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Matador Wins BLM Permits to Drill Rodney Robinson Wells

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Matador Resources Company (MTDR - Free Report) recently announced the six drilling permits that it has received from the U.S. Bureau of Land Management (BLM) for its Western Antelope Ridge asset area.

The company had envisioned getting these permits by third-quarter end or early fourth quarter this year. Further, Matador informed that it already started its drilling operations at these ‘Rodney Robinson’ wells in the Western Antelope Ridge asset area.

Last September, Matador acquired the 1,200-acre Rodney Robinson tract among others from the BLM New Mexico Oil and Gas Lease Sale, which happened to be the largest auction in the last 10 years. These six wells, two-mile lateral each, are expected to be drilled from two separate three-well pads. The wells are planned to be completed and made ready for sale in early 2020.

Matador is awaiting its pending drilling permits from the BLM and plans to begin operations on its 2,800 (gross and net) acre Stateline asset area — also acquired as part of the BLM lease sale — early next year.

The Rodney Robinson drilling permits are likely to help Matador continue with its strong momentum in production. The company plans to boost its year-over-year output despite lower capital spending through 2019 reflects an improving operational and capital efficiency. Notably, Matador estimates oil production through 2019 in the band of 13.3-13.45 million barrels, reflecting an increase from 2018’s reported figure of 11.14 million barrels. These drilling permits will aid Matador to reach a step closer to its projected target.

Matador is among the leading oil and gas explorer in the shale and unconventional resources in the United States. The company’s upstream operations are primarily concentrated in the Delaware and Midland Basins — two sub-basins of Permian — and South Texas’ Eagle Ford shale. The company, founded in 1983, also operates in the Cotton Valley and Haynesville shale resources.

Zacks Rank & Key Picks

Matador carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include BP Midstream Partners (BPMP - Free Report) , Dril-Quip, Inc. (DRQ - Free Report) and TC Pipelines, LP (TCP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BP Midstream’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.

Dril-Quip earnings beat the Zacks Consensus Estimate in three of the previous four quarters.

TC Pipelines earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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