Capital intensity remains elevated with a 68.3% capital expenditure-to-revenue ratio in 2026Q1, contributing to a significant disconnect between accounting earnings and cash generation, as shown by a negative 13.12 operating cash flow-to-net income ratio.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 2.17B | 2.43B | 2.25B | 1.87B | 1.98B | 1.05B | 477.58M | 552.04M | 608.52M | 299.13M | 134.09M | 208.53M | 251.48M | 179.47M | 124.23M | 61.87M | 27.27M | 1.79M |
| Operating CF Margin % | - | 66.32% | 64.59% | 66.29% | 64.71% | 63.34% | 55.84% | 53.71% | 67.64% | 54.96% | 50.71% | 65.96% | 58.34% | 68.79% | 75.22% | 92.34% | 80.12% | 9.41% |
| Operating CF Growth % | -50.11% | 7.93% | 20.29% | -5.61% | 87.85% | 120.56% | -13.49% | -9.28% | 103.43% | 123.08% | -35.7% | -17.08% | 40.12% | 44.47% | 100.79% | 126.85% | 1422.74% | - |
| Net Income | 483.26M | 860.77M | 971.34M | 910.36M | 1.29B | 640.64M | -553.56M | 122.98M | 299.76M | 138.01M | -97.06M | -679.52M | 110.75M | 45.09M | -33.26M | -10.31M | 6.38M | -14.43M |
| Depreciation & Amortization | 1.21B | 1.2B | 974.3M | 716.69M | 466.35M | 344.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 18.96M | 18.33M | 14.98M | 13.66M | 15.12M | 9.04M | 13.63M | 18.5M | 17.2M | 16.65M | 12.36M | 9.45M | 5.52M | 3.9M | 140K | 2.41M | 898K | 0 |
| Deferred Taxes | 104.96M | 165.59M | 265.31M | 172.1M | 344.48M | 74.71M | -45.6M | 35.53M | -7.24M | 0 | 0 | -150.33M | 64.24M | 9.29M | -1.43M | -5.47M | 4.93M | -7.6M |
| Other Non-Cash Items | 314.77M | 8.79M | 7.88M | 4.99M | -15.59M | -14.95M | 1.09B | 409.54M | 234.37M | 169.52M | 216.97M | 1.02B | 76.94M | 127.4M | 149.47M | 62.65M | 12.84M | 39.53M |
| Working Capital Changes | -36.89M | 176.19M | 13.08M | 50.03M | -117.94M | -982K | -23.08M | -34.52M | 64.43M | -25.06M | 1.81M | 8.98M | -5.98M | -6.21M | 9.31M | 12.59M | 2.23M | -15.72M |
| Change in Receivables | -85.67M | 114.28M | -138.14M | 48.14M | -228.38M | -98.46M | 53M | -43.26M | -4.93M | -82.55M | -14.26M | 3.63M | -13.32M | -2.16M | -16.34M | -1.52M | -386K | 408.71K |
| Change in Inventory | -23.43M | -35.31M | -10.93M | -3.03M | -2.85M | -1.54M | -655K | 4.78M | -12.18M | -3.62M | -700K | -180K | -211K | 243K | 50K | 21K | -8K | -799.84K |
| Change in Payables | 60.43M | -8.93M | 33.75M | 2.81M | 63.45M | 76.89M | -43.84M | -19M | 68.65M | 33.56M | 6.61M | 1.38M | 607K | -3.64M | 19.74M | 13.5M | 2.49M | 0 |
| Cash from Investing | -2.1B | -2.16B | -3.67B | -3.21B | -1.04B | -729.26M | -775.67M | -903.98M | -1.52B | -819.28M | -448.74M | -425.15M | -570.53M | -366.94M | -306.92M | -160.09M | -147.33M | -49.42M |
| Capital Expenditures | -768.22M | -2.18B | -454.44M | -187.66M | -230.89M | -238.61M | -72.81M | -50.77M | -652.86M | -5.69M | -74.84M | -64.5M | -9.15M | -3.98M | -7.33M | -161.1M | -160.66M | -54.55M |
| CapEx % of Revenue | 22.86% | 59.71% | 13.06% | 6.66% | 7.55% | 14.35% | 8.51% | 4.94% | 72.57% | 1.05% | 28.31% | 20.4% | 2.12% | 1.52% | 4.44% | 240.45% | 471.95% | 286.53% |
| Acquisitions | 0 | 25.69M | -1.72B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -24.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.34B | 0 | -1.5B | -3.02B | -806.59M | -490.66M | -702.86M | -853.21M | -862.4M | -813.6M | -373.89M | -336.63M | -561.38M | -363.13M | -300.69M | 104 | -52 | 28.73K |
| Cash from Financing | -48.77M | -282.6M | 1.41B | 902.33M | -480.85M | -328.55M | 324.34M | 333.08M | 888.23M | 408.5M | 467.71M | 224.94M | 321.17M | 191.66M | 174.5M | 87.44M | 36.89M | 1.09M |
| Debt Issued (Net) | 269.19M | 68.09M | 1.14B | 1.05B | -364.3M | -289M | 231M | 283M | 705.72M | 0 | 184.63M | 48.02M | 140M | 50M | 37M | 88M | 25M | 0 |
| Equity Issued (Net) | -57.09M | -55.85M | 344.66M | -22.91M | -19.24M | -8.21M | -1.56M | -3.69M | -6.47M | -5.76M | -1.95M | -1.61M | -308K | -18K | 0 | -281K | 12.17M | 79.08K |
| Dividends Paid | -170.73M | -163.1M | -104.88M | -77.17M | -35.25M | -14.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -96K | -274.85K | -274.85K | -274.85K |
| Share Repurchases | -57.09M | -55.85M | 0 | -22.91M | -19.24M | -8.21M | -1.56M | -3.69M | -6.47M | -5.76M | -1.95M | -1.61M | -308K | -18K | 0 | 0 | -10.29M | -32.07M |
| Other Financing | -90.14M | -131.75M | 34.58M | -49.38M | -62.06M | -16.76M | 94.89M | 53.77M | 188.98M | 414.26M | 285.03M | 178.54M | 181.48M | 141.68M | 174.59M | 0 | 0 | 1.28M |
| Net Change in Cash | 14.96M | -15.27M | -11.56M | -441.03M | 460.41M | -4.46M | 26.25M | -18.86M | -18.5M | -116.38M | 196.15M | 8.32M | 2.12M | 4.19M | -8.19M | -10.78M | -83.17M | -46.54M |
| Free Cash Flow | 59.41M | 241.64M | 280.04M | 318.02M | 894.75M | 319.88M | -302.87M | -373.86M | -915.06M | -521.14M | -319.83M | -288.68M | -318.52M | -187.7M | -183.79M | -99.23M | -133.39M | -52.76M |
| FCF Margin % | 1.77% | 6.61% | 8.05% | 11.29% | 29.26% | 19.23% | -35.42% | -36.37% | -101.72% | -95.75% | -120.95% | -91.31% | -73.9% | -71.95% | -111.28% | -148.11% | -391.83% | -277.12% |
| FCF Growth % | -89.19% | -13.71% | -11.94% | -64.46% | 179.72% | 205.61% | 18.99% | 59.14% | -75.59% | -62.94% | -10.79% | 9.37% | -69.7% | -2.13% | -85.21% | 25.6% | -152.82% | - |
| FCF per Share | 0.48 | 1.94 | 2.26 | 2.65 | 7.45 | 2.68 | -2.61 | -3.19 | -8.05 | -5.08 | -3.50 | -3.54 | -4.49 | -3.19 | -3.41 | -2.14 | -3.14 | -1.31 |
| FCF Conversion (FCF/Net Income) | 0.12x | 3.19x | 2.54x | 2.21x | 1.63x | 1.80x | -0.81x | 6.29x | 2.22x | 2.38x | -1.38x | -0.31x | 2.27x | 3.98x | -3.73x | -6.00x | 4.28x | -0.12x |
| Interest Paid | 0 | 0 | 160.27M | 111.74M | 72.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 30M | 4.6M | 63.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital intensity and volatility
As reported in recent financial filings, Matador's operating cash flow to net income ratio reached a negative 13.12 in 2026Q1, highlighting a significant disconnect between accounting profitability and actual cash generation that warrants close scrutiny from investors evaluating the sustainability of current operational performance.
The extreme variance in the OCF/NI ratio suggests that non-cash charges and working capital swings are heavily distorting the company's reported earnings. Investors should interpret this divergence as a signal that net income may currently be an unreliable proxy for the company's underlying ability to generate liquidity from its core Delaware Basin operations.
Based on the company's quarterly data, free cash flow margins have experienced significant volatility, collapsing to 1.7% in 2026Q1 from a peak of 21.6% in 2024Q3, which indicates that the company's ability to retain cash after capital expenditures is currently under substantial pressure.
The sharp decline in FCF margins appears to be driven by a combination of aggressive capital spending and fluctuating commodity prices. This trend suggests that the company's current capital allocation strategy may be prioritizing growth or infrastructure maintenance at the expense of immediate free cash flow generation.
According to reported financial statements, Matador's capital expenditure to revenue ratio surged to 68.3% in 2026Q1, reflecting a high level of capital intensity that is required to sustain production levels in the competitive and geologically complex Delaware Basin environment.
This elevated capital intensity suggests that a significant portion of the company's revenue is being reinvested into drilling and completion activities. Analysts should monitor whether this level of spending is effectively replacing reserves or if it indicates a need for higher capital outlays to maintain current production volumes.
As indicated by the cash flow statements, working capital changes have been highly erratic, swinging from a $123.3 million inflow in 2025Q3 to a $93.7 million outflow in 2026Q1, which suggests that operational cash cycles are currently subject to significant and unpredictable timing differences.
These fluctuations in working capital may reflect the timing of midstream throughput payments or inventory management within the E&P segment. Such volatility complicates the assessment of normalized cash flow and suggests that investors should focus on multi-quarter averages rather than single-period results to gauge true operational efficiency.
Quick answers to the most common questions about buying MTDR stock.
Matador Resources Company (MTDR) generated $2.43B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Matador Resources Company (MTDR) generated $241.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Matador Resources Company (MTDR) spent $2.18B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Matador Resources Company (MTDR) returned $163.1M to shareholders via cash dividends and spent $55.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.