We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Matador (MTDR) Down 12.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have lost about 12.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Matador due for a breakout? 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 drivers.
Matador Tops on Q4 Earnings
Matador Resources reported fourth-quarter 2022 adjusted earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.95 per share. The bottom line significantly improved from the year-ago quarter’s earnings of $1.26 per share.
Total quarterly revenues of $707.5 million surpassed the Zacks Consensus Estimate of $651 million. The top line also increased from the year-ago level of $566.4 million.
Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Dividend Hike
Matador’s board of directors announced a quarterly cash dividend of 15 cents per share, indicating a 50% increase from the last paid dividend of 10 cents per share. The dividend is payable on Mar 9, 2023, to shareholders of record as of Feb 27, 2023.
Production
For fourth-quarter 2022, total production volume averaged 10,280 thousand barrels of oil equivalent (MBoe) (comprising 55.8% oil), higher than 8,030 MBoe a year ago.
The average oil production volume was 62,316 barrels per day (Bbls/d), up from 49,756 Bbls/d reported in fourth-quarter 2021. Natural gas production was 296.5 million cubic feet per day (MMcf/d), up from 225.2 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $83.90 per barrel, which significantly increased from $76.82 in the year-ago quarter. The natural gas price of $5.65 per thousand cubic feet was lower than $7.68 in the prior-year quarter.
Operating Expenses
The company’s plant and other midstream services’ operating expenses increased to $2.85 per Boe from the year-earlier figure of $2.12. Also, lease operating costs increased from $3.34 per Boe in fourth-quarter 2021 to $3.98. Yet, production taxes, transportation and processing costs declined to $6.10 per barrel of oil equivalent (Boe) from $6.48 in the year-ago quarter.
Total operating expenses per Boe were $29.09, higher than the prior-year figure of $26.23.
Balance Sheet
As of Dec 31, 2022, Matador had cash and restricted cash of $547.3 million. Long-term debt was $1,160.2 million. Debt to capitalization was 26%.
Capital Spending
The company spent $188.9 million for the drilling, completing and equipping of wells in the fourth quarter, almost 13% lower than its projection primarily due to the timing of operations.
Outlook
For 2023, Matador increased its oil-equivalent production guidance to 44.35-46.25 million barrels. The metric suggests an improvement from 38.5 million oil-equivalent barrels reported in 2022. The company expects to produce 26.4-27.3 million barrels of oil in 2023.
Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $1,180-$1,320 million for the year. In midstream, it expects to spend $150-$200 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -22.87% due to these changes.
VGM Scores
At this time, Matador has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Matador has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Matador (MTDR) Down 12.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have lost about 12.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Matador due for a breakout? 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 drivers.
Matador Tops on Q4 Earnings
Matador Resources reported fourth-quarter 2022 adjusted earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.95 per share. The bottom line significantly improved from the year-ago quarter’s earnings of $1.26 per share.
Total quarterly revenues of $707.5 million surpassed the Zacks Consensus Estimate of $651 million. The top line also increased from the year-ago level of $566.4 million.
Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Dividend Hike
Matador’s board of directors announced a quarterly cash dividend of 15 cents per share, indicating a 50% increase from the last paid dividend of 10 cents per share. The dividend is payable on Mar 9, 2023, to shareholders of record as of Feb 27, 2023.
Production
For fourth-quarter 2022, total production volume averaged 10,280 thousand barrels of oil equivalent (MBoe) (comprising 55.8% oil), higher than 8,030 MBoe a year ago.
The average oil production volume was 62,316 barrels per day (Bbls/d), up from 49,756 Bbls/d reported in fourth-quarter 2021. Natural gas production was 296.5 million cubic feet per day (MMcf/d), up from 225.2 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $83.90 per barrel, which significantly increased from $76.82 in the year-ago quarter. The natural gas price of $5.65 per thousand cubic feet was lower than $7.68 in the prior-year quarter.
Operating Expenses
The company’s plant and other midstream services’ operating expenses increased to $2.85 per Boe from the year-earlier figure of $2.12. Also, lease operating costs increased from $3.34 per Boe in fourth-quarter 2021 to $3.98. Yet, production taxes, transportation and processing costs declined to $6.10 per barrel of oil equivalent (Boe) from $6.48 in the year-ago quarter.
Total operating expenses per Boe were $29.09, higher than the prior-year figure of $26.23.
Balance Sheet
As of Dec 31, 2022, Matador had cash and restricted cash of $547.3 million. Long-term debt was $1,160.2 million. Debt to capitalization was 26%.
Capital Spending
The company spent $188.9 million for the drilling, completing and equipping of wells in the fourth quarter, almost 13% lower than its projection primarily due to the timing of operations.
Outlook
For 2023, Matador increased its oil-equivalent production guidance to 44.35-46.25 million barrels. The metric suggests an improvement from 38.5 million oil-equivalent barrels reported in 2022. The company expects to produce 26.4-27.3 million barrels of oil in 2023.
Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $1,180-$1,320 million for the year. In midstream, it expects to spend $150-$200 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -22.87% due to these changes.
VGM Scores
At this time, Matador has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Matador has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.