It has been about a month since the last earnings report for Matador Resources (MTDR Quick QuoteMTDR - Free Report) . Shares have added about 24.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Matador due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Matador Resources Beats Q4 Earnings Estimates

Matador Resources 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.

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 Resourceshad 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 Resources 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 Resourcesexpects to spend $50-$60 million for the year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 7.13% due to these changes.

VGM Scores

At this time, Matador has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Matador has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.