Matador Resources Company (MTDR - Free Report) reported third-quarter 2019 adjusted earnings of 32 cents per share, beating the Zacks Consensus Estimate of 23 cents. However, the bottom line declined from the year-ago figure of 48 cents.
Meanwhile, revenues of $279.4 million improved from the year-ago level of $207.2 million and beat the Zacks Consensus Estimate of $231 million.
The better-than-expected results were supported by higher oil equivalent production volume and lower lease operating costs, partially offset by weak average commodity price realizations.
In third-quarter 2019, total production volume averaged 6,407 thousand barrels of oil equivalent (MBOE) (comprising almost 57.1% oil), higher than 5,025 MBOE a year ago.
The average production volume of oil was 39,776 barrels per day (Bbls/d), up from 32,317 Bbls/d in third-quarter 2018. Natural gas production was at 179.2 million cubic feet per day (MMcf/d), up from 133.8 MMcf/d a year ago.
Average realized price for oil (excluding realized derivatives) was $54.19 per barrel, down from $57.15 in the year-ago quarter. Also, natural gas price of $1.88 per thousand cubic feet was lower than $3.77 in the prior-year quarter.
The company’s production taxes, transportation and processing costs declined to $3.86 per BOE from $4.02 in the year-ago quarter. Further, lease operating costs decreased from $4.48 per BOE in third-quarter 2018 to $4.64. Moreover, plant and other midstream services operating expenses fell to $1.38 per BOE in the quarter from the year-earlier number of $1.45.
As of Sep 30, 2019, Matador had cash and restricted cash of $40.8 million. Long-term debt totaled $1,514 million, which included $215 million of borrowings under its credit agreement. Its debt-to-capitalization ratio was 44.2%.
The company spent $213 million during the third quarter of 2019. Matador allocated $193 million of the total amount to drill, equip and complete wells and $20 million toward midstream operations.
The company has updated its 2019 guidance and expects oil production of 13.625-13.675 million barrels compared with 13.3-13.45 million barrels guided earlier. Notably, it reaffirms the 2019 capital expenditure guidance for drilling, completing and equipping wells at $640-$680 million.
Zacks Rank & Stocks to Consider
Matador Resources currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include CNX Resources Corporation (CNX - Free Report) , Contango Oil & Gas Company (MCF - Free Report) and Noble Midstream Partners LP (NBLX - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNX Resources beat the Zacks Consensus Estimate in two of the prior four quarters, the average positive earnings surprise being 34.8%.
Contango Oil & Gas is likely to witness bottom-line growth of 87% in 2019.
Noble Midstream’s 2019 earnings projection has been raised over the past 30 days.
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