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Reasons Why it is Worth Investing in Matador (MTDR) Stock Now

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Matador Resources Company (MTDR - Free Report) has witnessed upward earnings estimate revisions for 2022 in the past 30 days. Also, the stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 375% for this year.

What’s Favoring the Stock?

The price of West Texas Intermediate crude, trading at more than $72 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 have jumped 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 , Continental Resources, Inc. and PDC Energy, Inc. . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1, PDC Energy carries a Zacks Rank #2 (Buy). 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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