Matador Resources Company (MTDR)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	3,325,410	2,206,630	465,000	485,000	774,000
Total stockholders’ equity	US$ in thousands	5,089,150	3,910,860	3,110,800	1,907,210	1,286,530
Debt-to-equity ratio		0.65	0.56	0.15	0.25	0.60

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,325,410K ÷ $5,089,150K
= 0.65

The debt-to-equity ratio of Matador Resources Company has shown fluctuations over the past five years.

As of December 31, 2020, the ratio was 0.60, indicating that for every dollar of equity, the company had $0.60 in debt. This suggests a moderate level of leverage.

By December 31, 2021, the ratio decreased significantly to 0.25, reflecting a lower level of debt relative to equity. This could indicate improved financial health and reduced reliance on debt financing.

In 2022, the ratio further declined to 0.15, signaling a stronger balance sheet with a lower proportion of debt compared to equity. This may indicate that the company has been managing its debt effectively and/or experiencing growth in equity.

However, by December 31, 2023, the ratio increased to 0.56, indicating a higher level of debt relative to equity compared to the previous year. This rise may warrant monitoring to assess the reasons behind the increase and its potential impact on the company's financial position.

By the end of December 31, 2024, the ratio further increased to 0.65, showing a continued trend of higher debt compared to equity. This may raise concerns about the company's leverage and its ability to meet debt obligations.

Overall, the fluctuation in Matador Resources Company's debt-to-equity ratio over the years suggests varying degrees of leverage and financial risk. The company may need to closely monitor its debt levels and consider strategies to maintain a healthy balance between debt and equity to ensure long-term financial stability.