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Matador (MTDR) Gains 1.2% Since Q2 Earnings Beat Estimates

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Matador Resources Company’s MTDR shares have gained 1.2% since the second-quarter 2022 earnings announcement on Jul 26. The increase can be primarily attributed to the company’s second-quarter earnings beating the Zacks Consensus Estimate and its higher production guidance for 2022.

The upstream energy company reported adjusted earnings of $3.47 per share, beating the Zacks Consensus Estimate of $3.16 per share. The bottom line significantly improved from the year-ago quarter’s earnings of $1.02 per share.

Total quarterly revenues of $944 million surpassed the Zacks Consensus Estimate of $835 million. The top line also increased from the year-ago level of $357 million.

Strong quarterly earnings were driven by higher oil-equivalent production volumes and realizations of commodity prices.

In good news for investors, Matador increased the quarterly dividend to 10 cents per share, representing a 100% hike from 5 cents. The dividend is payable on Sept 1 to shareholders of record as of Aug 17.

Matador Resources Company Price, Consensus and EPS Surprise

 

Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company Price, Consensus and EPS Surprise

Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote

Production

For second-quarter 2022, total production volume averaged 10,078 thousand barrels of oil equivalent (MBoe) (comprising 58% oil), higher than 8,482 MBoe a year ago.

The average oil production volume was 64,339 barrels per day (Bbls/d), up from 53,354 Bbls/d reported in second-quarter 2021. Natural gas production was 278.5 million cubic feet per day (MMcf/d), up from 239.1 MMcf/d a year ago.

Price Realization

The average realized price for oil (excluding realized derivatives) was $111.06 per barrel, which significantly increased from $64.90 in the year-ago quarter. Also, the natural gas price of $9.57 per thousand cubic feet was higher than $4.46 in the prior-year quarter.

Operating Expenses

The company’s production taxes, transportation and processing costs increased to $8.50 per barrel of oil equivalent (Boe) from $5.17 in the year-ago quarter. Plant and other midstream services’ operating expenses increased to $2.18 per Boe from the year-earlier figure of $1.62. Also, lease operating costs increased from $3.39 per Boe in second-quarter 2021 to $3.95.

Total operating expenses per Boe were recorded at $28.96, higher than the prior-year figure of $23.84.

Balance Sheet

As of Jun 30, 2022, Matador had cash and restricted cash of $282.3 million. Long-term debt was recorded at $1,320.3 million. Debt to capitalization was 32.5%.

Capital Spending

The company spent $143 million for the drilling, completing and equipping of wells in the second quarter, almost 24% lower than its projection. Enhanced operational efficiencies in the Delaware Basin primarily aided its performance.

Outlook

For 2022, Matador increased its oil-equivalent production guidance to 36.9-38.3 million barrels from the prior stated 36.3-38.3 million barrels. The metric suggests an improvement from 31.5 million oil-equivalent barrels reported last year. In the third quarter, the company expects to produce 100,000-102,000 oil-equivalent barrels per day.

Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $765-$835 million for the year, suggesting an increase from $640-$710 million mentioned earlier. In midstream, it expects to spend $50-$60 million for the year.

Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of Other Upstream Energy Players

Pioneer Natural Resources Company PXD reported second-quarter 2022 earnings of $9.36 per share (excluding one-time items), beating the Zacks Consensus Estimate of $8.81. Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.

Pioneer has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Value. PXD is expected to see earnings growth of 151.7% for 2022.

ConocoPhillips COP reported second-quarter 2022 adjusted earnings per share of $3.91, beating the Zacks Consensus Estimate of $3.78. The strong quarterly results were driven by higher oil-equivalent production volumes and realized commodity prices.

ConocoPhillips has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Value. COP is expected to see earnings growth of 143.6% for 2022.

Continental Resources, Inc. CLR reported second-quarter 2022 adjusted earnings of $3.47 per share, beating the Zacks Consensus Estimate of $3.17. The strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.

Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. CLR is expected to see earnings growth of 155.6% for 2022.


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