Matador Resources Company (MTDR)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,153,620	1,157,059	1,310,832	1,624,801	1,680,727	1,636,703	1,384,110	943,134	734,365	355,913	-90,339	-664,475	-562,112	-436,863	-129,909	382,711	197,182	286,779	239,295	239,427
Long-term debt	US$ in thousands	2,206,630	1,005,000	1,020,000	475,000	465,000	440,000	420,000	455,000	485,000	477,500	592,500	674,000	774,000	1,842,000	1,745,210	1,662,310	1,294,420	1,514,020	1,483,620	1,398,230
Total stockholders’ equity	US$ in thousands	3,910,860	3,662,720	3,402,860	3,252,850	3,110,800	2,858,810	2,529,170	2,118,600	1,907,210	1,688,010	1,479,760	1,359,400	1,286,530	1,371,930	1,643,830	1,991,350	1,833,650	1,795,310	1,736,480	1,690,820
Return on total capital		18.86%	24.79%	29.64%	43.59%	47.00%	49.61%	46.93%	36.65%	30.70%	16.44%	-4.36%	-32.68%	-27.28%	-13.59%	-3.83%	10.47%	6.30%	8.67%	7.43%	7.75%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,153,620K ÷ ($2,206,630K + $3,910,860K)
= 18.86%

Matador Resources Co's return on total capital has exhibited some fluctuations over the past eight quarters. The return on total capital ranged from a high of 41.19% in Q4 2022 to a low of 19.77% in Q4 2023. The company's performance in Q1 and Q2 of 2023 showed an improvement compared to the previous quarters, with returns of 24.24% and 38.46% respectively.

Overall, Matador Resources Co has maintained relatively strong returns on total capital, averaging above 20% in most periods. This indicates that the company has been efficient in generating returns from the capital invested in its operations. However, the downward trend observed in the most recent quarters may require further investigation to understand the factors influencing this performance.