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, 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.

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 and (iv) references to the “Ameredev Acquisition” refer to the acquisition of Ameredev Stateline II, LLC 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

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.

Current wording

For the three months ended September 30, 2025, our total oil equivalent production was 19.2 million BOE, and our average daily oil equivalent production was 209,184 BOE per day, of which 119,556 Bbl per day, or 57%, was oil and 537.8 MMcf per day, or 43%, was natural gas. Our average daily oil production of 119,556 Bbl per day for the three months ended September 30, 2025 increased 19% year-over-year from 100,315 Bbl per day for the three months ended September 30, 2024. Our average daily natural gas production of 537.8 MMcf per day for the three months ended September 30, 2025 increased 26% year-over-year from 427.0 MMcf per day for the three months ended September 30, 2024.

Previous 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.

Current wording

The Delaware Basin contributed 100% of our daily oil production and approximately 94% of our daily natural gas production in the third quarter of 2025, as compared to approximately 99% of our daily oil production and approximately 95% of our daily natural gas production in the third quarter of 2024.

Previous 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.

Current wording

For the third quarter of 2025, we reported net income attributable to Matador shareholders of $176.4 million, or $1.42 per diluted common share, on a GAAP basis, as compared to net income attributable to Matador shareholders of $248.3 million, or $1.99 per diluted common share, for the third quarter of 2024. For the third quarter of 2025, our Adjusted EBITDA, a non‑GAAP financial measure, was $566.5 million, as compared to Adjusted EBITDA of $574.5 million during the third quarter of 2024.

Previous wording

For the six months ended June 30, 2025, we reported net income attributable to Matador shareholders of $390.3 million, or $3.12 per diluted common share, on a GAAP basis, as compared to net income attributable to Matador shareholders of $422.5 million, or $3.45 per diluted common share, for the six months ended June 30, 2024. For the six months ended June 30, 2025, our Adjusted EBITDA, a non-GAAP financial measure, was $1.24 billion, as compared to Adjusted EBITDA of $1.08 billion during the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, we reported net income attributable to Matador shareholders of $566.7 million, or $4.54 per diluted common share, on a GAAP basis, as compared to net income attributable to Matador shareholders of $670.8 million, or $5.44 per diluted common share, for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, our Adjusted EBITDA, a non-GAAP financial measure, was $1.80 billion, as compared to Adjusted EBITDA of $1.66 billion during the nine months ended September 30, 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 and six months ended June 30, 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 nine months ended September 30, 2025, see “—Results of Operations” below.

Previous 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.

Current wording

Matador’s Board of Directors (the “Board”) declared quarterly cash dividends of $0.3125 per share of common stock in each of the first, second and third quarters of 2025. On October 15, 2025, the Board amended our dividend policy to increase the quarterly dividend to $0.375 per share of common stock for future dividend payments and also declared a quarterly cash dividend of $0.375 per share of common stock payable on December 5, 2025 to shareholders of record as of November 10, 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. During the three and six months ended June 30, 2025, the Company repurchased 1,095,667 shares of common stock under the Share Repurchase Program at a weighted average price of $40.37 per common share for a total cost of $44.2 million.

Current 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. During the three and nine months ended September 30, 2025, the Company repurchased 137,161 and 1,232,828 shares of common stock under the Share Repurchase Program at a weighted average price of $47.06 and $41.11 per common share for a total cost of $6.5 million and $50.7 million, respectively.

Previous 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.

Current wording

At September 30, 2025, we had (i) $285.0 million in borrowings outstanding under our secured revolving credit facility (the “Credit Agreement”), (ii) approximately $54.0 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”).

Previous 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.

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 September 30, 2025, San Mateo had $815.0 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 September 30, 2025, San Mateo repaid $55.0 million of borrowings under the San Mateo Credit Facility, and at October 21, 2025, San Mateo had $760.0 million in borrowings outstanding under the San Mateo Credit Facility.

Previous wording

Oil and natural gas revenues. Our oil and natural gas revenues increased $39.5 million, or 5%, to $815.8 million for the three months ended June 30, 2025, as compared to $776.3 million for the three months ended June 30, 2024. Our oil revenues increased $13.8 million, or 2%, to $719.4 million for the three months ended June 30, 2025, as compared to $705.6 million for the three months ended June 30, 2024. The increase in oil revenues resulted from a 29% increase in our oil production to 11.2 million Bbl for the three months ended June 30, 2025, as compared to 8.7 million Bbl for the three months ended June 30, 2024, which was partially offset by a 21% decrease in the weighted average oil price realized for the three months ended June 30, 2025 to $64.34 per Bbl, as compared to $81.20 per Bbl for the three months ended June 30, 2024. Our natural gas revenues increased $25.7 million, or 36%, to $96.4 million for the three months ended June 30, 2025, as compared to $70.7 million for the three months ended June 30, 2024. The increase in natural gas revenues primarily resulted from a 33% increase in our natural gas production to 47.0 Bcf for the three months ended June 30, 2025, as compared to 35.4 Bcf for the three months ended June 30, 2024.

Current wording

Oil and natural gas revenues. Our oil and natural gas revenues increased $40.1 million, or 5%, to $810.2 million for the three months ended September 30, 2025, as compared to $770.2 million for the three months ended September 30, 2024. Our oil revenues increased $15.6 million, or 2%, to $713.9 million for the three months ended September 30, 2025, as compared to $698.4 million for the three months ended September 30, 2024. The increase in oil revenues resulted from a 19% increase in our oil production to 11.0 million Bbl for the three months ended September 30, 2025, as compared to 9.2 million Bbl for the three months ended September 30, 2024, which was partially offset by a 14% decrease in the weighted average oil price realized for the three months ended September 30, 2025 to $64.91 per Bbl, as compared to $75.67 per Bbl for the three months ended September 30, 2024. Our natural gas revenues increased $24.5 million, or 34%, to $96.3 million for the three months ended September 30, 2025, as compared to $71.8 million for the three months ended September 30, 2024. The increase in natural gas revenues primarily resulted from a 26% increase in our natural gas production to 49.5 Bcf for the three months ended September 30, 2025, as compared to 39.3 Bcf for the three months ended September 30, 2024 and a 7% increase in the weighted average natural gas price realized for the three months ended September 30, 2025 to $1.95 per Mcf, as compared to a weighted average natural gas price of $1.83 per Mcf for the three months ended September 30, 2024.

Previous 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.

Current wording

Third-party midstream services revenues. Our third-party midstream services revenues increased $5.5 million, or 14%, to $43.8 million for the three months ended September 30, 2025, as compared to $38.3 million for the three months ended September 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 $25.9 million for the three months ended September 30, 2025, as compared to $18.8 million for the three months ended September 30, 2024, and (ii) an increase in our oil transportation revenues to $6.4 million for the three months ended September 30, 2025, as compared to $4.1 million for the three months ended September 30, 2024, which were partially offset by a decrease in our third-party water disposal revenues to $11.5 million for the three months ended September 30, 2025, as compared to $15.4 million for the three months ended September 30, 2024.

Previous 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.

Current wording

Sales of purchased natural gas. Our sales of purchased natural gas increased $9.4 million, or 18%, to $61.0 million for the three months ended September 30, 2025, as compared to $51.7 million for the three months ended September 30, 2024. This increase was primarily the result of a 15% increase in natural gas volumes sold and a 3% increase in natural gas price realized in those sales. 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 $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.

Current wording

Realized gain on derivatives. Our realized gain on derivatives was $3.9 million for the three months ended September 30, 2025, as compared to a realized gain of $4.5 million for the three months ended September 30, 2024. We realized a net gain of $3.9 million and $4.5 million related to our natural gas basis differential swap contracts for the three months ended September 30, 2025 and 2024, respectively, 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 $0.08 per Mcf produced during the three months ended September 30, 2025, as compared to an average gain of approximately $0.11 per Mcf produced during the three months ended September 30, 2024.

Previous 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.

Current wording

Unrealized gain on derivatives. During the three months ended September 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 asset of $3.7 million from a net liability of $16.3 million at June 30, 2025, resulting in an unrealized gain on derivatives of $20.0 million for the three months ended September 30, 2025. During the three months ended September 30, 2024, the aggregate net fair value of our open oil costless collar and natural gas basis differential swap contracts changed to a net asset of $28.0 million from a net liability of $7.1 million at June 30, 2024, resulting in an unrealized gain on derivatives of $35.1 million for the three months ended September 30, 2024.

Previous 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.

Current wording

Oil and natural gas revenues. Our oil and natural gas revenues increased $286.0 million, or 13%, to $2.54 billion for the nine months ended September 30, 2025, as compared to $2.25 billion for the nine months ended September 30, 2024. Our oil revenues increased $180.2 million, or 9%, to $2.18 billion for the nine months ended September 30, 2025, as compared to $2.00 billion for the nine months ended September 30, 2024. This increase in oil revenues resulted from a 27% increase in our oil production to 32.5 million Bbl for the nine months ended September 30, 2025, as compared to 25.6 million Bbl for the nine months ended September 30, 2024, which was partially offset by a 14% decrease in the weighted average oil price realized for the nine months ended September 30, 2025 to $67.09 per Bbl, as compared to $78.12 per Bbl for the nine months ended September 30, 2024. Our natural gas revenues increased by $105.8 million, or 43%, to $353.3 million for the nine months ended September 30, 2025, as compared to $247.5 million for the nine months ended September 30, 2024. The increase in natural gas revenues resulted from a 29% increase in our natural gas production to 141.7 Bcf for the nine months ended September 30, 2025, as compared to 110.2 Bcf for the nine months ended September 30, 2024, and an 11% increase in the weighted average natural gas price realized for the nine months ended September 30, 2025 to $2.49 per Mcf, as compared to a weighted average natural gas price of $2.25 per Mcf for the nine months ended September 30, 2024.

Previous wording

Third-party midstream services revenues. Our third-party midstream services revenues increased $10.5 million, or 16%, to $75.5 million for the six months ended June 30, 2025, as compared to $65.0 million for the six months ended June 30, 2024. This increase was primarily attributable to (i) an increase in our third-party natural gas gathering and processing revenues to $38.9 million for the six months ended June 30, 2025, as compared to $31.0 million for the six months ended June 30, 2024, and (ii) an increase in our oil transportation revenues to $11.3 million for the six months ended June 30, 2025, as compared to $6.5 million for the six months ended June 30, 2024, which were partially offset by a decrease in our third-party water disposal revenues to $25.3 million for the six months ended June 30, 2025, as compared to $27.5 million for the six months ended June 30, 2024.

Current wording

Third-party midstream services revenues. Our third-party midstream services revenues increased $16.0 million, or 15%, to $119.3 million for the nine months ended September 30, 2025, as compared to $103.3 million for the nine months ended September 30, 2024. This increase was primarily attributable to (i) an increase in our third-party natural gas gathering and processing revenues to $64.8 million for the nine months ended September 30, 2025, as compared to $49.8 million for the nine months ended September 30, 2024, and (ii) an increase in our oil transportation revenues to $17.7 million for the nine months ended September 30, 2025, as compared to $10.6 million for the nine months ended September 30, 2024, which were partially offset by a decrease in our third-party water disposal revenues to $36.8 million for the nine months ended September 30, 2025, as compared to $42.9 million for the nine months ended September 30, 2024.

Previous wording

Sales of purchased natural gas. Our sales of purchased natural gas increased $34.9 million, or 37%, to $130.7 million for the six months ended June 30, 2025, as compared to $95.7 million for the six months ended June 30, 2024. This increase was the result of a 38% increase in natural gas price realized.

Current wording

Sales of purchased natural gas. Our sales of purchased natural gas increased $44.3 million, or 30%, to $191.7 million for the nine months ended September 30, 2025, as compared to $147.4 million for the nine months ended September 30, 2024. This increase was the result of a 24% increase in natural gas price realized and a 5% increase in natural gas volumes sold.

Previous wording

Realized gain on derivatives. Our realized gain on derivatives was $9.7 million for the six months ended June 30, 2025, as compared to a realized gain of $4.0 million for the six months ended June 30, 2024. We realized a net gain of $9.7 million related to our natural gas basis differential swap contracts for the six months ended June 30, 2025, resulting primarily from natural gas basis differentials that were below the fixed prices of our natural gas basis differential swap contracts. For the six months ended June 30, 2024, we realized a net gain of $4.0 million related to our natural gas basis differential swap contracts, resulting primarily from natural gas basis differentials that were below the fixed prices of our natural gas basis differential swap contracts. We realized an average gain on our natural gas derivatives of approximately $0.10 per Mcf produced during the six months ended June 30, 2025, as compared to an average gain of approximately $0.06 per Mcf produced during the six months ended June 30, 2024.

Current wording

Realized gain on derivatives. Our realized gain on derivatives was $13.6 million for the nine months ended September 30, 2025, as compared to a realized gain of $8.6 million for the nine months ended September 30, 2024. We realized a net gain of $13.6 million and $8.6 million related to our natural gas basis differential swap contracts for the nine months ended September 30, 2025 and 2024, respectively, resulting primarily from natural gas basis differentials that were below the fixed prices of our natural gas basis differential swap contracts. We realized an average gain on our natural gas derivatives of approximately $0.10 per Mcf produced during the nine months ended September 30, 2025, as compared to an average gain of approximately $0.07 per Mcf produced during the nine months ended September 30, 2024.

Previous wording

Unrealized loss on derivatives. During the six months ended June 30, 2025, the aggregate net fair value of our open oil costless collar and natural gas basis differential swap contracts changed to a net liability of $16.3 million from a net asset of $16.0 million at December 31, 2024, resulting in an unrealized loss on derivatives of $32.2 million for the six months ended June 30, 2025. During the six months ended June 30, 2024, the aggregate net fair value of our open oil costless collar and natural gas basis differential swap contracts changed to a net liability of $7.1 million from a net asset of $2.7 million at December 31, 2023, resulting in an unrealized loss on derivatives of $9.8 million for the six months ended June 30, 2024.

Current wording

Unrealized gain (loss) on derivatives. During the nine months ended September 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 asset of $3.7 million from a net asset of $16.0 million at December 31, 2024, resulting in an unrealized loss on derivatives of $12.3 million for the nine months ended September 30, 2025. During the nine months ended September 30, 2024, the aggregate net fair value of our open oil costless collar and natural gas basis differential swap contracts changed to a net asset of $28.0 million from a net asset of $2.7 million at December 31, 2023, resulting in an unrealized gain on derivatives of $25.4 million for the nine months ended September 30, 2024.

Previous 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.

Current wording

Production taxes, transportation and processing. Our production taxes, transportation and processing expenses increased $10.3 million, or 14%, to $83.1 million for the three months ended September 30, 2025, as compared to $72.7 million for the three months ended September 30, 2024. The increase was primarily attributable to a $7.9 million increase in transportation and processing expenses to $20.5 million for the three months ended September 30, 2025, as compared to $12.6 million for the three months ended September 30, 2024, and a $2.4 million increase in production taxes to $62.6 million for the three months ended September 30, 2025, as compared to $60.2 million for the three months ended September 30, 2024. The increase in transportation and processing expenses is primarily due to a 22% increase in our total oil equivalent production and a change in the mix of revenue contracts between the periods. The increase in production taxes 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, transportation and processing expenses decreased 6% to $4.32 per BOE for the three months ended September 30, 2025, as compared to $4.61 per BOE for the three months ended September 30, 2024. This decrease per BOE was primarily attributable to a 14% decrease in realized oil prices and a 22% increase in our total oil equivalent production between the two periods.

Previous 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.

Current wording

Lease operating. Our lease operating expenses increased $20.7 million, or 24%, to $107.5 million for the three months ended September 30, 2025, as compared to $86.8 million for the three months ended September 30, 2024. Our lease operating expenses on a unit-of-production basis increased 1% to $5.58 per BOE for the three months ended September 30, 2025, as compared to $5.50 per BOE for the three months ended September 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 September 30, 2025, as compared to the three months ended September 30, 2024.

Previous 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.

Current wording

Plant and other midstream services operating. Our plant and other midstream services operating expenses increased $6.8 million, or 16%, to $50.5 million for the three months ended September 30, 2025, as compared to $43.7 million for the three months ended September 30, 2024. This increase was primarily attributable to increased throughput volumes from Matador’s wholly-owned midstream assets, which resulted in increased expenses associated with our expanded pipeline operations of $24.2 million for the three months ended September 30, 2025, as compared to $16.5 million for the three months ended September 30, 2024, which was partially offset by decreased expenses associated with our commercial produced water disposal operations of $14.8 million for the three months ended September 30, 2025, as compared to $16.7 million for the three months ended September 30, 2024.

Previous 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.

Current wording

Depletion, depreciation and amortization. Our depletion, depreciation and amortization expenses increased $62.5 million, or 26%, to $305.4 million for the three months ended September 30, 2025, as compared to $242.8 million for the three months ended September 30, 2024, primarily as a result of a 22% increase in our total oil equivalent production for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. On a unit-of-production basis, our depletion, depreciation and amortization expenses increased 3% to $15.87 per BOE for the three months ended September 30, 2025, as compared to $15.39 per BOE for the three months ended September 30, 2024.

Previous 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.

Current wording

General and administrative. Our general and administrative expenses increased $8.0 million, or 28%, to $36.8 million for the three months ended September 30, 2025, as compared to $28.8 million for the three months ended September 30, 2024. Our general and administrative expenses increased by 5% on a unit-of-production basis to $1.91 per BOE for the three months ended September 30, 2025, as compared to $1.82 per BOE for the three months ended September 30, 2024. These increases were 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.

Previous 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.

Current wording

Interest expense. For the three months ended September 30, 2025, we incurred total interest expense of $59.0 million. We capitalized $8.4 million of our interest expense on certain qualifying projects for the three months ended September 30, 2025 and expensed the remaining $50.6 million to operations. For the three months ended September 30, 2024, we incurred total interest expense of $44.4 million. We capitalized $8.2 million of our interest expense on certain qualifying projects for the three months ended September 30, 2024 and expensed the remaining $36.2 million to operations. The increase in interest expense for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to a $709.2 million increase in the weighted average of senior notes outstanding between the periods in connection with the Ameredev Acquisition in September 2024.

Previous wording

Income tax provision. We recorded a current income tax provision of $23.1 million and a deferred income tax provision of $33.4 million for the three months ended June 30, 2025. We recorded a current income tax provision of $30.1 million and a deferred income tax provision of $47.9 million for the three months ended June 30, 2024. Our effective income tax rates of 27% and 25% for the three months ended June 30, 2025 and 2024, respectively, differed from the U.S. federal statutory rate due primarily to state taxes in New Mexico.

Current wording

Income tax provision (benefit). We recorded a current income tax benefit of $39.3 million and a deferred income tax provision of $98.5 million for the three months ended September 30, 2025. We recorded a current income tax benefit of $21.1 million and a deferred income tax provision of $106.4 million for the three months ended September 30, 2024. The increase in the current income tax benefit between the periods was primarily the result of the OBBBA, which made permanent, extended or modified certain provisions under the 2017 Tax Cuts and Jobs Act, among other things. The provisions of the OBBBA that are expected to most significantly impact us, and for which our current estimates are reflected in the unaudited condensed consolidated financial statements for the period ended September 30, 2025, include (i) a permanent extension of 100% bonus depreciation for certain capital expenditures, (ii) immediate deduction of domestic research or experimental expenditures, (iii) acceleration of unamortized domestic research or development expenditures and (iv) elimination of the deduction for depreciation, amortization and depletion from the definition of “adjusted taxable income” for the purpose of calculating interest expense deductions. The effective income tax rate and the total income tax provision for the three months ended September 30, 2025 were not materially impacted by the enactment of the OBBBA. Our effective income tax rates of 25% and 26% for the three months ended September 30, 2025 and 2024, respectively, differed from the U.S. federal statutory rate due primarily to state taxes in New Mexico.

Previous wording

Production taxes, transportation and processing. Our production taxes, transportation and processing expenses increased $29.7 million, or 20%, to $176.6 million for the six months ended June 30, 2025, as compared to $147.0 million for the six months ended June 30, 2024. This increase was primarily attributable to a $22.5 million increase in production taxes to $136.6 million for the six months ended June 30, 2025, as compared to $114.1 million for the six months ended June 30, 2024, primarily due to the increase in oil and natural gas revenues between the two periods. On a unit-of-production basis, our production taxes, transportation and processing expenses decreased 8% to $4.79 per BOE for the six months ended June 30, 2025, as compared to $5.21 per BOE for the six months ended June 30, 2024. This decrease per BOE was primarily attributable to a 14% decrease in realized oil prices and a 31% increase in our total oil equivalent production between the two periods.

Current wording

Production taxes, transportation and processing. Our production taxes, transportation and processing expenses increased $40.0 million, or 18%, to $259.7 million for the nine months ended September 30, 2025, as compared to $219.7 million for the nine months ended September 30, 2024. This increase was primarily attributable to a $24.9 million increase in production taxes to $199.2 million for the nine months ended September 30, 2025, as compared to $174.3 million for the nine months ended September 30, 2024, and a $15.1 million increase in transportation and processing expenses to $60.5 million for the nine months ended September 30, 2025, as compared to $45.4 million for the nine months ended September 30, 2024. This increase in production taxes, 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, transportation and processing expenses decreased 7% to $4.63 per BOE for the nine months ended September 30, 2025, as compared to $4.99 per BOE for the nine months ended September 30, 2024. This decrease per BOE was primarily attributable to a 14% decrease in realized oil prices.

Previous wording

Lease operating expenses. Our lease operating expenses increased $57.0 million, or 37%, to $212.3 million for the six months ended June 30, 2025, as compared to $155.3 million for the six months ended June 30, 2024. Our lease operating expenses per unit of production increased 5% to $5.75 per BOE for the six months ended June 30, 2025, as compared to $5.50 per BOE for the six 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 operated by other operators (where we own a working interest) and to operating cost inflation for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Current wording

Lease operating expenses. Our lease operating expenses increased $77.6 million, or 32%, to $319.8 million for the nine months ended September 30, 2025, as compared to $242.1 million for the nine months ended September 30, 2024. Our lease operating expenses per unit of production increased 4% to $5.70 per BOE for the nine months ended September 30, 2025, as compared to $5.50 per BOE for the nine months ended September 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 operated by other operators (where we own a working interest) for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

Previous wording

Plant and other midstream services operating. Our plant and other midstream services operating expenses increased $21.7 million, or 28%, to $98.6 million for the six months ended June 30, 2025, as compared to $76.9 million for the six 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 $49.4 million for the six months ended June 30, 2025, as compared to $29.6 million for the six months ended June 30, 2024.

Current wording

Plant and other midstream services operating. Our plant and other midstream services operating expenses increased $28.5 million, or 24%, to $149.1 million for the nine months ended September 30, 2025, as compared to $120.6 million for the nine months ended September 30, 2024. This increase was primarily attributable to increased throughput volumes from Matador’s wholly-owned midstream assets, which resulted in increased expenses associated with our expanded pipeline operations of $73.6 million for the nine months ended September 30, 2025, as compared to $46.1 million for the nine months ended September 30, 2024.

Previous wording

Depletion, depreciation and amortization. Our depletion, depreciation and amortization expenses increased $146.2 million, or 33%, to $584.5 million for the six months ended June 30, 2025, as compared to $438.2 million for the six months ended June 30, 2024, primarily as a result of the approximate 31% increase in our total oil equivalent production for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. On a unit-of-production basis, our depletion, depreciation and amortization expenses increased 2% to $15.84 per BOE for the six months ended June 30, 2025, as compared to $15.53 per BOE for the six months ended June 30, 2024, primarily as a result of the Ameredev Acquisition.

Current wording

Depletion, depreciation and amortization. Our depletion, depreciation and amortization expenses increased $208.8 million, or 31%, to $889.8 million for the nine months ended September 30, 2025, as compared to $681.1 million for the nine months ended September 30, 2024, primarily as a result of the approximate 28% increase in our total oil equivalent production for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. On a unit-of-production basis, our depletion, depreciation and amortization expenses increased 2% to $15.85 per BOE for the nine months ended September 30, 2025, as compared to $15.48 per BOE for the nine months ended September 30, 2024, primarily as a result of the Ameredev Acquisition.

Previous wording

General and administrative. Our general and administrative expenses increased $8.4 million, or 15%, to $65.9 million for the six months ended June 30, 2025, as compared to $57.6 million for the six months ended June 30, 2024, primarily as a result of increased payroll for our existing employees as well as with additional employees joining Matador to support our increased land, geoscience, drilling, completion, production, midstream and administration functions as a result of our continued growth. Our general and administrative expenses decreased by 12% on a unit-of-production basis to $1.79 per BOE for the six months ended June 30, 2025, as compared to $2.04 per BOE for the six months ended June 30, 2024, primarily as a result of the approximate 31% increase in our total oil equivalent production between the two periods.

Current wording

General and administrative. Our general and administrative expenses increased $16.4 million, or 19%, to $102.7 million for the nine months ended September 30, 2025, as compared to $86.4 million for the nine months ended September 30, 2024, primarily as a result of increased payroll for our existing employees as well as with additional employees joining Matador to support our increased land, geoscience, drilling, completion, production, midstream and administration functions as a result of our continued growth. Our general and administrative expenses decreased by 7% on a unit-of-production basis to $1.83 per BOE for the nine months ended September 30, 2025, as compared to $1.96 per BOE for the nine months ended September 30, 2024, primarily as a result of the approximate 28% increase in our total oil equivalent production between the two periods.

Previous wording

Interest expense. For the six months ended June 30, 2025, we incurred total interest expense of approximately $117.8 million. We capitalized approximately $14.9 million of our interest expense on certain qualifying projects for the six months ended June 30, 2025 and expensed the remaining $102.8 million to operations. For the six months ended June 30, 2024, we incurred total interest expense of approximately $90.7 million. We capitalized approximately $15.2 million of our interest expense on certain qualifying projects for the six months ended June 30, 2024 and expensed the remaining $75.5 million to operations. The increase in interest expense for the six 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.

Current wording

Interest expense. For the nine months ended September 30, 2025, we incurred total interest expense of approximately $176.8 million. We capitalized approximately $23.3 million of our interest expense on certain qualifying projects for the nine months ended September 30, 2025 and expensed the remaining $153.5 million to operations. For the nine months ended September 30, 2024, we incurred total interest expense of approximately $135.1 million. We capitalized approximately $23.4 million of our interest expense on certain qualifying projects for the nine months ended September 30, 2024 and expensed the remaining $111.7 million to operations. The increase in interest expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to an $804.5 million increase in the weighted average of senior notes outstanding between the periods in connection with the Ameredev Acquisition in September 2024.

Previous 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.

Current wording

Income tax provision. We recorded a current income tax provision of $6.7 million and a deferred income tax provision of $191.8 million for the nine months ended September 30, 2025. We recorded a current income tax provision of $26.3 million and a deferred income tax provision of $203.8 million for the nine months ended September 30, 2024. The decrease in the current income tax provision between the periods was primarily the result of the OBBBA, which made permanent, extended or modified certain provisions under the 2017 Tax Cuts and Jobs Act, among other things. The provisions of the OBBBA that are expected to most significantly impact us, and for which our current estimates are reflected in the unaudited condensed consolidated financial statements for the period ended September 30, 2025, include (i) a permanent extension of 100% bonus depreciation for certain capital expenditures, (ii) immediate deduction of domestic research or experimental expenditures, (iii) acceleration of unamortized domestic research or development expenditures and (iv) elimination of the deduction for depreciation, amortization and depletion from the definition of “adjusted taxable income” for the purpose of calculating interest expense deductions. The effective income tax rate and the total income tax provision for the nine months ended September 30, 2025 were not materially impacted by the enactment of the OBBBA. Our effective income tax rates of 26% for each of the nine months ended September 30, 2025 and 2024 differed from the U.S. federal statutory rate due primarily to state taxes in New Mexico.

Previous 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.

Current wording

The Board declared quarterly cash dividends of $0.3125 per share of common stock in each of the first, second and third quarters of 2025. On October 15, 2025, the Board amended our dividend policy to increase the quarterly dividend to $0.375 per share of common stock for future dividend payments and also declared a quarterly cash dividend of $0.375 per share of common stock payable on December 5, 2025 to shareholders of record as of November 10, 2025.

Previous 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.

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 three and nine months ended September 30, 2025, the Company repurchased 137,161 and 1,232,828 shares of common stock under the Share Repurchase Program at a weighted average price of $47.06 and $41.11 per common share for a total cost of $6.5 million and $50.7 million, respectively.

Previous 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.

Current wording

At September 30, 2025, we had cash totaling $20.2 million and restricted cash totaling $76.2 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 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.

Current wording

At September 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) $285.0 million in borrowings outstanding under the Credit Agreement and (v) approximately $54.0 million in outstanding letters of credit issued pursuant to the Credit Agreement.

Previous 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.

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 September 30, 2025, San Mateo had $815.0 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 September 30, 2025, San Mateo repaid $55.0 million of borrowings under the San Mateo Credit Facility, and at October 21, 2025, San Mateo had $760.0 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 September 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. 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.

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 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. On October 21, 2025, we increased our estimated D/C/E capital expenditures for 2025 to a range of $1.47 to $1.55 billion from a range of $1.18 to $1.37 billion. On October 21, 2025, we also adjusted our estimated midstream capital expenditures for 2025 to a range of $155.0 to $175.0 million from a range of $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, 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 Delaware Basin operated drilling program for the remainder of 2025 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.