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Here's Why Hold Strategy is Apt for Matador (MTDR) Stock
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Matador Resources Company (MTDR - Free Report) has witnessed upward earnings estimate revisions for 2024 in the past 30 days. For this year, the Zacks Consensus Estimate for Matador’s earnings per share is pegged at $8.72.
What’s Favoring the Stock?
The price of West Texas Intermediate crude, trading at more than $65 per barrel, is still favorable for the exploration and production activities of Matador. This is because MTDR, carrying a Zacks Rank #3 (Hold), has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin.
Handsome crude price is likely to aid it in increasing production volumes. For 2023, the upstream energy player expects total production at a band of 44.35 to 46.25 million barrels of oil equivalent (MMBoE), higher than 38.5 MMBoE in 2022. Since 2019, total production has been increasing consistently, contributing to the top and the bottom line.
On another positive note, Matador plans to turn to sales a net of 97.5 wells this year — including operated and non-operated wells. Its prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
However, rising lease operating expenses are hurting MTDR’s bottom line. Also, being an upstream energy player, Matador’s business is highly vulnerable to extreme volatility in commodity prices.
Energy Transfer generates stable cashflows, banking on its midstream, intrastate and interstate transportation and storage assets. The midstream assets are engaged in transporting and storing natural gas, oil and refined petroleum products. Over the past 60 days, Energy Transfer has witnessed upward earnings estimate revisions for 2023 and 2024.
Marathon Petroleum is a well-known name in the energy space. MPC is the operator of the largest refining system in the nation.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. In the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.
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Here's Why Hold Strategy is Apt for Matador (MTDR) Stock
Matador Resources Company (MTDR - Free Report) has witnessed upward earnings estimate revisions for 2024 in the past 30 days. For this year, the Zacks Consensus Estimate for Matador’s earnings per share is pegged at $8.72.
What’s Favoring the Stock?
The price of West Texas Intermediate crude, trading at more than $65 per barrel, is still favorable for the exploration and production activities of Matador. This is because MTDR, carrying a Zacks Rank #3 (Hold), has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin.
Handsome crude price is likely to aid it in increasing production volumes. For 2023, the upstream energy player expects total production at a band of 44.35 to 46.25 million barrels of oil equivalent (MMBoE), higher than 38.5 MMBoE in 2022. Since 2019, total production has been increasing consistently, contributing to the top and the bottom line.
On another positive note, Matador plans to turn to sales a net of 97.5 wells this year — including operated and non-operated wells. Its prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
However, rising lease operating expenses are hurting MTDR’s bottom line. Also, being an upstream energy player, Matador’s business is highly vulnerable to extreme volatility in commodity prices.
Stocks to Consider
Some better-ranked players in the energy space are Energy Transfer LP (ET - Free Report) , Marathon Petroleum Corp (MPC - Free Report) and Antero Midstream Corporation (AM - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Energy Transfer generates stable cashflows, banking on its midstream, intrastate and interstate transportation and storage assets. The midstream assets are engaged in transporting and storing natural gas, oil and refined petroleum products. Over the past 60 days, Energy Transfer has witnessed upward earnings estimate revisions for 2023 and 2024.
Marathon Petroleum is a well-known name in the energy space. MPC is the operator of the largest refining system in the nation.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. In the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.