Matador Resources Reports Quarterly Beat; Shares Surge 5%

Shares of independent oil and natural gas firm Matador Resources Company (MTDR) jumped 5% in Tuesday’s extended trading session after the company delivered impressive second-quarter results driven by all-time quarterly high oil and natural gas production and revenues.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Notably, Matador shares have more than doubled year-to-date, and have gained 238% over the past year. (See MTDR stock charts on TipRanks)

Adjusted earnings jumped to $1.02 per share, beating Street estimates of $0.73 per share. The company reported a loss of $0.03 per share in the prior-year period.

The company posted total revenue of $357.4 million compared to $62.9 million reported in the prior-year quarter. The increase in revenues was driven by a 3.5x surge in oil and natural gas revenues to $412.1 million.

Matador’s CEO Joseph Foran commented “We believe the second half of 2021 will continue to be exciting for Matador and its stakeholders as we work to generate additional free cash flow, lower costs, reduce debt, pay dividends to our shareholders and grow the value of our oil and natural gas and midstream assets. We look forward to finishing 2021 in a capital efficient manner to set up even stronger value creation for Matador stakeholders in 2022 and beyond.”

Following the robust Q2 results, Raymond James John Freeman reiterated a Buy rating on the stock with the price target of $40 (31.2% upside potential).

Freeman forecasts the company to report earnings of $0.52 per share during the third quarter of 2021.

Consensus among analysts is a Strong Buy based on 7 unanimous Buys. The average Matador Resources price target of $40.14 implies 31.7% upside potential to current levels.

MTDR scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.