Matador Resources Company Declares Quarterly Cash Dividend

Rhea-AI Summary

Matador Resources Company (NYSE: MTDR) declares a quarterly cash dividend of $0.20 per share of common stock, payable on March 13, 2024, to shareholders of record as of February 23, 2024.

Insights

Financial Analyst

The declaration of a quarterly cash dividend by Matador Resources Company is a strategic financial decision that can influence investor sentiment and the company's stock valuation. Dividends are typically distributed by companies that are in a stable financial position and wish to reward shareholders for their investment. The size of the dividend, $0.20 per share, is a key figure that analysts would compare against previous dividend payments to assess the trend in shareholder returns. If this represents an increase, it could be perceived as a signal of strong financial health and confidence by the company's management in its cash flow generation capabilities.

Furthermore, the dividend yield, calculated by annualizing the quarterly dividend and dividing it by the stock's current price, is a critical metric for income-focused investors. The yield offers insight into the return on investment purely from dividend payouts, excluding capital gains. In the broader context of the energy sector, where Matador operates, dividend policies can be influenced by volatile commodity prices and thus, a consistent dividend may also reflect management's ability to navigate market fluctuations.

Market Research Analyst

From a market research perspective, the announcement of a dividend payment can also be seen as a tool for competitive positioning. In the energy sector, where competition for capital investment is intense, a reliable dividend can differentiate a company like Matador from its peers. It may attract a specific investor demographic that prioritizes steady income, such as retirees or conservative investment funds. This could potentially increase the stock's liquidity and stabilize its price, as such investors are less likely to sell in the face of short-term market volatility.

Additionally, the timing of the dividend payment close to the annual shareholder meeting could be a strategic move to foster positive sentiment among shareholders. It is also worth noting that the ex-dividend date, which is typically set two business days before the record date, is a critical deadline for investors, as only those holding the stock before this date are entitled to the dividend. This can lead to increased trading volume around this time, as investors position themselves to benefit from the dividend payment.

DALLAS--(BUSINESS WIRE)-- Matador Resources Company (NYSE: MTDR) (“Matador”) today announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share of common stock payable on March 13, 2024 to shareholders of record as of February 23, 2024.

About Matador Resources Company

Matador 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. Its 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. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.

For more information, visit Matador Resources Company at www.matadorresources.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of the Company’s midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on the Company’s operations due to seismic events; availability of sufficient capital to execute its business plan, including from future cash flows, available borrowing capacity under its revolving credit facilities and otherwise; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; the impact of the worldwide spread of the novel coronavirus, or COVID-19, or variants thereof, on oil and natural gas demand, oil and natural gas prices and its business; and the other factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212360391/en/

Mac Schmitz

Vice President – Investor Relations

investors@matadorresources.com

(972) 371-5225

Source: Matador Resources Company

FAQ

What is the dividend amount declared by Matador Resources Company?

Matador Resources Company declared a quarterly cash dividend of $0.20 per share of common stock.

When will the dividend be payable to shareholders?

The dividend will be payable on March 13, 2024.

Who are eligible to receive the dividend?

Shareholders of record as of February 23, 2024, are eligible to receive the dividend.