Neal Dingman

Neal Dingman inquired about Matador Resources' 2026 plan, which targets free cash flow over production growth, with 3% oil growth and 11% reduced CapEx. He asked if capital and operational efficiency are now considered the key drivers for value creation, compared to prior years' focus on higher production growth.

Answer

Joe Foran, Founder, Chairman, and CEO, explained that value creation is a collaborative decision, influenced by economic and political factors. He emphasized starting with good acreage and focusing on long-term reserve growth. Chris Calvert, EVP and Chief Operating Officer, added that value creation is profitability-focused, not solely production-focused, highlighting the 11% CapEx reduction, $130 million in CapEx savings for 2026, and 10% improvements in Estimated Ultimate Recoveries (EURs) at lower investment costs, underpinned by efficiencies and vendor relationships.

Neal Dingman asked about Gulfport Energy's improved forecasted price realizations, inquiring whether the company is locking in basis hedges and what factors contribute to the confidence in these improved realizations. He also questioned the nature of infrastructure-related downtime, specifically if third-party issues are near-term and how the company addresses them.

Answer

Michael Hodges, Executive Vice President and Chief Financial Officer, confirmed active basis hedging and attributed confidence to rising demand in Northeastern markets, benefits from Winter Storm Fern, and opportunistic smaller marketing deals. John Reinhart, President and Chief Executive Officer, explained that mitigation involves creating optionality in development and closer coordination, stating that 2026 impacts are planned, short-term, and primarily due to midstream maintenance and SIMOPS, with production expected to strengthen later in the year.