Matador Resources

None of the serious warning signs we check for were found. 1 thing worth knowing.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 7 Aug 2026 and 10 later 8-Ks.

• One big customer

  Worth knowing

  One customer brings in a big share of sales: 49% last year. Losing that customer would hurt.

  “For the years ended December 31, 2025, 2024 and 2023, three significant purchasers accounted for 72 %, 79 % and 76 %, respectively, of the Company’s total oil, natural gas and NGL revenues: Plains Marketing, L.P. ( 49 %, 53 % and 42 %, respectively), Exxon Mobil Corporation ( 13 %, 15 % and 24 %, respectively) and Enterprise Products Partners L.P. ( 10 %, 11 % and 10 %, respectively).”

  From the 10-K filed 26 February 2026, Item 8. Financial Statements and Notes. Read it in the filing

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• We cannot predict the impact of armed conflicts, including the ongoing military conflicts between Russia and Ukraine and in the Middle East, and the related humanitarian crises on the global economy, energy markets, geopolitical stability and our business.

  Could happen

  Although our leasehold acreage is located primarily in the Delaware Basin, the occurrence or threat of terrorist attacks in the U.S. or any of the major energy producing regions of the world or elsewhere, anti-terrorist efforts and other armed conflicts involving the U.S. or other countries, including the conflicts between Russia and Ukraine and in the Middle East, which may include further sanctions, embargoes, export controls, supply chain disruptions, regional instability and geopolitical shifts, may have adverse effects on global macroeconomic conditions, increase volatility in the price and demand for oil and natural gas, increase exposure to cyberattacks (including cyberattacks targeting energy and pipeline infrastructure), cause disruptions in global supply chains, increase transportation and insurance costs, increase foreign currency fluctuations, cause constraints or disruption in the capital markets and limit sources of liquidity. Additionally, destructive forms of protest and opposition by extremists and other disruptions, including acts of sabotage or eco-terrorism, against oil and natural gas activities could potentially result in personal injury to persons, damages to property, natural resources or the environment, or lead to extended interruptions of our or our customers’ operations. If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for oil and gas. Oil and gas related facilities could be direct targets of terrorist attacks, and our operations could be adversely impacted if infrastructure integral to our or our customers’ operations is destroyed or damaged. Expenses related to security and costs for insurance may increase as a result of these threats, and some insurance coverage may become more difficult to obtain, if available at all. We cannot predict the extent of these events’ effects on our business and results of operations as well as on the global economy and energy markets.

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• Changes in U.S. foreign trade policies, including the imposition of additional tariffs and other trade barriers, and efforts to withdraw from or materially modify international trade agreements, may materially and adversely affect our business, operations and financial condition.

  U.S. foreign trade policy continues to evolve, and recent actions have resulted in the imposition of new and increased tariffs, as well as other trade barriers on the foreign import of certain materials and products. For example, in April 2025, the U.S. government announced a new tariff regime that included a 10% baseline tariff on most products imported from other countries and an additional individualized reciprocal tariff on the countries with which the U.S. has the largest trade deficits, including China. Since that time, the U.S. expanded tariffs on key industrial inputs, including tariffs on steel and aluminum imports, and at times announced, rescinded, modified and temporarily suspended multiple tariffs on several foreign jurisdictions, which increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. In August 2025, however, the U.S. Court of Appeals for the Federal Circuit ruled that the tariffs imposed under the Trump Administration exceed presidential authority and therefore are invalid, and in February 2026, the U.S. Supreme Court affirmed such decision. Following the ruling, the Trump Administration signed an executive order imposing a 10% “global tariff” and later indicated an intention to increase such “global tariff” to 15%, effective immediately, using presidential powers under certain U.S. trade laws. If implemented, such tariffs can remain in effect for up to 150 days, which may be extended by the U.S. Congress. The Trump Administration may continue to impose additional tariffs under other U.S. trade laws. In addition, from time to time, certain leaders in the U.S. government, including in the Trump administration, have indicated a willingness to revise, renegotiate or terminate various existing bilateral and multilateral trade agreements. The uncertainty over such policies has caused volatility in commodity, capital and financial markets, increased concerns over domestic and global inflation and adversely impacted consumer confidence in the U.S and worldwide. Any future tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation and diminished expectations for the economy, and ultimately reduced demand for oil and natural gas.

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• The payment of dividends and the repurchase of shares of our common stock will be at the discretion of our Board of Directors and subject to numerous factors.

  Could happen

  In April 2025, the Board approved the Share Repurchase Program authorizing the repurchase of up to $400.0 million of common stock. However, the timing and number of shares that we may repurchase under the Share Repurchase Program 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 us, 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 us to acquire any amount of common stock.

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• Changes in U.S. foreign trade policies, including the imposition of additional tariffs and other trade barriers, and efforts to withdraw from or materially modify international trade agreements, may materially and adversely affect our business, operations and financial condition.

  Could happen

  Changes in tariffs and trade restrictions can be announced with little or no advance notice. We cannot predict what additional changes to trade policy or tariffs will be made by the Trump administration, Congress or other governments, including whether existing or new tariff policies will be maintained or modified, what materials or products may be subject to such policies or whether the entry into new bilateral or multilateral trade agreements, or the amendment or termination of existing trade agreements, will occur, nor can we predict the effects that any such changes would have on our business. However, such steps, if adopted, could increase our costs, disrupt supply chains, delay project timelines or otherwise adversely impact our business and operations. For example, price increases for the materials we and San Mateo use in the construction of our midstream assets may result in increased costs associated with the continued build-out of such assets, as well as projects under development. Because our midstream business generates substantially all of its revenue under commercial agreements with customers that provide for fixed-fee structures, our midstream business will generally be unable to pass these cost increases along to our customers, and our income from operations and cash flows may be adversely affected.

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• The terms of the agreements governing our outstanding indebtedness may restrict our current and future operations, particularly our ability to respond to changes in business or to take certain actions.

  Could happen

  In addition, a change in control (as defined in the Credit Agreement, the San Mateo Credit Facility and the indentures governing our senior notes) could result in an event of default or prepayment event under the applicable debt instrument, which could have an adverse effect on our business by limiting our ability to take advantage of financing, merger and acquisition, or other opportunities.

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