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Matador (MTDR) Up 11.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have added about 11.6% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Matador Beats Q1 Earnings Estimates, Revenues Miss
Matador reported adjusted earnings of $2.32 per share, beating the Zacks Consensus Estimate of $2.05 per share. The bottom line significantly improved from the year-ago quarter’s earnings of 71 cents.
Total quarterly revenues of $566 million missed the Zacks Consensus Estimate of $609 million. However, the top line increased from the year-ago level of $267 million.
The strong quarterly earnings can be attributed to increased oil-equivalent production volumes and higher commodity price realizations.
Production
For first-quarter 2022, total production volume averaged 8,457 thousand barrels of oil equivalent (MBoe) (comprising 57% oil), higher than 6,658 MBoe a year ago.
The average oil production volume was 53,561 barrels per day (Bbls/d), up from 41,537 Bbls/d reported in first-quarter 2021. Natural gas production was 242.4 million cubic feet per day (MMcf/d), up from 194.7 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $95.45 per barrel, which significantly increased from $57.05 in the year-ago quarter. Also, the natural gas price of $7.63 per thousand cubic feet was higher than $5.88 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $7.07 per barrel of oil equivalent (Boe) from $5.13 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.30 per Boe from the year-earlier figure of $2.05. Also, lease operating costs increased from $3.90 per Boe in first-quarter 2021 to $4.01.
Total operating expenses per Boe were recorded at $28.23, higher than the prior-year figure of $25.65.
Balance Sheet
As of Mar 31, 2022, Matador had cash and restricted cash of $120.2 million. Long-term debt was recorded at $1,498 million, including $50 million of borrowings under its credit agreement. Debt to capitalization was 39.1%.
Capital Spending
The company spent $198.8 million for the drilling, completing and equipping of wells in the first quarter, 9% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador reiterated its oil-equivalent production guidance at 36.3-38.3 million barrels. The metric suggests an improvement from 31.5 million oil-equivalent barrels reported in 2021. In the second-quarter, the company expects to produce 106,000-108,000 oil-equivalent barrels per day.
Matador’s 2022 capital spending guidance for drilling, completing and equipping wells is pegged at $640-$710 million. In midstream, it expects to spend $50-$60 million for the year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.85% due to these changes.
VGM Scores
At this time, Matador has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Matador has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Matador (MTDR) Up 11.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have added about 11.6% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Matador Beats Q1 Earnings Estimates, Revenues Miss
Matador reported adjusted earnings of $2.32 per share, beating the Zacks Consensus Estimate of $2.05 per share. The bottom line significantly improved from the year-ago quarter’s earnings of 71 cents.
Total quarterly revenues of $566 million missed the Zacks Consensus Estimate of $609 million. However, the top line increased from the year-ago level of $267 million.
The strong quarterly earnings can be attributed to increased oil-equivalent production volumes and higher commodity price realizations.
Production
For first-quarter 2022, total production volume averaged 8,457 thousand barrels of oil equivalent (MBoe) (comprising 57% oil), higher than 6,658 MBoe a year ago.
The average oil production volume was 53,561 barrels per day (Bbls/d), up from 41,537 Bbls/d reported in first-quarter 2021. Natural gas production was 242.4 million cubic feet per day (MMcf/d), up from 194.7 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $95.45 per barrel, which significantly increased from $57.05 in the year-ago quarter. Also, the natural gas price of $7.63 per thousand cubic feet was higher than $5.88 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $7.07 per barrel of oil equivalent (Boe) from $5.13 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.30 per Boe from the year-earlier figure of $2.05. Also, lease operating costs increased from $3.90 per Boe in first-quarter 2021 to $4.01.
Total operating expenses per Boe were recorded at $28.23, higher than the prior-year figure of $25.65.
Balance Sheet
As of Mar 31, 2022, Matador had cash and restricted cash of $120.2 million. Long-term debt was recorded at $1,498 million, including $50 million of borrowings under its credit agreement. Debt to capitalization was 39.1%.
Capital Spending
The company spent $198.8 million for the drilling, completing and equipping of wells in the first quarter, 9% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador reiterated its oil-equivalent production guidance at 36.3-38.3 million barrels. The metric suggests an improvement from 31.5 million oil-equivalent barrels reported in 2021. In the second-quarter, the company expects to produce 106,000-108,000 oil-equivalent barrels per day.
Matador’s 2022 capital spending guidance for drilling, completing and equipping wells is pegged at $640-$710 million. In midstream, it expects to spend $50-$60 million for the year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.85% due to these changes.
VGM Scores
At this time, Matador has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Matador has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.