Matador Resources Company (MTDR)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.36	0.22	0.23	0.13	0.13	0.13	0.14	0.18	0.20	0.22	0.29	0.33	0.38	0.57	0.51	0.45	0.41	0.46	0.46	0.45

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,206,630K ÷ ($2,206,630K + $3,910,860K)
= 0.36

The debt-to-capital ratio of Matador Resources Co has fluctuated over the past eight quarters, ranging from 0.26 to 0.41. A decreasing trend can be observed from Q1 2022 to Q1 2023, indicating an improvement in the company's capital structure as debt relative to total capital decreased. However, in Q2 and Q3 2023, the ratio increased, suggesting a potential increase in debt or a decrease in capital relative to debt.

Overall, the debt-to-capital ratio hovers around the low to mid-30% range, indicating that Matador Resources Co relies moderately on debt to finance its operations and investments, while maintaining a significant portion of its capital from equity sources. It is essential for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure. Additionally, further monitoring and analysis of the company's debt management practices may be warranted to ensure financial stability and sustainable growth.