Matador to Grow Production Mid-Single Digits in 2027
Matador Resources expects mid-single-digit production growth in 2027 after shifting gas sales to improve pricing and cash flow.
Updated on Nov. 5, 2026 in Oil and Gas
Matador Resources reported $162 million in third-quarter cash flow, up from negative $38 million in the second quarter, and expects mid-single-digit production growth in 2027 under current commodity and service pricing. The company attributed part of the improvement to shifting gas sales from Waha to Hugh Brinson.
Why it matters
The gas sales shift and debt paydown of $150 million position Matador to fund growth while reducing leverage. Management's outlook depends on commodity and service pricing holding at current levels.
Matador reported $162 million in third-quarter cash flow against negative $38 million in the prior quarter, with production up 10% since December 31, 2025 to above 230,000 BOEs. The company paid down $150 million in debt, but its 2027 capital program has not been detailed.
The players
Matador Resources
Matador Resources is an independent oil and gas exploration and production company based in Dallas, Texas, operating primarily in the Delaware Basin of the Permian region.
The details
Matador shifted gas sales from the Waha hub to Hugh Brinson, which management linked to better gas pricing and stronger cash flow. The company is also open to monetizing its San Mateo asset while seeking to preserve control and flow assurance, and plans further debt repayments.
Timeline
December 31, 2025: Baseline date for the 10% production increase.
Second quarter 2026: Matador reported negative $38 million in cash flow.
Third quarter 2026: Matador reported $162 million in cash flow.
2027: Expected mid-single-digit production growth.
Market Landscape
Matador's shift away from Waha-linked gas sales responds to the recurring Waha pricing discounts that have squeezed Permian Basin producers' gas revenue. Its move to Hugh Brinson places the company among Permian operators seeking better-priced outlets for associated gas.
For Texas energy workers and investors, Matador's outlook signals steady growth tied to commodity and service pricing rather than a major capital expansion yet. Households with exposure to energy stocks or local oilfield employment may see the effects tied to how these price assumptions hold.
The takeaway
Investors watching Permian producers should track whether gas pricing improvements from shifting sales away from Waha persist. Matador's 2027 capital plan, once detailed, will show whether the expected growth is funded by cash flow or new borrowing.
Further reading
Explore more Oil and Gas coverage for context on Permian Basin producers in Texas.
