We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Here's Why Hold Strategy is Apt for Matador (MTDR) Stock Now
Read MoreHide Full Article
Matador Resources Company (MTDR - Free Report) is a leading upstream player, having a strong foothold in prolific oil and natural gas shale and other unconventional plays. The company is likely to see earnings growth in 2024 and 2025, respectively.
What’s Favoring the Stock?
The price of West Texas Intermediate crude, trading at more than $75 per barrel, is highly favorable for exploration and production activities. Handsome crude price is likely to aid MTDR, carrying a Zacks Rank #3 (Hold), in increasing production volumes. For 2024, the company guided its total oil production in the band of 91,000 to 95,000 Bbl/d, suggesting a year-over-year hike of 23%.
On another positive note, Matador plans to turn to sales a net of 103.6 wells this year — including operated and non-operated wells. Its prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Overall, handsome commodity prices and expectations for higher production will likely aid Matador Resources’ bottom line.
Risks
However, being an upstream energy player, the company’s overall operations are exposed to extreme volatility in oil and natural gas prices. This is getting reflected in the company’s beta of 3.32.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and has relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Here's Why Hold Strategy is Apt for Matador (MTDR) Stock Now
Matador Resources Company (MTDR - Free Report) is a leading upstream player, having a strong foothold in prolific oil and natural gas shale and other unconventional plays. The company is likely to see earnings growth in 2024 and 2025, respectively.
What’s Favoring the Stock?
The price of West Texas Intermediate crude, trading at more than $75 per barrel, is highly favorable for exploration and production activities. Handsome crude price is likely to aid MTDR, carrying a Zacks Rank #3 (Hold), in increasing production volumes. For 2024, the company guided its total oil production in the band of 91,000 to 95,000 Bbl/d, suggesting a year-over-year hike of 23%.
On another positive note, Matador plans to turn to sales a net of 103.6 wells this year — including operated and non-operated wells. Its prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Overall, handsome commodity prices and expectations for higher production will likely aid Matador Resources’ bottom line.
Risks
However, being an upstream energy player, the company’s overall operations are exposed to extreme volatility in oil and natural gas prices. This is getting reflected in the company’s beta of 3.32.
Stocks to Consider
Better-ranked energy companies include Sunoco LP (SUN - Free Report) , Kinder Morgan, Inc. (KMI - Free Report) and Murphy USA Inc. (MUSA - Free Report) . While Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy), Kinder Morgan carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and has relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession.