Matador Resources: Investors Reward The Permian 'Story'
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, 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.
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%).
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
Sep. 16, 2015, 2:40 PM
- Matador Resources (MTDR +12.1%) is on the move after yesterday's sale of its pipeline and processing assets in the Delaware Basin in western Texas to EnLink Midstream Partners (ENLK +2.6%).
- MTDR will be a major customer for the pipeline and related assets after they change hands, which is expected before the end of the year.
- Wunderlich upped its MTDR price target to $37 from $35, positively surprised by the "excellent valuation" of $143M for the midstream assets, which the firm says should give MTDR plenty of dry powder to finance drilling and more midstream projects in 2016 (Briefing.com).
Sep. 16, 2015, 12:45 PM
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.
Apr. 16, 2015, 9:12 AM
Apr. 15, 2015, 4:33 PM
- Matador Resources (NYSE:MTDR) -7% AH after announcing a public offering of 7M common units.
- MTDR says it plans to use the proceeds to repay outstanding borrowings under its revolving credit facility, to fund future capital expenditures including the possible addition of a third drilling rig in the Permian Basin and targeted acquisitions of additional acreage in the Permian Basin and other shale plays, and for other general working capital needs.
Apr. 7, 2015, 5:36 PM
Apr. 6, 2015, 11:32 AM
- Matador Resources (MTDR +10.1%) says it achieved record quarterly production of ~2.1M boe during Q1, nearly double the 1.1M boe produced in the year-ago quarter and up ~10% from 1.9M boe produced in Q4 2014.
- MTDR attributes the strong result to newly completed wells in both the Delaware Basin and the Eagle Ford shale, as well as earlier completion dates on several Eagle Ford wells leading to less shut-in production during Q1.
- MTDR says production during March averaged ~25K boe/day for the first time in the company's history, and reached as high as 29K boe/day during the final two weeks.
Dec. 1, 2014, 5:40 PM
Nov. 5, 2014, 5:24 PM
- Matador Resources (NYSE:MTDR): Q3 EPS of $0.40 beats by $0.09.
- Revenue of $112.21M (+57.2% Y/Y) beats by $13.26M.
- Shares +1.58% AH.
Matador Resources Co. is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The firm is primarily focused on the natural gas operations in East Texas and North Louisiana, and the Permian and Delaware Basins of West Texas and... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States