Matador Resources Sells Eagle Ford Assets, Announces Potential Buybacks

Matador Resources Co MTDR shares are trading lower on Friday after the company disclosed the sale of its remaining Eagle Ford shale assets in South Texas.

The assets were sold through a series of transactions in the Eagle Ford shale located in La Salle, Karnes and Atascosa Counties in South Texas.

Joseph Wm. Foran, founder, chairman and CEO of Matador, stated that the company plans to focus on the continued development of high-quality acreage in the northern Delaware Basin, which is considered the most productive basin in the U.S.

Notably, the company holds approximately 200,000 net acres in the basin, with 80% of it held by production.

Foran added that over the past two quarters, Matador generated more than $30 million from these sales, which along with a portion of its cash flow is used to reduce its credit facility borrowings.

During the first quarter of 2025, Matador repaid $180 million of its borrowings, bringing the outstanding balance to $405 million.

Based on an initial review of its first-quarter results, the company expects a leverage ratio of one times or lower as of March 31, 2025.

Matador exited the first quarter of 2025 with around $1.8 billion in liquidity.

Apart from this, anticipating steel price increases in 2025 due to recent tariffs, Matador secured inventory for most of its 2025 drilling program. The company does not expect any recent tariffs to impact its well costs until the second half of 2025.

The company remains optimistic about its 2025 plans and drilling inventory.

Given the recent decline in stock price, Matador’s board is considering a stock repurchase program, which would be in addition to its current quarterly dividend of $0.3125 per share.

Investors can gain exposure to the stock via First Trust Energy AlphaDEX Fund FXN and Amplify COWS Covered Call ETF HCOW.

MTDR Price Action: MTDR shares are down 14.38% at $38.16 at publication Friday.

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