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Matador Resources Company’s (MTDR - Free Report) shares have declined 3.3% despite reporting strong third-quarter 2022 earnings on Oct 25. The downward price movement can be attributed to the company’s rising expenses.
The upstream energy company reported adjusted earnings of $2.68 per share, beating the Zacks Consensus Estimate of $2.47 per share. The bottom line significantly improved from the year-ago quarter’s earnings of $1.25 per share.
Total quarterly revenues of $841 million surpassed the Zacks Consensus Estimate of $735 million. The top line also increased from the year-ago level of $472 million.
Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
For third-quarter 2022, total production volume averaged 9,680 thousand barrels of oil equivalent (MBoe) (comprising 57.2% oil), higher than 8,283 MBoe a year ago.
The average oil production volume was 60,163 barrels per day (Bbls/d), up from 50,747 Bbls/d reported in third-quarter 2021. Natural gas production was 270.3 million cubic feet per day (MMcf/d), up from 235.7 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $94.36 per barrel, which significantly increased from $69.73 in the year-ago quarter. Also, the natural gas price of $9.22 per thousand cubic feet was higher than $6.27 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $7.64 per barrel of oil equivalent (Boe) from $5.90 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.56 per Boe from the year-earlier figure of $2.06. Also, lease operating costs increased from $3.31 per Boe in third-quarter 2021 to $4.38.
Total operating expenses per Boe were $29.71, higher than the prior-year figure of $24.99.
Balance Sheet
As of Sept 30, 2022, Matador had cash and restricted cash of $441.7 million. Long-term debt was $1,192.9 million. Debt to capitalization was 28%.
Capital Spending
The company spent $241.8 million for the drilling, completing and equipping of wells in the third quarter, almost 7% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador increased its oil-equivalent production guidance to 37.7-38.3 million barrels from the prior stated 36.9-38.3 million barrels. The metric suggests an improvement from 31.5 million oil-equivalent barrels reported last year. In the fourth quarter, the company expects to produce 105,500-107,500 oil-equivalent barrels per day.
Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $765-$835 million for the year. In midstream, it expects to spend $50-$60 million for the year.
Murphy USA Inc. (MUSA - Free Report) reported third-quarter 2022 earnings per share of $9.28, beating the Zacks Consensus Estimate of $7.82. The outperformance can be attributed to a rise in the retail gasoline price and a higher retail margin of 37.6 cents per gallon, up 41.4% year over year.
In more good news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 35 cents per share to its common shareholders of record as of Nov 8. The payout, which represents a 9% sequential increase, will be made on Dec 1.
EQT Corporation (EQT - Free Report) reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. Strong quarterly earnings were driven by the higher realization of commodity prices.
EQT Corp is expected to see an earnings surge of 370% in 2022. Also, EQT expects to generate a free cash flow of $1.9-$2 billion this year, suggesting a massive improvement from the $934.7 million reported last year.
Valero Energy (VLO - Free Report) reported adjusted earnings of $7.14 per share compared with a meager $1.22 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of $7 per share. VLO’s strong quarterly results were supported by increased refinery throughput volumes and a higher refining margin.
The majority of Valero’s refining plants are located in the Gulf coast area, from where there is easy access to the export facilities. This Gulf coast presence helped the company expand its export volumes over the last few years and gain from high distillate margins. The Gulf Coast contributed 60.3% to the total throughput volume in the third quarter of 2022.
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Matador (MTDR) Shares Dip 3.3% Despite Q3 Earnings Beat
Matador Resources Company’s (MTDR - Free Report) shares have declined 3.3% despite reporting strong third-quarter 2022 earnings on Oct 25. The downward price movement can be attributed to the company’s rising expenses.
The upstream energy company reported adjusted earnings of $2.68 per share, beating the Zacks Consensus Estimate of $2.47 per share. The bottom line significantly improved from the year-ago quarter’s earnings of $1.25 per share.
Total quarterly revenues of $841 million surpassed the Zacks Consensus Estimate of $735 million. The top line also increased from the year-ago level of $472 million.
Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Production
For third-quarter 2022, total production volume averaged 9,680 thousand barrels of oil equivalent (MBoe) (comprising 57.2% oil), higher than 8,283 MBoe a year ago.
The average oil production volume was 60,163 barrels per day (Bbls/d), up from 50,747 Bbls/d reported in third-quarter 2021. Natural gas production was 270.3 million cubic feet per day (MMcf/d), up from 235.7 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $94.36 per barrel, which significantly increased from $69.73 in the year-ago quarter. Also, the natural gas price of $9.22 per thousand cubic feet was higher than $6.27 in the prior-year quarter.
Operating Expenses
The company’s production taxes, transportation and processing costs increased to $7.64 per barrel of oil equivalent (Boe) from $5.90 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.56 per Boe from the year-earlier figure of $2.06. Also, lease operating costs increased from $3.31 per Boe in third-quarter 2021 to $4.38.
Total operating expenses per Boe were $29.71, higher than the prior-year figure of $24.99.
Balance Sheet
As of Sept 30, 2022, Matador had cash and restricted cash of $441.7 million. Long-term debt was $1,192.9 million. Debt to capitalization was 28%.
Capital Spending
The company spent $241.8 million for the drilling, completing and equipping of wells in the third quarter, almost 7% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.
Outlook
For 2022, Matador increased its oil-equivalent production guidance to 37.7-38.3 million barrels from the prior stated 36.9-38.3 million barrels. The metric suggests an improvement from 31.5 million oil-equivalent barrels reported last year. In the fourth quarter, the company expects to produce 105,500-107,500 oil-equivalent barrels per day.
Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $765-$835 million for the year. In midstream, it expects to spend $50-$60 million for the year.
Zacks Rank & Stocks to Consider
Matador currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Murphy USA Inc. (MUSA - Free Report) reported third-quarter 2022 earnings per share of $9.28, beating the Zacks Consensus Estimate of $7.82. The outperformance can be attributed to a rise in the retail gasoline price and a higher retail margin of 37.6 cents per gallon, up 41.4% year over year.
In more good news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 35 cents per share to its common shareholders of record as of Nov 8. The payout, which represents a 9% sequential increase, will be made on Dec 1.
EQT Corporation (EQT - Free Report) reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. Strong quarterly earnings were driven by the higher realization of commodity prices.
EQT Corp is expected to see an earnings surge of 370% in 2022. Also, EQT expects to generate a free cash flow of $1.9-$2 billion this year, suggesting a massive improvement from the $934.7 million reported last year.
Valero Energy (VLO - Free Report) reported adjusted earnings of $7.14 per share compared with a meager $1.22 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of $7 per share. VLO’s strong quarterly results were supported by increased refinery throughput volumes and a higher refining margin.
The majority of Valero’s refining plants are located in the Gulf coast area, from where there is easy access to the export facilities. This Gulf coast presence helped the company expand its export volumes over the last few years and gain from high distillate margins. The Gulf Coast contributed 60.3% to the total throughput volume in the third quarter of 2022.