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Here's Why Matador (MTDR) is an Attractive Investment Bet

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Matador Resources Company (MTDR - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. Also, the stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 156.5% this year.

What’s Favoring the Stock?

The price of West Texas Intermediate crude, trading at more than $110 per barrel, has risen drastically over the past year. The significant rise in oil price is owing to the assumptions by many analysts that the Ukraine war may be prolonged.

Improving oil prices are a boon for Matador’s upstream operations. This is because MTDR has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Favorable oil price is likely to aid it in increasing production volumes. For 2022, the upstream energy player expects total production at 37,300 thousand barrels of oil equivalent (MBoE), higher than 31,454 MBoE in 2021. In fact, since 2019, total production has been increasing persistently, contributing to the top and bottom lines.

On another positive note, Matador is planning to turn to sales this year a net of 69.7 wells – including operated and non-operated wells. Among the prime priorities that MTDR has set for this year are lowering debt level, delivering free cashflows and maintaining or increasing dividend.

Other Stocks to Consider

Some other top-ranked players in the energy space are ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips carries a Zacks Rank #2 (Buy), Marathon Oil and Occidental Petroleum sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, ConocoPhillips is likely to see earnings growth of 141.6%.

Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Marathon Oil is likely to see earnings growth of 201.3%.

In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Occidental Petroleum is likely to see earnings growth of 278.8%.

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