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Matador (MTDR) Up 2.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have added about 2.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Matador Tops on Q1 Earnings
Matador Resources reported first-quarter 2023 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.24 per share. However, the bottom line significantly declined from the year-ago quarter’s earnings of $2.32 per share.
Total quarterly revenues of $560.3 million surpassed the Zacks Consensus Estimate of $527 million. The top line declined from the year-ago level of $565.7 million.
Better-than-expected quarterly results were driven by higher oil-equivalent production volumes. The positives were partially offset by lower commodity price realizations.
Production
For first-quarter 2023, total production volume averaged 9,599 thousand barrels of oil equivalent (MBoe) (comprising 55.3% oil), higher than 8,457 MBoe a year ago.
The average oil production volume was 58,941 barrels per day (Bbls/d), up from 53,561 Bbls/d reported in the year-ago quarter. Natural gas production was 286.3 million cubic feet per day (MMcf/d), up from 242.4 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $75.74 per barrel, which significantly declined from $95.45 in the year-ago quarter. The natural gas price of $3.93 per thousand cubic feet was lower than $7.63 in the prior-year quarter.
Operating Expenses
The company’s plant and other midstream services’ operating expenses increased to $3.23 per Boe from the year-earlier figure of $2.30. Also, lease operating costs increased from $4.01 per Boe in first-quarter 2022 to $4.63. Yet, production taxes, transportation and processing costs declined to $5.78 per barrel of oil equivalent (Boe) from $7.07 in the year-ago quarter.
Total operating expenses per Boe were $29.14, higher than the prior-year figure of $28.23.
Balance Sheet
As of Mar 31, 2023, Matador had cash and restricted cash of $503.4 million. Long-term debt was $1,170.5 million. Debt to capitalization was 25.3%.
Capital Spending
The company spent $294.8 million for the drilling, completing and equipping of wells in the first quarter, almost 6% lower than its projection primarily due to improvements in completion capital efficiencies.
Outlook
For 2023, Matador reiterated its oil equivalent production guidance of 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.
For 2023, Matador expects lease operating expenses of $5.25-$5.75 per Boe, indicating an increase from the $3.46 reported in 2022. Total operating expenses are anticipated to be $29.75-$33.25 per Boe.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Matador has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 broadly trending upward 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.
Performance of an Industry Player
Matador is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Range Resources (RRC - Free Report) , a stock from the same industry, has gained 20.4%. The company reported its results for the quarter ended March 2023 more than a month ago.
Range Resources reported revenues of $853 million in the last reported quarter, representing a year-over-year change of -13.6%. EPS of $0.99 for the same period compares with $1.18 a year ago.
Range Resources is expected to post earnings of $0.38 per share for the current quarter, representing a year-over-year change of -70.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.8%.
Range Resources has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Matador (MTDR) Up 2.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Matador Resources (MTDR - Free Report) . Shares have added about 2.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Matador Tops on Q1 Earnings
Matador Resources reported first-quarter 2023 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.24 per share. However, the bottom line significantly declined from the year-ago quarter’s earnings of $2.32 per share.
Total quarterly revenues of $560.3 million surpassed the Zacks Consensus Estimate of $527 million. The top line declined from the year-ago level of $565.7 million.
Better-than-expected quarterly results were driven by higher oil-equivalent production volumes. The positives were partially offset by lower commodity price realizations.
Production
For first-quarter 2023, total production volume averaged 9,599 thousand barrels of oil equivalent (MBoe) (comprising 55.3% oil), higher than 8,457 MBoe a year ago.
The average oil production volume was 58,941 barrels per day (Bbls/d), up from 53,561 Bbls/d reported in the year-ago quarter. Natural gas production was 286.3 million cubic feet per day (MMcf/d), up from 242.4 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $75.74 per barrel, which significantly declined from $95.45 in the year-ago quarter. The natural gas price of $3.93 per thousand cubic feet was lower than $7.63 in the prior-year quarter.
Operating Expenses
The company’s plant and other midstream services’ operating expenses increased to $3.23 per Boe from the year-earlier figure of $2.30. Also, lease operating costs increased from $4.01 per Boe in first-quarter 2022 to $4.63. Yet, production taxes, transportation and processing costs declined to $5.78 per barrel of oil equivalent (Boe) from $7.07 in the year-ago quarter.
Total operating expenses per Boe were $29.14, higher than the prior-year figure of $28.23.
Balance Sheet
As of Mar 31, 2023, Matador had cash and restricted cash of $503.4 million. Long-term debt was $1,170.5 million. Debt to capitalization was 25.3%.
Capital Spending
The company spent $294.8 million for the drilling, completing and equipping of wells in the first quarter, almost 6% lower than its projection primarily due to improvements in completion capital efficiencies.
Outlook
For 2023, Matador reiterated its oil equivalent production guidance of 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.
For 2023, Matador expects lease operating expenses of $5.25-$5.75 per Boe, indicating an increase from the $3.46 reported in 2022. Total operating expenses are anticipated to be $29.75-$33.25 per Boe.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Matador has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 broadly trending upward 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.
Performance of an Industry Player
Matador is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Range Resources (RRC - Free Report) , a stock from the same industry, has gained 20.4%. The company reported its results for the quarter ended March 2023 more than a month ago.
Range Resources reported revenues of $853 million in the last reported quarter, representing a year-over-year change of -13.6%. EPS of $0.99 for the same period compares with $1.18 a year ago.
Range Resources is expected to post earnings of $0.38 per share for the current quarter, representing a year-over-year change of -70.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.8%.
Range Resources has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.