump and a Republican-controlled Congress has altered, and may continue to alter, our current regulatory framework and may impact our business and the oil and gas industry generally. Commodity price volatility, in particular, is a significant risk to our business, cash flows and results of operations. Commodity prices are affected by changes in market supply and demand, which are impacted by overall economic activity, ongoing military conflicts, including ongoing military conflicts between Russia and Ukraine and in the Middle East, political instability, particularly in China and in the Middle East, the actions of Organization of Petroleum Exporting Countries, Russia and certain other oil-exporting countries (“OPEC+”), weather, pipeline capacity constraints, inventory storage levels, domestic or global health concerns, oil and natural gas price differentials and other factors.

Current wording

Commodity price volatility, in particular, is a significant risk to our business, cash flows and results of operations. Commodity prices are affected by changes in market supply and demand, which are impacted by overall economic activity, ongoing military conflicts, including ongoing military conflicts between Russia and Ukraine and in the Middle East, political instability, particularly in China and in the Middle East, the actions of Organization of Petroleum Exporting Countries, Russia and certain other oil-exporting countries (“OPEC+”), weather, pipeline capacity constraints, inventory storage levels, domestic or global health concerns, oil and natural gas price differentials and other factors.

Previous wording

Oil prices were lower in the first quarter of 2025, as compared to the first quarter of 2024. For the three months ended March 31, 2025, oil prices averaged $71.42 per Bbl, ranging from a high of $80.04 per Bbl in mid-January to a low of $66.03 per Bbl in mid-March, based upon the West Texas Intermediate (“WTI”) oil futures contract price for the earliest delivery date. Oil prices averaged $76.91 per Bbl for the three months ended March 31, 2024. We realized a weighted average oil price of $72.38 per Bbl (with no realized gains or losses from oil derivatives) for our oil production for the three months ended March 31, 2025, as compared to $77.58 per Bbl (with no realized gains or losses from oil derivatives) for our oil production for the three months ended March 31, 2024. Oil prices have experienced increased volatility since March 31, 2025. At April 23, 2025, the WTI oil futures contract for the earliest delivery date had decreased from the average price for the first quarter of 2025 of $71.42 per Bbl, settling at $62.27 per Bbl, which was a decrease as compared to $83.36 per Bbl at April 23, 2024.

Current wording

Oil prices were lower in the second quarter of 2025, as compared to the second quarter of 2024. For the three months ended June 30, 2025, oil prices averaged $63.68 per Bbl, ranging from a low of $57.13 per Bbl in early May to a high of $75.14 per Bbl in mid-June, based upon the West Texas Intermediate (“WTI”) oil futures contract price for the earliest delivery date. Oil prices averaged $80.66 per Bbl for the three months ended June 30, 2024. We realized a weighted average oil price of $64.34 per Bbl (with no realized gains or losses from oil derivatives) for our oil production for the three months ended June 30, 2025, as compared to $81.20 per Bbl (with no realized gains or losses from oil derivatives) for our oil production for the three months ended June 30, 2024. Oil prices have remained volatile since June 30, 2025. At July 22, 2025, the WTI oil futures contract for the earliest delivery date had increased from the average price for the second quarter of 2025 of $63.68 per Bbl, settling at $66.21 per Bbl, which was a decrease as compared to $79.78 per Bbl at July 22, 2024.