Matador Resources Company (MTDR) reported Q2 earnings Wednesday, with average daily production increasing to 215,631 barrels of oil equivalent per day from 209,013 boe/d.
Total average daily volumes were 3% above Matador's Q2 guidance range, which was between 206,000 boe/d and 212,000 boe/d.
Average oil production rose to 126,106 barrels per day from 122,875 b/d a year earlier. Q2 2026 average daily oil output was 2% above the company's guidance.
Average natural gas production increased to 537.1 million cubic feet per day for the quarter ended June 30, up from 516.8 MMcf/d a year earlier.
Net production oil volumes stood at 11.476 million barrels for the quarter ended June 30, up from 11.182 million barrels for the same quarter last year.
Net production volumes for natural gas rose to 48.9 billion cubic feet in Q2, up from 47 Bcf in the year-ago quarter.
San Mateo's natural gas gathering throughput rose to 577 MMcf/d in Q2 from 491 MMcf/d a year earlier, while natural gas processing volumes rose to 552 MMcf/d from 486 MMcf/d.
Oil gathering and transportation throughput declined to 41,600 b/d from 50,300 b/d a year earlier, while produced water handling volumes fell to 343,400 b/d from 414,400 b/d.
Matador revised its full-year 2026 oil production guidance to 127,500 b/d to 129,000 b/d from 123,000 b/d to 125,000 b/d. Natural gas production guidance increased to 546 MMcf/d to 567 MMcf/d from 525 MMcf/d to 545 MMcf/d.
The company also raised its full-year 2026 total production outlook to 218,500 boe/d to 223,500 boe/d from 210,500 boe/d to 216,000 boe/d.
The company updated full-year drilling, completion and equipping capital expenditure guidance to $1.48 billion to $1.56 billion from $1.35 billion $1.44 billion.
It also lifted midstream capital spending to $145 million to $165 million from $100 million to $110 million.
Matador expects Q3 production of 222,000 boe/d to 226,000 boe/d, including 128,500 b/d to 130,500 b/d of oil and 561 MMcf/d to 573.0 MMcf/d of natural gas.
The company plans to turn 30 to 33 net operated horizontal wells to sales during the quarter.
The company said Q2 production exceeded expectations despite shutting in about 9,900 boe/d because of weak Waha pricing and third-party maintenance. It turned 23.7 net operated wells to sales, including 13 wells on the Guss pad during the quarter.
Matador completed four strategic transactions during and after the quarter, including the acquisition of 5,154 net undeveloped acres in the Delaware Basin, Cardinal Midstream and agreements to acquire Paloma Permian and Ridge Runner Resources.
The Paloma acquisition includes estimated Q3 production of about 11,100 boe/d, comprising 57% oil, and adds 55 million boe of reserves.
Matador said its Rae's Creek Woodford well achieved test rates exceeding 2,200 boe/d, comprising 72% oil.