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Matador (MTDR) Jumps 9.6% MTD: More Scope for Growth Left?

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Matador Resources Company’s (MTDR - Free Report) shares have jumped 9.6% month to date (MTD) versus the industry’s 7.8% growth. Notably, the Zacks Rank #1 (Strong Buy) company has witnessed upward earnings estimate revisions for 2021 and 2022, respectively, in the past seven days.

Let’s delve into the factors behind the stock’s price appreciation.

What’s Favoring the Stock?

The price of West Texas Intermediate crude, trading at more than $65 per barrel mark, has improved drastically from the pandemic-hit April last year, when oil was in the negative territory. With coronavirus vaccines being rolled out at a massive scale, leading to a gradual reopening of the economy, the demand for fuel will possibly improve further.

Overall, improving oil prices are definitely a boon for Matador’s upstream operations. This is because the company has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Investors should note that through the June quarter of this year, the company expects its oil production to jump sequentially by 21% to 24%.

Notably, in the Delaware Basin, the company is planning to operate four drilling rigs throughout the remainder of 2021. Moreover, the upstream firm has a plan of turning 49 gross operated wells and 76 gross non-operated wells to sales this year.

Matador also has strong cost-control initiatives. The company projects drilling and completion costs for operated horizontal wells this year to average $730 per completed lateral foot, suggesting a decline of 14% year over year and 37% from the 2019 figure.

Other Stocks to Consider

Other promising players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Continental Resources, Inc. (CLR - Free Report) and PDC Energy, Inc. (PDCE - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.

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