Matador Resources Company (MTDR Quick QuoteMTDR - Free Report) has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. Also, the stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 507.1% this year.

What’s Favoring the Stock?

On Aug 23, oil price jumped more than 5%, thanks primarily to weaker dollar. This is because the commodity is cheaper for holders of other currencies. Thus, price of oil increased after seven days of a losing streak. The price of West Texas Intermediate (WTI) crude has again crossed the $65-per-barrel benchmark, turning around from last week when the commodity plunged 9% to mark the biggest week of losses in more than nine months.

The rapidly-spreading delta variant of coronavirus has been weighing on oil price since countries are considering new lockdown measures. Overall, short-term fuel demand looks cloudy but with rolling out of coronavirus vaccines across the world, the long-term outlook continues to be rosy.

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. In the June quarter, the company’s average daily oil equivalent total production was up 26% sequentially, beating the guidance for an increment of 19-22%.

The upstream energy player continues to improve its capital efficiency. Matador’s drilling and completion costs through the first half of this year for 21 operated horizontal wells were $655 per completed lateral foot. This was roughly 4% lower than the expectation the company had for the metric for the first half.

Matador Resources Company Price

Matador Resources Company price | Matador Resources Company Quote

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.