Matador Resources: Investors Reward The Permian 'Story'
May 11, 2015, 11:27 AM
- Some analysts say Noble Energy’s (NBL -7.5%) acquisition of Rosetta Resources (ROSE +25.5%) is the deal that will finally open the floodgates of M&A activity in the oil patch.
- The premium for ROSE is below average for the sector over the past five years, suggesting there are more mergers to come, says Oppenheimer's Fadel Gheit, and the sale shows that M&A was “arguably” a cheaper option for growth than organic investment, according to Morgan Stanley's Martijn Rats.
- SunTrust's Neal Dingmann sees Matador Resources (MTDR -0.9%), Callon Petroleum (CPE -0.5%) and Carrizon Oil & Gas (CRZO -1.8%) as the most likely targets for acquisitive eyes.
Jan. 20, 2015, 2:53 PM
- Matador Resources (MTDR -0.1%) agrees to acquire HEYCO, owner of oil and natural gas producing properties and undeveloped acreage in New Mexico, for $37M in cash and more than 3.1M common shares.
- The purchase provides MTDR with bolt-on acreage to bring its total position in the Delaware Basin to 84.3K net acres, making the company one of the biggest Delaware landholders among its peers.
- Howard Weil raises its target price to $26 from $22 following the deal, saying the capitalization of the acquisition helps MTDR maintain its strong balance sheet in the current challenging environment (Briefing.com).