Here's Why Matador (MTDR) is an Attractive Investment Bet
Matador Resources Company MTDR is a leading upstream player, having a strong foothold in prolific oil and natural gas shale and other unconventional plays. The company has witnessed upward earnings estimate revisions for 2023 and 2024 over the past 30 days.
What’s Favoring the Stock?
The price of West Texas Intermediate crude, trading at more than $70 per barrel, is highly favorable for exploration and production activities. Handsome crude price is likely to aid MTDR, carrying a Zacks Rank #1 (Strong Buy), in increasing production volumes.
For 2023, the company guided its total oil production in the band of 26.8-27.5 million Bbl, suggesting a year-over-year hike of 24%. Matador expects this year’s production to be in the mid to high end of the range.
On another positive note, Matador plans to turn to sales a net of 100 wells this year — including operated and non-operated wells. Its prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Other Stocks to Consider
Some other top-ranked players in the energy space are EOG Resources, Inc EOG and Exxon Mobil Corporation XOM. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has many undrilled premium locations, resulting in a brightened production outlook.
In order to have a dominant presence in the Permian, ExxonMobil has entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources PXD. Pioneer Natural is one of the foremost oil producers operating in the Permian Basin, the most prolific basin in the industry.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
