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What's in Store for Matador Resources' (MTDR) Q2 Earnings?

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Matador Resources Company (MTDR - Free Report) is set to report earnings for second-quarter 2022 on Jul 26, after the closing bell.

In the last reported quarter, Matador Resources’ earnings per share of $2.32 beat the Zacks Consensus Estimate of $2.05, owing to increased oil-equivalent production volumes and higher commodity price realizations.

MTDR’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 25.2%. This is depicted in the graph below:

Matador Resources Company Price and EPS Surprise

Matador Resources Company Price and EPS Surprise

Matador Resources Company price-eps-surprise | Matador Resources Company Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter earnings per share of $3.07 has witnessed two upward and downward revisions over the past 60 days. The estimated figure suggests a 201% improvement from the prior-year reported number.

The consensus estimate for second-quarter revenues of $797.5 million indicates a 123.1% increase from the year-ago reported figure.

Factors to Consider

The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia. This is likely to have aided its second-quarter earnings.

High oil price was favorable for exploration and production operations of MTDR in the June quarter. This is because Matador Resources has a strong footprint in the liquid-rich Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.

Earnings Whispers

Our proven model does not indicate an earnings beat for Matador Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: MTDR’s Earnings ESP is -1.83%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Matador Resources currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +1.15% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Schlumberger is scheduled to release second-quarter results on Jul 22. The Zacks Consensus Estimate for SLB’s earnings is pegged at 40 cents per share, suggesting an increase of 33.3% from the prior-year reported figure.

BP plc (BP - Free Report) has an Earnings ESP of +6.44% and a Zacks Rank of 1.

BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2.00 per share, suggesting a significant increase from the prior-year reported figure.

Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +10.22% and a Zacks Rank #1.

Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.38 per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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