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Matador (MTDR) Stock Up 5.5% Since Q4 Earnings Beat Estimates
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Matador Resources Company’s (MTDR - Free Report) shares gained 5.5% since it reported strong fourth-quarter 2021 earnings on Feb 22. The favorable commodity pricing scenario, owing to the strong recovery in energy demand, is expected to have triggered higher activities in the upstream market. This likely pushed the company’s stock price up.
Matador reported adjusted earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.02 per share. The bottom line significantly improved from the year-ago quarter’s earnings of 27 cents.
Total quarterly revenues of $566 million surpassed the Zacks Consensus Estimate of $428 million. The top line increased from the year-ago level of $224 million.
The strong quarterly results can be attributed to increased oil-equivalent production volumes and higher realizations of commodity prices.
Matador Resources Company Price, Consensus and EPS Surprise
For fourth-quarter 2021, total production volume averaged 8,030 thousand barrels of oil equivalent (MBoe) (comprising 57% oil), higher than 7,653 MBoe a year ago.
The average oil production volume was 49,756 barrels per day (Bbls/d), up from 48,028 Bbls/d reported in fourth-quarter 2020. Natural gas production was 225.2 million cubic feet per day (MMcf/d), up from 210.9 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $76.82 per barrel, which significantly increased from $40.99 in the year-ago quarter. Also, the natural gas price of $7.68 per thousand cubic feet was higher than $2.97 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $6.48 per barrel of oil equivalent (Boe) from $3.53 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.12 per Boe from the year-earlier figure of $1.62. Also, lease operating costs increased from $3.20 per Boe in fourth-quarter 2020 to $3.34.
Total operating expenses per Boe were recorded at $26.23, higher than the prior-year figure of $22.24.
Balance Sheet
As of Dec 31, 2021, Matador had cash and restricted cash of $86.9 million. Long-term debt was recorded at $1,527.6 million, including $100 million of borrowings under its credit agreement. Debt to capitalization was 41.8%.
Capital Spending
The company spent $166 million for the drilling, completing and equipping of wells in the fourth quarter, 18% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador projects its oil-equivalent production at 36.3-38.3 million barrels. The metric suggests an improvement from 31.5 million barrels of oil equivalent. Moreover, it expects total oil production of 21-22 million barrels.
The company’s 2021 capital spending guidance for drilling, completing and equipping wells is pegged at $640-$710 million. In midstream, Matador expects to spend $50-$60 million for the year.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid fourth-quarter earnings numbers and also presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2021 earnings per share of 43 cents, beating the Zacks Consensus Estimate of earnings of 41 cents. CVE reported 2021 year-end proved reserves of 6.1 billion Boe, marking a year-over-year increase of 21%.
Cenovus is expected to see earnings growth of 116.1% in 2022. CVE has a strong focus on returning capital to shareholders. This year's commitment to growing shareholders’ returns comprises the plan to buy back up to 146.5 million common shares. In 2021, Cenovus repurchased 17 million common shares, with another 9 million bought back this year.
ConocoPhillips (COP - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20. COP reported preliminary 2021 year-end proved reserves at 6.1 billion Boe.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP revised higher its expected 2022 return of capital to shareholders. The figure is now pegged at $8 billion, reflecting an increase from the previously mentioned $7 billion. The incremental returns to stockholders will get distributed through share repurchases and VROC tiers.
Marathon Oil Corporation (MRO - Free Report) reported fourth-quarter 2021 adjusted net income per share of 77 cents, comprehensively beating the Zacks Consensus Estimate of 55 cents. As of 2021-end, MRO had 1,106 million oil-equivalent barrels in net proved reserves, marking a year-over-year increase of 14%.
Marathon Oil’s earnings for 2022 are expected to soar 83.4% year over year. In good news for investors, the company is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO has executed $1 billion of share repurchases since October (with $1.7 billion remaining under the current authorization) and recently announced a dividend hike.
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Matador (MTDR) Stock Up 5.5% Since Q4 Earnings Beat Estimates
Matador Resources Company’s (MTDR - Free Report) shares gained 5.5% since it reported strong fourth-quarter 2021 earnings on Feb 22. The favorable commodity pricing scenario, owing to the strong recovery in energy demand, is expected to have triggered higher activities in the upstream market. This likely pushed the company’s stock price up.
Matador reported adjusted earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.02 per share. The bottom line significantly improved from the year-ago quarter’s earnings of 27 cents.
Total quarterly revenues of $566 million surpassed the Zacks Consensus Estimate of $428 million. The top line increased from the year-ago level of $224 million.
The strong quarterly results can be attributed to increased oil-equivalent production volumes and higher realizations of commodity prices.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Production
For fourth-quarter 2021, total production volume averaged 8,030 thousand barrels of oil equivalent (MBoe) (comprising 57% oil), higher than 7,653 MBoe a year ago.
The average oil production volume was 49,756 barrels per day (Bbls/d), up from 48,028 Bbls/d reported in fourth-quarter 2020. Natural gas production was 225.2 million cubic feet per day (MMcf/d), up from 210.9 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $76.82 per barrel, which significantly increased from $40.99 in the year-ago quarter. Also, the natural gas price of $7.68 per thousand cubic feet was higher than $2.97 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $6.48 per barrel of oil equivalent (Boe) from $3.53 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.12 per Boe from the year-earlier figure of $1.62. Also, lease operating costs increased from $3.20 per Boe in fourth-quarter 2020 to $3.34.
Total operating expenses per Boe were recorded at $26.23, higher than the prior-year figure of $22.24.
Balance Sheet
As of Dec 31, 2021, Matador had cash and restricted cash of $86.9 million. Long-term debt was recorded at $1,527.6 million, including $100 million of borrowings under its credit agreement. Debt to capitalization was 41.8%.
Capital Spending
The company spent $166 million for the drilling, completing and equipping of wells in the fourth quarter, 18% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador projects its oil-equivalent production at 36.3-38.3 million barrels. The metric suggests an improvement from 31.5 million barrels of oil equivalent. Moreover, it expects total oil production of 21-22 million barrels.
The company’s 2021 capital spending guidance for drilling, completing and equipping wells is pegged at $640-$710 million. In midstream, Matador expects to spend $50-$60 million for the year.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid fourth-quarter earnings numbers and also presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2021 earnings per share of 43 cents, beating the Zacks Consensus Estimate of earnings of 41 cents. CVE reported 2021 year-end proved reserves of 6.1 billion Boe, marking a year-over-year increase of 21%.
Cenovus is expected to see earnings growth of 116.1% in 2022. CVE has a strong focus on returning capital to shareholders. This year's commitment to growing shareholders’ returns comprises the plan to buy back up to 146.5 million common shares. In 2021, Cenovus repurchased 17 million common shares, with another 9 million bought back this year.
ConocoPhillips (COP - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20. COP reported preliminary 2021 year-end proved reserves at 6.1 billion Boe.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP revised higher its expected 2022 return of capital to shareholders. The figure is now pegged at $8 billion, reflecting an increase from the previously mentioned $7 billion. The incremental returns to stockholders will get distributed through share repurchases and VROC tiers.
Marathon Oil Corporation (MRO - Free Report) reported fourth-quarter 2021 adjusted net income per share of 77 cents, comprehensively beating the Zacks Consensus Estimate of 55 cents. As of 2021-end, MRO had 1,106 million oil-equivalent barrels in net proved reserves, marking a year-over-year increase of 14%.
Marathon Oil’s earnings for 2022 are expected to soar 83.4% year over year. In good news for investors, the company is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO has executed $1 billion of share repurchases since October (with $1.7 billion remaining under the current authorization) and recently announced a dividend hike.