Form 4: Matador Resources Executive Acquires Shares Through Performance Unit Settlement and Tax Withholding

Robert T. Macalik, EVP and Chief Accounting Officer of Matador Resources, acquired shares through the settlement of performance stock units and had shares withheld for tax obligations.

Summary

• Robert T. Macalik, an executive at Matador Resources, acquired 13,711 shares of common stock on January 7, 2025, as part of a performance stock unit settlement.
• The performance stock units were granted on February 17, 2022, and settled at 172% of the target based on the company's total shareholder return over a three-year period.
• Additionally, 5,552 shares were withheld by the company to cover tax liabilities related to the settlement, at a price of $58.35 per share.
• After these transactions, Macalik directly owns 112,694 shares and indirectly owns 29,800 shares through an Individual Retirement Account.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the better-than-expected performance stock unit settlement, indicating strong company performance. However, the tax withholding is a minor negative.

Positives

• The performance stock units vested at 172% of the target, indicating strong performance of the company over the three-year performance period.
• The executive's increased shareholding demonstrates confidence in the company's future prospects.

Negatives

• The withholding of 5,552 shares for tax obligations reduced the net gain for the executive.

Risks

• The value of the shares is subject to market fluctuations, which could impact the executive's holdings.
• Future performance stock unit settlements may be affected by changes in the company's performance and market conditions.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• The document includes a signature by Robert T. Macalik, by Cale L. Curtin as attorney-in-fact.

Industry Context

This filing is a routine disclosure of insider transactions, which is common in the oil and gas industry where equity-based compensation is frequently used.

Comparison to Industry Standards

• Equity-based compensation, including performance stock units and restricted stock, is a common practice among oil and gas companies such as EOG Resources, Pioneer Natural Resources, and Devon Energy.
• The vesting schedule of the restricted stock grants, typically over three years, is also consistent with industry standards.
• The settlement of performance stock units based on total shareholder return is a common metric used to align executive compensation with shareholder interests, similar to practices at companies like ConocoPhillips and Occidental Petroleum.

Stakeholder Impact

• Shareholders may view the vesting of performance stock units at 172% of target as a positive sign of company performance.
• The executive's increased shareholding aligns his interests with those of the shareholders.

Key Dates

Keywords

Matador Resources, MTDR, Robert T. Macalik, performance stock units, share acquisition, tax withholding, insider trading, executive compensation