- Matador Resources (MTDR +5.7%) moves higher, at least in part due to an upgrade to Buy from Hold at Stifel, which sets a $25 price target and says MTDR is a "solid operator with high quality assets” whose wells are generating returns among the best in the industry from multiple zones in three projects.
- Stifel notes that MTDR shares have lagged Permian Basin peers due to concerns over a projected 2016 outspend and potential balance sheet risk, but believes the drop is overdone in light of solid execution, positive delineation results and a strong balance sheet.
- The firm also says an upcoming Q4 horizontal test of the Wolfcamp D at the 30.3M-net acre Twin Lakes prospect could be a catalyst for the stock.