Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35410 | |
Entity Registrant Name | Matador Resources Company | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 27-4662601 | |
Entity Address, Address Line One | 5400 LBJ Freeway, | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 371-5200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MTDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 124,780,249 | |
Entity Central Index Key | 0001520006 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash | $ 23,208 | $ 52,662 |
Restricted cash | 51,118 | 53,636 |
Accounts receivable | ||
Oil and natural gas revenues | 278,155 | 274,192 |
Joint interest billings | 207,540 | 163,660 |
Other | 42,778 | 35,102 |
Derivative instruments | 3,027 | 2,112 |
Lease and well equipment inventory | 39,927 | 41,808 |
Prepaid expenses and other current assets | 108,382 | 92,700 |
Total current assets | 754,135 | 715,872 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 9,973,110 | 9,633,757 |
Unproved and unevaluated | 1,407,512 | 1,193,257 |
Midstream properties | 1,398,601 | 1,318,015 |
Other property and equipment | 40,901 | 40,375 |
Less accumulated depletion, depreciation and amortization | (5,441,274) | (5,228,963) |
Net property and equipment | 7,378,850 | 6,956,441 |
Other assets | ||
Derivative instruments | 1,718 | 558 |
Other long-term assets | 92,626 | 54,125 |
Total other assets | 94,344 | 54,683 |
Total assets | 8,227,329 | 7,726,996 |
Current liabilities | ||
Accounts payable | 121,823 | 68,185 |
Accrued liabilities | 419,791 | 365,848 |
Royalties payable | 178,506 | 161,983 |
Amounts due to affiliates | 13,495 | 28,688 |
Advances from joint interest owners | 37,725 | 19,954 |
Other current liabilities | 80,001 | 40,617 |
Total current liabilities | 851,341 | 685,275 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 260,000 | 500,000 |
Borrowings under San Mateo Credit Facility | 526,000 | 522,000 |
Senior unsecured notes payable | 1,185,567 | 1,184,627 |
Asset retirement obligations | 90,361 | 87,485 |
Deferred income taxes | 625,682 | 581,439 |
Other long-term liabilities | 52,216 | 38,482 |
Total long-term liabilities | 2,739,826 | 2,914,033 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 shares authorized; 124,835,154 and 119,478,282 shares issued; and 124,780,297 and 119,458,674 shares outstanding, respectively | 1,248 | 1,194 |
Additional paid-in capital | 2,472,681 | 2,133,172 |
Retained earnings | 1,946,412 | 1,776,541 |
Treasury stock, at cost, 54,857 and 19,608 shares, respectively | (2,091) | (45) |
Total Matador Resources Company shareholders’ equity | 4,418,250 | 3,910,862 |
Non-controlling interest in subsidiaries | 217,912 | 216,826 |
Total shareholders’ equity | 4,636,162 | 4,127,688 |
Total liabilities and shareholders’ equity | $ 8,227,329 | $ 7,726,996 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 124,835,154 | 119,478,282 |
Common stock, shares outstanding (in shares) | 124,780,297 | 119,458,674 |
Treasury stock (in shares) | 54,857 | 19,608 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Revenues | $ 785,343 | $ 563,674 |
Realized gain on derivatives | 275 | 3,669 |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) |
Total revenues | 787,693 | 560,276 |
Expenses | ||
Production taxes, transportation and processing | 70,153 | 55,486 |
Lease operating | 76,295 | 44,407 |
Purchased natural gas | 39,432 | 28,448 |
Depletion, depreciation and amortization | 212,311 | 126,325 |
Accretion of asset retirement obligations | 1,273 | 699 |
General and administrative | 29,653 | 22,433 |
Total expenses | 468,740 | 308,843 |
Operating income | 318,953 | 251,433 |
Other income (expense) | ||
Interest expense | (39,562) | (16,176) |
Other income | 577 | 339 |
Total other expense | (38,985) | (15,837) |
Income before income taxes | 279,968 | 235,596 |
Income tax provision (benefit) | ||
Current | 17,272 | 4,929 |
Deferred | 49,506 | 51,743 |
Total income tax provision | 66,778 | 56,672 |
Net income | 213,190 | 178,924 |
Net income attributable to non-controlling interest in subsidiaries | (19,461) | (15,794) |
Net income attributable to Matador Resources Company shareholders | $ 193,729 | $ 163,130 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.62 | $ 1.37 |
Basic (in shares) | 119,721 | 119,034 |
Diluted (in shares) | 120,253 | 119,702 |
Diluted (in dollars per share) | $ 1.61 | $ 1.36 |
Weighted average common shares outstanding | $ 1.62 | $ 1.37 |
Oil and natural gas revenues | ||
Revenues | ||
Revenues | $ 703,540 | $ 502,909 |
Third-party midstream services revenues | ||
Revenues | ||
Revenues | 32,357 | 26,511 |
Expenses | ||
Plant and other midstream services operating | 39,623 | 31,045 |
Sales of purchased natural gas | ||
Revenues | ||
Revenues | $ 49,446 | $ 34,254 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED - USD ($) $ in Thousands | Total | Total shareholders’ equity attributable to Matador Resources Company | Common Stock | Additional paid-in capital | Retained earnings | Treasury Stock | Non-controlling interest in subsidiaries |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 118,953,000 | ||||||
Balance at beginning of period at Dec. 31, 2022 | $ 3,317,091 | $ 3,110,797 | $ 1,190 | $ 2,101,999 | $ 1,007,642 | $ (34) | $ 206,294 |
Treasury stock, beginning of period (in shares) at Dec. 31, 2022 | 5,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (17,768) | (17,768) | (17,768) | ||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 264,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | (17,590) | (17,590) | $ 2 | (17,592) | |||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 3,894 | 3,894 | 3,894 | ||||
Stock options exercised, net of options forfeited in net share settlements, and employee stock purchases | 12 | 12 | 12 | ||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 15,000 | ||||||
Restricted stock forfeited (in shares) | 21,000 | ||||||
Restricted stock forfeited | (1,236) | (1,236) | $ (1,236) | ||||
Contribution related to formation of San Mateo | 11,613 | 11,613 | 11,613 | ||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (19,110) | (19,110) | |||||
Current period net income | 178,924 | 163,130 | 163,130 | 15,794 | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 119,232,000 | ||||||
Balance at end of period at Mar. 31, 2023 | $ 3,455,830 | 3,252,852 | $ 1,192 | 2,099,926 | 1,153,004 | $ (1,270) | 202,978 |
Treasury stock, end of period (in shares) at Mar. 31, 2023 | 26,000 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2023 | 119,458,674 | 119,478,000 | |||||
Balance at beginning of period at Dec. 31, 2023 | $ 4,127,688 | 3,910,862 | $ 1,194 | 2,133,172 | 1,776,541 | $ (45) | 216,826 |
Treasury stock, beginning of period (in shares) at Dec. 31, 2023 | 19,608 | 20,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | $ (23,858) | (23,858) | (23,858) | ||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 100,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | (11,381) | (11,381) | $ 1 | (11,382) | |||
Issuance of common stock pursuant to public offering (in shares) | 5,250,000 | ||||||
Issuance of common stock pursuant to public offering | 344,663 | 344,663 | $ 53 | 344,610 | |||
Cost to issue equity | (53) | (53) | (53) | ||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,149 | 5,149 | 5,149 | ||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 7,000 | ||||||
Restricted stock forfeited (in shares) | 35,000 | ||||||
Restricted stock forfeited | (2,046) | (2,046) | $ (2,046) | ||||
Contribution related to formation of San Mateo | 1,185 | 1,185 | 1,185 | ||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 7,350 | 7,350 | |||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (25,725) | (25,725) | |||||
Current period net income | $ 213,190 | 193,729 | 193,729 | 19,461 | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 124,780,297 | 124,835,000 | |||||
Balance at end of period at Mar. 31, 2024 | $ 4,636,162 | $ 4,418,250 | $ 1,248 | $ 2,472,681 | $ 1,946,412 | $ (2,091) | $ 217,912 |
Treasury stock, end of period (in shares) at Mar. 31, 2024 | 54,857 | 55,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.20 | $ 0.15 |
Contribution related to formation of San Mateo, net of tax | $ 0.3 | $ 3.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities | ||
Net income | $ 213,190 | $ 178,924 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized (gain) loss on derivatives | (2,075) | 7,067 |
Depletion, depreciation and amortization | 212,311 | 126,325 |
Accretion of asset retirement obligations | 1,273 | 699 |
Stock-based compensation expense | 2,838 | 2,290 |
Deferred income tax provision | 49,506 | 51,743 |
Amortization of debt issuance cost and other debt-related costs | 4,644 | 838 |
Other non-cash changes | (333) | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | (55,519) | 40,906 |
Lease and well equipment inventory | (2,044) | (4,423) |
Prepaid expenses and other current assets | (1,474) | (16,517) |
Other long-term assets | 254 | 35 |
Accounts payable, accrued liabilities and other current liabilities | (4,814) | (39,871) |
Royalties payable | 16,522 | 376 |
Advances from joint interest owners | 17,771 | (9,805) |
Income taxes payable | 16,025 | 723 |
Other long-term liabilities | 487 | 190 |
Net cash provided by operating activities | 468,562 | 339,500 |
Investing activities | ||
Drilling, completion and equipping capital expenditures | (236,639) | (224,144) |
Acquisition of oil and natural gas properties | (202,264) | (103,863) |
Midstream capital expenditures | (105,086) | (14,141) |
Expenditures for other property and equipment | (226) | (1,769) |
Proceeds from sale of assets | 900 | 451 |
Net cash used in investing activities | (543,315) | (343,466) |
Financing activities | ||
Repayments of borrowings under Credit Agreement | (930,000) | 0 |
Borrowings under Credit Agreement | 690,000 | 0 |
Repayments of borrowings under San Mateo Credit Facility | (65,000) | (55,000) |
Borrowings under San Mateo Credit Facility | 69,000 | 65,000 |
Cost to amend credit facilities | (11,292) | (8,645) |
Proceeds from issuance of common stock | 344,663 | 0 |
Cost to issue equity | (53) | 0 |
Dividends paid | (23,858) | (17,768) |
Contributions related to formation of San Mateo | 1,500 | 14,700 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 7,350 | 0 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (25,725) | (19,110) |
Taxes paid related to net share settlement of stock-based compensation | (13,515) | (18,909) |
Other | (289) | (204) |
Net cash provided by (used in) financing activities | 42,781 | (39,936) |
Change in cash and restricted cash | (31,972) | (43,902) |
Cash and restricted cash at beginning of period | 106,298 | 547,330 |
Cash and restricted cash at end of period | $ 74,326 | $ 503,428 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONSMatador Resources Company, a Texas corporation (“Matador” and, collectively with its subsidiaries, the “Company”), is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. The Company’s current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, the Company conducts midstream operations primarily through its midstream joint venture, San Mateo Midstream, LLC and its subsidiaries (“San Mateo”), and Pronto Midstream, LLC and its subsidiary (“Pronto”) in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 27, 2024 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less-than-wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less-than-wholly-owned and are involved in oil and natural gas exploration. All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2024. Amounts as of December 31, 2023 are derived from the Company’s audited consolidated financial statements included in the Annual Report. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities, purchase price allocations and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. Revenues The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Revenues from contracts with customers $ 785,343 $ 563,674 Realized gain on derivatives 275 3,669 Unrealized gain (loss) on derivatives 2,075 (7,067) Total revenues $ 787,693 $ 560,276 Three Months Ended 2024 2023 Oil revenues $ 598,514 $ 401,777 Natural gas revenues 105,026 101,132 Third-party midstream services revenues 32,357 26,511 Sales of purchased natural gas 49,446 34,254 Total revenues from contracts with customers $ 785,343 $ 563,674 Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For each of the three months ended March 31, 2024 and 2023, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. The Company capitalized approximately $17.1 million and $12.6 million of its general and administrative costs for the three months ended March 31, 2024 and 2023, respectively. The Company capitalized approximately $5.9 million and $3.4 million of its interest expense for the three months ended March 31, 2024 and 2023, respectively. Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Weighted average common shares outstanding Basic 119,721 119,034 Dilutive effect of options and restricted stock units 532 668 Diluted weighted average common shares outstanding 120,253 119,702 Recent Accounting Pronouncements Segments . In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. This ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures. Income Taxes . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this standard provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures. Climate-Related Disclosures. On March 6, 2024, the SEC adopted a new set of rules that require a wide range of climate-related disclosures, including material climate-related risks, information on any climate-related targets or goals that are material to the registrant’s business, results of operations or financial condition, Scope 1 and Scope 2 greenhouse gas emissions on a phased-in basis by certain larger registrants when those emissions are material and the filing of an attestation report covering the same, and disclosure of the financial statement effects of severe weather events and other natural conditions including costs and losses. Compliance dates under the final rule are phased in by registrant category. Multiple lawsuits have been filed challenging the SEC’s new climate rules, which have been consolidated and will be heard in the U.S. Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC issued an order staying the final rules until judicial review is complete. The Company is currently evaluating the impact of the final rules on its disclosures. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Q1 2024 Acquisition On February 15, 2024, a wholly-owned subsidiary of the Company acquired oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico (the “Q1 2024 Acquisition”). The Q1 2024 Acquisition had an effective date of October 1, 2023 and consideration for the acquisition consisted of an amount in cash equal to approximately $155.1 million (which amount was subject to certain customary post-closing adjustments). The Q1 2024 Acquisition was accounted for under the acquisition method of accounting as a business combination in accordance with Accounting Standards Codification Topic 805, Business Combinations (“ASC Topic 805”). Under ASC Topic 805, the purchase price is allocated to the underlying tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date, with any excess purchase price allocated to goodwill. The preliminary allocation of the total purchase price for the Q1 2024 Acquisition is set forth below (in thousands). The Company anticipates that the allocation of the purchase price should be finalized during 2024 upon determination of the final purchase price adjustments. Consideration Allocation Cash consideration given $ 155,054 Allocation of purchase price Current assets $ 4,984 Oil and natural gas properties Evaluated 45,778 Unproved and unevaluated 105,446 Asset retirement obligations (1,154) Net assets acquired $ 155,054 The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of oil and gas properties and asset retirement obligations were measured using the discounted cash flow technique of valuation. Significant inputs to the valuation of oil and gas properties include estimates of: (i) future production volumes, (ii) future commodity prices and (iii) recent market comparable transactions for unproved acreage. These inputs require significant judgments and estimates and are the most sensitive and subject to change. The results of operations for the Q1 2024 Acquisition since the closing date have been included in the Company’s interim unaudited condensed consolidated financial statements for the three months ended March 31, 2024. The pro forma impact of this business combination to revenues and net income for 2024 would not be material to the Company’s 2024 revenues and net income as reported. Advance Acquisition On April 12, 2023, a wholly-owned subsidiary of the Company completed the acquisition of Advance Energy Partners Holdings, LLC (“Advance”) from affiliates of EnCap Investments L.P., including certain oil and natural gas producing properties, undeveloped acreage and midstream assets located primarily in Lea County, New Mexico and Ward County, Texas (the “Initial Advance Acquisition”). The Initial Advance Acquisition had an effective date of January 1, 2023 and an aggregate purchase price consisting of (i) an amount in cash equal to approximately $1.60 billion (which amount was subject to certain customary post-closing adjustments) (the “Cash Consideration”) and (ii) potential additional cash consideration of $7.5 million for each month of 2023 in which the average oil price (as defined in the securities purchase agreement) exceeded $85 per barrel (all such payments for the 12 months in 2023, the “Contingent Consideration”). The Cash Consideration was paid upon the closing of the Initial Advance Acquisition and was funded by a combination of cash on hand and borrowings under the Company’s reserves-based revolving credit facility (the “Credit Agreement”). In the fourth quarter of 2023, the Company paid Contingent Consideration of $15.0 million, as the average oil price for the months of September and October 2023 exceeded $85 per barrel. On December 1, 2023, the Company acquired additional interests from affiliates of EnCap Investments L.P., including overriding royalty interests and royalty interests in certain oil and natural gas properties located primarily in Lea County, New Mexico, most of which were included in the Initial Advance Acquisition (the “Advance Royalty Acquisition”). The Advance Royalty Acquisition had an effective date of October 1, 2023 and an aggregate purchase price of approximately $81.0 million (which amount is subject to certain customary post-closing adjustments), and was funded by cash on hand. The Initial Advance Acquisition and Advance Royalty Acquisition (collectively, the “Advance Acquisition”) were accounted for under the acquisition method of accounting as a business combination in accordance with ASC Topic 805. Under ASC Topic 805, the purchase price is allocated to the underlying tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values as of the respective acquisition dates, with any excess purchase price allocated to goodwill. The Advance Acquisition was treated as an asset acquisition for tax purposes, as the Company acquired 100% of the membership interests of Advance in the Initial Advance Acquisition and acquired additional overriding royalty interests and royalty interests in the Advance Royalty Acquisition. The final allocation of the total purchase price for the Advance Acquisition is set forth below (in thousands). Consideration Allocation Cash $ 1,676,132 Working capital adjustments (4,060) Fair value of Contingent Consideration at April 12, 2023 21,151 Total consideration given $ 1,693,223 Allocation of purchase price Current assets $ 79,287 Oil and natural gas properties Evaluated 1,418,668 Unproved and unevaluated 213,835 Midstream assets 63,644 Current liabilities (73,885) Asset retirement obligations (8,326) Net assets acquired $ 1,693,223 |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2024 (in thousands). Beginning asset retirement obligations $ 92,090 Liabilities incurred during period 2,326 Divestitures during period (326) Accretion expense 1,273 Ending asset retirement obligations 95,363 Less: current asset retirement obligations (1) (5,002) Long-term asset retirement obligations $ 90,361 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2024. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At March 31, 2024, the Company had (i) $699.2 million of outstanding senior notes due 2026 (the “2026 Notes”), (ii) $500.0 million of outstanding senior notes due 2028 (the “2028 Notes”), (iii) $260.0 million in borrowings outstanding under the Credit Agreement and (iv) approximately $41.7 million in outstanding letters of credit issued pursuant to the Credit Agreement. Between March 31, 2024 and April 23, 2024, the Company (i) repurchased an aggregate principal amount of approximately $556.3 million of the 2026 Notes pursuant to the Company’s cash tender offer for the 2026 Notes announced on March 26, 2024 (the “2026 Notes Tender Offer”), (ii) exercised its optional right, under the indenture governing the 2026 Notes, to redeem the remaining aggregate principal amount of approximately $142.9 million of 2026 Notes outstanding on September 15, 2024 (the “2026 Notes Redemption”) and, in connection therewith, to satisfy and discharge the Company’s obligations under such indenture with respect to the 2026 Notes and (iii) repaid $235.0 million in borrowings outstanding under the Credit Agreement. See Note 13 for a further discussion of changes in the Company’s debt between March 31, 2024 and April 23, 2024. At March 31, 2024, San Mateo had $526.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between March 31, 2024 and April 23, 2024, San Mateo repaid $31.0 million of borrowings under the San Mateo Credit Facility. Credit Agreements MRC Energy Company The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. On March 22, 2024, the Company and its lenders entered into an amendment to the Fourth Amended and Restated Credit Agreement, which amended the Credit Agreement to, among other things: (i) reaffirm the borrowing base at $2.50 billion, (ii) increase the elected borrowing commitments from $1.325 billion to $1.50 billion, (iii) increase the maximum facility amount from $2.00 billion to $3.50 billion, (iv) extend the maturity date from October 31, 2026 to March 22, 2029, (v) appoint PNC Bank, National Association as administrative agent thereunder and (vi) add five new banks to the lending group. This March 2024 reaffirmation of the borrowing base constituted the regularly scheduled May 1 redetermination. The Credit Agreement requires the Company to maintain (i) a current ratio, which is defined as (x) total consolidated current assets plus the unused availability under the Credit Agreement divided by (y) total consolidated current liabilities less current maturities under the Credit Agreement, of not less than 1.0 to 1.0 at the end of each fiscal quarter and (ii) a debt to EBITDA ratio, which is defined as debt outstanding (net of cash or cash equivalents of up to the greater of (a) $150.0 million and (b) 10% of the elected commitment), divided by a rolling four quarter EBITDA calculation, of 3.5 to 1.0 or less. The Company believes that it was in compliance with the terms of the Credit Agreement at March 31, 2024. San Mateo Midstream, LLC The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The outstanding borrowings under the San Mateo Credit Facility mature on December 9, 2026, and lender commitments under the facility were $535.0 million at March 31, 2024. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases in lender commitments of up to $735.0 million. 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 5.0 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 2.5 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. The Company believes that San Mateo was in compliance with the terms of the San Mateo Credit Facility at March 31, 2024. Senior Unsecured Notes At March 31, 2024, the Company had $699.2 million of outstanding 2026 Notes, which had a 5.875% coupon rate. The 2026 Notes were jointly and severally guaranteed on a senior unsecured basis by certain subsidiaries of the Company (the “Guarantor Subsidiaries”). Neither San Mateo nor Pronto was a guarantor of the 2026 Notes. At March 31, 2024, the Company had $500.0 million of outstanding 2028 Notes, which have a 6.875% coupon rate. The 2028 Notes mature April 15, 2028, and interest is payable on the 2028 Notes semi-annually in arrears on each April 15 and October 15. The 2028 Notes are jointly and severally guaranteed on a senior unsecured basis by the Guarantor Subsidiaries. Neither San Mateo nor Pronto is a guarantor of the 2028 Notes. See Note 13 for a discussion of changes in the Company’s debt between March 31, 2024 and April 23, 2024. Debt Maturities |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company 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. For the three months ended March 31, 2023, the Company recorded a current income tax provision of $4.9 million and a deferred income tax provision of $51.7 million. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY Equity Offering On March 28, 2024, the Company completed an underwritten public offering of 5,250,000 shares of its common stock. After deducting underwriting discounts and offering expenses, the Company received net proceeds of approximately $344.2 million. The net proceeds from this offering were used for general corporate purposes, including the funding of acquisitions and the repayment of borrowings outstanding under the Credit Agreement. Stock-based Compensation During the three months ended March 31, 2024, the Company granted awards to certain of its employees of 135,000 service-based restricted stock units to be settled in cash, which are liability instruments, and 170,000 performance-based stock units and 99,600 service-based shares of restricted stock, which are equity instruments. The performance-based stock units vest in an amount between zero and 200% of the target units granted based on the Company’s relative total shareholder return over the three-year period ending December 31, 2026, as compared to a designated peer group. The service-based restricted stock and restricted stock units vest over a three-year period. The fair value of these awards was approximately $22.8 million on the grant date. Common Stock Dividend Matador’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.20 per share of common stock in February 2024. The dividend, which totaled $23.9 million, was paid on March 13, 2024 to shareholders of record as of February 23, 2024. On April 17, 2024, the Board declared a quarterly cash dividend of $0.20 per share of common stock payable on June 7, 2024 to shareholders of record as of May 17, 2024. San Mateo Distributions and Contributions During the three months ended March 31, 2024, San Mateo distributed $26.8 million to the Company and $25.7 million to a subsidiary of Five Point Energy LLC (“Five Point”), the Company’s joint venture partner in San Mateo. During the three months ended March 31, 2023, San Mateo distributed $19.9 million to the Company and $19.1 million to Five Point. During the three months ended March 31, 2024, the Company contributed $7.7 million and Five Point contributed $7.4 million of cash to San Mateo. During the three months ended March 31, 2023, there were no contributions to San Mateo by either the Company or Five Point. Performance Incentives Five Point paid the Company $1.5 million and $14.7 million of performance incentives during the three months ended March 31, 2024 and 2023, respectively. These performance incentives are recorded when received, net of the $0.3 million and $3.1 million deferred tax impact to Matador for the three months ended March 31, 2024 and 2023, respectively, in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets. These performance incentives for the three months ended March 31, 2024 and 2023 are also denoted as “Contributions related to formation of San Mateo” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At March 31, 2024, the Company had natural gas basis differential swap contracts open and in place to mitigate its exposure to natural gas price volatility, with a specific term (calculation period), notional quantity (volume hedged) and fixed price. The Company had no open contracts associated with oil or natural gas liquids prices at March 31, 2024. The following is a summary of the Company’s open basis differential swap contracts at March 31, 2024. Commodity Calculation Period Notional Quantity (MMBtu) Fixed Price Fair Value of Natural Gas Basis Differential 4/01/2024 - 12/31/2025 19,200,000 $ (0.59) $ 4,745 Total open basis differential swap contracts $ 4,745 The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed March 31, 2024 Current assets $ 3,739 $ (712) $ 3,027 Other assets $ 1,798 (80) 1,718 Total $ 5,537 $ (792) $ 4,745 December 31, 2023 Current assets $ 2,573 $ (461) $ 2,112 Other assets 1,743 (1,185) 558 Total $ 4,316 $ (1,646) $ 2,670 The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of income for the periods presented (in thousands). Three Months Ended Type of Instrument Location in Condensed Consolidated 2024 2023 Derivative Instrument Natural Gas Revenues: Realized gain on derivatives $ 275 $ 3,669 Realized gain on derivatives $ 275 $ 3,669 Natural Gas Revenues: Unrealized gain (loss) on derivatives 2,075 (7,067) Unrealized gain (loss) on derivatives 2,075 (7,067) Total $ 2,350 $ (3,398) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories. Level 1 Unadjusted quoted prices for identical, unrestricted assets or liabilities in active markets. Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued with industry standard models that consider various inputs, including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Level 3 Unobservable inputs that are not corroborated by market data that reflect a company’s own market assumptions. Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of March 31, 2024 and December 31, 2023 (in thousands). Fair Value Measurements at March 31, 2024 using Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Natural gas basis differential swaps $ — $ 4,745 $ — $ 4,745 Total $ — $ 4,745 $ — $ 4,745 Fair Value Measurements at December 31, 2023 using Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Natural gas basis differential swaps $ — $ 2,670 $ — $ 2,670 Total $ — $ 2,670 $ — $ 2,670 Additional disclosures related to derivative financial instruments are provided in Note 8. Other Fair Value Measurements At March 31, 2024 and December 31, 2023, the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners and other current liabilities approximated their fair values due to their short-term maturities. At March 31, 2024 and December 31, 2023, the carrying value of borrowings under the Credit Agreement and the San Mateo Credit Facility approximated their fair value as both are subject to short-term floating interest rates that reflect market rates available to the Company at the time and are classified at Level 2 in the fair value hierarchy. At March 31, 2024 and December 31, 2023, the fair value of the 2026 Notes was $699.5 million and $694.1 million, respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy. At March 31, 2024, and December 31, 2023, the fair value of the 2028 Notes was $511.3 million and $510.9 million, respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets and liabilities acquired in a business combination, lease and well equipment inventory when the market value is determined to be lower than the cost of the inventory and other property and equipment that are reduced to fair value when they are impaired or held for sale. See Note 3 for discussion of the fair value measurement of assets acquired and liabilities assumed as part of the Q1 2024 Acquisition and the Advance Acquisition. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Processing, Transportation and Produced Water Disposal Commitments Firm Commitments From time to time, the Company enters into agreements with third parties whereby the Company commits to deliver anticipated natural gas and oil production and produced water from certain portions of its acreage for transportation, gathering, processing, fractionation, sales and disposal. The Company paid approximately $15.3 million and $10.7 million for deliveries under these agreements during the three months ended March 31, 2024 and 2023, respectively. Certain of these agreements contain minimum volume commitments. If the Company does not meet the minimum volume commitments under these agreements, it will be required to pay certain deficiency fees. If the Company ceased operations in the areas subject to these agreements at March 31, 2024, the total deficiencies required to be paid by the Company under these agreements would be approximately $537.0 million. San Mateo Commitments The Company dedicated to San Mateo its 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 southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the 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, the Company dedicated to San Mateo its 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 (collectively with the transportation, gathering and produced water disposal agreements, the “Operational Agreements”). San Mateo provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The remaining minimum contractual obligation under the Operational Agreements at March 31, 2024 was approximately $191.3 million. Legal Proceedings The Company is a party to several legal proceedings encountered in the ordinary course of its business. While the ultimate outcome and impact on the Company cannot be predicted with certainty, in the opinion of management, it is remote that these legal proceedings will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. |
SUPPLEMENTAL DISCLOSURES
SUPPLEMENTAL DISCLOSURES | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Text Block Supplement [Abstract] | |
SUPPLEMENTAL DISCLOSURES | Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at March 31, 2024 and December 31, 2023 (in thousands). March 31, December 31, Accrued evaluated and unproved and unevaluated property costs $ 219,651 $ 144,443 Accrued midstream properties costs 36,898 55,195 Accrued lease operating expenses 69,034 62,005 Accrued interest on debt 20,092 22,857 Accrued asset retirement obligations 5,002 4,605 Accrued partners’ share of joint interest charges 37,404 42,101 Accrued payable related to purchased natural gas 8,273 10,400 Other 23,437 24,242 Total accrued liabilities $ 419,791 $ 365,848 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Cash paid for interest expense, net of amounts capitalized $ 42,697 $ 26,228 Increase in asset retirement obligations related to mineral properties $ 1,846 $ 159 Increase in asset retirement obligations related to midstream properties $ 154 $ 352 Increase in liabilities for drilling, completion and equipping capital expenditures $ 115,386 $ 69,593 Increase (decrease) in liabilities for acquisition of oil and natural gas properties $ 200 $ (121) Decrease in liabilities for midstream properties capital expenditures $ (18,311) $ (1,099) Stock-based compensation expense recognized as a liability $ 5,539 $ 1,026 Transfer of inventory (to) from oil and natural gas properties $ (3,149) $ 433 The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Three Months Ended 2024 2023 Cash $ 23,208 $ 448,723 Restricted cash 51,118 54,705 Total cash and restricted cash $ 74,326 $ 503,428 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. The majority of the Company’s midstream operations in the Rustler Breaks, West Texas and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin are conducted through San Mateo. In addition, at March 31, 2024, the Company operated a cryogenic gas processing plant, compressor stations and natural gas gathering pipelines in Lea and Eddy Counties, New Mexico through Pronto, which is a wholly-owned subsidiary of the Company. At March 31, 2024, neither San Mateo nor Pronto was a guarantor of the 2026 Notes or the 2028 Notes. The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended March 31, 2024 Oil and natural gas revenues $ 701,425 $ 2,694 $ — $ (579) $ 703,540 Midstream services revenues — 99,846 — (67,489) 32,357 Sales of purchased natural gas 5,078 44,368 — — 49,446 Realized gain on derivatives 275 — — — 275 Unrealized gain on derivatives 2,075 — — — 2,075 Expenses (1) 416,498 94,138 26,172 (68,068) 468,740 Operating income (2) $ 292,355 $ 52,770 $ (26,172) $ — $ 318,953 Total assets $ 6,836,353 $ 1,333,992 $ 56,984 $ — $ 8,227,329 Capital expenditures (3) $ 551,920 $ 86,412 $ 226 $ — $ 638,558 _____________________ (1) Includes depletion, depreciation and amortization expenses of $201.2 million and $10.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2) Includes $19.5 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $201.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $7.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended March 31, 2023 Oil and natural gas revenues $ 501,348 $ 1,561 $ — $ — $ 502,909 Midstream services revenues — 75,251 — (48,740) 26,511 Sales of purchased natural gas 5,830 28,424 — — 34,254 Realized gain on derivatives 3,669 — — — 3,669 Unrealized loss on derivatives (7,067) — — — (7,067) Expenses (1) 267,580 69,849 20,154 (48,740) 308,843 Operating income (2) $ 236,200 $ 35,387 $ (20,154) $ — $ 251,433 Total assets $ 4,266,414 $ 1,039,845 $ 475,846 $ — $ 5,782,105 Capital expenditures (3) $ 318,505 $ 13,280 $ 1,769 $ — $ 333,554 _____________________ (1) Includes depletion, depreciation and amortization expenses of $116.6 million and $9.4 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2) Includes $15.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS 2026 Notes Tender Offer and Redemption On April 2 and April 4, 2024, the Company completed the repurchase of an aggregate principal amount of approximately $556.3 million of the 2026 Notes outstanding as part of the 2026 Notes Tender Offer announced on March 26, 2024. On April 2, 2024, the Company exercised its optional right, under the indenture governing the 2026 Notes, to redeem the remaining aggregate principal amount of approximately $142.9 million of 2026 Notes outstanding on September 15, 2024 as part of the 2026 Notes Redemption and, in connection therewith, to satisfy and discharge the Company’s obligations under such indenture with respect to the 2026 Notes. In connection with the 2026 Notes Tender Offer and 2026 Notes Redemption, the Company incurred a loss of approximately $3.0 million. 2032 Senior Notes On April 2, 2024, the Company completed the sale of $900.0 million in aggregate principal amount of the Company’s 6.50% senior notes due 2032 (the “2032 Notes”). The 2032 Notes mature on April 15, 2032. Interest on the 2032 Notes is payable in arrears on each April 15 and October 15 and the first interest payment date for the 2032 Notes will be October 15, 2024. The 2032 Notes are guaranteed on a senior unsecured basis by the Guarantor Subsidiaries. Neither San Mateo nor Pronto is a guarantor of the 2032 Notes. The Company received net proceeds from the issuance and sale of the 2032 Notes (the “2032 Notes Offering”) of approximately $885.0 million after deducting the initial purchasers’ discounts and estimated offering expenses. The net proceeds from the 2032 Notes Offering were used to fund the 2026 Notes Tender Offer and 2026 Notes Redemption and for general corporate purposes, including the funding of acquisitions and the repayment of borrowings outstanding under the Credit Agreement. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to Matador Resources Company shareholders | $ 193,729 | $ 163,130 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates | Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 27, 2024 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less-than-wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less-than-wholly-owned and are involved in oil and natural gas exploration. All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2024. Amounts as of December 31, 2023 are derived from the Company’s audited consolidated financial statements included in the Annual Report. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities, purchase price allocations and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. |
Property and Equipment | Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For each of the three months ended March 31, 2024 and 2023, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. |
Earnings Per Common Share | Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Segments . In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. This ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures. Income Taxes . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this standard provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures. Climate-Related Disclosures. On March 6, 2024, the SEC adopted a new set of rules that require a wide range of climate-related disclosures, including material climate-related risks, information on any climate-related targets or goals that are material to the registrant’s business, results of operations or financial condition, Scope 1 and Scope 2 greenhouse gas emissions on a phased-in basis by certain larger registrants when those emissions are material and the filing of an attestation report covering the same, and disclosure of the financial statement effects of severe weather events and other natural conditions including costs and losses. Compliance dates under the final rule are phased in by registrant category. Multiple lawsuits have been filed challenging the SEC’s new climate rules, which have been consolidated and will be heard in the U.S. Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC issued an order staying the final rules until judicial review is complete. The Company is currently evaluating the impact of the final rules on its disclosures. |
Fair Value Measurements | The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories. Level 1 Unadjusted quoted prices for identical, unrestricted assets or liabilities in active markets. Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued with industry standard models that consider various inputs, including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Level 3 Unobservable inputs that are not corroborated by market data that reflect a company’s own market assumptions. Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Revenues from contracts with customers $ 785,343 $ 563,674 Realized gain on derivatives 275 3,669 Unrealized gain (loss) on derivatives 2,075 (7,067) Total revenues $ 787,693 $ 560,276 Three Months Ended 2024 2023 Oil revenues $ 598,514 $ 401,777 Natural gas revenues 105,026 101,132 Third-party midstream services revenues 32,357 26,511 Sales of purchased natural gas 49,446 34,254 Total revenues from contracts with customers $ 785,343 $ 563,674 |
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Weighted average common shares outstanding Basic 119,721 119,034 Dilutive effect of options and restricted stock units 532 668 Diluted weighted average common shares outstanding 120,253 119,702 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Preliminary Allocation of Acquisition | The preliminary allocation of the total purchase price for the Q1 2024 Acquisition is set forth below (in thousands). The Company anticipates that the allocation of the purchase price should be finalized during 2024 upon determination of the final purchase price adjustments. Consideration Allocation Cash consideration given $ 155,054 Allocation of purchase price Current assets $ 4,984 Oil and natural gas properties Evaluated 45,778 Unproved and unevaluated 105,446 Asset retirement obligations (1,154) Net assets acquired $ 155,054 The final allocation of the total purchase price for the Advance Acquisition is set forth below (in thousands). Consideration Allocation Cash $ 1,676,132 Working capital adjustments (4,060) Fair value of Contingent Consideration at April 12, 2023 21,151 Total consideration given $ 1,693,223 Allocation of purchase price Current assets $ 79,287 Oil and natural gas properties Evaluated 1,418,668 Unproved and unevaluated 213,835 Midstream assets 63,644 Current liabilities (73,885) Asset retirement obligations (8,326) Net assets acquired $ 1,693,223 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in Company's asset retirement obligations | The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2024 (in thousands). Beginning asset retirement obligations $ 92,090 Liabilities incurred during period 2,326 Divestitures during period (326) Accretion expense 1,273 Ending asset retirement obligations 95,363 Less: current asset retirement obligations (1) (5,002) Long-term asset retirement obligations $ 90,361 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2024. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of contracts for oil and natural gas | The following is a summary of the Company’s open basis differential swap contracts at March 31, 2024. Commodity Calculation Period Notional Quantity (MMBtu) Fixed Price Fair Value of Natural Gas Basis Differential 4/01/2024 - 12/31/2025 19,200,000 $ (0.59) $ 4,745 Total open basis differential swap contracts $ 4,745 |
Summary of gross asset balances of derivative instruments | The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed March 31, 2024 Current assets $ 3,739 $ (712) $ 3,027 Other assets $ 1,798 (80) 1,718 Total $ 5,537 $ (792) $ 4,745 December 31, 2023 Current assets $ 2,573 $ (461) $ 2,112 Other assets 1,743 (1,185) 558 Total $ 4,316 $ (1,646) $ 2,670 |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of income for the periods presented (in thousands). Three Months Ended Type of Instrument Location in Condensed Consolidated 2024 2023 Derivative Instrument Natural Gas Revenues: Realized gain on derivatives $ 275 $ 3,669 Realized gain on derivatives $ 275 $ 3,669 Natural Gas Revenues: Unrealized gain (loss) on derivatives 2,075 (7,067) Unrealized gain (loss) on derivatives 2,075 (7,067) Total $ 2,350 $ (3,398) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis | The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of March 31, 2024 and December 31, 2023 (in thousands). Fair Value Measurements at March 31, 2024 using Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Natural gas basis differential swaps $ — $ 4,745 $ — $ 4,745 Total $ — $ 4,745 $ — $ 4,745 Fair Value Measurements at December 31, 2023 using Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Natural gas basis differential swaps $ — $ 2,670 $ — $ 2,670 Total $ — $ 2,670 $ — $ 2,670 |
SUPPLEMENTAL DISCLOSURES (Table
SUPPLEMENTAL DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at March 31, 2024 and December 31, 2023 (in thousands). March 31, December 31, Accrued evaluated and unproved and unevaluated property costs $ 219,651 $ 144,443 Accrued midstream properties costs 36,898 55,195 Accrued lease operating expenses 69,034 62,005 Accrued interest on debt 20,092 22,857 Accrued asset retirement obligations 5,002 4,605 Accrued partners’ share of joint interest charges 37,404 42,101 Accrued payable related to purchased natural gas 8,273 10,400 Other 23,437 24,242 Total accrued liabilities $ 419,791 $ 365,848 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2024 and 2023 (in thousands). Three Months Ended 2024 2023 Cash paid for interest expense, net of amounts capitalized $ 42,697 $ 26,228 Increase in asset retirement obligations related to mineral properties $ 1,846 $ 159 Increase in asset retirement obligations related to midstream properties $ 154 $ 352 Increase in liabilities for drilling, completion and equipping capital expenditures $ 115,386 $ 69,593 Increase (decrease) in liabilities for acquisition of oil and natural gas properties $ 200 $ (121) Decrease in liabilities for midstream properties capital expenditures $ (18,311) $ (1,099) Stock-based compensation expense recognized as a liability $ 5,539 $ 1,026 Transfer of inventory (to) from oil and natural gas properties $ (3,149) $ 433 The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Three Months Ended 2024 2023 Cash $ 23,208 $ 448,723 Restricted cash 51,118 54,705 Total cash and restricted cash $ 74,326 $ 503,428 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Selected financial information for segments | The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended March 31, 2024 Oil and natural gas revenues $ 701,425 $ 2,694 $ — $ (579) $ 703,540 Midstream services revenues — 99,846 — (67,489) 32,357 Sales of purchased natural gas 5,078 44,368 — — 49,446 Realized gain on derivatives 275 — — — 275 Unrealized gain on derivatives 2,075 — — — 2,075 Expenses (1) 416,498 94,138 26,172 (68,068) 468,740 Operating income (2) $ 292,355 $ 52,770 $ (26,172) $ — $ 318,953 Total assets $ 6,836,353 $ 1,333,992 $ 56,984 $ — $ 8,227,329 Capital expenditures (3) $ 551,920 $ 86,412 $ 226 $ — $ 638,558 _____________________ (1) Includes depletion, depreciation and amortization expenses of $201.2 million and $10.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2) Includes $19.5 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $201.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $7.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended March 31, 2023 Oil and natural gas revenues $ 501,348 $ 1,561 $ — $ — $ 502,909 Midstream services revenues — 75,251 — (48,740) 26,511 Sales of purchased natural gas 5,830 28,424 — — 34,254 Realized gain on derivatives 3,669 — — — 3,669 Unrealized loss on derivatives (7,067) — — — (7,067) Expenses (1) 267,580 69,849 20,154 (48,740) 308,843 Operating income (2) $ 236,200 $ 35,387 $ (20,154) $ — $ 251,433 Total assets $ 4,266,414 $ 1,039,845 $ 475,846 $ — $ 5,782,105 Capital expenditures (3) $ 318,505 $ 13,280 $ 1,769 $ — $ 333,554 _____________________ (1) Includes depletion, depreciation and amortization expenses of $116.6 million and $9.4 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2) Includes $15.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 785,343 | $ 563,674 |
Realized gain on derivatives | 275 | 3,669 |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) |
Total revenues | 787,693 | 560,276 |
Oil revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 598,514 | 401,777 |
Natural gas revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 105,026 | 101,132 |
Third-party midstream services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 32,357 | 26,511 |
Sales of purchased natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 49,446 | $ 34,254 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Discount rate, present value of future revenue | 10% | |
Full-cost ceiling impairment | $ 0 | $ 0 |
Deferred income tax benefit | (49,506) | (51,743) |
Capitalized general and administrative costs | 17,100 | 12,600 |
Interest costs capitalized | $ 5,900 | $ 3,400 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliations of Basic and Diluted Distributed and Undistributed Earnings (Loss) Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Weighted average common shares outstanding | ||
Basic (in shares) | 119,721 | 119,034 |
Dilutive effect of options and restricted stock units (in shares) | 532 | 668 |
Diluted weighted average common shares outstanding (in shares) | 120,253 | 119,702 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands | 2 Months Ended | 3 Months Ended | |||||
Feb. 15, 2024 USD ($) | Oct. 01, 2023 USD ($) | Apr. 12, 2023 USD ($) $ / bbl | Oct. 31, 2023 $ / bbl | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||||
Revenues from contracts with customers | $ 785,343 | $ 563,674 | |||||
Net income attributable to Matador Resources Company shareholders | 193,729 | 163,130 | |||||
Oil and natural gas revenues | |||||||
Business Acquisition [Line Items] | |||||||
Revenues from contracts with customers | $ 703,540 | $ 502,909 | |||||
Oil And Natural Gas Producing Properties And Undeveloped Acreage In Lea County, New Mexico | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | $ 155,054 | ||||||
Advance | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition | $ 1,600,000 | ||||||
Cash | $ 7,500 | ||||||
Average oil and gas prices (USD per barrel) | $ / bbl | 85 | 85 | |||||
Payments made for contingent consideration | $ 15,000 | ||||||
Advance ORRI Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition | $ 81,000 | ||||||
Initial Advance Acquisition And Advance ORRI Acquisition (Advance Acquisition) | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | $ 1,676,132 | ||||||
Percentage acquired | 100% | ||||||
Fair value of contingent consideration | $ 21,151 |
BUSINESS COMBINATIONS - Prelimi
BUSINESS COMBINATIONS - Preliminary Allocation of Acquisition (Details) - USD ($) $ in Thousands | Feb. 15, 2024 | Apr. 12, 2023 |
Oil And Natural Gas Producing Properties And Undeveloped Acreage In Lea County, New Mexico | ||
Business Acquisition [Line Items] | ||
Cash | $ 155,054 | |
Current assets | 4,984 | |
Evaluated | 45,778 | |
Unproved and unevaluated | 105,446 | |
Asset retirement obligations | (1,154) | |
Net assets acquired | $ 155,054 | |
Initial Advance Acquisition And Advance ORRI Acquisition (Advance Acquisition) | ||
Business Acquisition [Line Items] | ||
Cash | $ 1,676,132 | |
Working capital adjustments | (4,060) | |
Fair value of Contingent Consideration at April 12, 2023 | 21,151 | |
Total consideration given | 1,693,223 | |
Current assets | 79,287 | |
Evaluated | 1,418,668 | |
Unproved and unevaluated | 213,835 | |
Midstream assets | 63,644 | |
Current liabilities | (73,885) | |
Asset retirement obligations | (8,326) | |
Net assets acquired | $ 1,693,223 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Changes in the Company's asset retirement obligations | |||
Beginning asset retirement obligations | $ 92,090 | ||
Liabilities incurred during period | 2,326 | ||
Divestitures during period | (326) | ||
Accretion expense | 1,273 | $ 699 | |
Ending asset retirement obligations | 95,363 | ||
Less: current asset retirement obligations | (5,002) | ||
Long-term asset retirement obligations | $ 90,361 | $ 87,485 |
DEBT - Borrowings (Details)
DEBT - Borrowings (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Apr. 04, 2024 | Apr. 02, 2024 | Apr. 23, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||||
Line of credit facility | $ 260,000 | $ 500,000 | |||
Borrowings under San Mateo Credit Facility | 526,000 | $ 522,000 | |||
Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility | 260,000 | ||||
Credit Agreement | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | $ 25,000 | ||||
Repayments of borrowings | 235,000 | ||||
Unsecured Debt | Senior Notes Due 2026 | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | 699,200 | ||||
Unsecured Debt | 2026 Notes Tender Offer | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of borrowings | $ 556,300 | 556,300 | |||
Unsecured Debt | 2026 Notes Redemption | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of borrowings | $ 142,900 | 142,900 | |||
Unsecured Debt | Senior Notes Due 2028 | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | 500,000 | ||||
Unsecured Debt | Senior Notes Due 2028 | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | 500,000 | ||||
Letter of Credit | Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding letters of credit | 41,700 | ||||
Line of Credit | San Mateo Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding letters of credit | 9,000 | ||||
Borrowings under San Mateo Credit Facility | $ 526,000 | ||||
Line of Credit | San Mateo Credit Facility | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of debt | $ 31,000 |
DEBT - Credit Agreements (Detai
DEBT - Credit Agreements (Details) $ in Millions | 3 Months Ended | |
Mar. 22, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Revolving Credit Facility | Fourth Amended Credit Agreement | ||
Debt Instrument [Line Items] | ||
Increase in borrowing base | $ 2,500 | |
Maximum borrowing commitment | 1,325 | |
Accordion feature, Higher borrowing commitment | 1,500 | |
Higher maximum facility amount | 2,000 | |
Maximum facility amount | $ 3,500 | |
Line of credit facility covenant terms, current ratio | 1 | |
Cash and cash equivalent limit | $ 150 | |
EBITDA ratio | 3.5 | |
Line of Credit | San Mateo Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing commitment | $ 535 | |
EBITDA ratio | 5 | |
Line of credit, accordian feature (up to) | $ 735 | |
Consolidated interest expense, minimum | 2.5 | |
Liquidity restriction on cash distribution, percentage of lender commitments, less than | 10% |
DEBT - Senior Unsecured Notes (
DEBT - Senior Unsecured Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Unsecured SBA loan | $ 1,185,567 | $ 1,184,627 |
Senior Notes | Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 699,200 | |
Interest rate | 5.875% | |
Senior Notes | Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 500,000 | |
Interest rate | 6.875% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Current income tax provision (benefit) | $ 17,272 | $ 4,929 |
Deferred | $ 49,506 | $ 51,743 |
Effective tax rate | 26% | 26% |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Apr. 17, 2024 | Mar. 28, 2024 | Mar. 13, 2024 | Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock pursuant to public offering (in shares) | 5,250,000 | |||||
Net proceeds from issuance of common stock | $ 344,200 | |||||
Dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.15 | |||
Cash dividend | $ 23,900 | $ 23,858 | $ 17,768 | |||
Distributions | $ 25,725 | 19,110 | ||||
Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.20 | |||||
Service-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted in period (in shares) | 135,000 | |||||
Performance-Based Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted in period (in shares) | 170,000 | |||||
Vesting period | 3 years | |||||
Performance-Based Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount, percentage | 0% | |||||
Performance-Based Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount, percentage | 200% | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted in period (in shares) | 99,600 | |||||
Service-based Restricted Stock Units And Performance-Based Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Fair value of awards | $ 22,800 | |||||
San Mateo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance incentives earned | 1,500 | 14,700 | ||||
Equity contribution, tax impact | 3,100 | |||||
Matador Resources Company | San Mateo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Distributions | 26,800 | 19,900 | ||||
Five Point | San Mateo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Distributions | 25,700 | 19,100 | ||||
San Mateo | Matador Resources Company | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contributions | 7,700 | 0 | ||||
San Mateo | Five Point | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contributions | $ 7,400 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Contracts for Oil and Natural Gas (Details) $ in Thousands | Mar. 31, 2024 USD ($) bbl $ / bbl |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ 4,745 |
Derivative Liability, Type [Extensible Enumeration] | Open Basis Swap Contracts [Member] |
Derivative Contract, Calculation Period Three | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (MMBtu) | bbl | 19,200,000 |
Fixed Price ($/MMBtu) | $ / bbl | (0.59) |
Fair Value of Asset (Liability) | $ 4,745 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Gross Asset Balances of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Current | Derivative Asset, Current |
Total | $ 5,537 | $ 4,316 |
Total, Gross amounts netted in the condensed consolidated balance sheets | (792) | (1,646) |
Total, Net amounts presented in the condensed consolidated balance sheets | 4,745 | 2,670 |
Current assets | ||
Derivative [Line Items] | ||
Gross amounts recognized | 3,739 | 2,573 |
Gross amounts netted in the condensed consolidated balance sheets | (712) | (461) |
Net amounts presented in the condensed consolidated balance sheets | 3,027 | 2,112 |
Other assets | ||
Derivative [Line Items] | ||
Gross amounts recognized | 1,798 | 1,743 |
Gross amounts netted in the condensed consolidated balance sheets | (80) | (1,185) |
Net amounts presented in the condensed consolidated balance sheets | $ 1,718 | $ 558 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Location and Aggregate Fair Value of All Derivative Financial Instruments Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instrument | ||
Realized gain on derivatives | $ 275 | $ 3,669 |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) |
Total | 2,350 | (3,398) |
Revenues | ||
Derivative Instrument | ||
Realized gain on derivatives | 275 | 3,669 |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) |
Natural Gas | Revenues | ||
Derivative Instrument | ||
Realized gain on derivatives | 275 | 3,669 |
Unrealized gain (loss) on derivatives | $ 2,075 | $ (7,067) |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of the Valuation of the Company's Financial Assets and Liabilities that were Accounted for at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets (Liabilities) | ||
Total | $ 5,537 | $ 4,316 |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Total | 4,745 | 2,670 |
Fair value on a recurring basis | Natural gas basis differential swaps | ||
Assets (Liabilities) | ||
Derivative liability | 4,745 | 2,670 |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis | Level 1 | Natural gas basis differential swaps | ||
Assets (Liabilities) | ||
Derivative liability | 0 | 0 |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Total | 4,745 | 2,670 |
Fair value on a recurring basis | Level 2 | Natural gas basis differential swaps | ||
Assets (Liabilities) | ||
Derivative liability | 4,745 | 2,670 |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis | Level 3 | Natural gas basis differential swaps | ||
Assets (Liabilities) | ||
Derivative liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - Senior Notes - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Senior Notes Due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 699.5 | $ 694.1 |
Senior Notes Due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 511.3 | $ 510.9 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Delivery Of Natural Gas And Oil Production To Third Parties | ||
Long-term Purchase Commitment [Line Items] | ||
Payment for volume requirement agreement | $ 15.3 | $ 10.7 |
Volume requirement commitment | $ 537 | |
Rustler Breaks and Wolf Asset Area | Corporate Joint Venture | San Mateo Midstream | ||
Long-term Purchase Commitment [Line Items] | ||
Term of contractual obligation | 15 years | |
Rustler Breaks Asset Area | Corporate Joint Venture | San Mateo Midstream | ||
Long-term Purchase Commitment [Line Items] | ||
Term of contractual obligation | 15 years | |
Operational Agreements | San Mateo Midstream | ||
Long-term Purchase Commitment [Line Items] | ||
Contractual obligation | $ 191.3 |
SUPPLEMENTAL DISCLOSURES - Summ
SUPPLEMENTAL DISCLOSURES - Summary of Current Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | $ 419,791 | $ 365,848 |
Accrued evaluated and unproved and unevaluated property costs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 219,651 | 144,443 |
Accrued midstream properties costs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 36,898 | 55,195 |
Accrued lease operating expenses | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 69,034 | 62,005 |
Accrued interest on debt | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 20,092 | 22,857 |
Accrued asset retirement obligations | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 5,002 | 4,605 |
Accrued partners’ share of joint interest charges | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 37,404 | 42,101 |
Accrued payable related to purchased natural gas | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 8,273 | 10,400 |
Other | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | $ 23,437 | $ 24,242 |
SUPPLEMENTAL DISCLOSURES - Supp
SUPPLEMENTAL DISCLOSURES - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash paid for interest expense, net of amounts capitalized | $ 42,697 | $ 26,228 |
Increase in liabilities for drilling, completion and equipping capital expenditures | 115,386 | 69,593 |
Increase (decrease) in liabilities for acquisition of oil and natural gas properties | 200 | (121) |
Decrease in liabilities for midstream properties capital expenditures | (18,311) | (1,099) |
Stock-based compensation expense recognized as a liability | 5,539 | 1,026 |
Transfer of inventory (to) from oil and natural gas properties | (3,149) | 433 |
Mineral Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase in asset retirement obligations | 1,846 | 159 |
Midstream Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase in asset retirement obligations | $ 154 | $ 352 |
SUPPLEMENTAL DISCLOSURES - Rest
SUPPLEMENTAL DISCLOSURES - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure Text Block Supplement [Abstract] | ||||
Cash | $ 23,208 | $ 52,662 | $ 448,723 | |
Restricted cash | 51,118 | 53,636 | 54,705 | |
Total cash and restricted cash | $ 74,326 | $ 106,298 | $ 503,428 | $ 547,330 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
SEGMENT INFORMATION - Selected
SEGMENT INFORMATION - Selected Financial Information for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 785,343 | $ 563,674 | |
Realized gain on derivatives | 275 | 3,669 | |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) | |
Expenses | 468,740 | 308,843 | |
Operating (loss) income | 318,953 | 251,433 | |
Total assets | 8,227,329 | 5,782,105 | $ 7,726,996 |
Capital expenditures | 638,558 | 333,554 | |
Depletion, depreciation and amortization | 212,311 | 126,325 | |
Midstream capital expenditures | 105,086 | 14,141 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Realized gain on derivatives | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | |
Expenses | 26,172 | 20,154 | |
Operating (loss) income | (26,172) | (20,154) | |
Total assets | 56,984 | 475,846 | |
Capital expenditures | 226 | 1,769 | |
Depletion, depreciation and amortization | 300 | 300 | |
Consolidations and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Realized gain on derivatives | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | |
Expenses | (68,068) | (48,740) | |
Operating (loss) income | 0 | 0 | |
Total assets | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Realized gain on derivatives | 275 | 3,669 | |
Unrealized gain (loss) on derivatives | 2,075 | (7,067) | |
Expenses | 416,498 | 267,580 | |
Operating (loss) income | 292,355 | 236,200 | |
Total assets | 6,836,353 | 4,266,414 | |
Capital expenditures | 551,920 | 318,505 | |
Depletion, depreciation and amortization | 201,200 | 116,600 | |
Capital expenditures attributable to land and seismic acquisition expenditures | 201,300 | 23,700 | |
Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Realized gain on derivatives | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | |
Expenses | 94,138 | 69,849 | |
Operating (loss) income | 52,770 | 35,387 | |
Total assets | 1,333,992 | 1,039,845 | |
Capital expenditures | 86,412 | 13,280 | |
Depletion, depreciation and amortization | 10,800 | 9,400 | |
Net income attributable to non-controlling interest in subsidiaries | (15,800) | ||
Capital expenditures attributable to non-controlling interest | 7,100 | 4,600 | |
Operating Income (Loss) | Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net income attributable to non-controlling interest in subsidiaries | (19,500) | ||
Oil and natural gas revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 703,540 | 502,909 | |
Oil and natural gas revenues | Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Oil and natural gas revenues | Consolidations and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (579) | 0 | |
Oil and natural gas revenues | Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 701,425 | 501,348 | |
Oil and natural gas revenues | Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,694 | 1,561 | |
Midstream services revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 32,357 | 26,511 | |
Midstream services revenues | Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Midstream services revenues | Consolidations and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (67,489) | (48,740) | |
Midstream services revenues | Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Midstream services revenues | Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99,846 | 75,251 | |
Sales of purchased natural gas | |||
Segment Reporting Information [Line Items] | |||
Revenues | 49,446 | 34,254 | |
Sales of purchased natural gas | Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Sales of purchased natural gas | Consolidations and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Sales of purchased natural gas | Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,078 | 5,830 | |
Sales of purchased natural gas | Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 44,368 | $ 28,424 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Apr. 04, 2024 | Apr. 02, 2024 | Apr. 23, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | |||||
Face amount | $ 1,185,567 | $ 1,184,627 | |||
2026 Notes Tender Offer And 2026 Notes Redemption | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Loss incurred | $ 3,000 | ||||
2026 Notes Tender Offer | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayments of borrowings | $ 556,300 | $ 556,300 | |||
2026 Notes Redemption | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayments of borrowings | $ 142,900 | 142,900 | |||
Senior Notes Due 2032 | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 900,000 | ||||
Interest rate | 6.50% | ||||
Proceeds from issuance of sale | $ 885,000 | ||||
Long-term debt outstanding | 900,000 | ||||
Credit Agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayments of borrowings | 235,000 | ||||
Long-term debt outstanding | 25,000 | ||||
Senior Notes Due 2028 | Unsecured Debt | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 6.875% | ||||
Long-term debt outstanding | $ 500,000 | ||||
Senior Notes Due 2028 | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Long-term debt outstanding | 500,000 | ||||
Fourth Amended Credit Agreement | Subsequent Event | Revolving Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Long-term debt outstanding | $ 52,600 |