Equity

12 Months Ended

Dec. 31, 2025

Stockholders' Equity Note [Abstract]

EQUITY

NOTE 11 — EQUITY

Equity Offering

On March 28, 2024, the Company completed an underwritten public offering of 5,250,000 shares of its common stock. After deducting underwriting discounts and offering expenses, the Company received net proceeds of approximately $342.1 million. The net proceeds from this offering were used for general corporate purposes, including the funding of acquisitions and the repayment of borrowings outstanding under the Credit Agreement.

Common Stock Dividend

The Board declared a quarterly cash dividend of $0.3125 per share of common stock in each of the first, second and third quarters of 2025. The first quarter dividend, which totaled $39.2 million, was paid on March 14, 2025 to shareholders of record as of February 28, 2025. The second quarter dividend, which totaled $39.0 million, was paid on June 6, 2025 to shareholders of record as of May 9, 2025. The third quarter dividend, which totaled $38.7 million, was paid on September 5, 2025 to shareholders of record as of August 15, 2025. On October 15, 2025, the Board amended the Company’s dividend policy to increase the quarterly dividend to $0.375 per share of common stock for future dividend payments and also declared a quarterly cash dividend of $0.375 per share of common stock. The fourth quarter dividend, which totaled $46.2 million, was paid on December 5, 2025 to shareholders of record as of November 10, 2025.

The Board declared a quarterly cash dividend of $0.20 per share of common stock in each of the first, second and third quarters of 2024 and the Board declared a quarterly cash dividend of $0.25 per share of common stock in the fourth quarter of 2024.

Total cash dividends declared and paid totaled $163.1 million and $104.9 million, respectively, during the years ended December 31, 2025 and 2024.

Share Repurchase Program

On April 16, 2025, the Board approved a share repurchase program (the “Share Repurchase Program”) authorizing the repurchase of up to $400.0 million of common stock. These repurchases may be conducted through a variety of methods, including open market purchases, 10b5-1 trading plans, privately negotiated transactions or other means.

During the year ended December 31, 2025, the Company repurchased 1,351,328 shares of common stock under the Share Repurchase Program at a weighted average price of $41.31 per common share for a total cost of $55.8 million.

Treasury Stock

On October 15, 2025, October 17, 2024 and October 19, 2023, the Board canceled all of the shares of treasury stock outstanding as of September 30, 2025, 2024 and 2023, respectively. These shares were restored to the status of authorized but unissued shares of common stock of the Company.

The shares of treasury stock outstanding at December 31, 2025, 2024 and 2023 represent shares traded by employees to cover taxes on vested restricted stock awards and forfeitures of unvested restricted stock awards.

Preferred Stock

The Company’s Amended and Restated Certificate of Formation authorizes 2,000,000 shares of preferred stock. Before any such shares are issued, the Board shall fix and determine the designations, preferences, limitations and relative rights, including voting rights of the shares of each such series. There are no shares of preferred stock outstanding.

San Mateo Distributions and Contributions

During the years ended December 31, 2025, 2024 and 2023, San Mateo distributed $136.7 million, $321.2 million and $81.4 million, respectively, to the Company and $131.3 million, $97.5 million and $78.3 million, respectively, to Five Point, the Company’s joint venture partner in San Mateo.

During the year ended December 31, 2025, neither the Company nor Five Point contributed cash to San Mateo. During the years ended December 31, 2024 and 2023, the Company contributed $19.9 million and $25.5 million, respectively, and Five Point contributed $190.6 million and $24.5 million, respectively, of cash to San Mateo.

San Mateo’s 2024 distributions to the Company included a special distribution of approximately $219.8 million, of which $171.5 million represented a special contribution by Five Point recorded within the Company’s statement of changes in shareholders’ equity in connection with the Pronto Transaction. San Mateo’s remaining special distribution to the Company of $48.3 million represented a reimbursement of certain capital expenditures for the expansion of the Marlan Processing Plant that were previously funded by Matador. See Note 6 for additional details.

Performance Incentives

As part of the joint venture with Five Point, the Company has the potential to earn performance incentives. During the years ended December 31, 2025, 2024 and 2023, Five Point paid the Company $13.0 million, $23.8 million and $38.2 million, respectively, in performance incentives, which were recorded when received in “Additional paid-in-capital” in the Company’s consolidated balance sheets, net of $2.7 million, $5.0 million and $8.0 million of deferred tax impacts, for the years ended December 31, 2025, 2024 and 2023, respectively. Through April 1, 2029, the Company has the potential to earn an additional $60.7 million of performance incentives.