Matador Resources: Investors Reward The Permian 'Story'
Tue, Dec. 6, 5:41 PM
- Junk-rated energy companies are rushing to the U.S. bond market at the fastest pace in nearly two years, Reuters reports, in a bid to refinance debt following a sharp rally in spreads over the past week.
- Parsley Energy (NYSE:PE) and Chesapeake Energy (NYSE:CHK) are pricing deals today (I, II) and follow a bond from Cheniere Energy (NYSEMKT:LNG) yesterday which was increased to $1.5B from $1B on strong demand; Rowan (NYSE:RDC) and Matador Resources (NYSE:MTDR) also are marketing deals (I, II).
- Since OPEC's Nov. 30 production cut announcement, junk-rated energy bond spreads have tightened by 71 bpa to 483 bpa over U.S. Treasurys as of Monday's close, marking the lowest level since October 2014.
- The five borrowers coming to market this week could sell $3.4B of junk-rated bonds, which would mark the highest weekly volume for the energy sector since March 2015.
Mon, Dec. 5, 5:58 PM
- Matador Resources (NYSE:MTDR) announces a 5M-share public offering and a private placement of $150M in aggregate principal amount of 6.875% senior notes due 2023.
- Matador says it plans to use the proceeds from the offerings to fund the purchase of ~4,600 net leasehold acres and estimated current net production of ~1,150 boe/day from New Mexico wells, to fund the capex for midstream initiatives in the Delaware Basin, to pay down its revolving credit facility, and for general corporate purposes, including capex associated with the addition of a fourth drilling rig.
- The notes are offered in addition to an existing $400M aggregate principal amount of 6.875% senior notes due 2023 issued in a private placement in April 2015.
Tue, Nov. 1, 4:36 PM
Mon, Oct. 31, 5:35 PM
- ABCO, ACHC, AFG, AGII, AMSG, BFAM, BGFV, BIO, BLKB, BYD, CACC, CAI, CALD, CALX, CAVM, CERN, CHSP, CHUY, CIM, CNO, CSU, CUZ, CYH, DATA, DEI, DENN, DNB, DV, DVN, DXCM, EA, EIX, ELGX, ENLK, ENPH, ES, ESIO, ETSY, EXTR, FARO, FIVN, FLT, FRPT, FTAI, FTR, GHDX, GILD, HLF, HRZN, HURN, HWAY, HY, ICFI, ILMN, IPHI, JCOM, JIVE, KFRC, KS, LOCK, MOD, MTCH, MTDR, MTW, MXWL, MYGN, NBL, NFX, NVGS, NYMT, OCLR, OKE, OKS, OMED, OMI, PAYC, PBPB, PDM, PLT, PRMW, PRO, PRTA, PXD, QUAD, QUOT, REG, RGR, RIGL, RNR, RPAI, RPT, RSPP, SANM, SBAC, SHO, SM, SQ, TCO, TNAV, TNDM, TNET, TRMB, TRNC, TRUP, TSE, TSRA, TTOO, TXRH, ULTI, VECO, VIAV, VRSK, WBMD, WES, WGP, WING, WR, WSTC, WTR, WU, X, XCO, XXIA, Y, ZAGG, ZEN, ZG
Mon, Aug. 8, 11:57 AM
- SM Energy’s (SM +7.2%) $980M purchase of drilling rights in the Permian Basin shows that producers are willing to pay a premium for access to one of the few spots where oil exploration still turns a profit, Bloomberg reports.
- SM will pay the equivalent of $39.5K/acre for drilling rights across 24,783 acres in the Permian Basin, will ahead of the $25K-$35K that acreage in the Permian’s Midland Basin section had been fetching as recently as May and almost doubling SM's holdings in the region.
- Other Permian producers also are trading higher, including: PXD +2.2%, CXO +1.8%, XEC +2.1%, CWEI +6.1%, APA +3.8%, FANG +2.1%, PE +1.2%, QEP +3.6%, RSPP +2.4%, APC +2.6%, DVN +3.7%, MTDR +2.3%.
Wed, Aug. 3, 4:39 PM
Tue, Aug. 2, 5:35 PM
- AEL, AGO, AGU, ALB, ALIM, ALL, ANDE, AREX, ATO, AWK, AWR, BBRG, BFAM, BGC, BIO, BKH, BNFT, BREW, BYD, CABO, CBPX, CCRN, CDI, CECO, CF, CHDN, CIM, CLR, CNAT, CODI, CPA, CSGS, CSII, CTL, CXW, DENN, DEPO, DK, DKL, DPM, ECR, EPE, EPR, EQIX, ERII, ETE, ETP, EVC, EVHC, EXAR, EXEL, EXTR, FIVN, FOXA, FRGI, FRSH, FSLR, G, GBDC, GDDY, GERN, GPOR, HABT, HASI, HI, HIL, HIVE, HLF, HOS, HR, HRTG, HUBS, IAG, IL, INOV, IO, IRG, ITRI, JACK, JCOM, JONE, JRVR, LGCY, LHCG, LNC, LPI, MASI, MC, MED, MET, MNR, MRO, MTDR, MUSA, MWA, NBIX, NKTR, NLY, NNBR, NP, NSIT, NSTG, OAS, OME, OSUR, PDM, PE, PEGA, PMT, PODD, PRA, PRU, PRXL, QLYS, QTWO, QUIK, REXR, RICE, RIG, RIGP, RLJ, RMP, RNG, RP, RST, RYN, SBY, SEMI, SGMO, SNCR, SQ, SQNM, SRC, SSS, STAA, STR, SUN, SWM, SXL, TCAP, TDOC, TEAR, TEP, TLLP, TRIP, TRNC, TROX, TS, TSLA, TSLX, TSO, TTEC, TWO, UHAL, VTAE, VVC, WCN, WGL, WMC, WPG, WPX, WU, XEC, XPO
Wed, Jun. 29, 11:21 AM
- 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.
Tue, May 3, 4:41 PM
- Matador Resources (NYSE:MTDR): Q1 EPS of -$0.16 beats by $0.01.
- Revenue of $44.2M (-39.0% Y/Y) misses by $8.51M.
Mon, May 2, 5:35 PM
- AGU, AMED, AMSG, ARC, AVD, BFAM, BGFV, BKH, BPI, CAI, CALD, CALX, CAR, CBS, CERS, CHEF, CHUY, CRAY, CSU, DVN, ENLK, ENPH, EPIQ, ETSY, FANG, FARO, FMI, GLUU, GMED, GNMK, HCI, HI, HRZN, IAG, IL, ILMN, INN, JKHY, KAMN, KAR, KFRC, LCI, LYV, MAC, MDU, MTCH, MTDR, MXWL, MYGN, NDLS, NFX, NKTR, NTRI, NYMT, OCLR, OKE, OKS, OMI, PAYC, PBPB, PKD, PLT, PRMW, PRO, PZZA, QUAD, QUOT, REG, REGI, RIGL, RLOC, RPXC, RSYS, RTRX, RUBI, SM, SPA, STAG, SUPN, TAHO, TNAV, TXMD, USNA, VIAV, VNOM, VRSK, VVUS, WES, WGP, WR, WTR, WU, XCO, XPO, XXIA, ZEN
Fri, Apr. 22, 11:59 AM
- Matador Resources (MTDR +3.4%) is initiated with an Outperform rating and $25 price target at Imperial Capital, which sees continued overall improvement in well results and costs as successful variations in design are implemented company-wide.
- Based upon results of MTDR and nearby peers such as WPX Energy, the firm has increased confidence in Wolfcamp A wells at Wolf, for example, approaching or exceeding 1M barrels.
- While MTDR does not have a rich liquidity cushion, its midstream assets could support readily available credit lines, while its Eagle Ford or Haynesville assets remain very attractive potential divestitures that could enhance liquidity, Imperial says.
- Now read Matador Resources is a low-debt oil company
Wed, Apr. 6, 2:46 PM
- Stifel analysts downgrade Anadarko Petroleum (APC +2.9%), Continental Resources (CLR +2.5%), EOG Resources (EOG +0.2%), Matador Resources (MTDR +4.1%) and SM Energy (SM +5.1%) to Hold from Buy, saying the stocks are too risky ahead of OPEC's April 17 meeting.
- The firm says mixed signals from OPEC ministers, ramping volumes from Iran, and potential backlash from Saudi Arabia heightens oil price risk, causing it to become more defensive with its energy recommendations.
- Stifel believes the five stocks are either underhedged on their production or outspending current 2016 cash flow.
- Now read Merrill Lynch on Oil: The bottom is in
Wed, Mar. 30, 3:30 PM
- Analysts at Seaport Global upgrade seven oil and gas producers, advocating for increased exposure to select names they say should protect investors in the event of a move back toward $50/bbl, while downgrading 11 others.
- Seaport upgrades seven companies to Buy: Continental Resources (CLR +3.4%), Callon Petroleum (CPE +1.4%), Marathon Oil (MRO +1.9%), Oasis Petroleum (OAS +2.8%), Rice Energy (RICE +1.7%), Petroquest Energy (PQ +9.1%) and Lonestar Resources (OTCQX:LNREF +6.6%).
- Downgraded to Sell are Whiting Petroleum (WLL +4.1%), Southwestern Energy (SWN -2.5%), WPX Energy (WPX +0.6%), Laredo Petroleum (LPI -1.1%), Jones Energy (JONE +0.9%), Northern Oil & Gas (NOG +1%), Carrizo Oil & Gas (CRZO +1.6%), Memorial Resource (MRD +2.5%), Matador Resources (MTDR -0.3%), Sanchez Energy (SN +1.6%) and PDC Energy (PDCE -0.9%).
- The firm also favors gaining leverage to the Oklahoma STACK play, thus CLR and Newfield Exploration (NFX +1.9%) have "taken the pole position away" from Permian producers Parsley Energy (PE +1.3%) and Pioneer Natural Resources (PXD +1%).
Thu, Mar. 24, 6:45 PM
- At least 15 companies in the hard-hit E&P energy industry have announced new share offerings this year, and nearly all have been rewarded by stock investors who normally would cringe as their holdings are diluted.
- Amid widespread worries about energy companies collapsing under debt loads, analysts and investors say shareholders more easily stomach the dilution if it means the companies are adding cash to strengthen their balance sheets.
- Some companies did not urgently need cash but stood to "immunize” their balance sheets in case the oil markets remain ugly into 2017, and others have asset sales pending but the newly raised money means they do not have to worry about timing of proceeds, says Wunderlich's Irene Haas.
- But "the low-hanging fruit [has] been picked," says Christian Ledoux, senior portfolio manager at South Texas Money Management, "not because [other companies] don’t want to, but because they won’t be able to attract investors" until oil prices are much higher.
- E&P companies that have outperformed the S&P 500 Energy Index by more than 10 percentage points since their respective offerings YTD: EGN, OAS, DVN, MRO, NFX, CPE, FANG, WFT, QEP, HES, SYRG.
- Outperforming the index by 1-10 percentage points: PXD, GPOR, PDCE, MTDR
- Underperforming the index: COG
Tue, Mar. 8, 1:09 PM
- Matador Resources (MTDR -5.2%) is downgraded to Hold from Accumulate with an $18 price target, lowered from $19, at KLR Group, citing the dilutive impact of MTDR's equity issuance.
- MTDR upsized and priced 7.5M common shares (from 5M shares originally) at $18.99/share for ~$142M in gross proceeds, increasing shares outstanding by ~9% and lowering year-end 2016 net debt-to-EBITDA to 2.4x from 3.3x.
- KLR says MTDR has appreciated 50%-plus since its Jan. 19 upgrade and is now modestly above its target price but still trades at a ~25% premium to the group on 2017 EBITDA although with superior production growth.
Mon, Mar. 7, 4:57 PM